Topic 5: Packaging and

Material handling
Lecturer: Tran Le Anh Duy
  To illustrate how product characteristics affect
packaging and materials handling

 To discuss packaging fundamentals such as

packaging functions and labeling

 To identify select issues that affect packaging

Learning such as environmental protection and packaging
inefficiencies
Objectives
 To learn about unit loads and the unit load
platform

 To explain materials handling principles and

materials handling equipment
Packaging and Materials Handling
The wrapping material around a
consumer item that serves to
contain, identify, describe, protect,
display, promote and otherwise
make the product marketable and
keep it clean
Material handling is the movement,
protection, storage and control
of materials and products
throughout manufacturing,
warehousing, distribution,
consumption and disposal.
Product Characteristics

Physical Characteristics

Substance
Density of
form (solid,
bulk
liquid and
materials
gas) Chemical
Ability to Characteristics
withstand
Respiration exposure to
elements
Product Characteristics

 Physical Characteristics:
 Substance form
1. Solid
2. Liquid
3. Gas
Product Characteristics

Respiration: Perishable
Product Characteristics
Product Characteristics

 Sensitive to Ethylene
Packaging Fundamentals

Building-blocks concept
 Smallest unit is consumer package
 Each unit is stocked within the next larger one to protect the
product
Packaging Fundamentals

 Some of the many packaging fundamentals include:

1. Functional trade-offs
2. Packaging testing and monitoring
3. Labeling
Why do we need to package products?
 Packaging Fundamentals

 Functional trade-offs
 Packaging serves three general functions
 To promote  MKT: colorful, beautiful design
 To protect  Logistics: safe, easy to be handled, stored or
transported
 To identify (label) the relevant product
Packaging Fundamentals

 Packaging design decisions involve a number of

departments within an organization
-Quality Control  Minimise loss and damage
-Manufacturing  Convenient with the producing capacity

-Marketing  Attractive and colourful to encourage purchase

-Warehousing and Transportation  Minimise space

utilization.
Packaging Fundamentals
Packing luggage

Pack these stuff into this box in such a way

that your facilities won’t be damaged during
transportation, loading and unloading
processes. Present your packing method.

Note: Besides these stuff, you can add any

further supporting things but not affecting
too much to the weight of the whole
package.
 Packaging Fundamentals
• Package testing and monitoring
– Three important kinds of information needed to
properly design protective packaging system

UPS Package Testing:

https://www.youtube.com/watch?v=BVf1SukgJzk
Packaging Fundamentals

 Package testing
 Packaging Fundamentals

• Labelling: is any written,

electronic, or graphic
communication on the package or
on a separate but associated label.
– Many regulations govern labeling
• Weight
• Specific contents
• Instructions for use
– Regulations differ from country to
country and from state to state
 Packaging Fundamentals
 Labeling
 Batch numbers: document for us the
date the item was made.  Code the
product
 Instructions for use

 One- or two-dimensional bar codes

 Smart labels or RFID labels
Packaging
Fundamentals
Packaging Fundamentals
 Labeling - Hazardous
Materials
 Governmental regulations
address labeling of hazardous
materials
• Requirements involve
– Labeling
– Packaging and repackaging
– Placing warnings on shipping
documents
– Notifying transportation carriers in
advance
 Issues in Packaging
 Environmental Protection
 Reduce packing materials used  Minimise package
waste
 Use packaging materials that are more environmentally
friendly with recycled content
 Use reusable containers
 Packaging materials must be tested carefully to ensure
good quality
 Goods must ensure its safety
 Goods must be easy to be handled, stored or transported
 Labels must be clear and show enough information
about the goods’ characteristics. The label should be
printed and affixed outside of the package
 Exercise:
1. Choose one product and describe the way that you pack and protect your product when
distributing and delivery

2. Is there any label that you always want to stick on your packages? Why?
Issues in Packaging

Packaging inefficiencies can have a

number of undesirable logistics
consequences including:
Increased loss
Increase damage
Slower materials handling
Higher storage costs
Higher transportation costs
Issues in Packaging
 Packaging’s Influence on Transportation
Considerations
─ Carrier’s tariffs and classifications influence the type of
packaging and packing methods that must be used
─ Carriers established classifications for two main
reasons:
 Packaging specifications determined by product density
lead to the best use of the equipment’s weight and volume
capabilities
 Carrier specifications for protective packaging reduce
likelihood of damage to products thus reducing the loss
and damage claims filed against the carrier
 Unit Loads in Materials Handling

 A unit load (unitization) refers to consolidation

of several units (cartons or cases) into larger
units to improve efficiency in handling and to
reduce shipping costs.

 Handling efficiency can be facilitated by

mechanical devices (pallet jack or forklift) as
well as by using a pallet or skid.
 Types of Material Handling Equipment for
Warehouse in INDIA -
https://www.youtube.com/watch?v=BBWPIByO
EfI
 Unit Loads in Materials Handling
 The Unit Load Platform
 Basic unit is a pallet or skid
 Can be constructed from wood,
wood composites, plastic, paper,
and metal
 Each pallet material has
advantages and disadvantages
 Should be less than 50 pounds
 Pallet or skid alternatives
 Slip sheet
 Shrink-wrap
Unit Loads in Materials Handling
Unit Loads in Material Handling:
Inflatable dunnage bags
Unit Loads in Material Handling
 Material Handling Equipment
 Two categories of handling equipment

 Storage
1. Shelves
2. Rack
3. Bins

 Handling
1. Conveyor systems
2. Lift trucks
3. Carts
4. Cranes
 Materials Handling
 Material handling equipment can also be categorized
as:
 Labor intensive
 Mechanized
 Automated
 Sufficient volume is needed to justify high cost of
automated equipment
 An organization’s order picking and assembly system
can also influence the type of handling equipment.
 Picker-to-part systems: The picker-to-part method is
commonly found in many warehouses. The process involves
a storage area, a picking area, and a material
handling system that refills the picking locations from the
storage area
 Part-to-picker systems: A materials handling approach for order
picking where the pick location is brought to the order picker (e.g.,
carousels).
Automated storage and retrieval system

 https://www.youtube.com/watch?v=dIn0GWlYDdc
 Automated storage and retrieval system: An automated storage and retrieval system
consists of a variety of computer-controlled systems for automatically placing and
retrieving loads from defined storage locations.
Case study
 https://packagingeurope.com/amazon-frustration-free-packaging-incentives-kim-
houchens/
What are customer thinking about Amazon Packaging strategies?
What are solutions Amazon use to solve this issue?
What Mr Kim Houchens think about Excessive Packing?
How smaller boxes can help Amazon to gain more profits? Also give me your thoughts on
this.
 Exercise
1. What environmentally friendly packaging strategies might a firm
adopt?

2. What are the key considerations for an organization considering to

use either labor, mechanization or automation?
Unit Loads in Materials Handling
Advantages Disadvantages
Additional protection Provides large quantity that sometimes
is of limited value to resellers dealing in
smaller quantities

Pilferage is discouraged Must use mechanical or automated

device to move
More fragile items can be stacked inside Must use mechanical or
the load automated device to
move
Mechanical devices can be substituted Lack of standardization in
for manual labor terms of pallet size