Packaging can be divided into industrial packaging and consumer packaging. generally speaking, consumer packaging, which mainly aims at containing the goods, promoting the sale of it and facilitating use of  it, is of little value to logistics operation. but industrial packaging has a significant impact on the cost and productivity of logistics.

      Industrial packaging should perform the following functions to meet integrated logistics requirements.

      First, it should protect the goods from damage during handling, storing and transpiration. Damage caused by vibration, impact, puncture or compression can happen whenever a package is being transported. Hence, package design and material must combine to achieve the desired level of protection without incurring the expense of over protection. it is possible to design a package that has the correct material content but does not provide a necessary protection involves defining the degree of allowable damage in terms of expected overall conditions (because in most cases, the cost of absolute protection will be prohibitive) and then isolating a combination of design and material capable of meeting those specifications.

     Second, it should promote logistical efficiency. packaging affects not only marketing and production but also integrated logistics activities. for example, the size shape and type of packaging material influence the type and amount of material handling equipment as well as how goods are stored in the warehouse. likewise, package size and shape affects loading, unloading, and the transporting of a product. the easier it is to handle a product, the lower the transportation rate. hence, if the package is designed for efficient logistical processing, overall system performance will benefit,

The  third important logistical packaging function is communication or information transfer. to identify package contents for receiving, order selection and shipment verification, etc. is the most obvious communication role of packaging. typical information includes manufacturer, product, container type, count, and universal product cod number. ease of package tracking is also important. effective internal operation and a growing number of customers require that product be tracked as it moves through the logistics channel. this can be realized by the extensive use of redio frequency identification RFI. a computer chip embedded in the package, container, or vehicle to allow the container and contents to be scanned and verified as it passes checkpoints in the distribution facility and transpiration gateway. the final communication role of logistics packaging is to provide instructions as to how to handle the cargo and how to prevent possible damage. for instance, if the product is potentially dangerous, such as fireworks and table tennis balls, the packaging or accompanying material should provide instructions for avoiding moisture, vibration and heating, etc., as the case may be.