1. Packaging and Materials Handling
McGraw-Hill/Irwin
Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.

2. The Future of Paper and Packaging
Video link (11:02 min.) starting at 16:45

3. Overview of packaging and materials handling
Packaging Perspectives
Packaging for Materials Handling Efficiency
Package design
Unitization
Communication
Materials handling
Basic handling considerations
Mechanized systems
Semiautomated systems
Automated systems
Information-directed systems
Special handling considerations

4. 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

5. Role of packaging in logistics
Unitization—modular packaging
Handling—appropriate for automation?
Security—can package be sealed to detect break-in?
Stowability—cube efficiency
Information—identification and tracking
Protection—spoilage or damage

6. 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

7. Figure 11.1 Example and Benefits of Modular Packaging
Illustration of four standard master carton sizes to achieve modular compatibility
Figure 11.1 Example and Benefits of Modular Packaging

8. 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

9. Benefits of rigid containerization from Table 10.1
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

10. Illustration of a ‘four-way-entry’ hardwood pallet
Figure 11.2 Example of Hardwood Pallet

11. Illustration of four basic patterns to tier master cartons
Figure 11.3 Basic Pallet Master Carton Stacking Patterns

12. 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

13. 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

14. Principles of materials handling from Table 10.2
Equipment for handling and storage should be as standardized as possible
When in motion, the system should be designed to provide maximum continuous product flow
Investment should be in handling rather than stationary equipment
Handling equipment should be utilized to the maximum extent possible
In handling equipment selection, the ratio of dead weight to payload should be minimized
Whenever practical, gravity flow should be incorporated in system design

15. Information-directed
Material handling systems require different amounts of labor and capital investments
Manual sorting
Mechanized
Semi-automated
Automated
Information-directed

16. Manual systems for picking, sorting and movement of inventory
Labor-intensive
Slow
Human Limitations
Repetitive motion
Strain injuries
Higher error rates

17. 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
Paperless picking

18. Semiautomated systems often supplement mechanized equipment
High fixed cost, low variable cost with low flexibility
Examples
Automated guided vehicles (AGV)
Sortation systems
Robotics (see video)
Build and breakdown unit loads
Live racks
Video link (1:03 min.)

19. 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
Guiding principles from Table 10.2 do not apply
Examples
Order selection systems
Automated storage and retrieval system (AS/RS)
Video of Andersen AS/RS system (2:44 min.)

20. Illustrated concept of a high-rise AS/RS warehouse
Figure 11.4 AS/RS High-Rise Warehouse

21. 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
Examples
RF wireless (Wi-Fi)
Use lift trucks, RFID scanners and data collection terminals
Pick-to-light carousel system
Video link (0:49 min.)

22. Completely robotic facilities exist for specialized situations
Some bulk and container loading/unloading facilities have gone completely robotic
Example is the Port of Brisbane in Queensland, Australia
Video link (2:58 min.)

23. 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

24. 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