12/10/2024

Contemporary Logistics
Twelfth Edition, Global Edition
Learning Objectives
11.1 To illustrate how product characteristics affect packaging and
materials handling

Chapter 11 11.2 To discuss packaging fundamentals, such as packaging functions

and labeling
11.3 To identify select issues that affect packaging, such as
Packaging and environmental protection and packaging inefficiencies
Materials Handling 11.4 To learn about unit loads and the unit load platform
11.5 To explain materials handling, materials handling principles, and
materials handling equipment

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Product Characteristics (1 of 9) Figure 11.1: Fabric Care Label

• Physical characteristics
– Substance form (solid, liquid, and gas)
– Ability to withstand exposure to elements
– Product density (weight per volume)
• Chemical characteristics
– Incompatible products
• Characteristics must be made known to consumers
Source: Vartanov Anatoly/Shutterstock

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Packaging Fundamentals (2 of 9)
Figure 11.2: Lumber Markings
• Packaging
– Refers to materials used for the containment, protection,
handling, delivery, and presentation of goods1
• Building-blocks concept
– A very small unit is placed into a slightly larger unit, and so
on, to protect the product

1Logistics Dictionary, www.tntfreight.com

Source: Alamy

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Packaging Fundamentals (4 of 9)
Packaging Fundamentals (3 of 9)
• Functional trade-offs
• Some of the many packaging fundamentals include: – Packaging serves three general functions:
– Functional trade-offs  To promote
– Packaging testing and monitoring  To protect
– Labeling  To identify the relevant product
– Packaging design decisions involve a number of
departments within an organization
-Engineering -Quality Control
-Manufacturing -Transportation
-Marketing -Warehousing

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Packaging Fundamentals (5 of 9) Packaging Fundamentals (6 of 9)

• Package testing and monitoring • Package testing and monitoring
– Three important kinds of information needed to properly – Package testing
design protective packaging system:  Vibrations
• Severity of the distribution environment  Dropping
• Fragility of the product to be protected  Horizontal impacts
• Performance characteristics of various cushion  Compression
materials  Overexposure to extreme temperatures or moisture
– Advisable to have packages pretested  Rough handling

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Figure 11.3: Examples of Shipping Labels

Packaging Fundamentals (7 of 9)
• Labeling
– Typically occurs at the end of the assembly process
– Boxes must be labeled when contents are hidden
– Many regulations govern labeling:
 Weight
 Specific contents
 Instructions for use
– Regulations differ from country to country and from state
to state

Source: Courtesy of Uline. www.uline.com

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Packaging Fundamentals (8 of 9) Packaging Fundamentals (9 of 9)

• Hazardous materials • Hazardous materials
– Governmental regulations address labeling of hazardous – Globally Harmonized System of Classification and
materials Labeling of Chemicals (GHS) is a global system to
– Requirements involve: classify and label hazardous materials
 Labeling – GHS provides three key pieces of classification and
labeling information:
 Packaging and repackaging
 A symbol
 Placing warnings on shipping documents
 A signal word (e.g., “danger”)
 Notifying transportation carriers in advance
 A hazard statement (e.g., “explosion; severe projection
 Packages, containers, trailers, and railcars carrying hazard”)
hazardous materials must carry distinct placards
identifying the hazard – Implemented by fewer than 75 countries to date

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Issues in Packaging (1 of 4) Issues in Packaging (2 of 4)

• Environmental protection • Metric system
– Reduce packing materials used – U.S., Liberia, and Myanmar (formerly Burma) are the
– Use packaging materials that are more environmentally only three countries in the world that do not use the
friendly with recycled content metric system of measurement
– Use reusable containers (closed-loop system) – Increasing pressure on U.S. exporters to market their
– Retain or support services that collect used packaging products overseas in metric units
and recycle it (closed-loop system)

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Issues in Packaging (3 of 4) Table 11.1: A Hypothetical Example

of Packaging Inefficiency
• Identifying packaging inefficiencies
– Building-blocks concept is useful for analyzing
packaging inefficiencies
– Packaging inefficiencies can have a number of
undesirable logistics consequences including:
 Increased loss
 Increased damage
 Slower materials handling
 Higher storage costs
 Higher transportation costs

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Issues in Packaging (4 of 4)
Figure 11.4: Boxmaker’s Guarantee
• Packaging’s influence on transportation considerations
─ Carriers’ 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
Source: © Pearson Education.

