Logistics and Transportation Part 11.pptx

Packaging and
Materials
Handling

Important Dates
▶ Assignment 2/13/2024
▶ Midterm 2/15/2024
▶ Assignment 2/22/2024
▶ Final 2/27/2024
This Photo by Unknown Author is licensed under CC BY-SA-NC

Terminal Learning
Objectives
▶ To illustrate how product
characteristics affect packaging
and materials handling
▶ To discuss packaging
fundamentals, such as packaging
functions and labeling
▶ To identify select issues that affect
packaging, such as environmental
protection and packaging
inefficiencies
▶ To learn about unit loads and the
unit load platform
▶ To explain materials handling,
materials handling principles, and
materials handling equipment.

Product
Characteristics
▶ Various product characteristics can influence
packaging and materials handling
considerations. One is the product’s physical
characteristics. Substances exist in three
forms—solid, liquid, gas—and each form has
specific packaging requirements. Products
such as fresh produce, meats, fish, and
baker’s yeast are referred to as perishables.
They require special packaging, loading,
storage, and monitoring as they are moved
from source to customer. Tropical fish are
carried in plastic bags with enough water to
cover them, but no more than necessary, to
keep weight down. In addition to physical
characteristics, products also possess
chemical characteristics that affect the
manner in which they should be handled.
Certain pairs of products are incompatible.
For example, commodities that are sensitive
to ethylene, such as broccoli, lettuce, and
watermelon, should never be held for more
than a few hours in the same area as
products that emit ethylene, such as apples,
pears, and tomatoes. Prolonged exposure to
ethylene can cause ethylene-sensitive
products to yellow, soften, and decay. This Photo by Unknown Author is licensed under CC BY

Product
Characteristics
▶ Product characteristics have a
significant impact on packaging and
materials handling decisions.
Different products have unique
properties and requirements that
must be considered when designing
packaging and determining the most
suitable handling methods.
In summary, product characteristics
such as size, weight, fragility,
perishability, chemical compatibility,
stackability, and regulatory
requirements significantly influence
packaging and materials handling
decisions. By carefully considering
these factors, businesses can
design packaging solutions and
implement handling practices that
protect products, optimize efficiency,
and ensure compliance with industry
standards and regulations.
This Photo by Unknown Author is licensed under CC BY

Product
Characteristics
▶ Here's how various product characteristics
influence packaging and materials handling:
• Size and Shape: The size and shape of a product
determine the dimensions and structural
requirements of its packaging. Irregularly shaped
or oversized products may require custom-
designed packaging solutions to ensure proper
protection and efficient use of space. Handling
such products may also require specialized
equipment or manual techniques to accommodate
their shape and size.
• Weight: The weight of a product influences the
strength and durability requirements of its
packaging. Heavy products may require sturdy
packaging materials, such as corrugated
cardboard or plastic crates, to prevent damage or
breakage during handling and transportation.
Handling heavy products may also necessitate the
use of equipment such as forklifts or pallet jacks
for safe lifting and moving.
• Fragility: Fragile products, such as glassware or
electronics, require packaging that provides
adequate cushioning and protection against
impacts, vibrations, and compression forces.
Packaging materials such as bubble wrap, foam
inserts, or air pillows are commonly used to protect
fragile items during handling and transit. Careful
handling techniques, including gentle lifting and
stacking, are also essential to prevent damage.

Product
Characteristics
influence packaging and materials handling:
• Perishability: Perishable products, such as
fresh produce or frozen foods, require
packaging that maintains product freshness,
quality, and safety throughout the supply
chain. Packaging materials with insulating
properties, such as foam coolers or vacuum-
sealed bags, help regulate temperature and
humidity levels to extend shelf life. Proper
handling practices, including temperature
control and quick delivery, are critical to
preserving perishable products' integrity.
• Chemical Compatibility: Products with
chemical properties, such as hazardous
materials or corrosive substances, require
packaging materials that are compatible with
their contents and prevent leakage or
contamination. Specialized packaging, such
as UN-approved drums or containers, may
be required for transporting hazardous
materials safely. Handling such products
requires adherence to strict safety protocols
and regulations to minimize risks to
personnel and the environment.

Product
Characteristics
influence packaging and materials
handling:
• Stackability and Nesting: Some products
are designed to be stacked or nested
together for efficient storage and
transportation. Packaging materials with
nesting features, such as collapsible crates
or interlocking containers, help optimize
space utilization and reduce shipping
costs. Handling stacked or nested products
requires careful stacking and securing to
prevent shifting or collapse during transit.
• Regulatory Requirements: Certain
product characteristics may trigger
regulatory requirements that dictate
specific packaging and handling protocols.
For example, food products may need to
comply with food safety regulations,
pharmaceuticals with drug packaging
standards, and dangerous goods with
hazardous materials regulations.
Compliance with applicable regulations
ensures product safety, quality, and legal
compliance throughout the supply chain.

Packaging
Fundamentals
▶ Packaging, which refers to materials used
for the containment, protection, handling,
delivery, and presentation of goods,2 can be
thought of in terms of the building-blocks
concept, in which a very small unit is placed
into a slightly larger unit, which then might
be placed into a larger unit, and so on.
The building-blocks hierarchy is important to
remember because each of the different
building blocks is inside another, and their
total effect should be to protect the product.
They function in a complementary sense.
When the consumer-size package is very
solid, the larger packaging elements require
less-sturdy packaging materials because the
smaller packages are themselves sturdy.
Alternatively, when the smallest package
isn’t very solid (e.g., the retail packaging for
lightbulbs), the larger packaging elements
will require very sturdy packaging materials
and/or careful arrangement of the smallest
product to minimize damage.

Packaging
Fundamentals
▶ Packaging fundamentals
encompass the core principles and
considerations that guide the
design, development, and
implementation of effective
packaging solutions. These
fundamentals are essential for
ensuring that packaging meets the
needs of both the product and the
consumer while considering factors
such as functionality, sustainability,
and regulatory compliance.
By adhering to these packaging
fundamentals, businesses can
develop packaging solutions that
effectively protect products, meet
consumer needs, comply with
regulations, and contribute to
sustainability goals while
strengthening brand identity and
market competitiveness.

Packaging
Fundamentals
▶ Here are some key packaging fundamentals:
• Protection: Packaging should provide
adequate protection to the product during
storage, handling, transportation, and
display. It must shield the product from
physical damage, environmental factors
(e.g., moisture, light, temperature), and
tampering to maintain its integrity and
quality.
• Containment: Packaging should securely
contain the product and prevent spillage,
leakage, or loss during transit. It should be
designed to withstand the forces and
stresses encountered during handling and
transportation to ensure that the product
remains intact until it reaches the end-user.
• Identification: Packaging should clearly
identify the product and provide essential
information to consumers, including the
product name, brand, quantity, ingredients,
nutritional information, usage instructions,
and safety warnings. Clear and accurate
labeling helps consumers make informed
purchasing decisions and ensures regulatory
compliance.

Packaging
Fundamentals
• Convenience: Packaging should be
convenient for both consumers and retailers
to handle, open, use, and dispose of. It
should facilitate easy storage, stacking, and
handling in retail environments while offering
features such as resealable closures or
portioned servings for consumer
convenience.
• Sustainability: Packaging should be
designed with environmental sustainability in
mind, using materials that are renewable,
recyclable, biodegradable, or compostable.
Sustainable packaging aims to minimize
resource consumption, reduce waste
generation, and mitigate environmental
impact throughout the product lifecycle.
• Cost-effectiveness: Packaging should be
cost-effective to produce, transport, store,
and dispose of while meeting performance
requirements and quality standards. It
should balance the need for protection and
functionality with considerations of material
costs, manufacturing efficiency, and supply
chain logistics.

