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Dispersion Forces. These intermolecular forces exist

between nonpolar molecules. They are forces between

temporary dipole molecules as a result of positive nuclei

of one molecule attracting the electrons of another mole-

cule. Although dispersion force is the weakest intermole-

cular force, it plays an important role in many nonpolar

packaging polymers because of their long molecular

chains. For example, the molecular weight of PE is

typically larger than 100,000; along the chain of this large

molecule many dispersion forces exist, and the summation

of these many forces can signiﬁcantly affect the properties

of the polymer.

SPATIAL ARRANGEMENTS

The fourth level is to consider spatial arrangements,

which includes how molecules are arranged in the mate-

rial. In addition to chemical bonds, the spatial arrange-

ment of atoms in the molecule and the molecular weight

are also important factors determining the chemical and

physical properties, particularly for polymeric materials

including plastics and paper. The ﬁne structure of mate-

rial observed by microscopy resulting from chemical com-

position, molecular arrangement, and crystalline degree is

sometimes referred to as morphology.

Tacticity. The atomic arrangement in three-dimen-

sional molecular conﬁguration is called stereochemistry

or tacticity. The way the molecular or ionic units are

geometrically organized distinguishes between crystalline

and amorphous solids: the former has symmetric, period-

ical, and well-ordered structural organization, and

the latter is asymmetric, not periodical, and unsettled

(Figure 4).

For example, methyl groups in polypropylene (PP) may

be positioned in three different ways: Isotactic PP has all

the methyl groups on the same side of the chain; syndio-

tactic PP has the substitute group alternately above and

below the chain plane, and atactic PP is with random

sequence (Figure 5). The tacticity or steroregularity is

important in determining the ability of the solid material

to crystallize: Regular atomic arrangement in the mole-

cular structure makes the molecules easily pack together

into rigid crystals. Therefore, isotactic and syndiotactic

PPs are crystalline, whereas atactic is amorphous.

Crystalline Versus Amorphous State. The crystalline

structural organization of solids applies to structures

composed of repeating identical units that orderly dis-

posed with a ﬁxed geometric relation between each other.

The framework derived from such a symmetric organiza-

tion of units may be more or less complete and homo-

geneous (with vacancy or impurities), but it always has

the lowest energy, and therefore is the most favored one.

Stereochemistry, kinetics of solidiﬁcation from a liquid

state, and presence of crystallization promoters are factors

that determine the degree of crystallinity. The perfor-

mances of the packaging materials are greatly affected

by the crystalline or amorphous structure (Table 5). Glass

is typically a noncrystalline, amorphous material. Cera-

mic material may be in different degrees of crystallinity

Crystalline

Amorphous

Figure 4. A schematic representation of the crystalline and

amorphous spatial conﬁguration of solid constituents.

(1) Isotactic

(2) Syndiotactic

(3) Atactic

Figure 5. Different tacticities in polypropylene.

Table 5. The crystalline and amorphous state for general

categories of materials used for packaging

Material Spatial organization

Glassy Amorphous

Ceramic Crystalline/amorphous

Cellulosic Crystalline (pure cellulose)

Metallic Crystalline

Plastic Amorphous/crystalline

1168 STRUCTURE/PROPERTY RELATIONSHIPS OF PACKAGING MATERIALS

depending on the chemical composition and manufactur-

ing conditions. Most plastic materials are composed of

crystalline and amorphous regions. It is possible to mod-

ulate their degree of crystallinity by processing of the

packaging materials.

Important consequences of the crystalline state are

high density, good mechanical properties, reduced free

volume, and low gas transmission throughout. Some

solids can crystallize in different forms (this behavior is

called polymorphism), and each form has its deﬁnite set of

chemical and physical properties. This, for instance, is an

important point in understanding different resistance to

corrosion or mechanical strength of different types of

stainless steel or aluminum alloys. The potential of the

crystalline structural organization, in establishing several

and even unusual properties, is well exempliﬁed by the

fullurenes, discovered in the mid-mid-1980s, which show

carbon atoms arranged in hollow spheres (that can be

possibly ﬁlled with functional molecules) or in the recent

‘‘nanotubes’’ or ‘‘nanogears,’’ which appeared in the most

advanced metallic nanotechnologies.

Solid structure that lacks orderly arrangement is of an

amorphous state. Amorphous materials like glass do not

have a deﬁnite melting point as crystalline materials do.

The structural organization of amorphous materials can

be explained well by that of liquids, which are deprived of

any order or symmetric organization. Amorphous solids

also behave like solidiﬁed liquids, which have properties of

ﬂowing, ductility, and transparency. An amorphous solid

is formed when the molecular chains have little orienta-

tion and regularity throughout the bulk structure.

Most plastic materials are semicrystalline, and the

controlled combination of crystalline and amorphous

structures can attain a material with advantageous prop-

erties of strength and stiffness. Generally, an increase in

crystallinity causes increased density, increased tensile

and compression strength, increased gas and moisture

barrier, increased sealing temperature, decreased trans-

parency, decreased tearing resistance, decreased impact

strength, decreased toughness, and decreased elongation.

Molecular Orientation. As shown in Figure 6, this in-

volves stretching an unoriented thermoplastic below T

(melting temperature) but above T

(glass transition

temperature) either uniaxially (in machine direction

only) or biaxially (in both machine and transverse direc-

tions), to induce alignment of polymer chains and then

retain the acquired molecular structure thereafter, for the

purpose of achieving better optical, mechanical, barrier, or

other properties. The oriented ﬁlms have a tendency to

shrink with heating and are used for shrink packaging.

