Freight Logistics Info

Packaging and labeling, Packaging is the science

2011-01-14T20:30:00.000-08:00

Packaging and labeling

Packaging is the science, art and technology of enclosing or protecting products for distribution, storage, sale, and use. Packaging also refers to the process of design, evaluation, and production of packages. Packaging can be described as a coordinated system of preparing goods for transport, warehousing, logistics, sale, and end use. Packaging contains, protects, preserves, transports, informs, and sells. In many countries it is fully integrated into government, business, institutional, industrial, and personal use.

History

Amphorae on display in Bodrum Castle, Turkey
The first packages used the natural materials available at the time: Baskets of reeds, wineskins (Bota bags), wooden boxes, pottery vases, ceramic amphorae, wooden barrels, woven bags, etc. Processed materials were used to form packages as they were developed: for example, early glass and bronze vessels. The study of old packages is an important aspect of archaeology.

Iron and tin plated steel were used to make cans in the early 19th century. Paperboard cartons and corrugated fiberboard boxes were first introduced in the late 19th century.

Packaging advancements in the early 20th century included Bakelite closures on bottles, transparent cellophane overwraps and panels on cartons, increased processing efficiency and improved food safety. As additional materials such as aluminum and several types of plastic were developed, they were incorporated into packages to improve performance and functionality.

In-plant recycling has long been common for production of packaging materials. Post-consumer recycling of aluminum and paper based products has been economical for many years: since the 1980s, post-consumer recycling has increased due to curbside recycling, consumer awareness, and regulatory pressure.

As of 2003, the packaging sector accounted for about two percent of the gross national product in developed countries. About half of this market was related to food packaging

Supply Chain and Logistics Conferences to Attend in 2011

2011-01-13T00:16:00.000-08:00

Supply Chain and Logistics Conferences to Attend in 2011

Everything is white outside my window this morning. Snow has been falling since midnight, and the forecast says the snowfall will continue throughout the day. The kids are home and anxious to get outside to build their tunnels and snowmen, while I’m just staring at the wall of heavy, packed snow at the end of my driveway, which I’m not quite ready to tackle yet.

I had planned to write about the missing link in transportation business intelligence dashboards, but the weather’s not right for it. Instead, I want to walk through the calendar and highlight several supply chain and logistics conferences you should consider attending this year.

On top of your list, of course, should be our very own seminar “Beyond the Perfect Order Metric: Bringing Together Supply Chain, Category Management, and Mobile Technologies to Improve On-Shelf Availability.” If the great agenda and lineup of speakers (Del Monte Foods, Whirlpool, Lowes, Sony Electronics, Kraft Foods) is not enough to entice you, then maybe envisioning yourself in sunny Orlando, learning and networking with your peers, might do the trick. But don’t wait much longer to register. The seminar is less than four weeks away and space is limited.

You should also make it a priority to attend the user conferences of your supply chain and logistics technology vendors, as well as any events your key 3PL partners organize. These conferences are a great opportunity for you to meet with the senior executives of these companies to let them know what’s working well and what improvements they can make to better serve you. Networking with other customers and learning from their case studies are an added benefit, as well as gaining insight on new product releases and development plans.

Below is a short list of the conference that I or Steve Banker typically attend, often as speakers. The only problem is that many of these event organizers forget that there are twelve months in the year, so they cram as much as possible into May.

The $4.3 billion freight transportation and logistics services

2011-01-13T00:13:00.000-08:00

The $4.3 billion freight transportation and logistics services

The $4.3 billion freight transportation and logistics services company Con-way has published its third quarter figures and it shows how the logistics market is fairing so far this year. Con-way's less than truckload (LTL) business increased over 13 percent in revenue over last year, while weight per day increased almost 9 percent. Although the company says that the figures were affected by external factors which raised operating costs, and shipper demand that leveled out towards the end of the quarter.

Con-way has been cognizant to reduce costs within their LTL business while the market continues to adjust. The company had a number of factors which reduced profitability in the quarter such as higher purchased transportation, temporary labor and rental equipment expenses. In addition, Con-way was hit by severance and office consolidation costs which further reduced the ability to report higher profitability.

UK Logistics Firms See Fuel Shortages

2011-01-13T00:09:00.000-08:00

UK Logistics Firms See Fuel Shortages

It may be cold and snowy in the Eastern US at the moment, but in the UK and Europe the unseasonable heavy snow and icy conditions have caused chaos for logistics companies. To add to the misery of the average transportation manager is the fact that fuel shortages are cropping up across the UK. Many gas stations are already out of gas or will run out of fuel in the next few days. Deliveries are not being made as refineries have been cut off and tankers are unable to leave the facilities.