Packaging
Fundamentals
• Brand Communication: Packaging serves
as a key vehicle for communicating the
brand identity, values, and messaging to
consumers. It should align with the brand
image and evoke positive perceptions
through its design, colors, graphics, and
packaging materials.
• Regulatory Compliance: Packaging must
comply with relevant regulations, standards,
and requirements governing product safety,
labeling, and packaging materials.
Regulatory compliance ensures that
packaging meets legal requirements and
industry standards for consumer protection,
health, and safety.
• Innovation: Packaging should embrace
innovation and continuous improvement to
address evolving consumer preferences,
technological advancements, and
sustainability challenges. Innovative
packaging solutions may incorporate new
materials, technologies, or design concepts
to enhance functionality, efficiency, and
environmental performance.

Functional Tradeoffs
▶ Packaging serves three general functions,
namely, to promote, to protect, and to
identify the relevant product. These
disparate functions mean that packaging
design decisions involve a number of
separate departments within an
organization, such as engineering,
manufacturing, marketing, quality control,
transportation, and warehousing. Moreover,
upstream and downstream supply chain
members can also be involved in packaging
design decisions; the departments and
supply chain members tend to pursue
different packaging design objectives.
With so many potential entities involved in
packaging decisions, a natural question
arises—which entity(ies) drive(s) the
packaging design process? For example, the
marketing department and retailers might
prefer packaging designs that are attractive
and that encourage consumers to purchase
the product. Alternatively, quality control
might be interested in packaging design that
minimizes loss and damage.

Package Testing and
Monitoring
▶ To properly design a protective packaging
system requires three important kinds of
information: the severity of the distribution
environment, the fragility of the product to be
protected, and the performance characteristics
of various cushion materials. When new
products or new packaging techniques are
about to be introduced, it is sometimes
advisable to have the packages pretested.
Various packaging material manufacturers and
trade organizations provide free package
testing, and independent testing laboratories
can also be used.
In addition to the testing of new products or
new packages, shippers should keep
detailed records on all loss and damage
claims. Statistical tests can be applied to the
data to determine whether the damage pattern
is randomly distributed. If it is not, efforts are
made toward providing additional protection
for areas in the package that are overly
vulnerable. Related to package testing is
actual monitoring of the environment the
package must pass through. Package
monitoring increasingly involves sensor
technology that allows the transmission of
real-time data.

Package Testing and
Monitoring
▶ Package testing and monitoring are
critical aspects of ensuring the quality,
safety, and integrity of packaged
products throughout the supply chain.
These processes involve assessing
various parameters related to
packaging materials, design, and
performance to verify compliance with
regulatory requirements, industry
standards, and consumer
expectations.
By conducting comprehensive
package testing and monitoring
activities, businesses can identify
potential risks, address quality issues,
and ensure that packaged products
meet performance expectations,
regulatory requirements, and
consumer preferences throughout the
entire product lifecycle. This helps to
safeguard product quality, protect
brand reputation, and enhance
customer satisfaction in the
marketplace.

Package Testing and
Monitoring
▶ Here's an overview of package testing and
monitoring:
• Material Testing: Package testing begins with
evaluating the properties and characteristics of
packaging materials used, such as strength,
durability, flexibility, permeability, and chemical
compatibility. Material testing methods may
include tensile testing, burst testing,
compression testing, moisture barrier testing,
and chemical resistance testing to ensure that
packaging materials meet performance
specifications.
• Seal Integrity Testing: Seal integrity is critical
for preventing contamination, spoilage, and
tampering of packaged products. Seal integrity
testing methods, such as dye penetration
testing, vacuum testing, and burst testing, are
used to assess the effectiveness of seals and
closures in maintaining product freshness and
preventing leaks or spills.
• Physical Testing: Physical testing evaluates
the structural integrity and performance of
packaging under various conditions, including
compression, impact, vibration, and temperature
fluctuations. These tests assess the ability of
packaging to withstand the rigors of
transportation, handling, and storage without
damage or deformation.

Package Testing and
Monitoring
▶ Here's an overview of package testing and
monitoring:
• Environmental Testing: Environmental testing
simulates real-world conditions to evaluate the
resistance of packaging materials to factors such
as humidity, temperature, light exposure, and
environmental stressors. Accelerated aging
tests, UV exposure tests, and temperature
cycling tests help assess the long-term durability
and stability of packaging materials.
• Microbiological Testing: Microbiological testing
assesses the microbial safety and sterility of
packaged products to prevent contamination and
ensure consumer safety. Testing methods may
include microbial enumeration, microbial
challenge testing, and shelf-life studies to
evaluate the effectiveness of packaging in
preserving product quality and preventing
microbial growth.
• Quality Control Monitoring: Quality control
monitoring involves ongoing surveillance and
assessment of packaging processes, equipment,
and materials to maintain consistency and
reliability in packaging operations. Monitoring
may include visual inspections, dimensional
measurements, and performance testing of
packaging samples to identify defects,
deviations, or non-conformities.

Package Testing and
Monitoring
▶ Here's an overview of package testing
and monitoring:
• Regulatory Compliance Testing:
Package testing and monitoring are
conducted to ensure compliance with
relevant regulatory requirements, industry
standards, and certification programs.
Packaging must meet specific criteria for
safety, labeling, sustainability, and
environmental impact set forth by
regulatory authorities such as the FDA,
ASTM International, ISO, and national
standards organizations.
• Supplier Audits and Inspections:
Regular audits and inspections of
packaging suppliers and manufacturers
are conducted to verify compliance with
quality standards, specifications, and
contractual requirements. Supplier audits
assess production processes, quality
control procedures, and documentation
systems to ensure consistency and
reliability in the supply of packaging
materials.

Labeling
▶ Packaging is usually done at the end of the
assembly line, so package labeling also
occurs there because using this location
avoids accumulating an inventory of
preprinted packages. This is also a key
point for control because this is where
there is an exact measure of what comes
off the assembly line. As the packaged
goods are moved from the end of the
assembly line, they become stocks of
finished goods and become the
responsibility of the firm’s outbound
logistics system. Near the point where
product packaging occurs, it is necessary
to maintain a complete inventory of all the
packages, packing materials, and labels
that will be used. Once the material being
packaged is placed into the box and the
cover is closed, the contents are hidden. At
this point, it becomes necessary to label
the box. Whether words, pictures, or code
numbers are used depends on the nature
of the product and its vulnerability to
pilferage. Retroflective labels that can be
read by optical scanners may also be
applied. Batch numbers are frequently
assigned to food and drug products, so
they may be more easily traced in case of
a product recall.

Importance of Labeling
▶ Labels have always been a fundamental
element for the proper functioning of the
supply chain. They are the identity card of
each logistics unit, the guarantee for the
consumer to see that the product meets
the mandatory regulations to be marketed
and, therefore, meets the necessary quality
conditions.
In the current health alarm situation,
labeling has gained even more importance.
The population is more aware of the origin,
composition, production conditions, the
path through the supply chain, recyclability,
and in general any of the aspects that are
contemplated in the labeling, especially of
products, food and household consumption
(household cleaning, personal hygiene,
cosmetics).
Buying habits have changed significantly in
the last year, with a relevant increase in
online commerce. Therefore, distribution
companies have had to adapt, as well as
the rest of the actors involved in the supply
chain, including labeling solution providers.

Importance of Labeling
▶ Buying habits have changed
significantly in the last year, with
a relevant increase in online
commerce. Therefore,
distribution companies have had
to adapt, as well as the rest of
the actors involved in the supply
chain, including labeling solution
providers..

