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1、Unit Six PackagingPre-reading Discussion 1. What are the logistics functions of packaging?2. What are the two types of packaging?3. What kind of influence does packaging have on logistic activities?Introduction1Simply speaking, packaging encloses and protects the product. It also makes the physical

2、handling of the product much easier. Now, it is considered as “the art, science, and technology of preparing goods for transport and sale” by British Standards Institution, and “a means of ensuring the safe delivery of a product to the consumer in sound condition and at minimum cost”. According to t

3、his definition, although packaging does not often add any value to a product, it not only has a substantial impact on the efficiency and effectiveness of the delivery process, but also has an impact on the layout, productivity and design of the warehouse, marketing and selling of products.Logistics

4、Functions of Packaging2Packaging is the material (for example, carton, wood and steel) in which a product or a group of products are wrapped and consists of the containment, protection, apportionment and unitization of goods. It adds convenience for customers and provides them with necessary informa

5、tion regarding the packed goods. It enhances the handling and appearance of the goods and leads to the improvement in the flow of goods through the logistics channel.3Packaging performs six important logistics functions, namely containment, protection, apportionment, unitization, convenience, and co

6、mmunication.4 Containment is the function of packing products into boxes or other containers and of packing these boxes or containers into bigger containers, in order to transport the products effectively.5Goods can be packed into tins or bags of different sizes. The tins or bags can be packed into

7、cardboard boxes. In this way, goods will take up less storing space in the warehouse and make physical stock counts easier as the cartons can be packed in different denominations. These boxes can then be packed into a container. By properly containing the goods in different forms of packaging, they

8、can be transported effectively. 6 Protection refers to the function of protecting the product from damage or loss caused by external factors such as contamination, moisture, physical shocks and dust. For example, sugar needs to be protected against moisture. The paper packets in which it is packed p

9、rotect it against physical shocks and moisture. The boxes in which the packets are packed protect the packets. It is important that the packets are also protected, as they draw the attention of the customers in the retail outlets.7 Apportionment is the function of dividing the original volume of man

10、ufactured goods into smaller and more manageable units. Different sizes can meet customers needs for differentquantities. For example, instead of selling sugar in 50kg bags, it is packed into 500g, 1kg, or bigger packets. Customers can then buy the sugar in more manageable packaging sizes.8 Unitizat

11、ion is the function of bundling primary packages (i.e. packages that wrap the products) into secondary packages (i.e. containers that hold the primary packages) such as cardboard boxes. The secondary packages can then be grouped into one wrapped pallet. These individual pallets can, in turn, be load

12、ed into a container with several other pallets.9 Unitization reduces the number of times a product needs to be handled. A whole pallet can be placed in an open space on the shop floor of a wholesaler or a retailer. The boxes that are stacked onto the pallet can be opened at the top to enable custome

13、rs to pick the product.10 Convenience is a characteristic of packaging that refers to the effective handling, storage, and transportation of products. The different characteristics of the products determine different packaging methods. Whether choosing a glass bottle or a paper box, it is to make it

14、 easy to handle the product. 11 Information refers to the function of communicating with the outside world through the packaging. This can be done by attaching labels or printing information directly onto the packaging.12 Instructions such as “handle with care” (for fragile items) or “store in a coo

15、l place” (for perishables) can be printed onto the packaging or onto the labels attached to it.Types of Packaging13 Packaging can generally be divided into consumer (interior) packaging and industrial (exterior) packaging.14 The marketing department should be involved with consumer (interior) packag

16、ing as this packaging provides information that encourages the consumer to buy the product. Consumer packaging also has the potential to set the product apart from other products which are competing for the attention of customers on retailers shelves. The brighter the colour of the label is, the mor

17、e likely it will attract the attention of the customer.15 When designing consumer packaging, one should consider retail shelf unitization, protection of the product, customer convenience, and cost. The result is that packaging often does not comply with logistical requirements such as density of sto

18、rage. Low-density packaging brings about higher transport rates and greater warehouse space requirements.16 Industrial (exterior) packaging groups products or components into cartons, barrels, bins, bags and others. It provides protection against shock, moisture, heat, and other factors that may dam

19、age the products. Industrial packaging originates from logistics principle: besides protecting products, it also enables a business to use its transport and warehouse facilities effectively. It is an effectivemeans of providing information, conveying and handling products.17 It is important to be aw

20、are that consumer packaging and industrial packaging sometimes overlap. When consumer packaging is designed to protect the interior product, the exterior packaging should also be considered. It serves no purpose to pack ten 1kg packets of sugar into one 10kg bag if the latter does not protect the in

21、terior product properly. If the small packets break in the transport process, the bag will get filled with sugar from the broken packets and the purpose of using smaller bags is defeated.Impacts of Packaging on Costs18 As the packaging is seen as part of a specific product, packaging costs form part

22、 of the total costs of that product. Plastic, steel, wood, carton, and soft materials used for industrial packaging also add to the costs of a product. Some of these materials, such as plastic and carton, are relatively cheap. These materials are also light, which reduce handling and transport costs

23、. Packaging impacts on transport costs, handling costs, and warehousing costs.19Transport costs: The heavier or bulkier the packaging material is, the higher the freight charges and handling costs will be. Products with a higher mass need bulkier handling equipment and more energy (electricity or fu

24、el) is required to move them. 20 Transport trucks are designed to carry a certain number of containers that fit perfectly onto the truck. More products can be loaded into one container when using square or rectangular packaging, as they take up less space. An example of the reduction of transport co

25、sts through better and more efficient forms of packaging is the stacking of goods cases onto pallets that fit perfectly onto a truck. These pallets are designed in such a way that the maximum amount of goods can be loaded onto a truck for each trip. This reduces the cost per load.21 Handling costs: The handling of products can be improved by packing them into boxes or crates which are stacked onto pallets. Fork-lifts load the pallets onto trucks or move them through the warehouse.

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