Optimization of

Packaging in
E-Commerce

Shubham Kaushik (2K19/DMBA/94)

Swati Srivastava (2K19/DMBA/102)
 Table of Contents
01 02 03
INTRODUCTION METHODOLOGY LITERATURE
REVIEW

04 05
RESULTS & FINDINGS INCREMENTAL
ANALYSIS
INTRODUCTIO
N

01
 Introduction
 A supply chain is the network of all the activities and technology involved in the creation and sale of a
product, from the delivery of source materials from the supplier to the manufacturer, through to its
eventual delivery to the end user.
 Designed as the buying and selling of goods through online services, e-commerce is a rapidly expanding
channel.
 Packaging is an integral component of E-commerce as it is a vital part of the first physical impression
that a customer has of the product.
 Packaging can influence the sensory experience a consumer has with the product through texture and
visual appeal.
 Introduction
 Packaging is sometimes seen as a necessary evil, as it generates costs and waste, but it is strategically
important to create an impact on logistics and supply chain performance and on creating value.
 It is very important to identify, understand and analyze the overall packaging process so that it can help
to gain an edge over the competitors, minimize the cost and add more to the revenue.
 The challenges and opportunities presented by e-commerce packaging therefore deserve more attention.
 Packaging: A strategic move
 The packaging industry is evolving continuously with the evolution and shift in the business model
from brick & mortar to Click & Mortar.
 This shift has created a demand for optimization of the elements involved in packaging process.
 This involves large number of factors that needs to be taken care of before deciding over any elements
of packaging.
 The packaging is of three types:
1. Primary Packaging
2. Secondary Packaging
3. Tertiary Packaging
 • The primary packaging is in direct contact of the product
and the major aim of this packaging is to ensure safety of
Primary Packaging the product.
• This is the principal layer containing the finished product

• This kind of packaging is utilized outside of primary way

Secondary of packaging to aggregate a specific number of items to
make a stock-keeping unit.
Packaging • It encourages the treatment of more modest products by
grouping them into a solitary pack.

• This kind of packaging is utilized to amass bigger

amounts of SKUs to ship them from point A toward point
Tertiary packaging B.
• This sort of packaging makes it simpler to ship huge and
additionally hefty loads securely and safely.
 Protection Handleability
• The packaging should be • This focuses on the design
able to protect the product of the packages so as to
from outside forces. suit the human physique
and acceptability.

Factors
Security Environmental issues
• It is critical to look into the • Reusability of packaging
safe shipping of the materials is necessary to
products reduce the waste from the
environment
 Journey of Packaging
Omni-channel
research before Order placement. Inbound logistics Picking of goods.
purchase.

Preparations Sorting and

Outbound logistics. before shipping the Packing of orders. consolidation of
orders orders

Delivery of orders. Reverse Logistics.

METHODOLOG
Y

02
 Methodology
 To find out studies that have focused on packaging in supply chains, we conducted a structured
literature review, articles, blogs and relevant materials.
 We searched for the articles and journals by using certain keywords like packaging process,
optimization, packaging process implication in e-commerce, green packaging, on various databases that
were freely accessible online.
 The overall methodology includes exploratory research and is done at a very broader level which could
help us reach to a specific objective of our research.
 We tried to analyze the common points through all the research papers, cases, and articles and
consolidated them as a common analysis that we gained from all the available resources that we held.
LITRETURE
REVIEW

03
 Reusable packaging in supply chains:
User preference for electronic A review of environmental and A New Paradigm for Packaging
commerce over-packaging solutions: economic impacts, logistics system Design in Web-based Commerce.
Implications to cleaner production. designs, and operations management. (Regattieri Alberto,*, Santarelli Giulia,
(Shan Lua, Lin Yanga, Wenqi Liua, Lin Jia) (Monirehalsadat Mahmoudi *, Irandokht Gamberi Mauro and Mora Cristin)
Parviziomran)
•The study done in this research paper • This paper focuses on reviewing the • The paper highlights the 3 major pillars for
identifies the over-packaging solutions that operations of reusable packaging systems packaging – Design, Logistics, Environment.
consumers prefer.
• The paper explains different logistics system •The main objective of this research paper is to
• It provides feasible recommendations for designs for proper implementation of reusable showcase the need to develop new packaging
enterprises in reducing packaging waste packaging. process as per the requirement of e –
and promoting cleaner production. commerce.
Optimizing Packaging for an E- Sustainability in e-commerce Research on Green Express
commerce World. (American packaging: A review. (Sílvia Packaging Design under the
Institute for Packaging and the Escursell, Pere Llorach, M. E-Commerce. (Fang Wang,
Environment) Blanca Roncero) Yangyang Hu)
• The paper puts its focus on • The paper covers the in depth • This paper tries to design the
how the alternative distribution analysis of the packaging express packaging in the e-
channels poses new process by putting its core commerce sector by analyzing
challenges and demands the emphasis on the attainment of the elements and features of
change in packaging in sustainability in e-commerce the express packaging in
particular. packaging. china.
 Green Manufacturing Strategy of E- Packaging design elements
Packaging Design: General
Commerce Express Packaging in and consumers' decision to buy
Framework and Research
China. (Ching-Kuei Kao1,*, Ming from the Web: A cause and
Sun2, Zhi-Bin Tang1, Ying-Ping Luo3, Agenda. (A. Azzi,* D. Battini, A.
effect decision-making model.
Feng Zeng) Persona and F. Sgarbossa)
(Hosam Al-Samarraie1)
• This research paper highlights • The paper focuses on • The paper talks about
the problems of the explaining the effect of various packaging designs which is
innumerable express packaging design elements considered as one of the
packaging wastes and discuss (PDE) in influencing the major parameter in
about the green express decision making of the optimization of the packaging
packaging and its benefits. consumers. process which is turn affects
cost, supply chain and
performance.
RESULT &
FINDINGS