New consumer habits
in pandemic times
▶ During the pandemic, in addition
to the arising of online
commerce, the demand for
certain products, especially food
and hygiene, has experienced
peaks much higher than usual.
This has been a very important
challenge for the supply chain,
which has been able to respond
optimally thanks to the efficiency
of the labeling systems.

New consumer habits
in pandemic times
▶ Another sector that has been
overwhelmed by demand is the
pharmaceutical sector; first for the
distribution of protection and prevention
elements, such as masks, gloves and
hydroalcoholic gels, and then for the
provision of vaccines against Covid-19.
We must not forget that any product that
is going to transit through the supply
chain must be correctly coded, a
challenge to which the packaging
industry has responded with enormous
efficiency.
Technological innovation is a factor that
works in favor of overcoming obstacles
that years ago would have been difficult
to manage. Maximum precision printing
equipment, such as those from UBS,
adaptable to any production line and
capable of meeting the highest speed
requirements without penalizing quality,
are an essential tool to overcome the
most complex challenges.

The challenges of
labeling
▶ Some of the challenges of
labeling include:
• The complexity of consolidating
the management of traceability,
health and safety processes
associated with the large increase
in online commerce operations. In
the automated supply chain, the
accuracy of the information
shared between all actors is
crucial; and the element that
transmits it is the label.
• Another great challenge is the
standardization of the labeling
process and the consolidation of
automation that, in anticipation of
an increase in demand, avoids
errors related to manual
operations.

The challenges of
labeling
▶ Some additional challenges of
labeling include:
• RFID technology is an efficient and
agile solution for sharing information
between the different agents
involved in the supply chain.
However, it requires the
commitment of the labeling solution
providers.
• The sustainability. The increase in
shipments and the need to respond
quickly to demand cannot be
detrimental to the commitment to
the environment. Even if
sustainability continues to be a
priority. For this reason, printing
systems that respect the
environment, are the best solution.

A Critical Component
to a Well-Managed
Supply Chain
▶ Labeling is a critical component
to a well-managed supply chain
process. Any warehouse,
regardless of its capacity, can
reduce labor costs by
implementing supply chain label
solutions. Beyond warehouse,
or distribution centers, there are
several opportunities to save
money and reduce liabilities with
labels.

Why Labeling is
Crucial to Success
Along
the Supply Chain
▶ It's important to identify how
labels can be a strategic support
for operations. 3PL’s can help
distributors so they can focus on
selling solutions, not just labels.
The following are four
meaningful ways labels can help
drive success for an
organization's customers:
• Meeting Regulatory Standards
• Increasing Efficiency
• Streamlining Business
Partnerships
• Improve Customer Satisfaction

Meet Regulatory
Standards
▶ Labels are often regulated for
shipping, marketing and
disposal of products. A 3PL can
work with an organizations and
their customers to create labels
that meet both regulatory
standards and support your
customer’s processes. High-
quality printed labels from the
3PL can offer consistency,
ensuring your customers are up-
to-date with evolving
regulations.

Increase Efficiency
▶ As any supply chain
customer will tell you, there
are always areas of their
process that can use
improvement. Errors make a
huge dent in a company’s
bottom line. Proper labeling
reduces or eliminates errors
and can easily be scaled up
as a company grows.

Streamline Business
Partnerships
▶ Companies requiring supply
chain management rely
heavily on business partners
and third parties for
operations support. An
organization can make
themself more attractive to
partners by earning a
reputation for implementing
simple efficient systems.
Well-designed labels
communicate information
clearly with partners,
improving efficiencies and
reducing redundancies.

Improve Customer
Satisfaction
▶ Labels often evolve to meet
changing customer
demands. Companies who
don’t respond to change will
be left behind and lose
business to more aggressive
competitors. With well
designed label solutions, an
organization’s clients will
grow by better serving their
customers changing needs.
A 3PL can works with an
organization to create
efficient, affordable label
solutions to support
complete customer
satisfaction.

5 Supply Chain Label
Solutions for
Distribution and
Logistics
▶ Here are sales opportunities every
distributor should be aware of for any
client with supply chain management
challenges:
• Barcode Labels
Scanning with barcode labels reduces
common picking & shipping errors.
• Integrated Labels
Integrated labels combine shipping
labels with other documents such as
packing lists or invoices, further
streamlining a customer’s process.
• Thermal Solutions
Selecting the proper thermal label and
ribbon solutions allows for efficient on-
demand variable printing.

5 Supply Chain Label
Solutions for
Distribution and
Logistics
▶ Additional opportunities every distributor
should be aware of for any client with
supply chain management challenges:
• GHS Labels
GHS labels safely identify hazardous
materials for the workplace,
transportation, consumers, and first
responders.
• Track & Trace
Help your customers know where
any pallet is in the supply chain with
DLS track and trace label technology.

Warehouse Barcode
Labels
▶ 1D and 2D warehouse barcode
labels can be optimized specifically
for an organization's facility and
scanner needs. 1D barcodes are
traditionally printed on consumer
products. They consist of lines and
spaces encoded with data. These
labels rely on a connection to a
database for the barcode to be
meaningful. Due to the accuracy of
1D scanners, these types of labels
are great for both short- and long-
range scanning.
2D barcodes require 2D imagers for
scanning. These images hold much
more data. Therefore, more than
one numerical code can be
embedded in it. The large amount of
data in this small area holds
information such as product name,
product location, status, quantity
and other useful information..

Warehouse Barcode
Labels
▶ Durable warehouse labels can
be fully customized to an
organization’s operational
needs. Some of the different
types of rack labels include:
• Single-Level Rack Labels
Custom location labels printed with
variable data.
• Multi-Level Rack Labels
Contains the data for multiple
locations within a single label.
• Retro-Reflective Labels
Retro-reflective label material
allows for scanning from longer
distances and is perfect for high
level racks that need to be scanned
from the ground.

Warehouse Barcode
Labels
▶ Additional types of rack labels
include:
• Freezer Grade Labels
Suitable for temperatures as low as
-10 ̊F. For temperatures below -
10 ̊F, magnets or PVC placards
should be used. Water resistant to
prevent peeling due to moisture
and humidity.
• Magnets
Custom printed label-applied
magnets are ideal for racks and
shelving.
• Signs
Custom printed labels applied to
PVC signs.

Integrated Labels
▶ Integrated labels are used for
direct mail and traditional
business form applications such
as pick tickets with shipping
labels, medical forms with
pharmacy labels and shipping
documents with product return
labels.
The key benefit of integrated
labels for customers is improved
logistics. One of the most
popular applications for
integrated labels is a shipping
label form. It combines a
shipping label with other
documents such as a packing
list or invoice, making logistics
more efficient. This saves
customers time and money.

Integrated Labels
▶ Some integrated label
applications include:
• Warehouse & logistics
It is common for a distribution
operation to use an integrated label
as a picking document, pack list
and shipping label. It is a
convenient single document
solution for both picking and
shipping products.
• Invoicing
At times, a direct mail shipment will
need to be returned. With an
integrated label, a client has the
return label built right into the pack
list, making it easy for the
purchaser to return a product if
needed.

Integrated Labels
▶ Some additional integrated label
applications include:
• Direct Mail Shipment
At times, a direct mail shipment will need
to be returned. With an integrated label, a
client has the return label built right into the
pack list, making it easy for the purchaser
to return a product if needed.
• Pharmacy Applications
With an integrated label, a pharmacist is
able to print important patient education
information about the prescription as well
as the labels that are applied to the
prescription bottle or box. This allows for
an exact match, making it easier and
quicker to fill prescriptions for their clients.
• Marketing Departments
Marketing departments are great places to
make an integrated label sales call
because they are always looking for new
ways to get effective marketing messages
across to their clients.