The problem may not be alleviated even if the fuel trucks did leave the refineries. The UK motorway system is severely crippled with broken down and abandoned vehicles unable to move along the nations roads. Additional problems of road closures and a lack of snow clearing along the motorway system means not only fuel is failing to reach its destination, but also deliveries of food to stores in some areas of the UK.

Con-way Gives Insight Of Logistics Market

2011-01-12T23:48:00.000-08:00

Con-way Gives Insight Of Logistics Market

In the UK, the Government has implemented the Government Procurement Card (GPC) which public bodies can use to buy high volume, low cost goods and services such as office supplies and MRO items. Since 1997 more than 85,000 cards have been issued for more than £2 million ($3.12 million USD). The program was developed to allow public bodies to efficiently manage their procurement. Since inception public bodies using the GPC have saved over £338 million ($527 million USD).

One new user of the GPC is the London Borough of Havering who will be able to control the amount and flow of funds available to end users and benefit from standardized management information and control programs. Users of the cards can access funds in a number of different ways. The London Borough of Havering says the move will enable it to more than halve its existing processing costs for payments.

For more information on Procurement Cards read this article.

New Supply Chain Model Published

2011-01-12T23:44:00.000-08:00

New Supply Chain Model Published

The Supply Chain Council has released the latest version of its Supply Chain Operations Reference (SCOR) model. The improvement in Version 10.0 is that it includes people skills requirements to help organizations build supply chain competency and career paths. The new functionality allows outlining training needs and individual performance measures for each of the core process elements.
It is designed to help supply chain and human resource executives to find and develop people who have the requisite technical expertise and experience.

The new people skills requirements does give organizations a number of added benefits for their supply chain model which include, accurately matching job responsibilities with candidates' skills, efficient identification of post-acquisition skill requirements, ability to make outsourcing or in-sourcing decisions and retaining organizational effectiveness as employees retire from the workforce.

Service Sector Reaches Twenty Month Low

2011-01-12T23:39:00.000-08:00

Service Sector Reaches Twenty Month Low

Yesterday I described how manufacturing industry in the UK was on the upswing, but today a report from the British Chartered Institute of Purchasing and Supply (CIPS) found that activity in the services economy fell to a 20-month low in December. Activity in the sector is identified by the purchasing managers' index (PMI). The report also showed that employment in the service sector fell for the third month in a row.

The decline in the service industry could be in part due to the unusual weather that disrupted transportation; however December saw the first of the public sector job losses announced by the government. Whatever the root causes the decline in the service sector; the fall in the PMI was believed to have caused a further decline in the British currency.

Economy Affecting Packaging Design

2011-01-12T23:29:00.000-08:00

Economy Affecting Packaging Design

A recent report has found that the depressed nature of many economies has influenced the way in which product packaging has developed. Canadean, the British beverage information specialist, recently published a report that noted that prior to the depression in the world economy beverage packaging included many value-added features, unusual shapes, and sophisticated packaging materials.
However during this period of uncertainty for beverage manufacturers, the design has reverted back to a cost-saving mode where packaging contains less material and manufacturers are concentrating on efficient production.

Although many countries are seeing some improvement the report found that manufacturers are still focused on lighter weight, flexible packaging, reduction in bottle and closure weights, bio-degradable plastics and a greater emphasis on environmental issues.

British Logistics Firms See Another Fuel Hike

2011-01-12T23:22:00.000-08:00

British Logistics Firms See Another Fuel Hike

US freight companies are always concerned about the price of fuel, but they should be lucky that they are not operating in the UK. The Conservative government has added a number of costs that are hitting British logistics companies. January 1st sees a rise in fuel duty, which will add to the costs of a previous fuel duty rises in 2010 and a 15 percent increase on the cost of new vehicles.

The increase of 0.76 pence per liter is the third rise since April 2010 and will nudge diesel prices to close to the all-time highs reached in July 2008 when oil prices climbed to $145 per barrel. The British Freight Transport Association (FTA) has reported that the increases will add £3,800 (US $5900) per year to the bill of running each vehicle.

Currently a liter of diesel in the UK is £1.28 (US $1.98), which for US readers is the equivalent of $7.49 per gallon. (1 US gallon = 3.785 liters). In comparison the average price for a gallon of diesel in the US on 12/27/10 was $3.24.

UK Manufacturing Increases In December

2011-01-12T23:15:00.000-08:00

UK Manufacturing Increases In December

More positive economic news was reported by Bloomberg today when they stated that manufacturing in the United Kingdom in December increased at its fastest pace in sixteen years. Although politicians will point to various policies it has enacted since the minority Conservative government took over in May 2010, Bloomberg points to cheaper British exports being the primary reason for the increase. The British pound has fallen 7.8 percent over the last year when compared with the currencies of the leading ten developed nations.

Bloomberg noted that current policies of the British government such as the loss of 330,000 government based jobs could in fact work against economic recovery. The massive layoffs are closely being watched by other developed nations to see what the overall impact will be.