Corrugated Packaging: The Role Of Packaging In Supply Chain Management
Packaging is a technology that encloses and protects a product in its journey from the factory, to its end use by the consumer including transportation, warehousing, logistics and sale. It assumes the dual role of creator as well as preserver of wealth. Its benefits range from creating employment to lengthening the shelf life of the product to educating the consumers of the product. Key to understanding the packaging need is to understand the product packed inside and its demand. Thus, packaging can take various shapes, sizes, materials (used for packaging) etc. The global packaging market stood at US$799 billion in 2012 and is estimated to have reached US$824 billion in 2013. On the other hand, the Indian packaging industry is estimated to …show more content…
While India accounts for 3-4% of total packaging supply of the world, almost 43% of the total volume of world-wide corrugated packaging is produced by India. This underscores the importance of corrugated packaging in India. Corrugated packaging plays an important role in supply chain management when used as shipping containers. With the advancement of technology in manufacturing of corrugated boxes and printing on the same, use of corrugated boxes for display/ promotional packs, point of purchase packaging (POPs) and dispensers is going up. The total demand for paper in India is estimated to be 6 million tonnes, of which 40% is consumed by the packaging industry. There are over 4000 corrugated packaging units in India employing approx. 0.5 million population and converting about 2.4 million ton of Kraft paper into corrugated boxes. Most of these units are SMEs operating in remote locations near the units driving their demand. Due to the low level of technology being used by these units, they can be set up anywhere but suffer from over capacity, high manual operations, low productivity and do not meet the international
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