Study on the Effects of Implementation of RRP on Load Efficiency through Manufacturers’ Packaging System

As seen from a case study on manufacturer A’s product packaging system, products are manufactured according to a manufacturer’s own process by carrying out a load efficiency simulation so as for products’ outbox sizes to be compatible with a standard pallet upon planning new products. However, since RRP products are requested by each discount store in a nearly confirmed outbox size for RRP products, its product packaging system has been conducted differently from that of manufacturers’ general packaging system. Also, it has been known that a reduction in distribution efficiency in distributing products in a state of decreased load efficiency for standard pallets may lead to avoidable logistics costs. In this study, we performed a simulation study to observe how much the impact of dimensions for RRP could affect the loading efficiency with the dimension of standard pallet. Based on this simulation study, we also note that the cooperative design of packaging dimension taking into account the logistics efficiency could reduce the avoidable logistic costs. Additionally, more concerns and efforts should be concentrated on the standardization through the supply chain process between manufactures and retailers