When dimensional stability is required, the oriented ﬁlm

is heated even more to relax or set the structure.

Stretching of thermoplastics to induce molecular orien-

tation typically occurs in processes such as blown ﬁlm

extrusion, injection stretch blow molding, and cast ﬁlm

extrusion (when a tenter frame is used). Molecular orien-

tation is achieved with proper control of temperature and

rate of stretching to develop and retain the desirable

molecular orientation.

STYRENE–BUTADIENE COPOLYMERS

D. L. HARTSOCK

Phillips 66 Company,

Houston, Texas

Updated by Staff

INTRODUCTION

The styrene–butadiene copolymers (SB) that are suitable

for packaging applications are those resinous block copo-

lymers that typically contain a greater proportion of

styrene than butadiene and that are predominantly poly-

modal with respect to molecular weight distribution.

These copolymers, produced by solution polymerization

processes using sequential multiple additions of an orga-

nolithium initiator, styrene, and butadiene (1, 2), are

amorphous in nature and transparent. Compared to other

transparent styrenic polymers (e.g., general-purpose poly-

styrene and styrene–acrylonitrile copolymers), the styr-

ene–butadiene copolymers offer outstanding shatter

resistance (3). Physical properties are dependent on mo-

lecular weight distribution, styrene:butadiene ratio, and

the nature of the block structure. Since all three of these

parameters are a function of the polymerization recipe,

grades having different properties can be produced:

Grades tailored for injection molding (see Injection mold-

ing) and for extrusion. (see Extrusion) are commercially

available (see Table 1). Current producers are listed in

Table 2.

APPLICATIONS

One of the major applications for SB is single-service cups

and lids, but a combination of good mechanical and visual

properties, low density compared to other transparent

Unoriented polymer chains

Uniaxial orientation Biaxial orientation

Stretching in machine

direction only

Stretching in both machine

and transverse directions

Figure 6. Stretching polymer chains to induce molecular

orientation.

STYRENE–BUTADIENE COPOLYMERS 1169

polymers, and ease of fabrication by the typical molding

and extrusion techniques make styrene–butadiene copo-

lymers a good choice for many packaging applications.

These include bottles and jars, hinge boxes (ball-and-

socket or integral-living hinges) (see Boxes, rigid plastic),

tubs and lids, blisters, medical devices, packaging, and

many ﬁlm applications (see Carded packaging; Films,

plastic).

Styrene–butadiene copolymers are often blended with

other polymers. If transparency is a requirement, the

blending polymer must have a refractive index very near

that of the styrene–butadiene copolymer. This includes

styrenic polymers such as general-purpose polystyrene

(GPPS) (see Polystyrene), styrene–acrylonitrile copoly-

mers (SAN) (see Nitrile polymers), and styrene–methyl

methacrylate copolymers (SMMA). GPPS is used exten-

sively as a blending polymer for applications requiring

sheet extrusion and thermoforming (see Thermoforming)

(e.g., carded packaging). Blends with SAN or SMMA are

mainly used for injection molded applications (e.g., hinged

boxes, videocassette cases). The impact strength of SBR

can be either enhanced or reduced when blended with

other styrenic polymers. For example, a signiﬁcant loss of

impact strength occurs with the addition of even low levels

of GPPS. In contrast, certain blends of SBR and SMMA

have synergistic impact strength. Therefore, the suitable

blend ratio for a given application depends on the required

combination of stiffness, toughness, and economics. Blend

ratios typically range from 40:60 to 80:20 SB: styrenic

polymer. If clarity is not a requirement, blends with

polymers such as high-impact polystyrene (HIPS), poly-

propylene (PP), and polycarbonate (PC) can provide sy-

nergistic enhancement of certain physical properties,

unusual aesthetics such as gloss and pearlescence, or

reduced cost. Bottles and jars can be produced from

nonblended SB by extrusion or injection blow molding

(see Blow molding). Blown and cast ﬁlms can be produced

from nonblended SBR or blends of SBR/GPPS.

SPECIFICATIONS

Some U.S.-produced styrene–butadiene resinous copoly-

mers meet FDA speciﬁcations (CFR 177.1640). Finaclear

complies with European 89/109/EC and FDA require-

ments (4) Styroﬂex also has FDA food clearance. Certain

grades are fully documented to qualify for U.S. Pharma-

copoeia Class VI-50 medical applications and blood con-

tact uses, and they have been shown to be nonmutagenic,

nonirritants to sensitive tissues, and nondestructive to

living cells. In view of these qualiﬁcations and because

they can be sterilized by both gamma irradiation and

ethylene oxide (ETO) procedures, these copolymers are

widely used in medical packaging applications.

TOXICITY

Most signiﬁcant environmental issues with respect to

styrene–butadiene copolymers relate to the manufac-

tuirng process, taste and odor issues in end-use, and solid

waste in ﬁnal disposal of these polymers. Manufacturing

process issues relate to industrial hygiene, exposure, and

volatile organic emissions. In end-use, block copolyer/

polystyrene blends tend to have taste and odor issues,

especially sensitive in food packaging applications (5). As

with most hydrocarbon-based polymers, SBs burn under

the right conditions of heat and oxygen supply. Combus-

tion products of any hydrocarbon based material should be

considered toxic.

