REVIEW OF THE LITERATURE
3.9. Improper Packaging – Modern Life - Over packaged Products
Chapter 3 – Packaging in the supply chain: Review of the literature
106 during its usage as well. Rundh, (2009) supports that in many cases packages are so attractive that consumers keep using them as containers for other purposes long after their opening. On the other hand as Styring (2013) notes it is not unusual for many packages (due to hard usage) to become scratched and soiled over time, with spoiled labels and even faded brands.
It should be recognised that despite its vital role in the supply chain, the industry always tries to restrain packaging cost in order to keep the commercial profit intact. So the designer is pushed to keep a really fragile balance between packaging cost and efficiency, in an effort to get the most benefit with the lowest cost so that at last, packaging represents a small proportion of the overall unit cost of the product of which it is part (Mason, 2001).
107 Global trade and different regional consumption habits emphasise the importance of packaging. The expansion of many companies to foreign markets (compared with the domestic markets where they used to trade), has increased the distances between the place of production and the point of consumption (Jahre and Hatteland, 2003). Combining this issue with the stock out costs that may occur because of improper packaging, requires export companies to use more efficient packaging for their products for the minimization of this danger.
Despite the fact that the penalty for being out of stock for the manufacturer or the retailer depends on many things (kind of product, consumption habits etc.) and is not ever stable, it has been observed that sometimes stockouts can cause customers to abstain from buying or search for the product elsewhere (Zinn and Liu, 2001).
Interesting studies in the field reveal significant losses for the manufacturer or the retailer due to stockouts. Results concerning four of these studies have been included in the following Table 3.4. Consumers decided to a) Substitute the item, b) Delay the purchase or c) Leave the store.
Table 3.4. Consumer response to stockouts in four studies of SDL behaviour (%)
1st Study 2nd Study 3rd Study 4th Study Progressive
Grocer
Schary and Christopher
Emmelhainz et.al.
Walter and Grabner
Substitute 48.8 22.2 36.0 83.4
Delay 24.0 29.8 25.0 02.5
Leave 28.2 47.9 39.0 14.1
Source: Zinn, W., Liu, P. (2001) ‘Consumer response to retail stockouts’ Journal of Business Logistics [online] Available at: < http://www.findarticles.com/p/articles/mi_ qa3705/is_200101/ai_n8929220>
As Sheridan (1992) and Andel (1991) recognise a scholastic packaging investigation can offer significant cost advantages to a company that can be summarized to the following points:
• Lighter packaging may result in lower transportation costs.
• More protective packaging may reduce damage and requirements for special handling.
• Environmentally conscious packaging may save disposal costs and improve the company’s image.
Chapter 3 – Packaging in the supply chain: Review of the literature
108 3.10. Packaging and the environment
3.10.1. Green or Environmental Friendly Packaging
At the beginning of 1990’s, Milton (1991) stated that “consumers are prepared to substitute performance benefits for environmental well-being, without expecting or demanding a reduction in product price”. Nowadays, on the contrary, according to Mitchell (2010) more and more shoppers are asking for innovations in packaging (e.g. packaging with press-to-close zippers or slider zippers applied) no matter if they have to pay more for this in order to both enhance convenience and provide a better overall protection for the contained product. These packaging innovations not only reduce the consumers’ costs by providing a better overall protection of the product itself but at the same time affect the environment by preventing product waste or deterioration.
Throughout the years consumption habits have changed. The consumers are willing to protect the environment and “green” has become an everyday word.
However, it is difficult to say if the consumers know exactly what “green” means or when a product is environmental friendly or not. And it is even more difficult for many of them, to define the environmental friendliness of a specific type of packaging.
Supporting the above aspect Young (2008) states that even if they want to protect the environment, most shoppers lack knowledge on packaging materials and their environmental impact.
A number of questions, if asked by the consumer, could reveal this blurred area. For example, how does the consumer judge the “greenness” of the packaging?
• Based on the recyclability of the packaging?
• Based on the reusability of the packaging?
• Based on the manufacturing process of the packaging?
• Based on the materials used for the production of the packaging?
• Based on the ability of the packaging to be biodegradable or not?
There are more complicated issues on the environmental friendliness:
• What kind of protection does it offer to the products? Are there any product damages during handling or other logistics processes?
• Is the recycling process of the packaging (if it can be recycled) environmental friendly? What amount of natural resources is consumed during the recycling process?
109 All these questions encompass the general issues of packaging that are directly connected with the environment. Most of them are addressed below in Chapter 5 - Analysis & Discussion.
3.10.2. Alternative Packaging Materials
There are indications that the industry is seeking to find more environmental friendly ways of doing business. The substitution of some traditional packaging materials with other more ecological substances is indicative of this trend.
For example, Dell announced in November 2009 the use of packaging (for a specific product), made from bamboo, as an alternative to paper based packaging.
The general idea behind this campaign was promoted as follows:
“This innovation is the latest expression of Dell’s commitment to minimizing its impact on the planet and making it easy for customers to do the same.” (See Figure 3.13.)
Figure 3.13. Dell’s new bamboo packaging
Source: Dell, viewed 12 May 2011, <http://content.dell.com/us/en/corp/d/press-releases/2009-11-17- bamboo-cushions.aspx>
Dell supports that bamboo is an ecological material because:
• It grows fast.
• It is strong.
• Easy on the environment. The plant’s deep root systems protect against land erosion, and when harvested correctly, it doesn’t require replanting after harvest.
Moreover, as cited by Azlan and David (2011), the use of natural fibres from renewable natural resources as biodegradable packaging materials is a new option.
Chapter 3 – Packaging in the supply chain: Review of the literature
110 As described, these new environmentally friendly materials could be used for the production of several types of packaging e.g. glass containers. It is also added that natural fibre materials have the following advantages:
• High specific strength and modulus.
• Low cost.
• Low density.
• Renewable nature.
• Biodegradability.
• Absence of associated health hazards.
• Easy fiber surface modification.
• Wide availability.
• Relative non abrasiveness.
In any case new materials and manufacturing techniques are expected to pave the way in the packaging industry. It is very likely that in the near future environmental protection is going to play a significant role and more and more biodegradable materials are going to be used in an effort to provide increased sustainability in the packaging sector.
3.11. Packaging Recovery Methods