MODULE – 4 Packaging and Labeling
FMCG and Automotive
Goods Handling
16
Notes
PACKAGING AND LABELING
Packaging products for local, domestic, or international transportation as well as
storage and handling is a major challenge, not just for logisticians, but for
manufacturers, channel partners and consumers as well. In most cases, the
responsibility of packing rests on the manufacturer. In certain cases, e.g., food
grains, the product may be obtained in bulk – either unpacked or in sacks – and
repacked in consumer packs. Packaging is a very specialised topic and needs to be
given a great deal of importance. Different types of packages are required for
different types of goods that move from manufacturing units to retailers and then
to the consumer. This will include repacking at marketing & distribution channels
i.e., warehouses of wholesalers, stockists, etc.
LEARNING OUTCOMES
After completing this lesson the Learner
z explains how goods are packed and stored;
z states the types of packages and packing materials;
z describes labeling and barcoding;
16.1 CATEGORIES OF PACKAGING
There are various means of categorizing packaging. One of them is to divide them
into primary, secondary, and tertiary packaging.
Primary or Consumer Packaging
Primary packaging is what the consumer sees directly. In other words, it is the
packaging in direct contact with the product itself. It is often referred to as
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consumer or retail packaging. The main purpose of primary packaging is to protect Goods Handling
and/or preserve, contain, and inform the consumer. In a retail sale, it is what the
buyer sees when goods are displayed on the shop-shelf or delivery point when
goods are handed over to the consumer.
Secondary Packaging Notes
The main purposes of secondary packaging are brand display and logistics. In these
cases, they also serve the purpose of displaying primary packs on shelves. They are
sometimes also referred to as grouped or display packaging. Sometimes a need
arises to display multiple product units for sale e.g., buy two get one free, buy a
toothpaste and get soap free. Here the two units may be taped or wrapped together.
Secondary packaging also includes this, packaging purposely made to move goods
faster. This helps in speeding up restocking from storeroom to shelf.
Packaging of this type includes retail-ready packaging (RRP), shelf-ready
packaging (SRP) or counter-top display units (CDUs). Secondary packaging is
predominantly corrugated cardboard packaging generally with high-standard
printing and paper. The most common type of secondary packaging is the
corrugated paper box.
Fig. 16.1: Cardboard Packaging
These consist of flat sheets of paper, generally brown, in between which are
sandwiched sinusoidally shaped sheets as shown in the illustration below:
This depends on the number of flat & corrugated paper sheets that are glued
together. As this is the most commonly used type of secondary packaging and, used
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MODULE – 4 Packaging and Labeling
FMCG and Automotive
Goods Handling
sometimes for primary and tertiary purposes as well, it requires a more detailed
discussion. Corrugated box design is the process of matching design factors for
these boxes with the functional physical, processing, and end-use requirements.
Notes
Fig. 16.2: Three-ply or Single-walled
Retail Ready or Shelf Ready Packaging
We will be dealing with marking and labelling at a later stage. What we need to state
here is that when handing over packages, corrugated boxes or others, they require
proper markings, numbers, and labels to enable everyone involved to identify the
contents. There are also legal and regulatory requirements with regard to marking
and labelling including barcoding. Boxes may also be used for marketing,
merchandising and point-of-sale storage. Often high graphics are used to help
communicate the contents. Some boxes are designed for the display of contents on
the shelf. This is known as Retail Ready or Shelf Ready Packaging. Many are
designed forease in dispensing the contents. The boxes can handle the pressure that
comes with stacking, making them ideal for easy transporting. They are also light in
weight leading to a reduction in shipping costs, especially in air and courier modes.
