From materials handling to packaging and logistics - findings from the Volvo and Ericsson cases

This paper shows the importance of adopting a wide perspective when analysing packaging and logistics and of having an understanding of how the package is related to logistics activities. It also exemplifies and discusses the importance of understanding the logistics chain and making sure that all parts of the logistics chain work together and support each other. The packages are good examples of enablers in this process. The aim of this paper is to show how new policies in the supply chain force an integration of materials handling with logistics and packaging development. It also exemplifies the potential of using a packaging approach when the supply chain is analysed. Finally the paper adopts a lean value chain perspective when analysing packaging logistics. Two case studies have been conducted, one at Volvo and one at Ericsson. Both companies are recognized as being in the forefront regarding logistics development. The cases show that packaging has a great impact on inbound logistics efficiency as well as on production efficiency. In addition, the cases show that proper consideration of packaging and logistics in product design makes it possible to influence product costs and that logistics people with a knowledge of packaging need to be engaged early in any new design project. The paper also illustrates the potential of working with the packaging aspect in two such different businesses as Volvo and Ericsson as well as similarities in the process