04
 Results & Discussions
 With the advent change in business environment, and digital transformation the current shift from retail
to e-commerce involves more tech savvy approach.
 Packaging tends to act as an element of attraction for the customer and hence leads them to change their
decision even in the last moment.
 Firms even needs to focus on the logistical aspect of the packaging , since transportation increases and
handling of packages increases in case of ecommerce and thus this exposes the product.
 The core focus of overall packaging optimization involves logistics, design, material, recyclability,
reusability, cost and value addition.
 Packaging Advancements by Companies

 Upon analyzing the change in various packaging process of different renowned firms, following were
the changes that we noticed and they are as follows:
1. Amazon: It introduced “Frustration free package program in order to provide users with the ease of
opening the packaged products and made use of much smaller packages, reducing the cost per package.
This also saved cost that was unnecessarily being invested on the packaging material which was going
as complete waste after one use.
2. Puma: The sports apparel brand led its focus on reducing the harmful impact on the environment that is
caused because of packages. They discarded the use of shoe boxes and replaced it with slip on bags.
This in turn reduced the consumption of paper and fuel.
 Packaging Advancements by Companies
3. Alibaba: Another conglomerate in the league of e-commerce analyzed the customer’s need for green
packaging and green packaged materials.
4. Dell: The tech giant made changes to their packaging by making use of bamboo packaging for their
small devices and later they moved on to 100% recyclable material that made use of agricultural
compost, wastes etc.
5. McDonald’s: The fast food company made use of 100% recyclable material which were obtained from
certified sources and moved a step ahead by having their own recycling units.
INCREMENTAL
ANALYSIS

05
 Incremental Analysis
 The utilization of standard packaging frameworks that are not planned for unplanned and sudden
requirements is one purpose for helpless packaging execution.
 The utilization of a virtual pack-selector, which thinks about performance, logistics and handling, may
improve packaging execution.
 Technology has created the need to optimize the already existing Packaging solutions and linking it with
artificial intelligence is the next big thing.
 We recommend integrating packaging with the technology in order to capture customer’s preferences
and therefore coming up with such designs, packaging material which are less harmful to the
environment and could even be such where its reusability is possible.
 Incremental Analysis
 We have divided our incremental analysis and recommendations on few broader level
parameters and they are as follows:
• Economical
• Environmental
• Value addition
• Logistical
 Environmental
 To address the environmental aspect related to packaging, it would be beneficial to make use of such
resources which are bio-degradable, is recyclable, can be dumped or land filled and can be converted
into compost.
 Packages that could be reused, for example like glass bottles, can be taken into consideration as the cost
of producing new packages could be saved.
 Upgrading packaging helps in reducing the carbon footprint of a company creates a brand value in the
minds of the customer and can even reduce logistics costs.
 Starch based packages are even one of the alternative and much safer option that could be considered as
they are very much water soluble.
 Economical
1. Despite what many businesses may assume, being sustainable doesn’t increase costs.
 Logistical
 The quicker and more rushed your shipments, the less chance they will be packaged as responsibly or
densely as possible.
 Corrugated cardboard boxes can even be produced in-house, allowing businesses to produce boxes on-
demand to fit the size of each product, rather than having to order packaging based on estimates.
 You can even offer customers the option for ‘green shipping’, where your products are shipped in the
most responsible way possible, with the emphasis rightly being on the sustainability of the shipping and
not the speed.
 Sustainable packaging provides businesses with the opportunity to take a more minimalistic and simple
route, putting the deserved spotlight on our actual product(s).
 Value Addition
 Making use of such innovative and experimental solutions to attract more customers and add value to
the brand and create such image in the minds of the customers that it could be known as a trustworthy
brand is another area which needs to be focused.
 We would recommend use of such strategy to be implemented in packaging that directly helps in
building the trust with the brand like putting in some extra effort in packaging, modifying and providing
with the customizable options to the customers which would allow customer to be in their comfort zone
and would lead to immense satisfaction.