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Packaging In Retail Supply Chains

Author

Listed:
  • Aleksandar Erceg

    (Faculty of Economics in Osijek)

  • Volker Trauzettel

    (Hochschule Pforzheim)

Abstract

Packaging decisions have impact on logistics and sales performance in the consumer packaged goods industry. The packaging decision, i.e. packaging size and case size, is a major transmission belt between the logistical performances of a manufacturer and a retailer. It drives the cost of transportation, warehousing, and safety stock at the manufacturer as well as at the retailer in its warehouses and in the stores. Also, these decisions have effect on the sales of items.However, the effects of diverse decisions regarding packaging are not clear. Moreover, conflicts of interest can arise between manufacturers and retailers. So, managing the supply chain is not without some extent of ambiguity.We describe the effects of packaging decisions at a manufacturer of fast moving consumer goods and a retailer within a typical grocery retail scenario. For a specific product range we delve into more details of the trade-offs at a manufacturer and at a retailer. Then, the combined effects of the packaging decision are researched. A numerical example on shelf ready packaging is given.

Suggested Citation

  • Aleksandar Erceg & Volker Trauzettel, 2016. "Packaging In Retail Supply Chains," Business Logistics in Modern Management, Josip Juraj Strossmayer University of Osijek, Faculty of Economics, Croatia, vol. 16, pages 73-81.
    • Handle: RePEc:osi:bulimm:v:16:y:2016:p:73-81
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    References listed on IDEAS

    as
    1. Davor Dujak & Martina Ferencic & Jelena Franjkovic, 2014. "Retail Ready Packaging – What'S In It For Food Manufacturers?," Business Logistics in Modern Management, Josip Juraj Strossmayer University of Osijek, Faculty of Economics, Croatia, vol. 14, pages 31-42.
    2. van Zelst, Susan & van Donselaar, Karel & van Woensel, Tom & Broekmeulen, Rob & Fransoo, Jan, 2009. "Logistics drivers for shelf stacking in grocery retail stores: Potential for efficiency improvement," International Journal of Production Economics, Elsevier, vol. 121(2), pages 620-632, October.
    3. Ganesan, Shankar & George, Morris & Jap, Sandy & Palmatier, Robert W. & Weitz, Barton, 2009. "Supply Chain Management and Retailer Performance: Emerging Trends, Issues, and Implications for Research and Practice," Journal of Retailing, Elsevier, vol. 85(1), pages 84-94.
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    Cited by:

    1. Jelizaveta Janno & Ott Koppel, 2017. "Human Factor As The Main Operational Risk In Dangerous Goods Transportation Chain," Business Logistics in Modern Management, Josip Juraj Strossmayer University of Osijek, Faculty of Economics, Croatia, vol. 17, pages 63-78.

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