No matter their industry or shipping mode—from retail to small parcel to industrial business-to-business—shippers around the world and their products can be subjected to any or all seven major distribution hazards. As material handling evolves and distribution become more complex, your product will endure a far more stressful environment to reach the end customer. Nobody benefits from damage. Your product is never in better shape than when it leaves the manufacturer. See how these 7 hazards impact what your customer receives as we take you through the journey of dock to delivery. Originally presented at APICS 2015 by Tom Blanck, Chainalytics. For more information visit http://bit.ly/PackOptimization

1. Does Your Packaging
Survive Your Supply Chain?
Tom Blanck, CSCP
Principal, Packaging Optimization
Chainalytics

2. #APICS2015© CHAINalytics 2015
Agenda
2
What Defines a Packaging Hazard?
The 7 Major Hazards
Why Does Packaging Matter?
Solutions
What Defines a Packaging Hazard?
The 7 Major Hazards
Why Does Packaging Matter?
Solutions

3. #APICS2015© CHAINalytics 2015
Agenda
3
What Defines a Packaging Hazard?
The 7 Major Hazards
Why Does Packaging Matter?
Solutions
What Defines a Packaging Hazard?
The 7 Major Hazards
Why Does Packaging Matter?
Solutions

4. What Best Describes Your Role
in the Supply Chain
• Marketing/Sales
• Operations
• Procurement
• Packaging Engineer/Quality Control
• Other
Spot Poll
© CHAINalytics 2015

5. #APICS2015© CHAINalytics 2015
Packaging in Your Supply Chain
 Packaging is your customer’s first impression
 Never in better shape as it leaves your dock…..
….but do you know what happens?
− When it leaves your control?
− Have you seen a small parcel distribution center? LTL hub? A cross
dock?
− Inside your customer’s supply chain?
− When the end user gets your product?
5

6. #APICS2015© CHAINalytics 2015
Packaging in the Supply Chain
6
SUPPLIER
Disposal
Resources
Conserved
resources
CUSTOMER
Disposal
Resources
Minimized
waste
RETAIL STORE
Transportation
Forklifts
Damage
Less damage
and fewer
returns
MANUFACTURING
Packaging
Transportation
Reduced
packaging
material
STORAGE
WAREHOUSE
Pallets
Wrapping
Forklifts
Less storage
and handling
DISTRIBUTION
CENTER
Storage
Transportation
Less fuel
and lower
emissions

7. #APICS2015© CHAINalytics 2015
Packaging in the Supply Chain
7
CUSTOMERRETAIL STOREDISTRIBUTION
CENTER
STORAGE
WAREHOUSE
MANUFACTURINGSUPPLIER
Packaging
Pallets
Wrapping
Forklifts Storage Disposal
TransportationDisposal Transportation
Resources
Resources
Transportation
Forklifts
Damage
Conserved
resources
Minimized
waste
Less damage
and fewer
returns
Reduced
packaging
material
Less storage
and handling
Less fuel
and lower
emissions
LTL & Small Parcel

8. #APICS2015© CHAINalytics 2015
Packaging in the Supply Chain
8
CUSTOMERRETAIL STOREDISTRIBUTION
CENTER
STORAGE
WAREHOUSE
MANUFACTURINGSUPPLIER
Packaging
Pallets
Wrapping
Forklifts Storage Disposal
TransportationDisposal Transportation
Resources
Resources
Transportation
Forklifts
Damage
Conserved
resources
Minimized
waste
Less damage
and fewer
returns
Reduced
packaging
material
Less storage
and handling
Less fuel
and lower
emissions
Customer Returns

9. What part of supply chain
cause most challenge?
• Packaging operations
• Warehousing and storage
• Distributor supply chain
• Retailer supply chain
• Small parcel environment
Spot Poll
© CHAINalytics 2015

10. #APICS2015© CHAINalytics 2015
Agenda
10
What Defines a Packaging Hazard?
The 7 Major Hazards
Why Does Packaging Matter?
Solutions
What Defines a Packaging Hazard?
The 7 Major Hazards
Why Does Packaging Matter?
Solutions

