Packaging effects on logistics activities: A study at ROL International

Packaging has a major impact on the activities performed in a logistical value chain. Packaging can improve or decrease the efficiency of the outbound logistics process. It is therefore important to consider the activities and the value that they add to the overall process. ROL International is a Swedish store interior manufacturer that design, produce and distribute their products on a global basis. One of their basic products is the shelf concept. ROL wants to improve their efficiency and consider a change in the packaging method for the shelf concept. Two alternative packaging methods have been suggested and ROL want to know if either of the two alternatives would result in increased efficiency.The purpose of this report is to evaluate the two packaging alternatives and their impact on the activities connected to the outbound logistics at ROL International…

Contents

1 INTRODUCTION
1.1 BACKGROUND
1.2 PROBLEM DISCUSSION
1.3 PURPOSE
1.4 DEFINITIONS
2 FRAME OF REFERENCE
2.1 LEAN THINKING
2.1.1 The Seven Wastes
2.1.2 Process Activity Mapping
2.2 ACTIVITY BASED COSTING
2.3 PACKAGING
2.4 MATERIALS HANDLING
2.4.1 Packaging effects on Materials Handling
2.5 TRANSPORTATION
2.6 CUSTOMER SERVICE
2.6.1 Customer Service in Logistics
2.6.1.1 Time
2.6.1.2 Dependability
2.6.1.3 Communication
2.6.1.4 Convenience
2.7 SUMMARY
3 METHOD
3.1 A CASE STUDY APPROACH
3.1.1 Triangulation
3.2 PRIMARY DATA
3.2.1 Observations
3.2.2 Interviews
3.2.3 Primary Data Analysis
3.3 SECONDARY DATA
3.3.1 Secondary Data Analysis
3.4 RELIABILITY AND VALIDITY
4 EMPIRICAL FINDINGS
4.1 ROL INTERNATIONAL
4.1.1 The shelf concept
4.1.1.1 Packaging Materials
4.1.2 Customers at ROL International
4.1.3 Outbound Logistics Activities
4.2 MATERIALS HANDLING
4.2.1 Activities from Powder Coating to Warehouse
4.2.2 Activities for Storing Products
4.2.3 Activities for Order-Picking
4.2.4 Cost Drivers
4.3 TRANSPORTATION
4.4 CUSTOMER SERVICE
4.4.1 Installation
4.4.2 Quality
4.5 CUSTOMER ORDER INFORMATION
4.5.1 Shelf Frequency and Quantity
4.5.2 Customer Order ContentANALYSIS
5.1 THE CURRENT SITUATION
5.2 PACKAGING MATERIAL
5.2.1 Kit-packaging
5.2.2 Batch-packaging
5.3 MATERIALS HANDLING
5.3.1 Activities from Powder Coating to Warehouse
5.3.1.1 Kit-packaging
5.3.1.2 Batch-packaging
5.3.2 Activities for Storing Products
5.3.3 Activities for Order-Picking
5.4 TRANSPORTATION
5.5 CUSTOMER SERVICE
5.5.1.1 Time
5.5.1.2 Dependability
5.5.1.3 Communication
5.5.1.4 Convenience
5.6 CUSTOMER ORDER INFORMATION
5.6.1 Shelf Frequency and Quantity
5.6.2 Customer Order Content
5.7 ACTIVITY BASED COSTING
5.7.1 Activity based costing in an order context
5.8 COMPARING THE ALTERNATIVES48
6 CONCLUSION
6.1 DISCUSSION
6.1.1 Criticism to the Study

Author: Leek, Tobias,Hassel, Johan

Source: Jönköping University

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