PACKAGING & MATERIALS HANDLING

Industrial Logistics (BPT 3123)Industrial Technology Management Programme

Faculty of Technology

Chapter Outline• Introduction

• Packaging Perspectives

• Packaging For Materials Handling Efficiency

– Unitization

– Communication

– Containers

– Package Design

• Materials Handling

Lesson Outcomes• Understand important of packaging that affects

the cost of every logistical activity • Explain several reasons of material handling that

impact warehouse productivity

Managing logistics must plan the best ways to load, offload, move, sort and select products

Logistics personnel must work closely with engineers to design or select packaging materials that

facilitate materials handling

Packaging Perspectives• Packaging is typically viewed as being either

consumer, focused primarily on marketing or industrial, focused on logistics

• Individual products or parts are typically grouped into cartons, bags, bins or barrels for damage protection and handling efficiency

• Containers used to group individual products are called master cartons

• The weight, cube and damage potential of the master carton determines transportation and material handling requirements

Packaging protects the product and facilitate ease of handling in a number of ways:a. Create one large container out of several smaller

units (known as containerization / unitization)– Eg.: individual soft drinks are frequently

packaged in six-packs

Packaging

b. Packages contain information about the products they contain (communication) – information transfer useful when sorting products and processing orders– Eg.: Automated Storage and Retrieval System

(AS/RS), Radio frequency identification (RFID)

Packaging

c. Packaging concern is the relationship between the boxes size, order quantity and retail display quantity (rigid / flexible containers)

Packaging

The determination of final package design requires a great deal of testing to assure that

both marketing and logistics concerns are satisfied

d. Product packaging in standard configuration and order quantities facilitates logistical efficiency (package design)

– Example : cube utilization can be improved through reduced package size by concentrating products by eliminating air inside packages and by shipping items unassembled

– Total weight can sometimes be reduced by product or package changes

– Example : substituting plastic bottles for glass

Packaging

Principles of Materials Handling1. Equipment for handling and storage should be as

standardized as possible2. When in motion, the system should be designed to provide

maximum continuous product flow3. Investment should be in handling rather than stationary

equipment4. Handling equipment should be utilized to the maximum

extent possible5. In handling equipment, selection the ratio of dead weight

to payload should be minimized6. Whenever practical, gravity flow should be incorporated in

system design

Materials Handling

Classification of Handling Systems:

Materials Handling

Mechanized

• Lift trucks• Towlines• Tractor

Trailers• Conveyors• Carousels• Rider

Trucks

Semi-Automated

• Automated guided Vehicles (AGV)

• Robotics• Live Racks

Automated

• Potential to Automate

• Automated Storage / Retrieval (AS/RS)

Information-Directed

• RF Wireless

• Pick-to-Light

Packaging and materials handling decisions affect value in many ways:

• Material handling costs can be substantial, and improved labor and equipment productivities can significantly improve profits

• Materials handling is usually the number one cause of product damage and loss in logistics – poor handling practices and improperly packaged items lead to scratched, dented and broken products

Packaging & Materials Handling

• How packaging and materials handling affects cost and productivity of logistics?

– Inventory control depends upon the accuracy of manual and automatic identification systems keyed by product packaging

– Handling cost depends upon unitization capability and techniques

– Transportation and storage costs are driven by package size and density

– Customer service depends upon packaging to achieve quality control during distribution

Packaging & Materials Handling

Summary• Order selection speed, accuracy and efficiency

are influenced by package identification, configuration and handling ease

• Significant number of labor hours are devoted to materials handling and materials handling capabilities limit the direct benefits that can gained by improved information technology and automation technology