BIBLIOGRAPHY

D. L. Hartsock, ‘‘Styrene–Butadiene Copolymers’’ in The Wiley

Encyclopedia of Packaging, 2nd edition, John Wiley & Sons,

New York, 1997, pp. 863–864.

Cited Publications

1. A. G. Kitchen and F. J. Szalla, U.S. Patent 3,639,517 (to Phillips

Petroleum Company), February 1, 1972.

2. A. G. Kitchen, U.S. Patent 4,091,053 (to Phillips Petroleum

Company), May 23, 1978.

3. L. M. Fodor, A. G. Kitchen, and C. C. Baird, ‘‘K-Resin BDS

Polymer: A New Clear Impact-Resistant Polystyrene in New

Industrial Polymers, ACS Symposium Series 4, D. Deanin, ed.,

American Chemical Society, Washington, DC, 1972, pp. 37–48.

4. Finaclear 521-SBC Technical Data Sheet, Total Petrochem-

icals, Belgium, www.totalpetrochemicals.com, accessed July

2008.

Table 1. Styrene–Butadiene Copolymer Physical

Properties

Process

Injection

Molding and

Extrusion

Injection

Molding

Speciﬁc gravity 1.01 1.01

Flow rate, condition

G, g/10 min

7.5 8.0

Tensile yield strength,

psi (MPa)

3700 (26) 4400 (30)

Elongation, % 160 20

Flexural yield strength,

psi (MPa)

4900 (34) 6400 (44)

Flexural modulus, psi (MPa) 205,000 (1413) 215,000 (1483)

Hardness, shore D 75 75

Heat-deﬂection temperature,

264 psi (1.8 MPa), 1F(1C)

163 (73) 170 (77)

Vicat softening point, 1F(1C) 188 (87) 200 (93)

Light transmission, % 90 90

Table 2. Producers of Styrene–Butadiene Resinous

Copolymers

Company Location Tradename

Chevron Phillips United States K-Resin

BASF Germany Styrolux

Denka-Kaguku Japan Clearene

Total Petrochemicals Belgium Finaclear

1170 STYRENE–BUTADIENE COPOLYMERS

5. M. Demirors, ‘‘Styrene–Butadiene Copolymers’’ in The Ency-

clopedia of Polymer Science and Technology, John Wiley &

Hoboken, NJ, 2001.

SUPPLY CHAIN ENGINEERING

H. H. SCHUENEMAN

San Jose State University,

San Jose, California

The globalization of the world economy started in earnest

in the last half of the 20th Century and has had profound

effects on the distribution of the world’s goods. In parti-

cular, most manufacturing has exited technologically ad-

vanced countries, largely in the West, and has relocated to

countries with large pools of inexpensive labor. Most of

these countries were physically removed up to half a world

away from the primary markets for the goods they were

now producing. To make this situation viable, efﬁcient

logistics, distribution, shipment, and supply chain man-

agement are absolutely essential.

To understand the situation better, it is helpful to

deﬁne the primary terms, including packaging, logistics,

and supply chain management.

P ackaging , in the context used here, implies a protective

device designed and tested to provide physical protection,

containment, identiﬁcation of the contents, and utility dur-

ing the distribution and storage process. Physical protection

is provided primarily by cushion materials to prevent

damage from impact and vibration, which are common

during distribution, and polymeric ﬁlms for moisture and

dust protection. For containment, corrugated containers

provide an inexpensive method to contain the product and

its associated pieces and parts . The same container or box

easily can be printed to provide the identiﬁcation of the

contents in both readable format and scannable or machine-

read format. The same shipping container also provides

utility primarily in the means to stack the product on pallets

or in warehouses without product damage.

It must also be recognized that the product and pack-

age system must work together to survive the often harsh

and harmful elements of the physical distribution envir-

onment. This cooperation is a natural outcome of the

systems approach for efﬁcient and safe product protection

during delivery. The concept holds that it may be much

more feasible, from a cost standpoint, to ruggedize a

product than to design and purchase an overly expensive

package system to protect a physically weak product.

Often, the cost trade-off of these two options favors

product ruggedization over expensive protective packa-

ging. Remember also that packaging is an expense and

rarely adds to the value of the product as it is normally

discarded after safe product delivery. When the product/

package systems approach is used effectively, delivered

cost is normally minimized and customer satisfaction is

normally maximized.

Logistics deﬁnes the entire process of materials

and products moving into, through, and out of the ﬁrm.

This process is often broken down into inbound logi-

stics, materials management, and physical distribution

Raw materials,

parts, and

components

Initial

processing

or creation of

subassemblies

Distribution

to warehouses

and wholesalers

Retailers

Factory

Finished

goods

inventory

Inbound logistics Materials management Physical distribution

Business logistics

Figure 1. Typical logistics concept diagram. Source: (1) Contemporary Logistics.

SUPPLY CHAIN ENGINEERING 1171

(see Figure 1). The Council of Logistics Management

(CLM) deﬁnes logistics as ‘‘a process of planning, imple-

menting, and controlling the efﬁcient, effective ﬂow and

storage of goods, services, and related information from

the point of origin to the point of consumption for the

purpose of conforming to customer requirements.’’ The

word logistics was ﬁrst associated with the military and is

attributed to Major Chauncey B. Baker, who described it

as ‘‘the art of war pertaining to the movement and supply

of armies.’’

