Read the case study below and answer the following questions:

Packaging Logistics. A Case Study in Dairy

Sector

Nowadays, companies must deal with the challenges, not only in constant innovation in terms of new products and

processes, shorter life cycles or increased commercial range, but also in terms of the demand for ever lower prices,

with increasingly improved quality standards and service. Thus, current markets could be characterized as turbulent,

volatile and global, so many organizations are searching for a more efficient management of their supply chains as a

source of competitive advantages $($Christopher$,2020).$ In this context, in recent years there has been a double

phenomenon of strong impact on supply chains$$ efficiency: first, globalization of supply chains and, secondly$,$ the

constant increased costs of raw materials, particularly, the oil. The combination of these two phenomena is not a

trivial issue because, strategically, underscores the urgency of action in pursuit of maximum performance in logistics

activities undertaken across the supply chain $($transport$,$ handling, storage, production, $...),$ eliminating "waste" or

activities that do not add value to the market $($in line with the Kaizen approach, "Just in Time" $($JIT$)$ or "Lean

Manufacturing"$)$ but also developing and implementing innovations in processes and products.

Likewise, the growing sensitivity in society as regards a responsible management should imply that the supply chain

management should be enlarged to take in the concept of sustainability and its three axes associated:

environmental, economic and social $($Ciliberti et al$.,2018).$ Beyond the individual framework of a company, this

sustainability concept should be extended to the other companies in the supply chain, whereby all their

organizations should take an active part in designing and implementing logistic processes that can be considered as

sustainable $($Ciliberti et al$,2018$ Carter and Rogers, $2018$ Seuring and M$$ller$,2018$ Andersen et al$.2019).$ In this

context, sustainability and efficiency$)$ should be considered as complementary $($Mej$$as$-$Sacaluga et al$.,2021).$

Packaging Logistics

In the conceptual framework commented in the previous heading, packaging is one of the key elements that makes

it possible to provide support for the combined action of efficiency and sustainability strategies. Thus, beyond the

traditional $($but nonetheless important$)$ view of packaging as a means of protecting products, over the last few years,

new design requirements have been added for packaging: on the one hand, to improve the differentiation capacity of

the product, and on the other, to improve the efficiency of the product at logistic level. Furthermore, this contribution

of packaging to efficiency in logistics should be considered not only in terms of its direct view $($in the processes of

supplying, packing, handling, storing and transport$),$ but also reversely $($re$-$use, recycling and$/$or recovery waste from

packaging$).$ All this has, in practice, meant the development of specific legislations $($e$.$g$.,$ European Directive

$94/62/$EC$2014).$ In this context, authors such as Saghir $(2002),$ Garc$$a$-$Arca and Prado$-$Prado $(2008)$ or Bramklev

$(2009)$ identify in packaging three main functions: the commercial function, the logistics function $($direct logistics$)$ and

the environmental function $($reverse logistics$).$ Also, to put these functions into practice, it is essential to consider the

packaging as a system comprising three levels $($Saghir$,2002)$: the primary packaging $($also known as the $$consumer

packaging$),$ the secondary packaging $($a group of several primary packages$$ known as $$transport packaging$)$ and

the tertiary packaging $($involving several primary or secondary packages grouped together on a pallet$).$

Nowadays, the choice of the type of packaging is usually subject only to considerations involving cost reduction.

Thus, packaging design affects costs both directly $($costs of purchasing and waste management$)$ and indirectly

$($packing$,$ handling, storage and transport$).$ It is precisely this indirect way that makes difficult an adequate

understanding of the repercussions of certain decisions in packaging design $($Garc$$a$-$Arca and Prado$-$Prado, $2008).$

With this broader view of packaging, over the last few years, the integration of logistics and the packaging design

has been conceptualized in the term $$packaging logistics$,$ particularly emphasizing the operational and

organizational repercussions $($Hellstr$$m and Saghir, $2006$ Garc$$a$-$Arca and Prado$-$Prado, $2008).$ Shagir considers

$$packaging logistics$$ as $$the process of planning, implementing and controlling the coordinated packaging system of

preparing goods for safe, efficient and effective handling, storage, retailing, consumption and recovery, reuse or

disposal and related information combined with maximizing consumer value, sales and hence profit$.$

