The Impact of Packaging Innovations on the Supply Chain
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Continuous packaging innovation within companies leads to many activities related to the supply chain that should be optimized. These changes and innovations are the result of strategies and objectives that companies must focus on to remain competitive. Strong competition is the result of today’s global market economy. In addition, customers’ expectations have increased. Therefore, the product’s life cycle has been decreasing, leading to changes in product presentation and/or formula because companies have found that packaging plays an important role in a variety of issues, such as the consumer selection process, cost reduction, and research and development applications. Consequently, the traditional manufacturing model of mass production and long production runs is being re-engineered and re-structured to improve each firm's competitiveness in this new environment.
A hypothetical scenario of a company facing the different challenges such as SKU proliferation and higher storage area needs is presented. A feasible solution is provided to overcome some of these challenges. Recommendations are given to improve the supply chain flow of materials and information within and outside the company. By improving the different interactions among the different components of the supply chain, and by reducing the problems that arise when the packaging innovations and changes are implemented in an organization, companies improve their customer service, reduce the related cost of inventory management, and avoid unwanted write-offs of old materials. Future success and longevity of the company will be based in its ability to handle and foresee the different issues faced in an environment where customers’ expectations regarding product quality and services continually increase.
CitationRaigosa, M. (2002). The impact of packaging innovations on the supply chain (Unpublished thesis). Southwest Texas State University, San Marcos, Texas.
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