11. #APICS2015© CHAINalytics 2015
Packaging Hazard in the Supply Chain
 Definition:
− A hazard is a situation that poses a level of threat to life, health,
property, or environment. Hazard and possibility interact together to
create risk.
− ASTM 4169: Hazard element – a specific event that occurs in a
distribution cycle that may pose a hazard to a shipping unit. The
element will be usually simulated by a single test schedule.
11
Hazard X Vulnerability
Capacity to Cope
RISK

12. #APICS2015© CHAINalytics 2015
Definition: Packaging Hazard in the Supply
Chain
 When applied to packaging and supply chain:
This equation is merely being presented for discussion purposes!
12
Distribution Hazard x Product Vulnerability
Packaging’s Capacity to Cope
Damage Risk

13. #APICS2015© CHAINalytics 2015
Product + Packaging = Environment
Transport &
Distribution
Modes
Handling
Methods
Storage &
Warehousing
PalletizationConditions
DAMAGE
due to a poorly
packaged product
A lack of understanding about the environment leads to:
WASTE
due to excessive
packaging
13
Product + Packaging < Environment Product + Package > Environment

14. #APICS2015© CHAINalytics 2015
Packaging Performance
 Damage Costs vs. Package Costs
PACKAGE COST
Decreasing
Damage Costs
OPTIMUM
PACKAGING
SYSTEM
DAMAGE COST
Increasing
Packaging Costs
14

15. #APICS2015© CHAINalytics 2015
Real Cost of Damage
15

16. #APICS2015© CHAINalytics 2015
Real Cost of Damage
16
Discounted
products,
slow
product
turnover

17. #APICS2015© CHAINalytics 2015
Real Cost of Damage
17
Discounted
products,
slow
product
turnover
In-field
service,
travel costs,
expedited
shipping
costs

18. #APICS2015© CHAINalytics 2015
Real Cost of Damage
18
Discounted
products,
slow
product
turnover
In-field
service,
travel costs,
expedited
shipping
costs
Shipment
costs,
disposal
cost of
damaged
unit

19. #APICS2015© CHAINalytics 2015
Real Cost of Damage
19
Discounted
products,
slow
product
turnover
In-field
service,
travel costs,
expedited
shipping
costs
Shipment
costs,
disposal
cost of
damaged
unit
Delayed
installations,
missed
deadlines,
project
planning

20. #APICS2015© CHAINalytics 2015
Real Cost of Damage
20
Discounted
products,
slow
product
turnover
In-field
service,
travel costs,
expedited
shipping
costs
Shipment
costs,
disposal
cost of
damaged
unit
Delayed
installations,
missed
deadlines,
project
planning
Cost to
dispose of
waste,
environmental
impact

21. #APICS2015© CHAINalytics 2015
Real Cost of Damage
21
Discounted
products,
slow
product
turnover
In-field
service,
travel costs,
expedited
shipping
costs
Shipment
costs,
disposal
cost of
damaged
unit
Delayed
installations,
missed
deadlines,
project
planning
Cost to
dispose of
waste,
environmental
impact
Value of
dissatisfied
or lost
customer

22. #APICS2015© CHAINalytics 2015
Real Cost of Damage
22
Discounted
products,
slow
product
turnover
In-field
service,
travel costs,
expedited
shipping
costs
Shipment
costs,
disposal
cost of
damaged
unit
Delayed
installations,
missed
deadlines,
project
planning
Cost to
dispose of
waste,
environmental
impact
Value of
dissatisfied
or lost
customer

23. Biggest Pain Caused by
Shipping Damage?
• Damage to packaging (unsaleables)
• Damage to product
• Customer experience
• Scheduling of installation
• Rework or field service
Spot Poll
© CHAINalytics 2015

24. #APICS2015© CHAINalytics 2015
Agenda
24
What Defines a Packaging Hazard?
The 7 Major Hazards
Why Does Packaging Matter?
Solutions
What Defines a Packaging Hazard?
The 7 Major Hazards
Why Does Packaging Matter?
Solutions