Thermal Solutions
▶ Thermal labels use heat to create an
image. Thermal transfer uses a thermal
ribbon where heat from the printhead
releases the ribbon attaching it to the
label surface. Direct thermal images are
created when heat from the printhead
causes components on the label
surface to mix causing them to (usually)
turn black.
There are two types of thermal
facestocks: paper and synthetic. Paper
is an economical material for indoor use
and a shorter lifecycle. It is a versatile
facestock that supports labeling across
a wide variety of surfaces such as
corrugate, paper, packaging films,
(most) plastics and metal & glass. Like
paper, synthetic materials also support
labeling across a wide variety of
surfaces. However, the advantages of a
synthetic label over paper is their
resistance and environmental qualities
such as a longer label lifecycle, the
ability to withstand an outdoor
environment and resistance to abrasion,
moisture and chemicals.

Examples of Shipping
Labels
▶ Figure 11.3 shows a
small sampling of labels
that can be purchased
for individual placement
on cartons or pallets.

Labeling
▶ Many regulations govern the labeling of
packaging, including the labeling of
weight, specific contents, and instructions
for use. Today, much of this information
must also be placed outside the larger
cartons as well, because some retail
outlets sell in carton lots, and the buyer
does not see the consumer package until
he or she reaches home. Moreover,
labeling requirements within a particular
country can differ from state to state
(or province to province). In the United
States, the liquor (alcoholic beverage)
industry is heavily regulated, and states
have liquor control boards that are
responsible for regulating liquor-related
activities, including labeling, within state
borders. he labeling guidelines for liquor
can be quite detailed and specific with
respect to font type, font size, and label
placement, among others. Failure to
comply with the relevant labeling
guidelines can result in surcharges,
administrative fees, or penalty charges.

The Consumer
Packaging and
Labelling Act (CPLA)
▶ The Consumer Packaging and
Labelling Act (CPLA) is a Canadian
federal law that regulates the
packaging, labelling, sale, importation,
and advertising of consumer products
sold in Canada. The primary goal of
the CPLA is to ensure that consumers
are provided with accurate and useful
information about the products they
purchase, including information about
the contents, quantity, quality, and
safety of the products.
Overall, the CPLA aims to protect
consumers from deceptive practices
and ensure that they have access to
accurate information about the
products they purchase, thereby
promoting fair competition and
consumer confidence in the
marketplace.

The Consumer
Packaging and
▶ Key provisions of the CPLA include
requirements for:
Labelling: Products must be labelled
with accurate information regarding
their contents, including the identity of
the product, the net quantity of the
product, and any applicable safety
warnings or instructions for use.
Packaging: Packaging must be
designed in a way that does not
deceive or mislead consumers and
must not be excessively wasteful or
harmful to the environment.
Metric System: The CPLA requires
that measurements on product labels
be expressed in metric units, in
accordance with Canada's official
adoption of the metric system.

The Consumer
Packaging and
▶ Additional provisions of the CPLA
include requirements for:
Prohibited Practices: The CPLA
prohibits certain deceptive practices,
such as falsely representing the
quantity or quality of a product or
using misleading packaging or
labelling.
Enforcement: The Canadian Food
Inspection Agency (CFIA) is
responsible for enforcing the CPLA
and ensuring that businesses
comply with its requirements. Non-
compliance with the CPLA can
result in penalties, including fines
and product recalls.

The Canadian Food
Inspection Agency
(CFIA)
▶ The Canadian Food Inspection
Agency (CFIA) plays a crucial
role in regulating food labeling in
Canada to ensure that
consumers have access to
accurate and meaningful
information about the food they
purchase.
Overall, CFIA's labeling
regulations and requirements
aim to protect consumers by
providing clear, accurate, and
standardized information about
the food they purchase,
promoting transparency, safety,
and informed consumer choice
in the Canadian marketplace.

The Canadian Food
Inspection Agency
(CFIA)
▶ Here are key aspects of CFIA's
labeling regulations and requirements:
• Mandatory Labeling Information:
CFIA regulations mandate certain
information that must be included on
food labels, such as the product name,
list of ingredients, allergen information,
net quantity, nutritional facts table, and
best before date. This information
helps consumers make informed
choices about the food they buy and
consume.
• Bilingual Labeling: In Canada, food
labels must be presented in both
English and French, as mandated by
the Official Languages Act. This
ensures that all Canadians have
access to important information
regardless of their language
preference.

The Canadian Food
Inspection Agency
(CFIA)
▶ Additional aspects of CFIA's labeling
regulations and requirements:
• Allergen Labeling: CFIA regulations
require food manufacturers to clearly
identify common food allergens, such
as peanuts, tree nuts, soy, wheat,
dairy, eggs, fish, and shellfish, on the
label. This helps consumers with food
allergies or sensitivities avoid
potentially harmful ingredients.
• Nutritional Information: Food labels
must include a Nutrition Facts table
that provides information about the
nutrient content of the food, including
calories, fat, saturated fat, trans fat,
cholesterol, sodium, carbohydrates,
fiber, sugars, protein, vitamins, and
minerals. This information helps
consumers make informed dietary
choices and manage their nutritional
intake.

The Canadian Food
Inspection Agency
(CFIA)
▶ Additional aspects of CFIA's labeling regulations
and requirements:
• Organic Labeling: CFIA regulates the use of
organic claims on food labels, ensuring that
products labeled as "organic" meet specific
standards and certification requirements. This
helps consumers identify organic products and
make choices aligned with their preferences for
organic food production practices.
• Labeling Claims and Advertising: CFIA
monitors and regulates labeling claims and
advertising to prevent false or misleading
information that could deceive consumers.
Claims related to health benefits, nutritional
content, or product attributes must be truthful,
accurate, and substantiated by scientific
evidence.
• Enforcement and Compliance: CFIA conducts
inspections, audits, and enforcement actions to
ensure that food labeling regulations are
followed by food manufacturers, processors,
importers, and retailers. Non-compliance with
labeling requirements may result in enforcement
actions, such as product recalls, fines, or other
penalties.

Hazardous Materials
▶ It is also important to recognize the special
labeling requirements associated with
hazardous materials. Governmental
regulations address labeling of hazardous
materials. While the specific requirements
differ for each hazardous commodity, all of
the requirements involve labeling, packaging
and repackaging, placing warnings on
shipping documents, and notifying
transportation carriers in advance.
Because hazardous materials are
increasingly being stored and transported
across country borders, the United Nations
(UN) has played an active role in developing
a global system to classify and label
hazardous materials. One of the UN’s more
recent efforts in this area involved its
Globally Harmonized System of
Classification and Labeling of Chemicals
(GHS), which was first adopted in 2002. The
GHS has been revised six times, most
recently in 2015. It provides three key pieces
of classification and labeling information: (1)
a symbol; (2) a signal word (e.g., “danger”);
and (3) a hazard statement (e.g., “explosion;
severe projection hazard”). Unfortunately, to
date fewer than 75 countries have
implemented the GHS.
This Photo by Unknown Author is licensed under CC BY-SA

Hazardous Materials
▶ In Canada, hazardous materials
are regulated primarily under
the Transportation of Dangerous
Goods (TDG) Act and
Regulations, as well as other
federal, provincial, and territorial
legislation.
Overall, the regulation of
hazardous materials in Canada
is comprehensive and multi-
faceted, aiming to protect public
health, safety, and the
environment while facilitating
the safe and efficient
transportation of goods.
Compliance with regulatory
requirements is essential to
prevent accidents, minimize
risks, and maintain the integrity
of the supply chain.

