If You Thought Packaging was Just Packaging, Think Again
Packaging can have different applications, dependent on the stage of distribution that the product is in; the product has to go from the producer to the retailer, and from the retailer to the consumer.
Through its long journey, a product might require specialized packaging, so that it gets to its destination in perfect condition. But what that destination is will determine which type of packaging it will need. Here, we will explore the difference between consumer and industrial packaging.
Before understanding the difference between consumer and industrial packaging, however, it is important to know what roles the packaging serves in the product’s journey from the manufacturer to the consumer. Here are some of the functions of packaging;
- Market the product
- Provide information about the product
- Protect the product against damage and unsanitary conditions
- Contain the product, especially liquids
- Simplify transportation
What is industrial packaging and consumer packaging?
So what is the difference between industrial packaging and consumer packaging? Industrial packaging is typically used to deliver goods from the manufacturer to the retailer.
There are instances when the industrial packaging is also the consumer packaging. Take for instance animal feeds that come in sacks. The sacks are loaded to trucks from the manufacturer directly to the retailer, and arrive the same way to the consumer.
Consumer packaging, on the other hand, is the packaging that the product gets to the consumer in. This packaging goes from the manufacturer to the retail outlet, and finally to the consumer.
For example, a package of cookies that leaves the manufacturer arrives at the retail store exactly as it will be sold to the consumer.
Another vital difference between consumer and industrial packaging is labeling; they have different labeling requirements, such as in declaration of quantity, responsibility, and identity.
What are the three levels of packaging?
There are three levels of packaging:
- Primary packaging: Wraps the product directly, which arrives to the consumer as is. The main purpose for primary packaging is to preserve and protect the product.
- Secondary packaging: Used in addition to, or on top of, the primary package. This level of packaging markets the product, and also gathers the products for easy handling and sales. It can also be used to group the product.
- Tertiary packaging: Typically used in the transportation of the products from the producer to the retailer; it is also used to define the sales unit that the manufacturer uses to sell to the consumer. For instance, a crate or corrugated carton containing a certain number of units of the product within.
What is the difference between CPG and FMCG?
Consumer packaged goods (CPG) and fast-moving consumer goods (FMCG) are often used interchangeably, but the two terms mean different things.
FMCG are those goods that are used on a daily basis in a household, like soap, detergent, deodorant, and shampoo. CPG are items used less frequently in the household, like canned foods, spices, etc.
Which Warehousing Option is Right for You?
Most people know that a warehouse is a place where goods are stored, or where a manufacturer places their goods for accumulation. It’s an important aspect of production and distribution of goods to the consumer. But did you know that there are different types of warehousing?
There are basically two different types of warehousing that a manufacturer or retailer can use, both of which will be discussed in this article.
What are the two basic types of warehouses?
Before understanding the different types of warehousing, it is important to know what the two basic types of warehouses actually are.
- Private warehouses: Owned and operated by the channel suppliers and manufacturers for their own activities. Usually these warehouses are owned by big manufacturers, due to the huge capital required to construct a warehouse.
- Public warehouses are owned by business establishments who provide warehousing—for a fee—to companies that do not have their own. They can also be operated by cooperatives. A public warehouse requires a license from the government to operate in accordance with the rules and regulations set out for such a business.
What is warehousing, and what are its functions?
Warehousing is more than just storage; it also includes other functions, such as receiving, identifying, holding, assembling, and packaging of products. Warehouses also assume responsibility for the goods until they have been collected.
Regardless of the type of warehousing you choose, here are the functions of warehousing;
- Storage: This is the basic function of any type of warehousing. It means simply storing surplus goods and awaiting the distribution process to the customer.
- Price stabilization: Warehousing creates time. This means that, if prices have fallen, the manufacturer can wait until they’ve stabilized to put their product back out on the market.
- Risk minimization: Most warehouses are constructed in such a way to avoid theft, damage, and deterioration to the products within. Many also have features, such as climate control and high security, to further protect products.
- Grading and packing: Many warehouses also now provide packing and grading services for products. The specifications are given by the manufacturer, and the warehouse provides these services as the goods await distribution.
- Regular production: Manufacturers can continue producing their product, even when they are unable to store the product themselves.
What is the difference between warehousing and logistics?
Warehousing and logistics are different aspects with similar functions in the supply chain. All types of warehousing involve safe storage of the goods and inventory.
Logistics, on the other hand, is a complicated process that involves the management of the entire flow of goods, from the manufacturer to the end consumer. It involves aspects such as material handling, production, packaging, warehousing, transportation, inventory, security, and flow of information.
Logistics, which can be further categorized as inbound and outbound logistics, is a critical component of supply chain management.
Cross-docking is one of the more unusual aspects of the supply chain that many businesses are not taking advantage of nearly as much as they should. It might be because many companies don’t even know what cross-docking is. This article will provide information and insight to answer the question, “What is cross-docking?”, as well as the benefits this model can bring to your business.