25. #APICS2015© CHAINalytics 2015
Transportation Hazard Elements
25

26. #APICS2015© CHAINalytics 2015
Manual Handling
Warehouse Stacking (Static)
Vehicle Compression (Dynamic)
Vehicle Vibration
Horizontal Impact
Environmental Conditions
Mechanical Handling
Introduction to the Major Hazards
26

27. #APICS2015© CHAINalytics 2015
Manual Handling
 Common Handling by a Person
− Single containers, small parcel, manually lifted or carried
− Dropped packages, tossed, no control of orientation
 The Effects
− Crushed corners & edges, punctures
− Internal damage (concealed)
 How to Address
− Drop Testing, Shock
− Vehicle vibration/stacking testing
− Reduce manual handling
27

28. #APICS2015© CHAINalytics 2015
Manual Handling in the Real World
 Crushed Corners
 Scrunched Bottoms
 Tears and punctures
28

29. #APICS2015© CHAINalytics 2015
Mechanical Handling
 Packaging Handling by Mechanized Equipment
− Unitized loads, crates, large containers
− The Environment: speed and efficiency
− Fork trucks, clamp trucks, conveyors, robotic equipment
 The Effects
− Crushed or creased cases, punctures
− Loose or shifting pallets, reduced unit integrity
− Dimensional issues from underhang and overhang
 How to Address
− Understand the distribution environment
− Test for the mechanical systems in play
29

30. #APICS2015© CHAINalytics 2015
Mechanical Handling Real World Examples
30

31. #APICS2015© CHAINalytics 2015
Warehouse Stacking
 Static Stacking and Storage
− Stack heights, storage duration
− Equipment used, load or rack loading
− Pallet and case alignment, stacking strengths
− Environmental conditions
 The Effects
− Leaning columns, crushed bottom rows, bulging cases
− Creased packaging, punctures, torn cases
 How to Prepare
− Understand safety factors, control stack heights
− Compression over time
− Conditioned warehouses, storage environments
31

32. #APICS2015© CHAINalytics 2015
Warehouse Stacking Real World Examples
 Leaning Stacks
 Bottom row crushed
 Impaled by forklift
32

33. #APICS2015© CHAINalytics 2015
Vehicle Compression
 Stacked Loads in Vehicle Transport
− Dynamic compression, amplification of forces from stacked container
resonance
− Rough roads, potholes, transient shock
− Non-uniform stacking columns, mixed loads, multiple orientations
 The Effects
− Crushed cases, sagging bottom rows
− Leaning pallets, toppled loads
 How to Address
− Unitized load integrity
− Plan for (mixed) stacking loads
− Strapping, bracing, devices for securing loads
33

34. #APICS2015© CHAINalytics 2015
Vehicle Compression Real World Examples
 Crunched, bulging cases
 Horizontal creases
34

35. #APICS2015© CHAINalytics 2015
Vehicle Vibration
 Packaging and Vehicle Suspension Interaction
− Random and repetitive shock caused by natural frequencies of
springs, tires, other packages
− Highway conditions, potholes, bouncing freight,
− Vibration amplification, vehicle + product + package resonances
 The Effects
− Crushed packages, loosened pallets, toppled loads
− Concealed damages to product
− Abrasion, printing and label scuffing
 How to Address
− Air-ride vans, trailers, suspension systems
− Unitize loads, block and brace
− Harden the product
35

36. #APICS2015© CHAINalytics 2015
Vehicle Vibration Real World Examples
 Pallet Shifting
 Loose loads
36

37. #APICS2015© CHAINalytics 2015
Horizontal Impact
 Side or Horizontal Impacts
− Side forces, switching rail cars, intermodal
− Pallet marshalling, conveyor sorting
− Ocean container handling, piggyback trailers
 The Effects
− Pallet shifting, layers shearing, tipped over pallets
− Crushed cases, corner edge damage
 How to Address
− Increased pallet integrity
− Load blocking and bracing
− Impact testing, operator training & best practices
37