Hazardous Materials
▶ Here are key points regarding hazardous materials in
Canada:
Transportation of Dangerous Goods (TDG) Act
and Regulations: The TDG Act and Regulations
govern the transportation of hazardous materials by
all modes of transport, including road, rail, air, and
water. These regulations establish requirements for
the classification, packaging, labeling, handling, and
transportation of dangerous goods to ensure public
safety and environmental protection.
Classification: Hazardous materials are classified
into nine classes based on their primary hazard
characteristics, such as flammability, toxicity,
corrosiveness, and reactivity. Each class has specific
requirements for packaging, handling, and
transportation.
Packaging and Labeling: The TDG Regulations
prescribe packaging specifications and labeling
requirements for hazardous materials to
communicate important safety information to
workers, emergency responders, and the public.
Packaging must be designed and tested to withstand
the conditions encountered during transportation and
to prevent leaks, spills, and other accidents.
Transportation Requirements: Shippers, carriers,
and consignees of dangerous goods are required to
comply with various transportation requirements,
including training, documentation, placarding, and
emergency response planning. Special permits may
be required for the transportation of certain types of
hazardous materials or under specific circumstances.

Hazardous Materials
▶ Additional key points regarding hazardous materials in
Canada:
Emergency Response: The TDG Regulations require
all parties involved in the transportation of dangerous
goods to have emergency response procedures in
place to address accidents, spills, and other incidents.
Emergency response plans must be developed,
implemented, and regularly tested to ensure effective
response and mitigation of potential hazards.
Environmental Protection: The transportation,
handling, and storage of hazardous materials are
subject to environmental protection regulations at the
federal, provincial, and territorial levels. These
regulations aim to prevent pollution, minimize
environmental impacts, and ensure the safe cleanup
and remediation of contaminated sites.
Provincial and Territorial Regulations: In addition to
federal regulations, provinces and territories may have
their own regulations governing the handling, storage,
and disposal of hazardous materials within their
jurisdictions. These regulations may impose additional
requirements or restrictions on hazardous materials
based on local environmental and safety concerns.
Enforcement and Compliance: Regulatory agencies,
such as Transport Canada and provincial/territorial
authorities, are responsible for enforcing hazardous
materials regulations and ensuring compliance with
safety standards. Inspections, audits, and enforcement
actions may be conducted to verify compliance and
address non-compliance issues..

Environmental
Protection
▶ Public concern for environmental protection
has profoundly impacted the packaging
industry on a worldwide basis. Disposable
packing materials are often viewed as
wasteful, and their disposal is becoming
increasingly expensive as costs increase for
dumping in landfill sites. Plastic packaging,
in particular, has become a frequent target
for environmental critics. Although the use of
plastic for packaging has grown dramatically
over the past quarter century—plastic tends
to be cheaper, more versatile, and more
consumer friendly than paper—plastic
leaves a great deal to be desired from an
environmental perspective.
A key problem facing those trying to choose
packaging materials is that each nation’s
(and, for that matter, each state’s or
province’s) regulations can differ in terms of
acceptable packaging. One reason that
regulations differ is that different entities
view environmental problems differently and
enact regulations that address the issues of
current concern to them.

Environmental
Protection
▶ Firms can adopt any number of
environmentally friendly packaging strategies,
and we’ll look at several of them. One strategy
is to reduce the amount of packing materials
used, but this is tempered by the fact that, as
pointed out earlier, transportation carriers may
have a great deal of influence on packaging
specifications for goods they are transporting.
Another packaging strategy is to use
environmentally friendly packaging materials.
For example, although plastic tends to be an
environmentally unfriendly product, some
plastics are less environmentally friendly than
others. Polyvinyl chloride (PVC), commonly
referred to as vinyl, is an extremely unfriendly
plastic because it produces dioxin, a highly
carcinogenic (cancer-causing) chemical. A
third strategy is to use reusable containers,
such as refillable glass beverage bottles. A
fourth environmentally friendly packaging
strategy is to retain or support services that
collect used packaging and recycle it. Dust
and vapors produced during bulk-cargo
transfer operations are also being scrutinized
more closely by public agencies. For liquids
with vapor-escape problems, the transfer
processes are redesigned so that tanks and
other receptacles are loaded from the bottom
rather than the top.

Environmental
Protection
▶ Implementing environmentally
friendly packaging strategies is
essential for businesses looking to
reduce their environmental footprint
and meet the growing demand for
sustainable products.
By implementing environmentally
friendly packaging strategies,
businesses can reduce waste,
conserve resources, and
demonstrate their commitment to
sustainability while meeting
consumer expectations for eco-
friendly products.

Environmental
Protection
▶ Here are several strategies that companies
can adopt to create more eco-friendly
packaging:
• Reduce Packaging Material: Minimize the
amount of packaging material used by
optimizing package design and eliminating
unnecessary components. Streamline
packaging to only include essential elements
that provide adequate protection and
functionality.
• Choose Renewable and Recyclable
Materials: Select packaging materials that
are renewable, recyclable, or biodegradable.
Materials such as paperboard, cardboard,
recycled paper, bioplastics, and
compostable plastics offer environmentally
friendly alternatives to traditional petroleum-
based plastics and non-recyclable materials.
• Use Recycled Content: Incorporate
recycled content into packaging materials to
reduce the demand for virgin materials and
promote the circular economy. Choose
packaging that contains post-consumer
recycled content and support suppliers that
offer sustainable alternatives.

Environmental
Protection
▶ Here are several strategies that companies can
adopt to create more eco-friendly packaging:
• Optimize Packaging Design: Design
packaging with efficiency in mind to minimize
material waste and transportation costs.
Consider lightweighting packaging, using
efficient shapes and sizes, and optimizing
palletization to reduce the environmental impact
of packaging throughout the supply chain.
• Implement Biodegradable and Compostable
Packaging: Explore biodegradable and
compostable packaging options for products that
require disposal at the end of their lifecycle.
Biodegradable plastics made from renewable
resources or compostable materials that break
down into organic matter can help reduce plastic
pollution and landfill waste.
• Switch to Eco-Friendly Inks and Adhesives:
Use environmentally friendly inks and adhesives
for printing and labeling packaging materials.
Choose soy-based or water-based inks and
adhesives that have lower environmental impact
and emit fewer volatile organic compounds
(VOCs) compared to traditional solvent-based
alternatives.

Environmental
Protection
▶ Here are several strategies that companies can
adopt to create more eco-friendly packaging:
• Offer Refillable and Reusable Packaging:
Introduce refillable or reusable packaging options for
products to reduce single-use packaging waste.
Encourage customers to return packaging for refilling
or provide incentives for reusing packaging
containers, such as discounts or loyalty rewards.
• Provide Clear Recycling Instructions: Include
clear recycling instructions on packaging to educate
consumers about proper disposal and recycling
practices. Use standardized recycling symbols and
labels to help consumers easily identify recyclable
materials and encourage recycling behavior.
• Collaborate with Suppliers and Partners: Work
with suppliers, manufacturers, and logistics partners
to promote sustainability throughout the supply chain.
Collaborate on packaging innovations, share best
practices, and support initiatives that reduce
environmental impact and promote responsible
sourcing.
• Communicate Sustainability Efforts:
Communicate your company's sustainability efforts
and commitment to eco-friendly packaging to
consumers. Transparency about environmental
initiatives and certifications can build trust with
environmentally conscious consumers and
differentiate your brand in the marketplace.

