Business Logistics & Transportation Chapter 10

Packaging Perspectives

* consumer: marketing focus
* industrial: logistics focus

Master Cartoons

are containers used to group individual product

Containerization

refers to grouping master cartons into larger units for handling

Unitization

the process of grouping cartons into unit loads

Handling

appropriate for automation

Security

can package be sealed to detect break-in

Stowability

cube efficiency

Information

identification and tracking

Protection

spoilage or damage

Package Design

using standard configurations and order quantities facilitates efficiency

Cube Out of Vehicle

results in shipping "full" without reaching weight limit

Weight 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

Communication

to identify package contents for all channel members

Unitization Methods

* rigid containers:
* air freight containers
* sea-land containers
* returnable racks
* flexible containers:
* pallets
* slip sheets

Benefits of Rigid Containerization

1. improves overall material movement efficiency
2. reduces damage in handling and transit
3. reduces pilferage
4. reduces protective packaging requirements
5. provides greater protection from environment
6. provides a shipment unit that can be reused many times:


1. reduces waste
2. reduces need to dispose of the container

Handling Equipment should...

* be as standardized as possible
* be designed to provide maximum continuous product flow
* involve investment in handling rather than stationary equipment
* be utilized to the maximum extent possible
* minimize the ratio of dead weight to payload
* incorporate gravity flow into the system design if possible

Material Handling Systems

require different amounts of labor and capital investments:

* manual sorting
* mechanized
* semi-automated
* automated
* information-directed

Manual Systems

picking, sorting, and movement of inventory

* labor-intensive
* slow
* human limitations
* 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

Semi-Automated Systems

* often supplement mechanized equipment
* high fixed cost, low variable cost with low flexibility

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

Information-Directed Systems

* combine the controls of automated handling with the flexibility of mechanized handling
* 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

Special Handling Considerations

1. e-fulfillment
2. environmental concerns
3. regulatory environment
4. returns processing

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

1. large volume of small orders - difficult to achieve economies of scale in picking operations
2. wide range of products requires large inventories - requires ability to receive and merge a large number of small orders rapidly
3. people-intensive facilities needed to provide flexibility in picking
4. consumer expectations require many activities within the warehouse to be electronically scanned and tracked