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Unit Loads in Materials Handling (1 of 5) Figure 11.5: Automated Guided Vehicle

• Unit load (unitization)
– Refers to consolidation of several units (cartons or
cases) into larger units to improve efficiency in handling
and to reduce shipping costs2
• Handling efficiency
– Facilitated by mechanical devices (pallet jack or forklift)
as well as by using a pallet or skid

2Source: http://cscmp.org/digital/glossary/glossary.asp

Source: Dmitry Kalinovsky/Shutterstock

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Unit Loads in Materials Handling (2 of 5) Unit Loads in Materials Handling (3 of 5)

• Advantages
• Limitations
– Additional protection to cargo
– Provides large quantity that sometimes is of limited value
– Pilferage is discouraged to resellers dealing in smaller quantities
– More valuable or fragile items can be stacked inside the – Must use mechanical or automated device to move
load (costly)
– Mechanical devices can be substituted for manual labor – Lack of standard pallet size

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Unit Loads in Materials Handling (4 of 5)

Table 11.2: ISO Pallet Standards • The unit load platform
– Basic unit is a pallet
 Can be constructed from wood, plastic, wood composites (such as
fiberboard), paper, and metal
 Each pallet material has advantages and disadvantages
– Price is a major drawback of plastic and metal pallets
– Longevity is a potential advantage of plastic and metal
 Should be less than 50 pounds
– Pallet or skid alternatives
Source: ISO Standard 6780: Flat Pallets for Intercontinental Materials Handling.
 Slip sheet

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Unit Loads in Materials Handling (5 of 5) Materials Handling (1 of 6)

• Beyond the unit load • Materials handling
– Stowage based upon load-planning software – Refers to the “short-distance movement that usually takes place
within the confines of a building such as a plant or DC and between
– Bracing or inflatable dunnage bags a building and a transportation service provider”3
– Load is subjected various forces including: – Short-distance movement distinguishes materials handling from
 Vibration transportation
 Pitch – Products are handled by the building-block concept or large
quantities are handled in bulk
 Roll
– Handling may change the characteristics (or quality) of the product
– Weighing out

3John J. Coyle, C. John Langley, Jr., Brian J. Gibson, Robert A. Novack, and Edward J. Bardi, Supply Chain Management:

A Logistics Perspective, 8th ed. (Mason, OH: South-Western Cengage Learning, 2009), Appendix 11-A.

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Figure 11.6: Computer-Generated Load Plan

Figure 11.7: A Dunnage Bag

Source: Shutterstock

Source: Courtesy of TOPS Software Corp.

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Figure 11.8: Conveyor Belt Materials Handling (2 of 6)

• Materials handling principles
1. Planning
2. Standardization
3. Work
4. Ergonomic
5. Unit load
6. Space utilization
7. System
8. Automation
9. Environmental
10. Life cycle cost

Source: Shutterstock

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Materials Handling (3 of 6) Materials Handling (4 of 6)

• Materials handling equipment • Materials handling equipment
– Storage equipment – Can also be categorized in terms of:
 Shelves  Labor intensive
 Racks  Mechanized (e.g., forklifts)
 Bins  Automated (e.g., AGVs)
– Handling equipment – Sufficient volume is needed to justify high cost of
automated equipment
 Conveyor systems
 Lift trucks
 Carts
 Cranes

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Materials Handling (5 of 6) Materials Handling (6 of 6)

• Materials handling equipment • Materials handling equipment
– The choice of handling equipment can influence the type – An organization’s order picking and assembly system
of storage equipment can also influence the type of handling equipment
– The choice of storage equipment can influence the type  Picker-to-part systems
of handling equipment  Part-to-picker systems

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Key Terms (1 of 2) Key Terms (2 of 2)

• Building-blocks concept • Globally Harmonized • Part-to-picker system
System of Classification and • Picker-to-part system
• Closed-loop systems Labeling of Chemicals
(GHS) • Slip sheet
• Cubes out
• Materials handling (material • Unit load (unitization)
• Dimensional weight (dim handling)
weight) • Weighing out
• Packaging
• Ergonomics
• Pallet (skid)

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