Metric System
▶ The United States, along with Liberia and
Myanmar (formerly Burma), are the only three
countries in the world that do not currently use
the metric system of measurement. Although
this lack of uniformity might have been a
relatively minor nuisance 30 years ago,
economic globalization has led to increasing
pressure on U.S. exporters to market their
products overseas in metric units.
One U.S. industry that has prominently
embraced the metric system is the liquor-
producing industry. This industry’s conversion to
the metric system, which began in the 1970s,
illustrates several of the potential challenges that
might stand in the way of the United States
formally adopting the metric system. The liquor
industry is heavily regulated in the United States,
and one example of this regulation is the high
taxes that are applied to alcoholic beverages.
These taxes became an issue in converting to
the metric system because they were drawn up
to be applicable to half pints, pints, quarts, and
other English units of measure, as opposed to
half liters and liters. Moreover, the liquor
industry’s adoption of the metric system also
caused some short-term packaging issues
because the cartons that were used for
transporting and storing quart bottles were in
some cases just a bit too small to hold one-liter
bottles.

Metric System
▶ Logistics operations within the
metric system follow standardized
units of measurement, facilitating
efficient and accurate handling,
storage, transportation, and
distribution of goods.
Overall, the metric system plays a
crucial role in streamlining
logistics operations by providing
standardized units of
measurement that enable efficient
communication, accurate
calculations, and effective
management of goods throughout
the supply chain. Embracing the
metric system facilitates
international trade, promotes
interoperability between
transportation modes, and
enhances efficiency and
transparency in logistics
processes.

Metric System
▶ Here's how the metric system influences
logistics:
• Standardization: The metric system provides
a standardized set of units for measuring
length, mass, volume, and other quantities.
Standardization simplifies communication and
collaboration across international borders, as
metric units are widely adopted globally.
Logistics operations can rely on consistent
measurements, reducing errors and
misunderstandings.
• Measurement Accuracy: Metric units offer
precise and decimal-based measurements,
allowing for accurate quantification of goods,
equipment, and storage capacities. This
accuracy is crucial for optimizing inventory
management, space utilization, and load
planning in warehouses, distribution centers,
and transportation vehicles.
• Intermodal Compatibility: Metric
measurements facilitate seamless
coordination and interchangeability between
different modes of transportation, such as
trucks, trains, ships, and airplanes.
Standardized metric units for weight, volume,
and dimensions ensure compatibility across
transport networks, enabling efficient cargo
handling and transfer between modes.

Metric System
▶ Here's how the metric system influences
logistics:
• Packaging Optimization: Logistics
professionals use metric measurements to
optimize packaging design, materials usage, and
load configurations. Metric dimensions and
weight limits help determine the most efficient
packaging solutions, such as pallet sizes, box
dimensions, and container capacities, to
maximize space utilization and minimize
shipping costs.
• Load Planning and Capacity Management:
Metric measurements are essential for load
planning and capacity management in
transportation operations. Logistics planners
calculate load weights, volume capacities, and
cubic densities using metric units to ensure that
vehicles are loaded safely, efficiently, and within
legal limits for road, rail, and maritime transport.
• Route Optimization: Metric measurements
support route optimization algorithms and
software used for vehicle routing and scheduling.
Logistics planners use distance measurements
in kilometers, travel times in hours, and fuel
consumption rates in liters per kilometer to
calculate optimal routes, minimize transportation
costs, and reduce environmental
impact.handling and transfer between modes.

Metric System
▶ Here's how the metric system
influences logistics:
• Inventory Control: Metric
measurements facilitate accurate
inventory control and stock tracking
in logistics systems. Inventory levels
are tracked in metric units, such as
kilograms, cubic meters, or units, to
monitor stock levels, reorder points,
and replenishment schedules
efficiently.
• Regulatory Compliance: Many
countries require compliance with
metric measurement standards for
trade, transportation, and regulatory
reporting purposes. Logistics
operations must adhere to metric
regulations for weight limits,
packaging labeling, and
documentation requirements to
ensure legal compliance and avoid
penalties.

Identifying Packaging
Inefficiencies
▶ The building-blocks concept is
useful for analyzing packaging
inefficiency in that packaging
inefficiency tends to be
compounded as one moves from a
very small unit to a slightly larger
unit, and so on. Packaging
inefficiency can have a number of
undesirable logistics consequences,
including increased loss, increased
damage, slower materials handling,
higher storage costs, and higher
transportation costs.

Inefficiencies
▶ Identifying packaging
inefficiencies is crucial for
improving logistics efficiency,
reducing costs, and
minimizing environmental
impact.
By systematically evaluating
packaging practices and
performance indicators,
businesses can identify
inefficiencies, implement
targeted improvements, and
optimize packaging
processes to enhance
overall logistics efficiency
and sustainability.

Inefficiencies
▶ Here are several common methods for
identifying packaging inefficiencies:
Packaging Material Waste: Evaluate the
amount of packaging material used relative to
the size and fragility of the product. Excessive
packaging material, such as oversized boxes or
unnecessary cushioning, indicates inefficiency.
Conducting a waste audit can help quantify
material waste and identify areas for
improvement.
Transportation Costs: Analyze transportation
costs relative to packaging size and weight.
Oversized or overweight packaging may result in
higher shipping costs due to increased fuel
consumption and handling fees. Compare
transportation costs for different packaging
configurations to identify opportunities for
optimization.
Product Damage Rates: Monitor product
damage rates during transportation and storage.
High rates of damage or breakage may indicate
inadequate packaging protection or improper
handling procedures. Analyze the root causes of
product damage to identify packaging
deficiencies and implement corrective actions.

Inefficiencies
▶ Additional methods for identifying
packaging inefficiencies include:
Regulatory Compliance: Ensure
compliance with packaging regulations
and industry standards. Non-
compliance with regulations related to
packaging materials, labeling
requirements, and transportation
restrictions can result in fines,
penalties, and supply chain
disruptions. Stay informed about
regulatory updates and conduct
regular audits to verify compliance.
Supplier Collaboration: Collaborate
with packaging suppliers to identify
opportunities for optimization. Engage
suppliers in discussions about
packaging design, material selection,
and cost-saving initiatives. Leverage
supplier expertise and industry insights
to implement innovative packaging
solutions that improve efficiency and
reduce costs.

Inefficiencies
▶ Other common methods for identifying
packaging inefficiencies include:
Storage Space Utilization: Assess the
efficiency of storage space utilization in
warehouses and distribution centers. Bulky or
irregularly shaped packaging may occupy
excessive storage space, reducing inventory
capacity and increasing handling costs. Optimize
packaging dimensions to maximize storage
density and minimize wasted space.
Customer Feedback: Gather feedback from
customers regarding packaging preferences and
satisfaction. Customer complaints about
excessive packaging, difficulty opening
packages, or environmental concerns can
highlight inefficiencies that need to be
addressed. Use surveys, reviews, and direct
communication channels to collect feedback and
identify areas for improvement.
Environmental Impact: Evaluate the
environmental impact of packaging materials
and disposal practices. Excessive packaging
waste contributes to environmental pollution and
resource depletion. Conduct a life cycle
assessment to quantify the environmental
footprint of packaging and identify opportunities
for waste reduction, material substitution, and
recycling.

