PACKAGING AND MATERIALS

HANDLING
Overview of packaging and materials
handling

 Packaging  Materials handling

Perspectives  Basic handling
considerations
 Mechanized systems
 Packaging for  Semiautomated systems
Materials Handling  Automated systems
Efficiency  Information-directed
systems
 Package design
 Special handling
 Unitization considerations
 Communication
 Packaging perspectives
 Packaging is typically
viewed as
 Consumer - marketing focus
 Industrial – logistics focus
 Master cartons are
containers used to group
individual products
 Containerization or
unitization refers to
grouping master cartons
into larger units for handling
 Grouped master cartons are
called unit loads
 UNIT LOAD
Items or bulk material arranged so that they
can be picked up and delivered as one load

The larger the unit load, the lower the

cost per unit handled.

We need to determine the device and

type of pallets or containers that will
be used for handling the unit load

4
 Unit Load Procedure

1. Determine whether the unit load

concept is applicable
2. Select the unit load type
3. Identify the most remote source of a
potential unit load
4. Determine the farthest practicable
destination for the unit load
5. Established the unit load size
6. Determine the unit load configuration
7. Determine how to build the unit load

5
 Role of packaging in logistics
 Unitization—modular
packaging
 Handling—appropriate for
automation?
 Security—can package be
sealed to detect break-in?
 Stow ability—cube
efficiency
 Information—identification
and tracking
 Protection—spoilage or
damage
 Product Characteristics
 Physical Characteristics
 Density of bulk materials
 Ability to withstand exposure to elements
 Respiration
 Chemical Characteristics
 Incompatible products
 Products requiring chemicals
 Characteristics must be made known to
consumers

5-7
 Product Characteristics
 Hazardous Cargo
 Explosives
 Compressed gases
 Flammable liquids
 Oxidizers
 Poisons
 Radioactive materials
 Corrosive materials

5-8
 Product Characteristics
 Environmental Protection
 Reduce packing materials used
 Use packaging materials that are more
environmentally friendly with recycled content
 Use reusable containers
 Retain or support services that collect used packaging
and recycle it

5-9
 Packaging
 Building-blocks concept
 Smallest unit is consumer package
 Each unit is stacked within the next larger one to
protect the product

 Promotional functions of boxes

5-10
Illustration of four standard master carton
sizes to achieve modular compatibility

Example and Benefits of Modular Packaging

 Packaging
 Protective functions of packaging
 Enclose materials
 Restrain materials from undesired movement
 Separate contents to prevent undesired contact
 Cushion contents from outside vibrations and shocks
 Support the weight of identical containers stacked above
 Position the contents to provide maximum protection
 Provide for uniform weight distribution
 Provide exterior surface for labeling
 Be tamperproof
 Be safe for consumers or others

5-12
 Packaging
 Package testing
 Vibrations
 Dropping
 Horizontal impacts
 Compression
 Overexposure to extreme temperatures or moisture
 Rough handling

5-13
 Packaging
 Designing a package requires 3 types of
information
 Severity of the distribution environment
 Fragility of the product
 Performance characteristics of various cushion
materials

5-14
 Packaging for material handling
efficiency
 Package design using standard configurations and
order quantities facilitates efficiency
 Cube out of vehicle results in shipping ―full‖ without
reaching weight limit
 Weigh out of transport vehicle results in shipping air
in space that can’t be filled with product
 Cube and weight minimization are special challenges
of mail order and e-commerce
 Unitization is the process of grouping cartons into unit
loads
 Communication role is to identify package contents for
all channel members
 Unit Loads in Materials
Handling
 A unit load is one or more boxes secured to a pallet
or skid. The term ―unitization‖ describes this type of
handling.
 Basic unit is a pallet or skid
 Lumber is expensive so firms want pallets returned
 Provides cushioning effect in transport
 Quality of pallets varies widely
 Chep USA rents pallets in wood or plastic; used in closed-
loop system
 Should be less than 50 pounds—difficult with plastic
 Metal also used in closed loop systems

5-16
 The Building-
Blocks Concept of
Packaging

5-17
A Battery Powered
Lift Truck Used for
Stock Picking

5-18
 Unit Loads in Materials
Handling
 An intermodal container holds the unit load
 Interchangeable among rail, truck, and water
carriers
 Air carriers usually use irregular shaped
containers made to fit fuselage

5-19
 Various
Types of
Intermodal
Surface
Containers

5-20
 Unitization has the basic objective of
increasing handling and transport efficiency
 Unit loads take 1/5 the
time required for manual
loading and unloading
 Unitization methods
 Rigid containers
 Air Freight Containers
 Sea-Land Containers
 Returnable Racks
 Flexible containers
 Pallets
 Slipsheets
 Benefits of rigid containerization

 Improves overall material movement efficiency

 Reduces damage in handling and transit
 Reduces pilferage
 Reduces protective packaging requirements
 Provides greater protection from environment
 Provides a shipment unit that can be reused many
times
 Reduces waste
 Reduces need to dispose of the container
Illustration of a ‗four-way-entry‘
hardwood pallet