As a result of the packaging logistics implementation, it is possible to deal with the search for packaging able to

meet the needs of the companies based on the possibilities associated with the combinations in the packaging structure $($primary$,$ secondary and tertiary packaging$)$ and with the four main decisions to be taken in design:

selection of the materials, dimensions, groupings $($the number of packs$/$package$)$ and $$graphic artwork$($or the

aesthetic design of the packaging$).$

After the justification and the conceptual development of the $$Packaging Logistics$$ approach, the main objective of

this paper is to illustrate the potential of applying this approach in the dairy supply chain. Thus, for theory testing, the

authors have adopted the $$action research$$ approach, directly participating in the $$packaging logistics$$

implementation process in a dairy company, leading and coordinating the project. Thanks to this involvement, the

researchers have the opportunity to witness the process, not only as mere observers, but also as real $$agents of

change$$ in intervention and knowhow compiling processes $($Maull et al$.,1995$ Prado$-$Prado, $2000).$ Action research

can be seen as a variant of case research $($Yin$,2002),$ but whereas a case researcher is an independent observer,

an action researcher $...$ is a participant in the implementation, but simultaneously wants to evaluate a certain

intervention technique...$($Coughlan & Coghlan, $2002).$

Packaging Logistics in Action

The Brik was developed by Ruben Rausing in $1951$ in Lund $($Sweden$).$ It can be made for up to six different layers

and for guidance, a brick pack would comprise $75\%$ cardboard, $20\%$ plastic $($Polyethylene$)$ and $5\%$ of aluminum.

Despite its use$-$fulness to preserve perishable liquid foods $($including milk$)$ without refrigeration and preservatives

and its good logistical efficiency $($volumetric occupation$),$ this package is still blames environmental misbehavior.

However, this difficulty of re$-$cycling has improved as technology evolves in separation of layers.

The logistics of milk briks has no special requirements of conservation $($temperature$)$ as it happens with other milky

products like cheese, yoghurt and cream $($with a specific supply chain$).$

Conclusions

In a competitive and global scenario, companies should improve their supply chain from a sustainable and efficient

perspective. The real challenge for companies is how to integrate, proactively and strategically, both concepts. In

this context, redesigning packaging by applying the $$Packaging Logistics$$ concept is an example of this integration

as it was illustrated in the dairy company. As described in this paper, the supply chain has also succeeded in making substantial savings at logistics and environmental level.

Case adapted from: Heizer and Render $(2018)$

QUESTION $1$

$1\mathrm{.}1.$ Based on the information presented in the case study, analyse the significance of packaging within

the logistics operations of the dairy industry. Additionally, offer an overview of the packaging innovations

that have been implemented in this sector to enhance customer service.

$(20$ marks$)$

$1\mathrm{.}2.$ Considering the dairy sector, analyze the importance of forecasting and suggest the key elements

that should be emphasized to enhance forecasting precision. Support your recommendations with

pertinent examples.

$(20$ marks$)$

SECTION B $-$ Answer ANY THREE$(3)$ of the FOUR$(4)$ questions in this section.

$(60$ MARKS$)$

QUESTION $2$

$(20$ marks$)$

Using any relevant examples, examine the considerations that organizations should consider when

strategizing for distribution and logistics planning.

QUESTION $3$

$(20$ marks$)$

With the increased competitiveness of international markets resulting from the liberalization of world trade

and investment $($Hill$,2008),$ explore the tactics that a company can employ to enter and thrive in the global

arena.

QUESTION $4$

$(20$ marks$)$

Examine the information technology systems or innovations that can be deployed to assist in enhancing

supply chain planning.

QUESTION $5$

$(20$ marks$)$

Considering the statement that warehouse operations involve a series of complex processes, evaluate the suitability of implementing a cross$-$dock operation within a retail organization.