Procurement Management  ·  Level 6
Preparation Of Goods For Distribution
Chapter 4: Package customer orders
📚 2 Topics
⚑ What you will be able to do

By the end of this chapter, you will be able to:

  • correctly install goods and fleet tracking systems following your organization's procurement policy
  • accurately monitor goods and fleet tracking systems to ensure smooth operations
  • evaluate the performance of goods and fleet tracking systems in line with procurement guidelines
  • review goods and fleet tracking systems according to your organization's procedures

Mastering these skills will help you keep track of shipments efficiently and ensure timely delivery, which is essential in the distribution trade.

4.1 Packaging customer orders

Once customer orders have been retrieved, marshalled and consolidated, they must be packed so that they reach the customer complete, undamaged and easy to identify. Packaging customer orders is the last physical preparation before dispatch, and its quality is judged by the customer the moment the goods arrive. The stores team must choose suitable packaging materials and methods for each order, pack the goods correctly and mark the packages clearly, while keeping packaging costs and waste under control.

Example: at a distribution centre of an electronics wholesaler, each order of televisions, phones and accessories is packed in cartons with protective inserts, sealed, labelled with the customer's name and order number, and placed on a pallet for its delivery route.

4.1.1 Definition of packaging orders

Packaging orders is the process of enclosing, protecting and marking the goods of a customer order in suitable containers and materials so that they can be handled, stored, transported and delivered safely and identified correctly. It covers choosing the packaging, packing the goods, adding cushioning, sealing, and labelling each package with the information needed for delivery. In a warehouse the focus is on transit packaging that protects the order on its way to the customer, as opposed to the product's retail packaging done by the manufacturer.

Packing and packaging

  • Packing: The physical act of placing goods in containers, cushioning and sealing them.
  • Packaging: The wider function that includes the design and choice of materials, the containers themselves, labelling and marking, as well as packing.

4.1.2 Types of packaging

Packaging is classified by the layer it forms around the product and by the material used. A single customer order may use several types together, for example bottles in their retail boxes, packed in a carton, placed on a wrapped pallet.

Types by layer

  • Primary packaging: The packaging in direct contact with the product, such as a bottle, tin, sachet or blister pack. It is usually done by the manufacturer and holds and preserves the product.
  • Secondary packaging: Packaging that groups several primary packs into one unit, such as a carton of 12 bottles or a shrink-wrapped tray of tins. It makes handling and counting easier.
  • Tertiary (transit) packaging: Packaging used to move larger quantities safely, such as pallets, crates, stretch film and large boxes. Warehouses mostly work at this level when packing customer orders.

Types by material

Name Specification Use
Corrugated cartons Fibreboard boxes in single, double or triple wall Packing most general goods for orders; light, cheap and recyclable
Wooden crates and cases Timber frames or closed boxes, nailed or bolted Heavy, fragile or high-value items such as machinery parts
Plastic crates and totes Rigid, stackable, reusable containers Repeated deliveries to regular customers, such as drinks and fresh produce
Sacks and bags Woven polypropylene, paper or jute Granular and bulky goods such as grains, feeds, fertiliser and cement
Drums and jerricans Steel or plastic containers with sealed lids Liquids such as oils, lubricants and chemicals
Plastic films Stretch film, shrink film and bubble wrap Wrapping, holding goods together and cushioning

4.1.3 Methods of packaging

Methods of packaging are the ways in which goods are packed for dispatch. They range from fully manual packing at a bench to automatic packing lines, and from simple wrapping to building custom crates. The method is chosen to suit the goods, the volume of orders and the equipment available.

Methods by level of mechanisation

  • Manual packing: Workers pack, cushion, seal and label goods by hand at a packing bench. It is flexible and cheap to set up, suits small volumes and mixed orders, but is slow for large volumes.
  • Semi-automatic packing: Workers place goods while machines do part of the work, such as carton sealers, strapping machines and stretch-wrapping turntables.
  • Automatic packing: Machines erect cartons, fill, seal and label them with little human handling. It suits high volumes of uniform goods but costs a lot to install.

Methods by technique

  • Cartoning: Placing goods in a carton with dividers or void fill and sealing it with tape.
  • Wrapping: Covering goods with paper, bubble wrap or film to protect surfaces and hold parts together.
  • Crating: Building or using a wooden crate around heavy or delicate items.
  • Bagging: Filling sacks or bags with loose or granular goods and stitching or sealing them.
  • Strapping and banding: Binding a single carton, crate or bundle with plastic or steel straps to close and strengthen it.
  • Shrink and stretch wrapping: Covering a single item or pack with plastic film that is heat-shrunk or stretched tight around it.
  • Cushioning and void filling: Filling empty space in a package with air pillows, paper or foam so that goods do not move.

