Design for Logistics

Prepared By,
Taabish Shaikh – 2123025
Mohseen Sayed - 2123027
 Introduction

Components

Example

Contents
Key Features

Conclusion
Design for Logistics

This is a strategy in supply chain management which involves

product design to reduce logistics cost.

A quintessential example of design for supply chain is Soda Cans. In 1957

Soda Can manufacturers switched from cone top soda can to flat top
soda can, the cans became easier to store, stack and transport.

This resulted in tremendous cost savings for the industry 

 1. Economic Packaging and transportation

• Product design should facilitate easy to ship and shelf.

Example Rubbermaid design that fits Walmart’s 14x14
shelf.
Components • Product should be easy to pack and track.
• Example IKEA’s disassembled and flat packaging
strategy.
2. Concurrent and parallel processing

• The manufacturing process should be designed to

perform steps in parallel to save lead time and lower
inventory cost.
3. Standardization

• Achieve standardization of parts by using common

parts for many different products. Similarly for
procurement we can use standard processing
equipment for several products.
Key features

Light Weight Low bulk and Neat fit

Standardisation Robust
Example

• One good example of DFL is HP Printer, Model DeskJet 1200C. HP involved the
package engineering and logistics team in product design phase to help devise
strategies to reduce cost of packaging, shipping and warehousing. 
• The packaging team researched on optimal product size and strength. It found that
HP could save a lot of money if the product length was under 19 inches, product is
strong enough to handle 50g shock at a specified velocity and if the media trays
are made customer installable.
Following steps were taken to achieve logistics cost savings:
1. Incoming kits of parts were created. This would help reduce number of parts ordered,
shipped and stored.
2. Packaging material of top case kit were reused for shipping printers to HP distribution
centers and then also reused for shipping printer to customer. Reusable packaging also
helped reduce trash disposal.
3. By setting product strength at 50g, helped designers to focus to strong products. This
resulted in huge cost savings of the order of 50% compared to other HP printers by
reducing the thickness of package cushioning wall and allowing designers to use low-
cost material for packaging cushioning.
Conclusion

1. Design for logistics is a crucial component in supply chain management. It is not

just a mechanism to save costs but is being consistently used as a  strategic
weapon to gain competitive advantage.
2. Need to design products to suit shipping, not just design for manufacturers,
assembly and end use
3. Sustainability is a major theme, due to comparatively short useful life of most
packaging
Thankyou