Fig. 16.3: Retail Ready
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FMCG and Automotive
Stacking Goods Handling
A very important feature of a corrugated box is that it is crush resistant giving
excellent product protection and a great deal of strength for stacking packages in
warehouses and ULDs. A box can be designed to support the maximum load and
for possible high stacking. This is done by optimizing the grade of material from
which the corrugated board is made, the box design, the flute direction, and inner Notes
supports. Also provided is load sharing which can be an important factor. Box
closures too can sometimes influence the stacking strength of boxes. Where the
humidity is high, they can be designed to be moisture resistant. These boxes can
very easily be loaded on pallets. Vertical columns provide the support for stacking.
Boxes can be tested and evaluated. Testing will show how high the boxes can be
stacked, the loads they can bear and the shocks they can take. They could also be
tested for compatibility with different unit loads.
Another alternative as we’ll see in the bottled water and soft drinks industries,
which use plastic wraps to cover twelve or twenty-four bottles. There are two
types of such wrappings, usually made of low-density polyethylene – stretch wrap
and shrink wrap.
Fig. 16.4: Stretch Wrap
Fig. 16.5: Shrink Wrap
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FMCG and Automotive
Goods Handling The purpose of using them – and this includes the previous examples of corrugated
boxes and outers as well – is to consolidate multiple units into one and protect them
from the elements. Shrink-wrap is generally thicker than stretch-wrap but is more
resilient to multiple handling. Many people wrongly use the terms shrink- and
stretch-wrap interchangeably.
Notes Secondary packs are what the retailer sees and handles. The goods in them need
to be unpacked and placed in shop shelves. Retailers may also offer consumers and
entire carton/secondary pack at a discount.
Tertiary or Transportation Packaging
Tertiary or transportation packaging includes all additional protection given to
goods to ease handling, storage, and transportation. For example, in places where
labour costs are high, it makes sense to palletise the secondary packs into units so
they can be easily lifted and moved with the help of a fork-lift. This ensures safe,
efficient, and effective delivery, with no damage, at the lowest cost to the buyer –
domestic or international.
Tertiary packaging facilitates the protection, handling, and transportation for sales
units or secondary packaging in order to group everything into unit loads during
transit. This type of packaging is rarely seen by the consumer. Tertiary packaging
is, in other words, packaging placed around or over the secondary or retail packs.
This mainly applies to consumer goods. For industrial goods, primary and
secondary packaging may not exist.
Fig. 16.6: Transportation Packaging
INTEXT QUESTIONS 16.1
I. Fill in the blanks
1. In most cases, the responsibility of packing rests on the ..................
Goods that are shipped or stored unpacked are termed as ..................
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FMCG and Automotive
2. .................. or .................. is what the consumer sees directly. Goods Handling
3. The main purpose of primary packaging is to .................. and/or
.................., contain, and inform the consumer.
4. Single, double, and triple walled corrugated boxes are also termed as
..................-ply, ..................-ply and ..................-ply.
Notes
5. ULD expands to .................. .................. ...................
II. Write a detailed note and primary, secondary, and tertiary packaging
and what are their functions
16.2 FUNCTIONS AND OBJECTIVES OF PACKAGING
The protection of goods from the perils of transportation – domestic as well as
international, whatever the mode, handling, and storage is the primary function
of correct packaging. Any packing that is insufficient in protecting goods during
transportation, handling, and storage is considered improper packaging.
The second function of correct packaging is to make handling of goods easier.
When packages are well-designed, the people handling them, whether the same is
done manually or with the use of equipment like forklifts and cranes, can do so with
ease. Most important, all handling and care instructions must be clearly stated on
the packages. Example, orientation arrows, when needed, must be stuck on two
sides of a package. This is an absolute must for liquids. If packages must be
sheltered from sun or rain, suitable labels must be stuck.
Fig. 16.7: Packaging
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FMCG and Automotive
Goods Handling
The third function of proper packaging is often overlooked. Packaging plays an
important role in a company’s customer service strategy. Every buyer of consumer
goods expects that they will receive the item purchased in a usable condition.
Retailers would like to receive them in sellable condition while wholesalers and
other upstream marketing and distribution channels would like them to be packed
Notes in convenient units.