Packaging’s Influence
on Transportation
Considerations
▶ Carriers’ tariffs and classifications influence the type
of packaging and packing methods that must be
used. In freight classification documents, the type of
packaging is specified. The commodity is listed,
followed by a comma and then by a phrase—such as
“in machine-pressed bales,” “in barrels,” “in bales
compressed in more than 18 lb per square foot,”
“folded flat, in packages,” “celluloid covered, in
boxes,” “SU” (setup), or “KD” (knocked down—or
disassembled and packed so that it occupies two-
thirds or less of the volume it would occupy in its
setup state).
The carriers established these different
classifications for two main reasons. First, packaging
specifications determined by product density
encourage shippers to tender loads in densities that
make the best use of the equipment’s weight and
volume capabilities. Second, carrier specifications for
protective packaging reduce the likelihood of
damage to products while they are being carried;
this, in turn, reduces the amount of loss and damage
claims placed against the carrier. It is difficult to know
exactly how much carrier tariffs and classifications
control shippers’ packaging. Airlines, express
delivery companies, and the U.S. Postal Service also
have packaging requirements, although they are
somewhat less detailed than those used by rail and
motor carriers.

on Transportation
Considerations
▶ Packaging plays a significant role in
transportation considerations,
influencing various aspects of
logistics, cost, and efficiency.
Packaging significantly influences
transportation considerations by
affecting factors such as product
protection, space utilization, weight,
stackability, handling, regulatory
compliance, and environmental
impact. Effective packaging design
and materials selection are essential
for optimizing logistics efficiency,
reducing costs, and ensuring the
safe and timely delivery of goods.

on Transportation
Considerations
▶ Here are several ways in which packaging
affects transportation:
Protection: Packaging serves to protect goods
from damage, breakage, and other hazards
during transportation. The type and quality of
packaging materials used can impact the level of
protection provided. Fragile items may require
specialized packaging such as cushioning
materials or shock-absorbent structures to
minimize the risk of damage in transit.
Space Utilization: Efficient packaging design
can optimize the use of available space during
transportation. Well-designed packaging
minimizes empty space, allowing more products
to be transported in a single shipment. This
optimization reduces shipping costs per unit and
maximizes the efficiency of transportation
resources.
Weight Considerations: The weight of
packaging materials contributes to the overall
weight of the shipment. Heavy or bulky
packaging can increase transportation costs,
especially if shipping rates are based on weight.
Lightweight packaging materials are preferred as
they help reduce fuel consumption and
associated emissions during transportation.

on Transportation
Considerations
▶ Additional ways in which packaging
affects transportation:
Stackability and Palletization:
Packaging that facilitates easy
stacking and palletization helps
streamline loading and unloading
processes, as well as warehouse
storage. Standardized pallet sizes are
commonly used in logistics operations,
and packaging dimensions should be
compatible with these standards to
maximize efficiency.
Handling Requirements: Packaging
should be designed with consideration
for ease of handling throughout the
transportation process. Clear labeling,
proper weight distribution, and
ergonomic features can contribute to
safer and more efficient handling,
reducing the risk of injuries and
delays.

on Transportation
Considerations
▶ Packaging also affects transportation
by:
Regulatory Compliance: Certain
transportation modes and destinations
may have specific regulations
regarding packaging materials and
labeling requirements. Packaging must
comply with these regulations to
ensure smooth transit and avoid
potential delays or fines.
Environmental Impact: Sustainable
packaging practices, such as using
recyclable or biodegradable materials,
can help reduce the environmental
footprint of transportation operations.
Lightweight packaging also contributes
to lower fuel consumption and
emissions, aligning with sustainability
goals.

Unit Loads in Materials
Handling
▶ As mentioned earlier in this chapter, the
packaging of materials is based on the
building-blocks concept of putting
products in containers that will provide
efficient yet manageable units. We will
discuss unit loads, an extension of the
building-blocks concept to very large
quantities. A unit load (unitization)
refers to consolidation of several units
(cartons or cases) into larger units to
improve efficiency in handling and to
reduce shipping costs.16 Handling
efficiency can be facilitated by
mechanical devices such as a pallet jack
or forklift as well as by using a pallet or
skid (a small platform made of plastic,
metal, or wood on which goods are
placed for handling by mechanical
means).

Unit Loads
▶ Figure 11.5 shows a
number of unit loads
resting on pallets and
one unit load being
moved with a pallet
jack.

Unit Loads in Materials
Handling
▶ The unit load offers several advantages,
one of which is additional protection to
the cargo because the cartons are
secured to the pallet by straps, shrink-
wrapping, or some other bonding device
that provides a sturdier building block. A
second unit load advantage is that
pilferage is discouraged because it can
be difficult to remove a single package or
its contents
The unit load does have its limitations,
however. It represents a larger quantity of
an item than a single box—often 30 to 50
times as much. Yet another drawback to
the unit load is the lack of standardization
in terms of pallet sizes. Although the
International Standards Organization
(ISO) has established six international
pallet size standards (see Table 11.2)—
four in metric units, two in English units—
literally hundreds of different pallet sizes
are used by companies in the United
States.

The Unit Load Platform
▶ An important issue with respect to unit
loading concerns the platform (basic unit)
on which to place the unit load. The pallet
is generally viewed as the basic unit in
unit loading. In the United States, the
wooden pallet has long been the
backbone of the unit load in the sense
that the vast majority (between 90 and 95
percent) of pallets are made of wood.
Pallets can also be constructed from
plastic, wood composites (such as
fiberboard), paper, and metal. Each pallet
material has its advantages and
disadvantages, with price being a major
drawback to both plastic and metal
pallets. Plastic pallets, by contrast, last at
least five years, and life spans of over 10
years are not uncommon, whereas metal
pallets can last for approximately 15
years. Another shortcoming of wood
pallets is that they can break and splinter,
which could pose safety dangers to
workers and also necessitates pallet
repairs (assuming the pallet is
salvageable). Neither plastic nor metal
pallets are likely to break and splinter,
thus improving worker safety and
resulting in minimal repair costs.

▶ Another important consideration is pallet weight.
fifty pounds is a significant weight in many
logistics systems because it represents the
approximate weight at which there is a
noticeable increase in injuries, particularly back
injuries, from manual handling. Furthermore,
wood and plastic are much more flammable than
is metal. Although pallets are a popular unit load
platform, one disadvantage (regardless of
material) is their height, and when goods are
loaded aboard pallets into railcars, trailers, or
containers, the space occupied by the pallet
(approximately five inches) is unproductive. One
alternative to the pallet is a slip sheet, a flat
sheet of either fiberboard material or plastic,
which is placed under the unit load. From a
space utilization perspective, one pallet occupies
80 times more space than a plastic slip sheet. In
addition, plastic ship sheets are lightweight,
which reduces transportation costs.
Until the early part of the twenty-first century,
one major drawback to slip sheets was high
product damage rates due to their fragility.
However, advances in technology have created
both stronger plastics and stronger fiberboard
with which to construct slip sheets as well as
improved materials handling equipment for
moving slip sheets. As a result, the damage
rates for slip-sheeted products are much
improved.

▶ Pallets play a significant role in
logistics and supply chain
management, impacting various
aspects of transportation,
storage, handling, and
efficiency.
Overall, pallets play a crucial
role in streamlining logistics
operations, improving efficiency,
reducing costs, and enhancing
the overall performance of
supply chains. Their
standardized design,
compatibility with handling
equipment, and versatility make
them indispensable assets in
modern logistics and distribution
networks.