38. #APICS2015© CHAINalytics 2015
Horizontal Impact Real World Examples
 Horizontal impacts
 Container yard
at port
38

39. #APICS2015© CHAINalytics 2015
Environmental Conditions
 Environmental and Climatic Conditions
− Temperature, Humidity, Moisture
− Atmospheric Pressure, High Altitudes
 The Effects
− Weakened packaging, structural integrity
− Condensation, corrosion, labeling damage, ice buildup (frozen food),
melting
− Product degradation, contamination
 How to Address
− Barrier materials, prevention
− Controlled environment transportation and containers
− Storage requirements and duration
− Conduct testing with pre-conditioned packaging
39

40. #APICS2015© CHAINalytics 2015
 Wet boxes, paper-based packaging
 Frozen food, cold storage
 Condensation, corrosion
40
Environmental Conditions
Real World Examples

41. #APICS2015© CHAINalytics 2015
Manual Handling
Warehouse Stacking (Static)
Vehicle Compression (Dynamic)
Vehicle Vibration
Horizontal Impact
Environmental Conditions
Mechanical Handling
Introduction to the Major Hazards
41

42. #APICS2015© CHAINalytics 2015
Agenda
42
What Defines a Packaging Hazard?
The 7 Major Hazards
Why Does Packaging Matter?
Solutions
What Defines a Packaging Hazard?
The 7 Major Hazards
Why Does Packaging Matter?
Solutions

43. #APICS2015© CHAINalytics 2015
So What?
 With all these things in mind…
 No Guessing!
− Go see the supply chain
− Know the environment and hazards that exist there
− Understand how to measure/design/test
43

44. #APICS2015© CHAINalytics 2015
Damage Solution Process
2
Actions
Recreate Supply Chain
Environment22
Actions
Map and Define Supply
Chain Environment1 2
Actions
Package Design Iteration
3
 Define the Supply Chain
Environment
 Onsite and hands-on,
travel to select facilities
 Review damage and
financial data
 Create and validate supply
chain touch-point map
 Develop testing protocol to
reflect the supply chain
environment.
 Validate testing protocol
 Develop and prioritize
design criteria with key
stakeholders.
 Design packaging
 Test packaging to
customized protocol
 Develop final specifications
44

45. Does your company utilize
packaging testing?
• No – don’t need to
• Sometimes, have some protocols
• Yes – have stringent requirements
• Don’t know
Spot Poll
© CHAINalytics 2015

46. #APICS2015© CHAINalytics 2015
Why Change?
 Why Care? Someone else’s problems?
− Everyone wins: Operations, Sales & Mktg, Quality, Procurement, etc.
 Opportunities for Improvement
− Save money! Extract costs, improve margins, increased productivity
− Reduce pain! Solve nagging problems, answer customer complaints
− Competitive advantage: benchmarking, best practices, differentiator
 Resources?
− If no internal resources – go get help
46

47. #APICS2015© CHAINalytics 2015
Looking Ahead
 Supply chain continuing to evolve
− E-commerce: mechanical sorting
− Omnichannel inventories and deliveries
− Cross docking: Rapid Deployment Centers
− Returned goods
 Distribution is growing
− Global geographies, new marketplaces, varied delivery methods,
unique last mile
 ISTA and ASTM, constantly changing and updating
− Knowledge resources for addressing normal hazards
− Companies & groups developing specific/custom protocols
47

48. #APICS2015© CHAINalytics 2015
Summary
 Shipping damages are caused by common hazards
− Your packaging needs to deal with the events in the supply chain:
 Go see the supply chain
− Define your distribution environment and the associated hazards
− Measure, simulate, design and plan for the known environment
 Damage is a signal….an opportunity for improvement
− Others have solved damage problems & gained financial benefits
 If you do not have internal resources – get help
48

49. THANK YOU
Tom Blanck
tblanck@chainalytics.com
+1 (612) 252-1831
© CHAINalytics 2015