A mere package
Bar coding requires changes in package design, manufacturer-distributor teamwork
By Perry Osburn -- Industrial Distribution, 8/1/1998
Manufacturing and distribution executives receive daily pronouncements on the emerging electronic economy. Respected research organizations such as Forrester Research and International Data Corp. predict that electronic business transactions will exceed $200 billion annually by the year 2001, with the number of Internet customers surpassing $130 million by the year 2000. The breakneck pace of this transformation is creating havoc for manufacturers and distributors alike, as we speed into the world of bar coding, EDI, commerce servers and other emerging Internet technologies.It is often said that the devil is in the details when it comes to change management, and the movement to electronic commerce is no exception. Both manufacturers and distributors often overlook the complexity of adapting to these new technologies. A simple case in point is the transition to bar coding of products and the concomitant change in product packaging needed to support the use of bar codes.
Bar coding is already ubiquitous in retailing, and industry leaders such as Wal-Mart have shown its economic benefit. The transition to bar coding is just beginning in many parts of industrial distribution, and distributors and manufacturers must work together to exploit its many useful features. The use of bar codes to record product movement has many subtle difficulties that must be overcome to achieve an effective implementation.
Product packaging is one area that comes under scrutiny during bar code implementation. Using bar codes in warehousing operations implies that all product packaging must include a bar code symbol, and it must conform to industry standards for structure and readability. This is not a problem for many industrial products, but some products are small by necessity and adding bar code support to them entails a complete redesign of the product's packaging. The new package is often substantially larger than its predecessor because of requirements for bar height and spacing, and the need to place the bar code on a flat surface so that wand readers and other inexpensive devices can accurately decipher the code.
Bar codes are not the only recent issue affecting package design. Manufacturers must also react to increasing requirements for individualized labeling that is requested by many customers as well as government mandated warning labels. Increasingly, manufacturers must create product packaging that fits the needs of many different types of customers.
Unfortunately, package design is the most visible symbol of a manufacturer and small changes can have a tremendous impact on its customers. Changes in packaging may disrupt shipping and warehousing operations and may require reconfiguration of storage areas, all of which have a cost in time and money for our distributor partners.
For some distributors, the change will seem unnecessary because they don't utilize bar code technology, nor have they seen strong demand for it from their customers. Ultimately, however, the industrial marketplace will follow the lead of retailing because of the many economic benefits to be gained through electronic commerce and the bar codes that make it all possible.
Of course, change sometimes creates opportunity. Our own recent package redesign allowed us to improve our packaging to support both the growing use of vending machines to dispense industrial products and the increasing number of customers who maintain pegboard displays in their showrooms. Additionally, the new packaging was designed to better protect the product during shipment. These are just a few examples of how creative thinking can create opportunity while supporting the evolution of new technologies.
Change is rarely easy, and changes of the magnitude promised by electronic commerce cannot be implemented without cooperation between manufacturers and their distributor partners. As we work together to reap the benefits of these new technologies, it's important to remember that even small details like package design play a role in assuring our competitiveness in the new economy.
Talkback
Related Content
Related Content
Sponsored Links
View All Blogs