Most authors today believe that logistics is a much

broader concept that includes functions such as demand

forecasting, documentation ﬂow, interplant movements,

inventory management, order management and proces-

sing, packaging, production scheduling, purchasing, traf-

ﬁc management, and recycling. A popular concept in

logistics management occurred in the 1980s with the

introduction of just-in-time (JIT) delivery. This concept

held that total cost could be minimized by reducing the

size of component inventory at the manufacturing location

to the absolute minimum, which is typically enough for

one shift. Although other costs such as transportation

likely would increase because of this concept, total cost

could be minimized. Although some manufacturing opera-

tions still use this concept, most ﬁrms agree that a

balanced approach of cost-effective delivery combined

with prudent warehousing provides the best overall bal-

ance and the least overall costs.

Supply Chain Management (SCM) is a somewhat lar-

ger concept than logistics in that it deals with managing

both the ﬂow of materials and the relationships among the

channel intermediaries from the point of origin of raw

materials through to the ﬁnal customer. In this context,

supply chain management is essentially an integration of

suppliers, manufacturers, storage facilities, and retail

outlets in such a fashion that products are produced and

distributed in the right quantities, in the proper locations,

at the correct time, to minimize costs while providing

maximum customer satisfaction (illustrated in Figure 2).

The concept of supply chain management reached

maturity at a rapid rate when the global distribution of

goods demanded an efﬁcient system to handle all of the

various processes necessary for supplying worldwide mar-

kets from distant production sources. The systems ap-

proach was the concept that made the whole process work.

In times past, the transportation manager would try to

minimize transportation costs while the packaging engi-

neer would try to minimize packaging costs and the

warehouse supervisor would try to minimize costs by

stacking containers higher, for example. The systems

approach, by contrast, attempted to look at the total cost

of the ﬁnished product safely delivered to the customer.

Thus, it could be possible for higher transportation costs to

result in even greater savings in packaging, which would

result in net cost savings to the ﬁrm.

WELL-DESIGNED PACKAGING IS THE KEY TO EFFECTIVE

LOGISTICS

For both incoming raw materials and outgoing ﬁnished

products, the key to effective logistics is always efﬁcient

cube use during transportation and warehousing. In

the globalized economy, long-distance shipping is com-

monplace. This shipping often uses ocean-going contain-

ers or similar structures with deﬁned interior dimensions.

Whether or not the distribution cycle uses ships on the

ocean, it is very likely that the most efﬁcient manner for

shipment is to use as much of the interior cube of the

container as possible. For most products and shipping

situations, the cube of the container is maximized long

before the allowable weight limits are reached. With few

exceptions, the cost for shipping a loaded container is

normally ﬁxed up to its maximum weight limit. Thus,

Suppliers

Manufacturers

Warehouses and

distribution centers

Customers

Inventory costs

Transportation costs

Manufacturing costs

Transportation costs

Material costs

Figure 2. Typical SCM concept dia-

gram. Source: (2): Designing &

Managing the Supply Chain.

1172 SUPPLY CHAIN ENGINEERING

if 10% more raw materials or ﬁnished goods can be placed

into a shipping container, the cost for those additional

items is essentially free, and thus, the overall transporta-

tion efﬁciency is greatly increased.

Historically, most of the elements of logistics have been

well optimized in most distribution cycles. That is to say, if

demand forecasting, purchasing, packaging, or production

scheduling were improved by 10%, then the results may be

gratifying but probably not overly signiﬁcant cost wise. If,

however, delivered transportation costs were lowered by

10% because of more compact product design and packa-

ging, then the results would be both gratifying and

signiﬁcant cost wise.

Recently, the manufacturer of computer peripheral

equipment started removing products from pallets and

placing them on slip sheets prior to loading them into

ocean-going containers. Those customers who demanded

products on pallets at the receiving end then would have

their products re-palletized at the end of the distribution

cycle. This process resulted in an increase of approxi-

mately 12% in cube use on ocean-going containers. The

cost savings were in the multimillion-dollar range.

For many consumer products distributed globally, the

cost of delivery can exceed the cost of the product, some-

times by a factor of two or more. This expense indicates

that cost reducing the product by 10%, for example, would

not result in substantial savings, whereas increasing

distribution efﬁciency by 10% would result in much

more signiﬁcant cost reductions. A study conducted by

a well-known electronics ﬁrm concluded that packaging

materials made up less than 20% of the total delivery

cost for their products. Logistics made up 80% or more

(illustrated in Figure 3). It doesn’t take a genius to

ﬁgure out where they spent most of their cost-reduction

efforts.

Commercially available software often is used to deter-

mine the exact shape and conﬁguration of product/pack-

age systems that ﬁt most efﬁciently and maximize cube

use during distribution. Information from these programs

can be best used by close cooperation between product

design and package design functions. For example, trade-

offs between product ruggedness and package cushion

thickness can be easily quantiﬁed in terms of delivery

cost and, thus, can be weighed against the anticipated cost

of the necessary product ruggedization to achieve this

efﬁciency level. Sadly, this type of close cooperation be-

tween product and package design functions is the excep-

tion rather than the rule.

The bottom line is that smart product/package system

design is the key element to cost effective logistics through

efﬁcient cube use during storage and distribution.

LOGISTICS IS THE KEY ELEMENT IN SUPPLY CHAIN

MANAGEMENT

Supply chain management, in all its various forms, always

requires the smooth and efﬁcient ﬂow of goods, materials,

and information throughout a normally complex network.