Example of Hardwood Pallet

Illustration of four basic patterns to
tier master cartons

Basic Pallet Master Carton Stacking Patterns

 Communication functionality of packaging is
increasingly critical to identify and track packages

 Identification displays key

logistical info
 Manufacturer, product, container
global type, count, UPC, and EPC
 Tracking provides the ability to
determine the exact location of an
item
 Special handling instructions
 For example, glass, temperature
restrictions, stacking
considerations, or
environment/safety concerns
 Technologies facilitating
communication include
 Bar Coding, RFID, GPS
 ―Nested RFID‖ for items in a unit
load
 Materials Handling
 Materials handling refers to how the materials
or products are handled physically.
 How the products are handled depends on
whether they are packaged or in bulk
 Handling may change the characteristics of
the product

5-26
 Basic handling considerations
 Method depends on the
materials!
 Bulk materials are
handled without master
cartons
 E.g. powders/liquids,
 Need specialized
equipment
 Unit loads, containers
and master cartons can
be handled many ways
 Principles of materials handling

 Equipment for handling and  Handling equipment should

storage should be as be utilized to the maximum
standardized as possible extent possible
 When in motion, the system  In handling equipment
should be designed to selection, the ratio of dead
provide maximum weight to payload should be
continuous product flow minimized
 Investment should be in  Whenever practical, gravity
handling rather than flow should be incorporated
stationary equipment in system design
Material handling systems require different
amounts of labor and capital investments

Manual sorting
Mechanized
Semi-automated
Automated
Information-directed
 Manual systems for picking, sorting
and movement of inventory
 Labor-intensive
 Slow
 Human
Limitations
 Repetitive
motion
 Strain injuries
 Higher error
rates
 Mechanized systems employ a wide
range of handling equipment
• Most mechanized systems
combine different handling
devices
• Moderate fixed and variable
cost with good flexibility
• Examples
– Forklift
– Rider pallet trucks
– Towlines
– Tractor trailers
– Conveyors
– Carousels
 Semiautomated systems often
supplement mechanized equipment

 High fixed cost, low variable cost

with low flexibility
 Examples
 Automated guided vehicles (AGV)
 Sortation systems
 Robotics
 Build and breakdown unit loads
 Live racks
 Automated systems now focus
on high-rise storage and retrieval
 Highest fixed cost, lowest
variable and labor cost with
low flexibility
 Potential to automate is the
elimination of direct labor by
substituting capital
equipment
 Examples
Video of Andersen AS/RS system (2:44 min.)
 Order selection systems http://www.youtube.com/watch?v=giaf76zBoYU

 Automated storage and

retrieval system (AS/RS)
Illustrated concept of a high-
rise AS/RS warehouse

AS/RS High-Rise Warehouse

 Information-directed systems combine controls of
automated handling with flexibility of mechanized
 Moderate fixed and variable
cost with high flexibility and
utilization
 Offers selected benefits of
automation without
substantial capital investment
 Main drawback is
accountability regarding work
assignment Video link (0:49 min.)
 Examples http://www.youtube.com/watch?v=0zVfZbwx1vs
 RF wireless (Wi-Fi)
 Use lift trucks, RFID scanners
and data collection terminals
 Pick-to-light carousel system
 Completely robotic facilities exist for
specialized situations
 Some bulk and
container
loading/unloading
facilities have gone
completely robotic
 Example is the Port of Video link (2:58 min.)
http://www.youtube.com/watch?v=OAHoCI-IAMA
Brisbane in
Queensland, Australia
 Special handling
considerations
 E-fulfillment
 Places special demands on a firm‘s warehousing
and materials handling
 Environmental concerns
 Impact of equipment or hazardous materials
 Regulatory environment
 OSHA is extending its regulatory influence over
warehouse operations and technology
 Returns processing
 Traditionally done using manual methods
E-fulfillment demands influence warehousing
and materials handling in four ways
 Large volume of small orders
 Difficult to achieve economies
of scale in picking operations
 Wide range of products
requires large inventories
 Requires ability to receive and
merge a large number of small
orders rapidly
 People-intensive facilities
needed to provide flexibility in
picking
 Consumer expectations require
many activities within the
warehouse to be electronically
scanned and tracked
5-39
5-40
5-41
5-42
5-43
5-44
5-45
 Materials Handling Principles
 Orientation – understand entire  Minimum travel
system, relationship to other systems  Maximize space utilization
and physical limitations
 Ergonomics – protect workers
 Requirements – expected from difficult or repetitive functions
performance
 Energy efficiency
 Integrated system – coordination
of all storage & handling systems
 Ecology – environmental friendly
 Standardization – of package  Mechanization – substitute
sizes machines for humans
 Just-in-time – products not moved  Automation – very capital
until needed intensive; less flexible
 Unit load – handling materials in  Flexibility
large blocks

5-46
 Materials Handling Principles
 Simplification – avoid overly  Systems flow
complicated systems  Layout
 Gravity – rely on gravity to move  Cost
materials when possible  Maintenance
 Safety  Obsolescence
 Computerization  Team solution
 Systems flow

5-47
Problems in Materials Handling

5-48
5-49
5-50
5-51
5-52
5-53
Thank You….

5-54