Evaluating packaging system performance and sourcing strategies of flexible packaging material in inbound supply, combined with the total cost of ownership impact analysis : a case study

Engelbrecht, Marthinus Johannes (2019-12)

Thesis (MCom)--Stellenbosch University, 2019.

Thesis

ENGLISH SUMMARY : Packaging contributes to product value as it protects, markets and extends the life of the content of the product. Packaging is manufactured in all shapes and sizes and from various materials, with one of the main material types being polyethylene. Polyethylene forms part of the flexible packaging sector, and is a material, which requires specialist sourcing strategies. This study sets out to determine the packaging system performance and sourcing strategies of polyethylene at a case study company. The study further utilised the total cost of ownership model to consider the business impact of the recommendations from the study. Previous research failed to address both measurements and mainly considered sourcing or packaging system performance as a singular measurement. Polyethylene contributes 70% of the material spend at the case study company. This, among other things, led to the need to understand and evaluate the current packaging system performance and sourcing strategies. There was a further need to develop implementable recommendations for the single-case study. Quantitative data and qualitative data was obtained through semi-structured interviews for the required input to the identified models. By using the packaging scorecard, the study was able to determine that the scorecard criterion of “stackabilty” was the worst performing criterion in the supply chain. The strategic sourcing investigation, using the Kraljic model, identified polyethylene as a “strategic product” and one which requires a “diversified sourcing strategy” to reduce its cost. These findings were tested with the total cost of ownership model. The results indicated a total cost decrease when the stackability inefficiency is addressed by allowing polyethylene rolls to be double-stacked. The total cost of ownership model further illustrated a material spend decrease if the company considers polyethylene a strategic product and implements the recommended diversification sourcing strategy. Although the results of this study are only relevant for the case study company, this hybrid combination of approaches provide a holistic evaluation of a sourced commodity and some new supply chain insights (not necessarily possible by applying only the approach in isolation). The study recommends further exploration of the improvement potential of this hybrid approach as applied to multiple cases (supporting decision-making).

AFRIKAANSE OPSOMMING : Verpakking dra by tot die waarde van `n produk deur die produk te beskerm en te bemark en die lewensduur van die produk te verleng. Verpakking word in alle vorme en groottes geproduseer en word van verskillende soorte materiaal gemaak. Een van die belangrikste soorte materiaal is poliëtileen. Poliëtileen maak deel uit van die sektor vir buigsame verpakking en is `n wispelturige materiaal wat gespesialiseerde verkrygingstrategieë vereis. Die studie het ten doel gehad om die prestasie van ʼn verpakkingstelsel en die verkrygingstrategie van poliëtileen by `n gevallestudie maatskappy te bepaal. Die studie het verder ook die totale totale koste van eienaarskap-model gebruik om die besigheids impak van die studie se aanbevelings te oorweeg. Vorige navorsing het nagelaat om beide metings gelyktydig te ondersoek en het hoofsaaklik verkryging of verpakkingsprestasie afsonderlik gemeet. Poliëtileen is verantwoordelik vir 70% van die gevallestudiemaatskappy se materiaalkoste. Dit het aanleiding gegee tot die behoefte om die prestasie van die bestaande verpakkingstelsel en verkrygingstrategie te verstaan en te evalueer. Daar was `n verdere behoefte om implementeerbare aanbevelings vir die enkele gevallestudie te ontwikkel. Kwantitatiewe data en kwalitatiewe data is met behulp van semi-gestruktureerde onderhoude ingesamel vir die nodige insette tot die geïdentifiseerde modelle. Met behulp van die verpakkingstelkaart het die studie bepaal dat die telkaartkriterium van “stapelbaarheid” die maatstaf in die voorsieningkettingbestuur is wat die swakste presteer. Die strategiese verkrygingsondersoek, met behulp van die Kraljic-model, het poliëtileen geïdentifiseer as `n “strategiese produk” en een wat `n “gediversifiseerde verkrygingstrategie” benodig om die koste daarvan te verminder. Hierdie aanbevelings is met behulp van die totale koste van eienaarskap-model getoets. Die resultate het `n kostevermindering aangetoon wanneer aan die ondoeltreffendheid van opstapeling aandag gegee word deur aan te beveel dat poliëtileenrolle dubbel gestapel word. Die totale koste van eienaarskap-model het verder `n kostevermindering van materiaal aangedui indien die maatskappy poliëtileen as `n strategiese produk beskou, en die gediversifiseerde verkrygingstrategie implementeer. Alhoewel die resultate van die studie net vir hierdie gevallestudiemaatskappy relevant is, voorsien die hibriede kombinasie van benaderings `n holistiese evaluering van ‘n verkrygde kommoditeit, en sommige nuwe voorsieningskettingbestuur-insigte (nie noodwendig moontlik deur die benadering slegs afsonderlik toe te pas nie). Die studie beveel verdere ondersoek na die verbeteringspotensiaal van die hibriede benadering, soos in verskillende gevalle toegepas (ondersteun besluitneming).

Please refer to this item in SUNScholar by using the following persistent URL: http://hdl.handle.net/10019.1/107142
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