Goods and materials will always move more efﬁciently

and effectively throughout this process if they are pack-

aged and unitized in a fashion that makes them easy to

handle, identify, store, and ship. Unitization by means of

pallets is the most popular method, although other uni-

tization methods such as slip sheets and clamp loads are

gaining popularity.

The important point is that good logistics will enhance

supply chain management, and some authors even sug-

gest that good logistics makes supply chain management

actually work. However, poor logistics or even insufﬁcient

attention to logistic requirements in the supply chain will

cause disruptions and inefﬁciencies that may lead to total

abandonment of the supply chain concept. The more

globalized companies’ operations are, the more dependent

they are on efﬁcient logistics to make supply chain man-

agement a viable concept. All of these factors are a

recognition of the fact that transportation and distribution

costs are a very high percentage of the total cost of

producing a product. This issue was not the case a gen-

eration ago but is certainly very true today. The near

future promises more of the same as companies strive to

take advantage of cost-effective production in more remote

parts of the world. As these production sites become more

and more remote, the critical value of good packaging,

logistics, and supply chain management becomes more

apparent.

PRODUCT/PACKAGE SYNERGY

At this point, it is clear that logistics is the key element in

good supply chain management and that packaging is the

key element in good logistics. Thus, it would seem that the

global distribution of goods is highly dependent on efﬁ-

cient and effective (smart) packaging. As is often the case,

packaging is one of the last elements to be recognized as

important or crucial in this area. But the simple fact

remains that, without smart packaging, the global dis-

tribution of goods, and therefore, our current lifestyle

would be impossible.

Typical elements that go into a product design focus

would include things like product aesthetics, safety, func-

tionality, weight, dimensions, materials, and many other

considerations. Rarely, if ever, is the idea upheld that

efﬁcient distribution is one of the key elements in a

successful design for globally distributed products. How-

ever, the lessons of global logistics tell us that the trans-

portation and storage costs may be the largest cost item in

the entire product. What product designer in his or her

right mind would ever consider designing a product with-

out paying close attention to the largest cost item in the

product? Yet, that is almost exactly what happens over

and over again when the cost of distribution is ignored.

80%

20%

Figure 3. Total distribution cost.

SUPPLY CHAIN ENGINEERING 1173

Several forward-thinking companies have examined

this topic and have determined that efﬁcient product

distribution is one of the primary determinants of the

actual product dimensions. If changing the dimensions

of a product by a relatively small amount will yield a

potentially large savings in distribution costs, then smart

companies change product dimensions and use the

savings to help increase their competitive advantage.

The companies that ignore this—simple, but vital—prin-

ciple are doomed to higher costs and competitive disad-

vantage throughout the entire lifecycle of the product.

In addition, this spiral will only increase in intensity as

fuel costs increase because of scarcity, and distribution

cycles get longer because of more remote production

facilities. It is important for companies to determine

the most optimal and efﬁcient dimensions of the product

and package system together before the product is even

conceived.

In conclusion, it has been shown that product and

package synergy is the best possible method to enhance

logistics in the distribution of goods and materials,

primarily through optimum cube utilization. This process,

in turn, results in the greatest efﬁciency available through

focus on supply chain management throughout the

distribution cycle. Because distribution costs can consti-

tute a major overall cost of the product itself, this ap-

proach will result in the minimization of cost and in the

maximization of efﬁciency simultaneously. Anyone re-

sponsible for efﬁcient product distribution should pay

close attention to this relatively simple message; optimize

packaging and product/package synergy ﬁrst. Efﬁcient

logistics and effective supply chain management will

result.

BIBLIOGRAPHY

J. C. Johnson, D. F. Wood, D. Wardlow, and P. R. Murphy Jr.,

Contemporary Logistics, 7th edition, Prentice-Hall, Inc., New

York, 1999.

D. Simchi-Levi, Kaminsky, and E. Simchi-Levi, Designing &

Managing the Supply Chain, 2nd edition, McGraw-Hill

Higher Education, New York, 2003.

Marcondes and Schueneman, Packaging Dynamics in a Global

Economy, unpublished manuscript, 2004.

SUPPLY/DEMAND CHAIN MANAGEMENT

CHRIS DOMINIC

STFI-Packforsk AB, Lund

University, Packaging Logistics,

Stockholm, Sweden

SUPPLY/DEMAND CHAIN MANAGEMENT

Emergent structures in Supply/Demand Chain Manage-

ment (SDCM) are the interaction of logistics activities

leading to material ﬂow, thereby satisfying the consumer’s

demand. The logistics area is rapidly developing to create

individualized value for the consumer as well as a sustain-

able growth for the actors involved in the Supply/Demand

Chain. Ericsson in Waters (1) maintains that creating

customer value has been discussed ever since the 1940s,

but distribution channels are often organized by supply

activities that have resulted in supply push rather then

demand pull. Development in this area has improved with

the implantation of new technologies that have provided

the actors with real-time information that has resulted in

enhanced competitiveness. The use of the information

and communication technology (ICT) has increased the

awareness of the need to satisfy the consumers’ speciﬁc

requirements. This development can be also seen in the

packaging area. Packaging is assumed to have a major

inﬂuence on logistics in general and on physical distribu-

tion in particular. The packaging plays an active role in

protecting and creating value from when it is ﬁlled at the

packer/ﬁller* until the product is emptied by the end-user.