4.1.4 Objectives of packaging

Packaging is not only a container: it does several jobs that protect the goods, the people handling them and the organisation's reputation. These objectives guide the choice of materials and methods for each order.

  • Protection: To protect goods from breakage, crushing, moisture, dust, heat, contamination and vibration during handling and transport.
  • Containment: To hold goods together so that small or loose items, liquids and powders are not lost or spilled.
  • Identification: To carry labels and marks showing the customer, order number, contents, quantity and handling instructions.
  • Convenience in handling: To give goods a shape, size and weight that can be lifted, stacked, counted and loaded easily.
  • Security: To discourage pilferage and show tampering through seals, strapping and plain outer packaging for valuable goods.
  • Safety: To protect handlers and the public from hazardous goods through suitable containers and warning marks.
  • Efficient use of space: To allow goods to be stacked and loaded so that vehicle and storage space are well used.
  • Customer satisfaction and image: To deliver goods in a clean, neat condition that reflects well on the organisation.

4.1.5 Advantages and disadvantages

Good packaging brings clear benefits, but it also has costs and drawbacks that must be controlled. The stores officer aims for packaging that gives enough protection without excess material or cost.

Advantages

  • Reduced damage and loss: Goods arrive in good condition, which cuts returns, claims and replacements.
  • Easier handling: Regular, stackable packages are quicker to move, load and count.
  • Accurate delivery: Clear labels help drivers and customers identify the right goods.
  • Better use of space: Uniform packages stack well in vehicles and stores.
  • Protection of people and the environment: Proper containers stop leaks of hazardous goods.
  • Improved image: Neat, well-marked packages show professional service.

Disadvantages

  • Cost: Packaging materials, equipment and labour add to the cost of each order.
  • Added weight and volume: Packaging adds to the load, and oversized packaging wastes vehicle space.
  • Waste: Used packaging must be disposed of or recycled, which burdens the customer and the environment.
  • Time: Packing takes time, especially for manual methods and custom crates.
  • Hidden damage: Goods inside sealed packages cannot be seen, so damage may only be found on opening.

4.1.6 Factors determining packaging methods

The right packaging method for an order depends on the goods, the journey and the customer. The stores officer considers these factors before choosing materials and the packing method.

  • Nature of the goods: Fragile, perishable, liquid, hazardous, heavy or high-value goods each need suitable protection.
  • Size, shape and weight: Large, irregular or heavy items may need crates, pallets or strapping rather than cartons.
  • Mode and distance of transport: Long journeys, rough roads and several handlings need stronger packaging than short local deliveries.
  • Volume of orders: High volumes of similar goods justify semi-automatic or automatic methods.
  • Cost: The cost of materials, equipment and labour must suit the value of the goods.
  • Customer requirements: Some customers specify packaging, pack sizes, labelling or returnable containers.
  • Legal requirements: Hazardous goods and some foods must be packed and marked according to the rules that apply to them.
  • Handling and storage conditions: The equipment used and the stacking height at the customer's premises affect the strength needed.
  • Environmental considerations: Recyclable and reusable materials reduce waste.
  • Availability of materials and equipment: Methods depend on the materials and machines the warehouse has.

4.1.7 Challenges in packaging

Packaging problems show up as damaged goods, wrong deliveries, delays and rising costs. Knowing the common challenges helps the warehouse plan its packing work and train its staff.

  • Rising cost of materials: Cartons, films and timber prices change, which raises the cost of each order.
  • Shortage of materials: Running out of the right cartons or films delays orders or forces the use of unsuitable packaging.
  • Damage despite packaging: Poor packing, weak materials or rough handling still lead to breakages.
  • Over-packaging and under-packaging: Too much packaging wastes money and space; too little leaves goods unprotected.
  • Labelling errors: Wrong or missing labels send goods to the wrong customer.
  • Hazardous goods: Special packaging and marking need knowledge and care.
  • Waste disposal: Customers and communities increasingly expect less plastic and more recyclable packaging.
  • Skills and labour: Packing needs trained staff, especially at peak periods.
  • Pilferage: Weak seals and packages that show valuable contents attract theft.
  • Space: Packing areas and material stores compete with storage space in the warehouse.
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🔒4.2 Unitization

After goods are packed, many small packages are combined into larger units so that they can be handled and transported as one. Unitisation is widely used in warehouses because a single pallet or container is moved with one lift instead of handling dozens of ca…

Am I competent?

At the start of this chapter we promised you would be able to:

  • correctly install goods and fleet tracking systems following your organization's procurement policy
  • accurately monitor goods and fleet tracking systems to ensure smooth operations
  • evaluate the performance of goods and fleet tracking systems in line with procurement guidelines
  • review goods and fleet tracking systems according to your organization's procedures

Tick each one you can genuinely do.

So, are you there yet?

You're competent when you can confidently do 50% or more of what this chapter promised.

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