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
• The packaging should be
able to protect the product
from outside forces.
Factors
Security
• It is critical to look into the
safe shipping of the
products
Handleability
• This focuses on the design
of the packages so as to
suit the human physique
and acceptability.
Environmental issues
• Reusability of packaging
materials is necessary to
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
User preference for electronic
commerce over-packaging
solutions: Implications to
cleaner production. (Shan Lua, Lin
Yanga, Wenqi Liua, Lin Jia)
• The study done in this
research paper identifies
the over-packaging
solutions that consumers
prefer.
• In addition, it provides
feasible
recommendations for
governments and
enterprises in reducing
packaging waste and
promoting cleaner
production.
Reusable packaging in supply
chains: A review of environmental
and economic impacts, logistics
system designs, and operations
management. (Monirehalsadat
Mahmoudi *, Irandokht Parviziomran)
• This paper focuses on
reviewing the operations of
reusable packaging systems
and environmental and
economic impacts of reusable
packaging.
• The paper explains different
logistics system designs for
proper implementation of
reusable packaging like
Switch-pool systems, Systems
with return logistics and
Systems without return
logistics.
A New Paradigm for Packaging
Design in Web-based Commerce.
(Regattieri Alberto,*, Santarelli Giulia,
Gamberi Mauro and Mora Cristin)
• The paper highlights the 3
major pillars for packaging –
Design, Logistics,
Environment.
• The main objective of this
research paper is to showcase
the need to develop new
packaging process as per the
requirement of e – commerce.
Optimizing Packaging for an E-
commerce World. (American
Institute for Packaging and the
Environment)
• The paper puts its focus on
how the alternative distribution
channels poses new
challenges and demands the
change in packaging in
particular.
• The optimization of packaging
requires a broader level of
understanding taking into
account all the aspects to
reduce the cost and gain
transportation efficiency.
Sustainability in e-commerce
packaging: A review. (Sílvia
Escursell, Pere Llorach, M.
Blanca Roncero)
• The paper covers the in depth
analysis of the packaging
process by putting its core
emphasis on the attainment of
sustainability in e-commerce
packaging.
• The researcher in this paper
has suggested use of
cellulose, cardboards which
could be easily degraded and
also can be obtained through
renewable sources.
Research on Green Express
Packaging Design under the
E-Commerce. (Fang Wang,
Yangyang Hu)
• This paper tries to design the
express packaging in the e-
commerce sector by analyzing
the elements and features of
the express packaging in
china.
• The paper focus on designing
a green logistics box and the
corresponding logistics direct
recycling..
 Green Manufacturing Strategy of E-
Commerce Express Packaging in
China. (Ching-Kuei Kao1,*, Ming
Sun2, Zhi-Bin Tang1, Ying-Ping Luo3,
Feng Zeng)
• This research paper highlights
the problems of the
innumerable express
packaging wastes and discuss
about the green express
packaging and its benefits.
• The paper studies about the
three aspects Over-packaging,
green packaging materials,
and express packaging
recycling.
Packaging design elements
and consumers' decision to buy
from the Web: A cause and
effect decision-making model.
(Hosam Al-Samarraie1)
• The paper focuses on
explaining the effect of various
packaging design elements
(PDE) in influencing the
decision making of the
consumers.
• The methodology used in this
paper is the DEMATEL
approach which is helpful in
explaining problematic
decision-making and
illustrating cause-effect
diagram for better
visualizations.
Packaging Design: General
Framework and Research
Agenda. (A. Azzi,* D. Battini, A.
Persona and F. Sgarbossa)
• The paper talks about
packaging designs which is
considered as one of the
major parameter in
optimization of the packaging
process which is turn affects
cost, supply chain and
performance.
• The researcher considered the
five major drivers for
successful designing of the
packaging systems:
Ergonomics, Logistics,
Sustainability, Marketing and
Safety.
RESULT &
FINDINGS

04
 Results & Discussions
 With the advent change in the experience of the business environment, and digital transformation the current shift
from retail to e-commerce involves more tech savvy approach and therefore, this change seems to be the permanent
one and demands the change in the way brands package their products by focusing on each and every small aspect of
packaging.
 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.
 In long run, the utilization of standard packaging solutions will in general depend on the logistics and
handling. 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.