This in logistics terms means that the actors involved in

packaging must play an important and proactive part in

maintaining efﬁciency in logistics.

The key elements applied in Supply/Demand Chain

(2) are Packaging Logistics and e-logistics. For each of

these constitutive elements, the current theoretical foun-

dation is described below.

The work is done to bridge the theoretical gaps in

Supply/Demand Chain Management. The theories dis-

cussed here are based on the material ﬂow in the distribu-

tion channels as well as on the actor’s point of view.

CONCEPTS APPLIED IN LOGISTICS

Logistics can be an array of activities generating a physi-

cal ﬂow of supplies from the reﬁners of material through

to the packaging supplier, the packer/ﬁller, and distribu-

tor and all the way to the end-users (i.e., consumers).

Postconsumption and reverse logistics activities are also

considered. The logistics activities are driven by aggre-

gated demands generated by the consumers. The demands

(end-user information) ﬂow in a direction opposite to the

physical ﬂow. Frohlich and Westbrook (3) have divided the

concept of integration into the integration of supply and

demand. The demand data from the consumer is the

driving force for planning, production, packing/ﬁlling,

distribution, storing, and sales. Also, post-sales activities

regarding packaging are also included here.

DISTRIBUTION CHANNEL

The distribution channel is undergoing changes; new

techniques (e.g., e-business) have an inﬂuence on the

design of packaging (4). The development toward control-

ling the customers’ inventory solutions are growing. The

concept of Vendor Managed Inventory (VMI) is used to

integrate a cross-functional process by allowing, for

* A company that takes empty packaging and then packs or ﬁlls it

with products.

1174 SUPPLY/DEMAND CHAIN MANAGEMENT

example, the packaging suppliers to own that part of the

process that has traditionally belonged to the customer.

Many authors [e.g., Waller et al. ((5), p. 186)] stress that

VMI can lead to better planning and help to bridge the

information gaps and contribute to forward integration

with the actors in the distribution channels. These devel-

opments can also be seen in the packaging area where the

packaging actor is using, for example, Shelf-Ready Packa-

ging (SRP) and Retail-Ready Packaging (RRP) concepts

presented by ECR Europe (6). According to Greaver (7),

there is an increasing amount of subcontractors who

deliver certain functions, services, or parts of the produc-

tion process externally, instead of the company carrying

out these tasks internally. Dominic (8) has identiﬁed

packing services, storage, and distribution as examples

of services with which some major packaging suppliers are

familiar and that have served as natural links in the

distribution channel.

For backward integration, many actors have started to

look into the theories of reverse logistics (9), which is a

physical ﬂow moving in the most efﬁcient and cost-effec-

tive way possible. In an ideal world, the logistics ﬂow goes

in the direction towards the consumer. However, as the

world we work in is not ideal, packages often have to move

against the stream in the ﬂow.

Processes related to these activities, which companies

have contracted to carry out, are often regarded as un-

wanted and resource demanding. Here the greatest pro-

blem is the lack of good information systems capable of

handling the reverse logistics functions.

PACKAGING LOGISTICS

The subject of Packaging Logistics is deﬁned as an

approach with the purpose of developing packaging and

packaging systems

that support the logistics process and

meet customer demands. In logistics, a well-functioning

packaging system creates time, place, form, and owner-

ship beneﬁts in the product in relation to the customer—

that is, an undamaged product in an easy-to-handle

package which is easily disposed of. Figure 1 illustrates

packaging logistics activities and the actors involved.

Dominic (8) has identiﬁed the actor Network Integrator

(plotted in the middle), who plays the role in integrating

the supply ﬂow and with the demand ﬂow.

Packaging systems can be either one-way or reusable.

Reusable packaging is collected at a centralized return

handling central (CRC), where it is cleaned, stocked, and

distributed for reﬁlling. The used packaging is shipped for

waste management.

THE PACKAGING AND THE ACTOR

A package should be designed to provide optimal efﬁciency

in storage, sales, and subsequent waste management.

Good packaging affects material, handling in terms of

load stability, stackability, and compatibility with differ-

ent forms of mechanization and automation. The choice of

a packaging system is a complicated task, and it should be

based on market considerations, actors involved in the

process logistics, and environmental requirements. Small

changes in a packaging system affect the distribution

channel in many different ways. In general, the following

factors are involved (10, 11): product protection, available

packaging technology and functionality, economics and

costs, marketing considerations, product properties, en-

vironmental considerations, legal constraints, and infor-

mation transfer. Normally, the package properties are

adapted to the product, but sometimes the product proper-

ties are modiﬁed in order to facilitate more practical

packing/ﬁlling. Packaging is also important for shippers

and for materials managers who are closely tied to func-

tions dealing with warehouse and transportation efﬁ-

ciency. Good packaging can have a positive impact on

layout and design and overall warehouse productivity.

With the need for a holistic approach and a trend toward

longer and more complex Supply/Demand Chain, a

method called Packaging Scorecard (PSC) (12) is intro-

duced in Packaging Logistics. PSC helps to evaluate the

performance of the packaging system in the SDC and to

reduce packaging waste. Lately, the concepts of PSC are

widely used by the distributor and in retail.

The role of a packaging supplier in logistics is often

limited to interaction with the packer/ﬁller in the distri-

bution channel. The nearest interface for the packaging

Centralised returnable

centres (CRC)

Distribution

Empty packaging

Material manufacturer

Point of sale

Material converter

Consume

Waste mana

ement

Product filler/packer

Filled packaging

Empty packaging

Network Integrator

Figure 1. Activities in packaging logistics.

