Exploratory case study of wheat flour and rice packaging in Indonesia - Proposals to develop paper-based packaging system

Abstract: Issue of study: Looking at the lack of strong fibers to form strong paper packaging in Indonesia, there are potentials to introduce Scandinavian long-fibered strong paper bag packaging in Indonesia. Two basic food categories, wheat flour and packaged rice, are chosen as the consumption rate is increasing in Indonesia. Indonesia is tropical country with high temperature and humidity level. In addition, the logistical conditions in Indonesia are not optimum which add certain constraints on the packaging system being introduced in Indonesia. Indonesian manufacturers are not aware of integrated supply chain evaluation for packaging development. It will be advantageous to use the holistic evaluation to introduce new paper-based packaging system in Indonesia. Purpose: The purpose of this thesis is to evaluate the packaged rice and wheat flour supply chain in Indonesia and develop an overall paper-based packaging solution from systemic (manufactures to consumers) point of view. Method: A case study approach with qualitative analyses on the supply chain and consumers were chosen. The data collected from direct observation, interviews and indirect observation (packaging scorecard) are used to analyze current packaging system weaknesses and the improvement potential of paper bag packaging system proposals. Conclusion: Paper bag packaging needs to have extra barrier layer in order to be properly functional in tropical climate of Indonesia. The holistic supply chain evaluation is beneficial in pointing out which packaging system will fulfill the product, logistical, environmental, and marketing requirements from different actors. The consumer insights lead to packaging functional features that simplify consumers’ storage and usage of the product. The case study for two basic products, wheat flour and packaged rice, concludes to two unique proposals in applying new paper-based packaging.