PACKAGING DESIGN AND THE SUPPLY CHAIN

Andrew Hayman, associate consultant with Davies & Robson Software and Alan Wilson, director — Cape Systems and Consulting Services, Europe and associate consultant with Davies & Robson demonstrate how the efficiency of packaging can have a major effect on the costs of the manufacturer and the client or end user. They discuss how new cost allocation techniques can reflect the true cost of handling a product through the logistics chain, particularly in respect of the impact that the cube of the product makes upon those costs. Whilst the article concentrates on direct product profitability in a fast moving consumer goods environment the principles and practice apply to any other industry.