▶ Here are some keyways in which pallets influence
logistics:
• Improved Handling Efficiency: Palletized loads can
be easily moved, transported, and handled using
forklifts, pallet jacks, and other material handling
equipment. By consolidating multiple items onto a
single pallet, handling and loading/unloading times
are reduced, leading to greater operational efficiency
and productivity.
• Optimized Storage Space: Pallets facilitate efficient
use of storage space in warehouses, distribution
centers, and transportation vehicles. Standardized
pallet sizes allow for uniform stacking and racking of
goods, maximizing vertical space utilization and
minimizing wasted space. This helps to increase
storage capacity and reduce storage costs.
• Enhanced Inventory Management: Palletized loads
simplify inventory management processes by
providing a standardized unit for tracking and
counting goods. Each pallet can be assigned a
unique identifier or barcode, enabling accurate
inventory tracking, stock rotation, and replenishment
activities.
• Streamlined Transportation: Palletized loads are
easier to transport and handle across various modes
of transportation, including trucks, trains, ships, and
airplanes. Pallets can be quickly loaded and
unloaded from transportation vehicles, reducing
turnaround times and transit times. Additionally,
palletized loads are less prone to damage during
transportation, leading to lower product losses and
reduced insurance claims.

▶ Here are some keyways in which pallets influence
logistics:
• Reduced Product Damage: Pallets provide a stable
and secure platform for transporting goods, reducing
the risk of product damage and breakage during
handling and transportation. By minimizing product
damage, pallets help to maintain product quality and
integrity, resulting in higher customer satisfaction and
fewer returns.
• Facilitated Cross-Docking: Palletized loads enable
efficient cross-docking operations, where incoming
goods are quickly transferred from inbound to
outbound transportation vehicles with minimal
storage time. This allows for faster order fulfillment
and shorter lead times, enhancing responsiveness to
customer demands.
• Support for Automation: Pallets are compatible
with automated material handling systems, such as
conveyor belts, robotic palletizers, and automated
guided vehicles (AGVs). Automated handling of
palletized loads improves operational efficiency,
reduces labor costs, and increases throughput in
warehouses and distribution centers.
• Environmental Sustainability: Pallets can be
reused, repaired, and recycled, contributing to
environmental sustainability and waste reduction
efforts. Wooden pallets, in particular, are often
repaired and reused multiple times before being
recycled into new pallets or other wood products,
extending their lifecycle and reducing the need for
raw materials.

Beyond the Unit Load
▶ The next step in the building-blocks
process is to stow the unit-load
pallets into a waiting truck trailer,
railcar, or container van.
Increasingly this stowage is based
upon load-planning software, and
Figure 11.6 shows a computer
printout from this type of software.
The load-planning software depicted
in Figure 11.6 suggests how to load
a container with different sizes of
cartons and tells where the loads for
several customers should be
loaded. The software recognizes, for
example, that some cartons cannot
be laid on their sides or cannot have
other cartons placed on top of them.
The software also takes into
account the load’s center of gravity
and the allowable weights on axles.
When planning for refrigerated
loads, the software will also take
into account the need for air spaces.

Beyond the Unit Load
▶ Slight clearances must be
maintained between pallets to allow
for the loading and unloading
processes. Bracing or inflatable
dunnage bags (see Figure 11.7)
are used to fill narrow empty spaces
and, when inflated, they fill the void
space and function as both a
cushion and a brace. A problem
involved with any bracing or
cushioning device is that the load is
subjected to forces from all
directions. Even when cargoes are
properly braced, various forces such
as vibration, pitch, and roll can still
cause damages. Continued
vibrations may loosen screws on
machinery or cause the contents of
some bags or packages to settle,
changing the type of support they
give to the materials packed above
them. For products that present this
problem, special preloading
vibrators are used to cause the load
to settle immediately.

Materials Handling
▶ Materials handling (also referred
to as material handling) is
defined as “short-distance
movement that usually takes
place within the confines of a
building such as a plant or DC
and between a building and a
transportation service provider.”
This short-distance movement
distinguishes materials handling
from transportation.

Materials Handling
▶ Nearly all products that are
packaged—often in consumer-size
boxes, bottles, or cans—are
handled by the building-block
concept of packaging that has been
described previously. The other way
that products, especially large
quantities of products, are handled
is in bulk. Bulk materials are in loose
rather than in packaged form and
are handled by pumps, shovel
devices, conveyor belts (see Figure
11.8), or the mere force of gravity.
The decision must be made as to
where in the supply chain the bulk
materials should be placed into
smaller containers for further sale or
shipment. Sometimes, bagged and
bulk quantities of the same material
are part of the same shipment; for
example, bagged rice is placed on
top of bulk rice to provide load
stability on ocean vessels.

Materials Handling
▶ Bulk cargoes have various handling
characteristics, one of which is density.
Consider three different bulk materials,
namely, iron ore, coal, and grain, each of
which is characterized by a different
density. A material’s angle of repose is the
size of angle that would be formed by the
side of a conical stack of that material. The
greater the angle, the higher the pile of
materials that can be placed on a specific
land area. Bulk liquids also have unique
handling characteristics. Resistance to flow
is measured as viscosity, which can be
lowered by increasing the temperature of a
liquid. Gases have unique handling
properties, although most of them are
handled within completely enclosed
pipeline systems. The handling process
itself may change the characteristics (or
quality) of the product. Rice grains cannot
fall far without being broken. An ideal
equipment configuration for one bulk cargo
may not be able to handle another. Another
consideration is the size of particle of the
cargo in question; costs are involved in
pulverizing to a uniform size so it can be
handled by pneumatic or slurry devices.

Materials Handling
▶ The Material Handling Institute, a leading
non-profit trade association that represents
the materials handling industry, has
developed a list of 10 materials handling
principles which include:
1. The planning principle. This principle
focuses on proactive, rather than reactive,
approaches to materials handling.
2. The standardization principle. This
principle focuses on standardizing, where
feasible, materials handling activities,
processes, and equipment.
3. The work principle. This principle
emphasizes working smarter, rather than
harder, to achieve an organization’s
productivity and customer satisfaction goals.
4. The ergonomic principle. Ergonomics
refers to the science that seeks to adapt
work or working conditions to suit the
abilities of the worker. This principle
recognizes that human limitations and
capabilities should be considered when
designing materials handling activities and
operating materials handling equipment.
5. The unit load principle. This principle
focuses on maximizing the value of unit
loads.

Materials Handling
▶ The Material Handling Institute, a leading
non-profit trade association that
represents the materials handling
industry, also include:
6. The space utilization principle. This
principle strives to make the best use of
existing space.
7. The system principle. This principle
emphasizes that the materials handling
function impacts, and is impacted by,
other logistics functions and activities.
8. The automation principle. This principle
suggests that, where appropriate,
automation can positively impact
efficiency and reliability.
9. The environmental principle.
Environmental impact and energy
consumption should be considered as a
criteria when designing or selecting
alternative equipment and material
handling systems.
10. The life cycle cost principle. A thorough
economic analysis should account for the
entire life cycle of all material handling
equipment and resulting systems.

Conclusion
▶ Many considerations, such as a product’s
physical characteristics, must be taken into
account when thinking about packaging and
materials handling decisions. Packaging can be
thought of in terms of the building-blocks concept
in which a very small unit is placed into a slightly
larger unit, and so on. The chapter looked at a
number of packaging issues. We began by
distinguishing between packaging’s protective
and promotional functions. We also learned that
correct package labeling can impact the
effectiveness and efficiency of logistics systems.
Packaging has important environmental
consequences and several environmentally
friendly packaging strategies were identified and
discussed.
Unit loads (unitization) were also discussed, with
a particular emphasis on the characteristics of
wood, plastic, and metal pallets. We then turned
to an examination of materials handling and
identified some of the challenges associated with
handling the various types of bulk products. Ten
materials handling principles were identified and
described and these principles can improve the
effectiveness and efficiency of logistics systems.
The chapter concluded with a discussion of
materials handling equipment and this equipment
should be aligned with an organization’s
objectives, customers, and products.

Logistics and Transportation Part 11.pptx

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