So, what exactly is cross-docking? It involves delivering products from a manufacturing plant directly to the consumer or retail store without a lot of handling in between, or storage time.
Here is an explanation of what cross-docking is in simple terms: Goods come in to the receiving dock of the cross-dock terminal. They are then screened and sorted before being loaded to trucks on the outbound side of the cross-dock terminal. There is minimal handling of the goods or storage in between the time they come in, and when they leave to be shipped to the retailer or customer.
Here is an example of cross-docking:
Retail store A has ordered 10 fridges, and retail store B ordered 20 fridges from the same manufacturer. A truck arrives at the docking station carrying 30 fridges.
The items are sorted on the cross-dock terminal; there are two trucks waiting on the receiving end of the dock terminal. One truck is heading to retail shop A, and the other is heading to retail shop B. Truck A is loaded with 10 fridges, and truck B is loaded with 20 fridges.
Why is cross-docking used? Now that you know what cross-docking is, let’s move on to the reasons why is it used. Cross- docking is utilized for three reasons:
- To combine different products into one method of transport, as in the example above, to save on time and transportation costs.
- To provide a central site where goods can be sorted and combined so they are easy to deliver to multiple destinations quickly and effectively.
- To break down large products so they are small enough to be transported to the consumer.
What are the benefits of cross-docking? Cross-docking offers the following benefits:
- Reduces delivery time significantly, as goods are not stored.
- Reduces shipping costs, since there is no storage or other warehouse services involved.
- Builds a strong shipping relationship for your business with one company.
- Reduces risk of damage to the product, as it is being handled less.
How does cross-docking affect warehouse design? For cross-docking to be effective, the warehouse must be designed to facilitate this process. It should have different inbound and outbound dock doors, so that trucks can dock accordingly, to either deliver or receive goods.
The warehouse size, shape and layout should be considered when setting up across-docking warehouse. Also, the technology used to move the goods is an important consideration in determining the layout of the warehouse.
Keeping Your Cool in Business
If ensuring your products or materials stay at a stable temperature is vital to their quality, cold storage solutions are likewise vital to your company’s success. However, not all cold storage solutions are created equally.
What is Cold Storage Used For?
Many products lose their value in normal storage conditions. These products require cold storage solutions for adequate storage and shipping.
Since cold storage is much more complex than dry storage and refrigerated warehousing tends to be expensive, many businesses opt to outsource cold storage to supply chain specialists.
If you are moving products that are temperature sensitive, you need cold storage solutions that include processing, packaging, and delivery without the products ever being exposed to fluctuations in temperature.
Cold storage is often used for products with varying shelf lives and temperature range requirements. These products include, but are not limited to:
– Plants and flowers
– Perishable food
– Biopharmaceutical products
– Perishable nutrient products
What is Cold Storage in Food Preservation?
Due to the nature of certain food products, they can spoil if they are exposed to high temperatures. Not only can this result in losses, but also health hazards. Cold storage for food preservation is, therefore, an essential component of the supply chain of food businesses.
Perishable foods, including dairy products, fish products, and meats have to be kept in a temperature specification range along the entire supply chain. Temperatures higher than the required range can result in the growth of pathogens and spoilage microorganisms and can, ultimately, cause the product to be inedible.
Since the consequences of food spoilage can potentially be dire, food businesses have to ensure that they use reputable and experienced cold storage service providers to take care of their products.
Types of Cold Storage
There is a wide range of cold storage solutions from single units to entire warehouses. The types of cold storage include the following:
– Refrigerated containers
– Blast Chillers
– Cold Rooms
– Pharmaceutical-Grade Cold Storage
– Plant-Attached Cold Storage
– Custom Cold Storage Facilities
Companies that have a wide range of products typically have many different cold storage needs. If your products have to be stored at different temperature ranges, you may need more than one type of cold storage. Outsourcing your cold storage may be a viable solution if you don’t have cold storage facilities.
What is Cold Supply Chain?
The succession of cold storage applications along the supply chain to maintain the desired temperature is often referred to as the cold chain. If the integrity of the cold chain is breached and the risk is unknown or not reported, it can result in foodborne illnesses.
Developments in technology make it much easier and cost-effective to implement temperature monitoring and optimize stacking, which, in turn, make cold chain objectives more attainable.
Contact Brimich Logistics
Your business needs a partner to deliver the freshest food in the safest possible manner. Brimich Logistics is ideally suited to provide your business with high-end cold storage solutions along with your supply chain. We have more than 200,000 square-feet of food-grade cold storage space available.
All our facilities are Hazard analysis and critical control point (HACCP) compliant, and we have safe quality food (SQF) certification. Contact us today to discuss your cold storage and supply chain needs.
Why Use Warehousing and Distribution Services?
