David Chapter 14 mod

David Chapter 14 mod - Chapter 14 P ACKAGING FOR E XPORT...

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Unformatted text preview: Chapter 14 P ACKAGING FOR E XPORT LEARNING OBJECTIVES By the end of this chapter the student should be able to: 1 Understand the significance of good packaging practices in international trade. 2 Identify the distinctions among primary, secondary, and tertiary packaging. 3 Identify packaging objectives. 4 Identify characteristics of ocean, air, road, and rail cargo packaging. 5 Identify security issues in packaging. 6 Identify special transport needs of hazardous and refrigerated cargoes. 7 Identify domestic packaging issues. REVIEW/PREVIEW Packaging may seem like a mundane, unglamorous aspect of international logistics; however, it is important to make sure cargo is probably secured to keep it from being damaged, stolen, or pilfered. 14-2 Chapter 14 Packaging for Export CHAPTER OUTLINE 14-1 Introduction I. One of the challenging practical areas of international logistics is the packaging of goods for international shipments. II. Packaging is responsibility of exporter. III. There is rarely a strategy of packaging even though it is an area that has strategic implications. IV. Functions of packaging: a. Protection of goods b. Facilitation of handling of goods while they are in transit c. Customer service—customer should not have to spend a lot of time unpacking goods and preparing them for service or sale d. Distinctions among primary, secondary, tertiary packaging i. Primary packaging: consumer packaging—what consumers sees upon purchase of the product. ii. Secondary packaging: grouping of several consumer goods into one unit, usually a thin cardboard box or shrinkwrap. 1. This is what the retailer sees and handles before goods are placed on shelves. 2. In discount stores, consumers may also see the secondary packaging. iii. Tertiary packaging or transportation packaging includes all activities to ensure safe and efficient delivery of goods. For industrial goods tertiary packaging encompasses all packaging activities aimed at protecting goods in shipment. 14-2 Packaging Objectives I. Protecting goods from: a. Breakage b. Water damage c. Theft and pilferage II. Other problems: a. Fire b. Strandings c. Sinkings d. Collision e. Overboard losses f. Jettison III. Customer service objectives of packaging: a. Nail or screw plywood panels on crate instead of gluing and nailing to allow easier dismantling b. Put packaging list in recipient’s language, clearly marking all packages in shipment by color-coding or letter-coding each pallet and its corresponding manifest c. Use unitized packages matching size of those used by customer, so goods can be placed directly in customer’s warehouse Chapter 14 Packaging for Export 14-3 d. Customer service objectives may result in strategic advantage over competitor IV. Packaging should reflect sensitivity to energy and recycling issues in many European countries....
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David Chapter 14 mod - Chapter 14 P ACKAGING FOR E XPORT...

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