The fourth function of packaging is branding. Packages reflect the image of the
company. Therefore, the design of the package ought to have a positive impact on
the consumer, who tends to be sensitive to the external appearance of the goods
they pick up for use.
Lastly, packages should be, as far as possible, designed for multiple usage. The
materials should be eco-friendly. This is mandated in several parts of the world and
won’t be long before it becomes universal.
Fig. 16.8: Packaging
INTEXT QUESTIONS 16.2
I. Fill in the blanks
1. Two functions of packaging are .................. and ..................
2. .................., .................. & .................. account for about 80% of insurance
claims in transit.
3. Recycling helps reduce .................. and minimize to the environment.
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FMCG and Automotive
4. .................. .................. , when needed, must be stuck on two sides of a Goods Handling
package to show which side of a package should face up.
5. Q: What alternative arrangements need to be made if a port’s draft is too
shallow.
A: .................. or .................. [Both are multiple word answers]
Notes
II. How does good packaging help in customer service?
16.3 MARKING AND LABELING
Almost always, packaging is done at the end of the assembly line, although it may
be done elsewhere, like in storage places or even retail outlets, for instance. Labeling
is also done here. The main reason for packaging and labeling to be done at the end
of the assembly line is one can avoid accumulating an inventory of pre-printed
packages and labels. The end of the assembly line is also a key point of control
because this is the place where one can get an exact measure of production in terms
of quantity or numbers. Packages, once they are moved away from assembly lines,
become stock of finished goods which are moved from production to storage. They
now become the responsibility of the outbound logistics division of the company. At
the end of the assembly line, it is necessary to maintain a complete inventory of all
the packages, packing materials and labels that will be used.
Once the manufactured goods are packed, i.e., they are put into the packages and
the same closed, the contents are no longer visible. They are hidden. It is for this
reason that marks, numbers, and labels and needed to identify the contents.
Fig. 16.9: Labeling
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FMCG and Automotive
Goods Handling There are times, especially when goods that attract pilferers are put into packages,
it makes sense to put code numbers on the packages rather than make it easy to
identify. Often, one may need to affix retro reflective labels that can be read by
optical scanners. Batch numbers are frequently attached to several items, food
products and pharmaceuticals being on the top of them. Another important
Notes function of marks, numbers, and labels is to make it much easier to know, in real
time, the location of a package. RFID, i.e., radio frequency identification labels,
are helpful in such instances.
Fig. 16.10: Labeling
There are several other reasons for marking and labeling. Among them, as we’ve
seen, are orientation and handling instructions labels as well as labels for dangerous
goods. Packaging, marking and labeling of dangerous goods, as well as its
handling, is a specialized subject which has a great deal of scope.
Fig. 16.11: Barcodes
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FMCG and Automotive
Barcodes have been widely used in labeling, long before RFID labels came into Goods Handling
existence. They are read by specially designed scanners. Their introduction has
enabled the dissemination of information of the status of consignments almost
instantly.
Notes
Fig. 16.12: Barcodes
Barcodes are by scanners or sensors. They do much more than merely signaling the
presence of a container or a package/component. They also give as much
information as is needed about the part so accurate production and inventory
records can be maintained. They are also used to determine the routing of the
component from one workstation to another. Barcodes are mostly one-dimensional.
However, many companies are moving to a code with two-dimensional barcodes.
These hold much more information in a very tiny space.
Before the advent of RFID, all labels were visible to the naked eye. Today we have
labels that are tiny chips embedded into the product or the package. These can be
read using electronic devices especially meant for the purpose. The Radio
Frequency Identification RFID (RFID) is one such type of label. RFID labels
allow information contained in the chips to be updated as they move through the
supply chain. Initially, they were very expensive. However, they’ve become very
economical now.
To conclude, packing along with marking and labeling the packages play a very
important part in logistics.