The packaging system is based on four identiﬁed levels: primary,

secondary, tertiary, and load carrier.

SUPPLY/DEMAND CHAIN MANAGEMENT 1175

supplier in the distribution channel is with the packer/

ﬁller. Today, packaging suppliers are challenged to de-

velop solutions aimed at both commercial and logistical

upgrading throughout the ﬂow. The packaging suppliers

should aim at looking beyond the immediate users of

packaging (8). They have to anticipate and integrate the

speciﬁc demands of subsequent distribution phases such

as retail and logistics management through to the con-

sumer. They also have to minimize the use of hazardous

substances and ensure the environment-friendly disposal

of the packaging after use.

e-LOGISTICS

According to Ericsson (13) e-logistics has been the natural

development in the subject of logistics in the past few

years. Information and Communication Technology (ICT)

is one of the legs of e-logistics which bridges the inter-

organizational gaps. The second leg is traditional logistics

comprising material management, warehousing, trans-

port, and Just-In-Time theories. Business processes is

the third leg, where the actors in logistics play an im-

portant part in creating efﬁciency in the distribution

channel.

Together with ICT, packaging can play an active part in

e-logistics by integrating the three legs. By increasing

knowledge in packaging logistics and adapting to new

technologies, the actors in packaging can increase logistics

efﬁciency and add value for their customers.

DISCUSSIONS

During the 1990s the Supply Chain Management concept

noticeably started to spread broadly. The physical ﬂow in a

Supply Chain (SC) composed of a number of companies,

buyers, and sellers, who communicate directly with the

nearest actor is forward for sales and backward for

purchases. The relations often consist of ﬁnding a partner

who can offer the right product price and, in an estab-

lished cooperation, share information about logistics is-

sues including stock levels, delivery, and product

development issues. The relations are based on the crea-

tion of contact between two individuals, namely, a seller

and a buyer.

Information about consumer requirements passes from

the point of sale via the distribution to the packer/ﬁller

and then to the packaging supplier. This puts an emphasis

on relevant information being brought from the packer/

ﬁller to the packaging producers. The process is further

complicated when several enterprises are involved in the

ﬂow. Betts and Heinrich (14) give an example of how ‘‘ICT-

ﬁcation’’ can be used to create adaptations. ICT-ﬁcation

means that electronic aids give access to the customer’s

and sometimes the ﬂow’s database and consumer

demands.

The development in ICT-ﬁcation has reorganized the

distribution channels, which are becoming increasingly

nonstatic in order for companies to gain a competitive

edge. Instead of developing specialized departments in

companies, one could outsource the value-creating activ-

ities and focus on the core business. The basis of Supply

Chain Management is to command and have control over

value-creating activities. According to Ericsson (13), Sup-

ply Chain (SC) is a supply push construction rather than a

construction driven by demand-pull conditions. In tradi-

tional SC, the focus is on the physical ﬂow resources. ICT

is used as a tool for the individual companies to help them

fulﬁll their tasks, and non-interorganizational functions

will lead to inefﬁciencies. For example, a package moving

from the supplier of packaging to the packer/ﬁller and

then to the point of sale involves arms-length transac-

tions, leaving gaps between the actors involved in the

distribution channel. When there are many competing,

parallel distribution channels, the system will become

demand-driven, which should not be mistaken for a

demand chain (DC). A DC is largely about managing the

information ﬂow. The driving force is information rather

than the actual physical ﬂow. The goal is to substitute the

information for inventory among the actors involved in

the ﬂow. Here, as mentioned above, a new actor called

Network Integrator (8) enters the marketplace with

the function of integrating the information ﬂow and the

physical ﬂow. This development can be adapted to packa-

ging theory by introducing packaging integration, and the

actor involved is the Packaging Integrator.

BRIDGING THE GAPS IN LOGISTICS THEORIES

In this article, the concepts of packaging logistics and

e-logistics create an interesting logical element for creat-

ing efﬁciency in logistics. The theory of Supply/Demand

Chain Management is supporting the concept of demand-

pull. There is relatively modest research supporting the

packaging suppliers’ roles in the logistics. But the work

done in the ﬁeld of Supply/Demand Chain Management

adds the theory of Packaging Logistics as an important

element that will create efﬁciency in logistics.

In conclusion, this work looks for answers in the

literature to the questions of how the packaging suppliers

can contribute in logistics to create efﬁciency and how the

theoretical discussion about Network Integration can

contribute to develop the logistics theory.

BIBLIOGRAPHY

1. D. Waters, Supply Global Logistics and Distribution Plan-

ning: Strategies for Management, Kogan Page, London, 2003.

2. C. Dominic, ‘‘Integrating Packaging Suppliers into the Sup-

ply/Demand Chain,’’ Packag. Technol. Sci. 18, 151–160, 2005,

DOI: 10.1002/pts.684.

3. M. T. Frohlich and R. Westbrook, ‘‘Demand Chain Manage-

ment in Manufacturing and Services: Web-Based Integration,

Drivers and Performance,’’ J. Oper. Manag. 20(6), November

2002, pp. 729–745(17).

4. P. Schary and T. Skjott-Larsen, Managing the Global Supply

Chain, Handelshojskolens Forlag, Ko

penhamn, 2001.

