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Chapter Eight Packaging and Materials HandlingI. Learning objectives and requirements1. to understand the packaging perspectives2. to understand how materials handling efficiency is influenced by packaging3. to know some packaging materials4. to know basic handling considerations5. to know four types of handling systems including mechanized, semi-automated, automated and information-directed.II. Learning contentsSection I. Packaging1. Main contents1) Packaging PerspectivesViewing materials handling delivery and store operations as an integrated system resulted in a decision to discontinue reusing vendor cartons. The new procedure used a standardized master carton that facilitated order picking and materials handling. The new logistics practice was designed around two concepts. First, standardized master cartons were adopted to permit continuous conveyor movement from point of warehouse order selection to truck loading. Second, the integrated system used a computer process to assure that each standardized master carton was packed to maximum practical cube utilization. Under the new system a picking list was generated for each carton. After the individual pairs of shoes were placed into the car-ton, the pick list was attached to the carton, providing a summary of contents for re-tail store personnel.2) Packaging for Materials Handling EfficiencyMaterials handling efficiency in all of these cases is significantly influenced by package design, unitization, and communication characteristics. a) Package DesignProduct packaging in standard configurations and order quantities facilitates logistical efficiency.Total weight can sometimes be reduced by product or package changes. Even when package design is not changed, products that weight out before cubing out may offer special opportunities as lightweight product can be top loaded to take advantage of the empty cube without substantially changing total weight or transportation cost. b) Unitization /ContainerizationUnitization is the process of grouping master cartons into one physical unit for materials handling or transport. The concept of containerization includes all forms of unitization, from taping two master cartons together to the use of specialized transportation equipment.c) CommunicationThe third important logistical packaging function is communication or information transfer. This function is becoming increasingly critical to provide content identification, tracking, and handling instructions.i) Content IdentificationThe most obvious communications role is identifying package contents for all channel members. Typical information includes manufacturer, product, container type, count, and Universal Product Code (UPC) number.ii) TrackingEase of package tracking is also important. Effective internal operation and increasingly customers require that product be tracked as it moves through the supply chain. Positive control of all movement reduces product loss and pilferage. iii) Handling InstructionsThe final role of logistics packaging is to provide handling and damage instruction to material handlers. The information should note any special product handling considerations such as glass containers, temperature restrictions, stacking considerations, or potential environmental concerns. If the product is potentially dangerous, such as some chemicals, the packaging or accompanying material should provide instructions for dealing with spills and container damage. 3) Packaging MaterialsLoosening of traditional cardboard standards, competitive industry conditions driving an integrated solution, technological innovation, and OSHA (Occupational Safety and Health Administration) requirements have triggered a logistical packaging renaissance. Shippers are increasingly questioning traditional and alternative packaging materials and forms and encouraging experimentation with new, less costly, and creative packaging systems.2. Key concepts and pointsPackaging, Consumer Perspective, Industrial Perspective, Master Cartons, Containerization, Unitization, Modular packaging, Materials Handling Efficiency, Package Design, Cube out, Weigh out, Rigid Containers, Flexible Containers, Pallets, slipsheets, Communication, Content Identification, Universal Product Code (UPC), Electronic Product Code (EPC), Tracking, Bar Code Technology, Radio frequency Identification(RFID) Technology, Handling Instructions, Packaging Materials, Traditional Materials, New Emerging Packaging Alternatives, Film-Based Packaging, Blanket-Wrapping, Returnable Containers, Intermediate Bulk Containers, Pallet Pools, Plastic Pallets, Refrigerated Containers3. Issues of applicationAll logistical operations are affected by packaging utilityfrom truck loading and warehouse picking productivity to transportation and storage cube utilization. Students shall understand that materials handling efficiency in all of these cases is significantly influenced by package design, unitization, and communication characteristics.Section II. Materials Handling1. Main contents1) Basic Handling considerationsLogistical materials handling is concentrated in and around the warehouse. A basic difference exists in the handling of bulk materials and master cartons. There are several basic principles to guide the selection of materials handling processes and technologies. The principles summarized in Table 14-3 offer an initial foundation for evaluating materials handling alternatives. 2) Merchandized systemsMechanized systems employ a wide range of handling equipment. The types of equipment most commonly used are lift trucks, walkie-rider pallet trucks, towlines, tractor-railer devices, conveyors, and carousels. Figure 14-4 provides examples of a variety of mechanized handling equipment.3) Semi-automated systemsMechanized handling is often supplemented by semiautomatic equipment. Typical equipment utilized in semiautomated handling includes automated guided vehicle systems, computerized sortation, robotics, and various forms of live racks. 4) Information-directed systemsThe concept of information-directed handling is relatively new and the subject of a great deal of research and development. The concept is appealing because it combines the control typical of automated handling with the flexibility of mechanized systems. Information-directed systems use mechanized handling controlled by information technology. Two common examples of information-directed materials handling systems are RF-controlled equipment and light-directed operations. 5) Special handling considerationsThe primary mission of materials handling is to facilitate merchandise flow in an orderly and efficient manner from manufacturer to point of sale. This section identifies and discusses special considerations important to selection and operation of materials handling equipment. (i)E-Fulfillment Four specific considerations that influence warehousing and materials handling in an e-fulfillment environment are order volume, products, people, and tracking. First, to serve end consumers, an e-fulfillment facility typically must process a large number of very small orders. Second, e-fulfillment facilities must generally deal with a wide range of product, which translates to large inventories and the use of flow-through practices to consolidate orders for shipment. Third, an e-fulfillment facility is people-intensive. Fourth, increased consumer expectations regarding tracking require that many activities within the warehouse and interfacing with the carrier be electronically scanned and tracked. (ii)Environmental Concerns There is increased concern regarding environment impact of warehouse operations. In particular, attention has been directed to the impact of materials handling equipment such as lift trucks.(iii)Regulatory Environment (iiii)Returns Processing Materials handling design should consider the cost and service impact of reverse logistics. Such flows often involve pallets, cartons, and packaging materials in addition to damaged, dated, or excess merchandise.2. Key concepts and pointsMaterials Handling, Mechanized Handling Systems, Semi-automated Handling Systems, Automated Handling Systems, Information-Directed Handling Systems, Lift Trucks, Rider Trucks, Towlines, Tractor Trailers, 3. Issues of applicationInvestments in materials handling technology and equipment offer the potential for substantially improved logistics productivity. Materials handling processes and technologies impact productivity by influencing personnel, space, and capital equipment requirements. Students shall understand that materials handling is a key logistics activity that cant be overlooked.III. Review Questions1. In terms of basic material handling, what is the role of a unit load?2. Until recently, why have automated handling systems failed to meet th
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