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FMCG and Automotive
Goods Handling
INTEXT QUESTIONS 16.3
I. Fill in the blanks
1. Q: What is the main reason for packaging and labeling to be done at the
Notes
end of the assembly line?
A: .................. .................. [One sentence answer]
2. Packages, once they are moved away from assembly lines, become stock
of .................. ..................
3. .................. .................. division is responsible for moving goods from the
manufacturing unit to distribution channels.
4. Goods that attract pilferers are protected by putting them into packages
with .................. .................. (code numbers)
5. RFID expands to .................. .................. .................. .................. (radio
frequency identification)
II. How does good packaging help in customer service?
WHAT YOU HAVE LEARNT
z Packing and Storage of automotive goods.
z Principles of Packaging.
z Material used in packaging.
z Labeling, Barcoding and tracing.
z Unpack, Repacking, Kitting and Clearance debris.
TERMINAL EXERCISE
1. Discuss the importance of packaging.
2. Write a note on primary packaging.
3. Describe the different types of corrugated boxes that are available.
4. Write a detailed note on the functions and objectives of packaging.
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FMCG and Automotive
5. How does good packaging help in customer service and branding? Goods Handling
6. What are the different reasons that insurance companies have to pay
damages for during transit of goods? How does good packaging eliminate
them?
7. Write a note on the various perils of transportation. How does quality
Notes
eliminate or reduce them?
8. What purpose do orientation arrows and other markings on packages serve?
Illustrate your answer with drawings.
9. Write a detailed note on the role of marking and labelling on packages.
ANSWER TO INTEXT QUESTION
16.1
I. 1. manufacturer 2. bulk
3. primary, consumer 4. protect, contain
5. three, five, seven
II. unit load devise
16.2
1. protection, easier handling, customer service, branding
2. mechanical damage, water damage, theft/pilferage
3. costs, damage
4. orientation arrows
5. loading in anchorage or using smaller vessels
16.3
I. 1. to avoid accumulating and inventory of pre-printed packages and labels
2. finished goods
3. outbound logistics
4. code numbers
5. radio frequency identification
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FMCG and Automotive
Goods Handling
GLOSSARY
Barcode a machine-readable code in the form of numbers and
a pattern of parallel lines of varying widths, printed on
a commodity and used especially for stock control.
Notes Carton a small, light box or container in which drinks or
foodstuffs are packaged.
Label a small piece of paper, fabric, plastic, or similar material
attached to an object and giving information about it.
Marking a descriptive name, identification number, instructions,
cautions, weight, specification, or UN marks, or
combinations thereof, required on outer packagings of
hazardous materials or dangerous goods.
Package an object or group of objects wrapped in paper or
packed in a box.
Packaging the business or process of packing goods.
Pallet a flat, (usually wooden) structure that is used for
handling transport, storing goods or transporting freight.
Click here for more details about types of pallets,
materials, and measurements. The pallet is one of the
most common structures for loading goods in the
transport and logistics sector.
Primary packaging the packaging in direct contact with the product itself
and is sometimes referred to as consumer or retail
packaging. The main purpose of primary packaging is
to protect and/or preserve, contain and inform the
consumer.
RFID a type of tracking system that uses radio frequency to
search, identify, track, and communicate with items
and people. Essentially, RFID tags are smart labels that
can store a range of information from serial numbers,
to a short description, and even pages of data
Secondary packaging the exterior packaging of the primary packaging that
groups packages and further protects or labels the
drug product
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Goods Handling
Shrink wrap clinging transparent plastic film used to enclose an
article as packaging.
Tertiary packaging Often also referred to as bulk or transit packaging, this
type of packaging is used to group larger quantities
of SKUs to transport them from point A to point B
(e.g. from production facility to point of sale). During Notes
this stage, products are handled as distribution units
ULD see Unit Load Device
Unit Load Device a special device that is used in air transportation to load
cargo, baggage, and mail. The ULC comes in two
forms: pallets and containers.
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