Outsourcing parts of the business process has become an effective way for firms to cut costs. According to Deloitte, 59% of businesses surveyed said the reason behind their choice to outsource a business process was to save money.
Warehousing and distribution processes can take a toll on businesses in terms of cost. If the process is not streamlined, it can even result in failure. Instead of this aspect weighing down your business, a smart solution is to outsource the process and let the experts handle it.
How Does Outsourcing Warehousing and Distribution Services Help Your Business?
By outsourcing, warehousing and fulfillment businesses adopt a forward-thinking approach that will benefit them in numerous different ways. Storing and delivering products is expensive and time-consuming. So why not outsource the process to a trusted third party? Here are some reasons you should consider:
- Expertise: Fulfillment service providers, such as The Brimich Group, give businesses the option of letting experts manage their supply chain. It presents them with the option of not worrying about hiring a team and training them to handle such tasks in-house. The service provider has a team of experts that handle warehouse and logistics tasks on a daily basis to take care of your organization’s needs. This way you have better service, quicker turn-around, and reduced fulfillment rates.
- Technology: There is a lot of technology that needs to be employed when it comes to warehouse inventory and transportation. Businesses must buy and deploy management software, so they have complete control of the supply chain and logistics. When outsourcing, you don’t need to worry about this as your service provider will have the right technology in place. They will also give you access to this data, so you know what is being shipped and where it’s being delivered.
- Cost-effective: From human resources, software, machinery, to other types of equipment, keeping a warehouse in order is costly. It is an investment that may not be possible for most small and even medium-sized businesses. That is without even taking into account maintaining everything. With a third-party, your business doesn’t have to worry about any of these costs, all you must do is pay a fixed price and have the provider take care of the rest.
Questions to Ask When Picking a Service Provider
Now that you are aware of the benefits of warehousing and fulfilment services, you are probably wondering how to select the right provider? Here are some things you should consider when making your decision:
- How many years have they been in business?
- What kind of industry expertise do they have?
- What technology do they employ, and will they give you access to keep track of your inventory and deliveries?
- Does it operate 24/7?
- What safety measures are used and is the storage safe?
- Where is the warehouse located?
- Do they meet all your storage requirements?
- What kind of leasing terms do they have?
These are some question you want to ask the service provider to get a better idea of what they offer, helping you determine if the provider is right for you.
Whether your business is facing issues with warehousing and distribution or you are just looking to cut costs, outsourcing to a reliable service provider is a great solution. It removes the headaches of this money-consuming process, freeing you to improve other areas of your business.
Are you having trouble tracking and properly organizing your inventory? Maybe you need a bit more space than what’s currently available in your warehouse?
Wasp Barcode’s survey shows that 46% of small businesses in the US manually track their inventory or don’t even track it at all. These results are rather surprising because the warehousing process is one of the most vital parts of your business. For your business to function smoothly, you need to make sure your warehouse is in order. Otherwise, you will come across many issues such as:
- Disorganized inventory
- Storage space issues with no clear storage process
- Late shipment of orders
- And much more
All in all, a disorganized warehouse leads to the possibility of losing your business. Therefore, you need to make sure your warehouse is in order, leading to a more successful business. Don’t worry, you don’t have to take this stress on yourself, there are plenty of companies out there that provide warehouse solutions, taking care of all your warehousing needs.
Why Should Your Business Opt For Warehouse Services?
Besides the fact that warehousing solutions take away the headache of properly storing and keeping track of your inventory, there are numerous other benefits in opting for a third-party warehouse solution.
They Have Trained Professionals
The company you select will have trained and competent staff in terms of warehousing. They will know their roles and responsibilities to ensure your inventory is properly organized and stocked. This also means you don’t have to worry about hiring and training staff on your own to maintain a warehouse, saving you a lot of money.
They Have the Right Equipment and Technology
When it comes to stocking and retrieving inventory, there is a need for a large amount of equipment and technology. From a forklift to inventory tracking software, there are a lot of processes in place to ensure the warehouse functions properly. With a warehouse management firm, you can rest assured they have the right processes and technology in place to ensure your inventory is stocked properly. These firms also keep track of your inventory, minimizing delays in orders being fulfilled.
They Have Ample Storage Space
Storage space can sometimes be a problem when managing your own warehouse. As the business grows, so does the need for storage space. So rather than investing in a warehouse, a smarter decision is to go with a third-party warehouse storage firm. You can always revise your warehouse package as your business and storage space needs grow.
Picking the Right Warehouse Solution For Your Business
When it comes to outsourcing any part of your business, selecting the right organization can be a lengthy process. Don’t worry though, we have you covered. The Brimich Group can handle all your warehousing needs with over 50 years of experience in warehouse management.
From the right equipment to the best professional logistics services, they are the solution you need. They also strategize a warehouse plan tailored to fit your needs, so your business faces no downtime or issues. Give them a call today and get started with the right warehouse services.