5. M. Waller, M. Eric Johnson, and T. Davis, ‘‘Vendor-Managed

Inventory in the Retail Supply Chain,’’ J. Bus. Logist. 20(1),

183–203 (1999).

1176 SUPPLY/DEMAND CHAIN MANAGEMENT

6. X. Hua and B. Fradin, Shelf Ready Packaging (Retail Ready

Packaging), www.ecrnet.org/04-publications/blue_books/srp/

ecreurope_srp_bluebook_executive_summary.pdf (read 2008-

02-20).

7. M. Greaver, Strategic Outsourcing: A Structured Approach to

Outsourcing Decisions and Initiatives, AMACOM, New York,

1999.

8. C. Dominic, Packaging Networks—a framework for Integrat-

ing packaging Suppliers in the Demand Chain, Studentlitter-

atur, Lund, 2006, pp. 13–21.

9. D. Rogers and R. Tibben-Lembke, Going Backwards: Reverse

Logistics Trends and Practices, RLEC Press, Pittsburgh, PA,

1999.

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Tiliander, and Westro

m, P. Fo

rpackningslogistik — 2: A

Utga

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Management: Implementation Issues and Research Opportu-

nities, Int. J. Logist. Manag. 9(2), 1–19 (1998).

12. C. Dominic and C. Olsmats, Packaging Scorecard – A Method

to Evaluate Packaging Contribution in the Supply Chain,

Packforsk research report No 200, Kista. ISSN 1402-5809.

13. D. Ericsson, in C.D.J. Waters, ed., Supply/Demand Chain

Management—the Next Frontier for Competitiveness in Glo-

bal Logistics and Distribution Planning, Kogan Page, Lon-

don, 2003.

14. B. Betts and C. Heinrich, Adapt or Die: Turning Your Supply

Chain into an Adaptive Business Network, John Wiley &

Sons, New York, 2003.

SUSTAINABLE PACKAGING

ANNE JOHNSON

Sustainable Packaging

Coalition, Charlottesville,

Virginia

INTRODUCTION TO SUSTAINABILITY

Sustainability is a systems concept that is simple common

sense. We need a healthy planet to provide resources for

our basic needs and to support the needs of our economies.

People need robust commerce for employment and require

a healthy and productive environment in which to live.

Effective economies need healthy employees to work and

stable societies in which to operate.

For millennia, our planet has provided the material

resources that both societies and business require. We are

entering an unprecedented era where the demands of

humanity exceed the biocapacity of the planet, and in a

short hundred years we have depleted ﬁnite geological oil

resources on which we have grown to depend. Through the

mounting evidence in the form of global changes like

climate change, we are receiving clear signals that the

cumulative impacts of mankind are leaving a swath of

unintended environmental consequences. Our current

industrial and consumptive practices are leaving a tragic

legacy of degraded and limited resources for future

generations.

In 1987, the UN World Commission on Environment

and Development issued a report entitled Our Common

Future that established a deﬁnition for sustainable devel-

opment. This deﬁnition is commonly used for what is

now referred to as simply sustainability: ‘‘Development

that meets the needs of the present without compromising

the ability of future generations to meet their own

needs.’’ (1) The principles elucidated in this statement

strive to balance the demands of society and the produc-

tion of goods and services with consideration for the

environment.

In 2007, it is clear that sustainability is hitting the

mainstream. For 15 years or more, a handful of leading

CEOs and companies have recognized the leading indica-

tors of a shifting business climate and started to consider

how the future might impact their businesses. To these

companies, many of whom are global brands, the concepts

implicit in the term ‘‘sustainable development’’ have taken

on greater meaning and bottom-line signiﬁcance as sus-

tainability has attracted widespread consideration.

Globalization, demand for accountability and transpar-

ency, rising energy prices, and escalating environmental

degradation are just some of the issues driving interest in

sustainability on the part of business and advocacy

groups. With the entrance of Wal-Mart into the arena in

2005, along with the announcement of the company’s

sustainable packaging initiative, sustainability is cur-

rently impacting almost all businesses in the packaging

value chain.

While packaging is often not the overwhelming con-

tributor to an environmental footprint compared to a

product, it does have a uniquely personal relationship to

consumers. When the product is gone, consumers are often

left with the packaging and need to ﬁgure out what to do

with it. For this reason, along with the fact that it

represents a signiﬁcant use of materials and resources,

places a burden on communities, and is a very visible

source of waste or litter, packaging ranks high on corpo-

rate sustainability agendas.

It is clear that careful stewardship of the planet and its

resources are essential for a sustainable future for society

and business. Sustainability represents a tremendous de-

sign opportunity—that is, to design chemicals, materials,

products, buildings, cities, transportation, and packaging

systems that contribute meaningfully to a positive, sus-

tainable future.

One of the sustainability frameworks that has proved

valuable for envisioning sustainable material systems is

the language of cradle to cradle design found in the book

Cradle to Cradle: Remaking the Way We Make Things by

William McDonough and Michael Braungart (2). In Cra-

dle to Cradle, McDonough and Braungart ask us to

imagine industrial systems modeled on the effectiveness

of natural ecosystems. Cradle-to-cradle design envisions a

world powered by the sun where growth is good, waste is

nutritious, and productive diversity enriches human and

natural communities.

The application of cradle-to-cradle design creates an

opportunity to cycle industrial materials in a sustainable

SUSTAINABLE PACKAGING 1177