Thinking Outside The Box Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Thinking Outside The Box Case Study Solution

The redesigning of the product packaging by using the reusable packaging materials and bulk packaging have led to the lighter weight of new packaging as compared to the old one, along with the decrease in physical space of products due to their new packaging in comparison to their old one. Through this, the shipping charges that have been incurred to the end users of the electronic products have reduced, which is the big advantage for the electronic companies to pack their products and safely ship them to their end users.

This new design of packaging materials is also helpful to reduce the number of packaging components, which are previously used as thirteen 13 components, and are now shrunk into five 5 components. These five 5 components are reusable and can use up to ten 10 withstand uses. This ten 10 times use of cardboard boxes packaging has been tested in in-house testing department to control the uncertainty in environmental forces.

In order to control the reverse logistics or take back system, the companies have taken bids from the third parties, while there are several companies that are qualified in the reverse logistics, and are using it in their daily business operations, because it is the most efficient way to use in product packaging. In conclusion of it, the electronic companies have reached to their per box purchase price after placing the bids to the vendors to purchase the reusable materials for products packaging, which furthered has been converted into legal purchasing of packaging materials for management departments.(Fernandez, 2003)

However, the companies realized that even after purchasing the new material component in order to make packaging recyclable and achieve cost efficiency, there were no major change in the cost of packaging with old techniques and the new component. Moreover, the companies seem no cost savings in reusing the packaging material.

After analyzing the Table 2 in the given case, which shows the data related to the pricing of new packaging materials, it could be seen that a shipment comprising of bulk quantity of 20 hard disk drives would cost the companies $20 approximately with an airfreight delivery charges of approximately $60 and a take back cost of $13 including the transportation, storage, trucking and warehousing.

Along with it, from the Table 3 in the given case, which shows a comparison of old and new packaging costs, it could be seen that the new packaging cost are about 40% less than the old packaging costs. The huge difference between the packaging costs are due to the 80% reduction in the packaging material and the 20% reduction in the logistics and handling costs.

Along with the issues related to packaging costs, there are certain issues related to the implementation of new packaging system related to take back and reverse logistics. The issues include the sale sand the marketing of the products with new packaging system in order to attract large number of consumers with a purpose to increase overall sales revenue and achieve high profit margins for the overall electronic industry.

Moreover, the incorporation of the new packaging system is based upon two different methods related to sales and marketing. The first method is related to the cost saving from the use of recyclable material which is beneficial for both i.e. the companies and the consumers as the companies could achieve cost efficiency and the consumers could get the products at low prices. Another method is related to the achievement of environmental goals with the reduction in the overall environmental burden through the use of recyclable packaging materials. The introduction of new packaging system would enable the companies in the electronic industry to reduce the costs related to damages and impairment of products.

Alternate Solutions

Alternative-1: Corrugated Bubble Wrap

Corrugated Bubble Wrap might just be the most earth accommodating transportation supplement ever accessible anyplace in the epic history of bundling packages defensively. Electronic companies might depend on the chase for greener choices and approaches to help their track upon the globe, which has become a cause of happiness that is currently brought to the commercial center. Companies are very excited to impart their customers for this green option in contrast to the conventional air pocket wrap and froth peanuts.

Companies are on the whole acquaintance with air pocket wrap bundling, which is most liked by children, which ensures delicate things during delivery. It is not the most eco-accommodating material as it is made of plastic. Various options are being created, out of which one is a wrap made up of recycled ridged cardboard. As opposed to arranging or reusing post customer cardboard waste, the companies have found an opportunity of an extra life as a padding material (Eco Enclose, n.d.).

Little slices are made in it to deliver a concertina type impact, which protects against stuns similarly as air pocket wrap does. The main drawback is that the companies do not get the fulfillment of popping the air pockets a short time later.

Alternative-2: Mushroom Packaging

Another eco accommodating bundling elective that can be utilized to help little things is in all honesty and produced using mushrooms. It uses cleaned and ground rural waste, which is then combined by a grid of mushroom roots and also called mycelium. The horticultural waste could not be utilized as a nourishment hot spot for people or creatures. It thusly maintains a strategic distance from the conceivable discussion connected to cornstarch bundling.

The crude material would then be able to be formed into whichever shape is wanted, dried, and utilized as bundling. Not exclusively does this material maintain a strategic distance from oil, but it also sustains hot spots for its crude material. However, it’s likewise biodegrades are at a mind blowing rate. (Mushroom Packaging, 2007).

Conclusion

The electronic industry is facing acute challenges in terms of high packaging costs and the increasing environmental burden due to the huge wastes from the packaging of electronic products. In this regards certain steps have been envisioned and taken to reduce the overall packaging costs and the environmental burden. In this scenario the take back and the reverse logistics packaging system are one of the most desirable methods which could reduce the packaging costs faced by the companies and the environmental burden. However implementation of the new packaging system lead the companies to face certain challenges. However, by considering the two alternate solutions suggested in the above section the companies could achieve packaging cost efficiency along with a substantial reduction in the environmental burden............

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Thinking Outside The Box Harvard Case Solution & Analysis