Importance of Packaging in Supply Chain Management

Abstract

Establishment of efficient linkages and making a strong and transparent supply chain is the essence of modern day manufacturing. The inventory costs and transportation costs constitute a large proportion of the overall costs. In a competitive world efficiency of manufacturing would be to reduce the cost of manufacturing to increase profit rather than increase selling price to increase the profit. It is true that customer would be displeased with a product in case it is damaged or tampered. So for reduced inventory, transportation cost and safety and security of the product transported packaging is an important aspect. With the emphasis on Green supply chain efforts are being made to reduce the dependency on packaging materials, more so an effort to go in for reusable packaging materials. The proposed research work has the aim of analyzing the importance of packaging in supply chain management. Review of literature indicates that the aspect of packaging is crucial in the field of supply chain management. Studies carried out on the financial aspects of supply chain management have brought out factors such as lack of attention given to packaging of products. A descriptive research methodology is adopted. In the past such a correlation has not been attempted realistically, thus it was found that a study would be enriching, useful and interesting. The findings will give an insight on to the relevance of practicable methods to undertake innovation in the field of packaging not only at the industry level but also at global operations level and may serve as input in improving profitability, ensuring efficiency in business methods and support further research on the subject.