WEEK6 – PACKAGING & HANDLING

Panayiotis Η. Ketikidis & Adrian Solomon

The University of Sheffield International Faculty, CITY College

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 Some words…

Confused student is confused ...

W11

W10
W11

•Olympia
Electronics Part 2

W9 W10 – normal
week
So close ... (not
W8 + Speaker really)
W9 – normal week
+ Speaker
W8 – Dr Marilena
Papadopoulou will
W7 deliver a workshop
on MANTIS ! + the
lectures
1st CW
Submission !

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Going back in time… to weeks 1-5

W3 – Inventory
W2 – Transportation
W1 – LSCM management ...
... The need for
The complexity of Keeping lowest
efficient product
taking the products to product stocks while
consolidation for
the consumers ... meeting customer
distribution
service

W5 – Performance
W4 – Procurement -
measurement for So, we are talking
strategies for
product related about products that
balancing product
activities to ensure keep moving...
stocks
business goals

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But how do we make sure to properly move those products ...

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Outline of this session

The two different Packaging Packaging

views of packaging functions perspectives

Avoiding common
Packaging for
mistakes in
material handling Handling
packaging and
efficiency
handling

Packaging & Weekly

Statistics
Handling Risks presentation !

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Let us differentiate a bit ...

From a marketing point of view, which product would customers be more inclined
to buy ? The simple box or the fancy ones ?

But from a logistics point of view, which of these products would be easier to bulk,
handle and ship ?

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Just a reminder ... Marketing mix versus Logistics mix

MARKETING MIX VARIABLES LOGISTICS MIX VARIABLES

Precedents People Inventory management

Products Processes Transportation management

Price Place of Production management

sale/distribution
Promotion Warehouse management
Power
Positioning Information technology
Planning and management
control

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So we have two types of packaging

CONSUMER / MARKETING ORIENTED LOGISTICS ORIENTED

Nice & Appealing designs, shapes, Fixed, standardized, secured, efficient

customized, diverse, etc to transport in bulk

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What functions does packaging bear ?

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Packaging functions

Presentation Convenience Handling

Protection Economy Suitability

Identification and
Preservation Containment
Labelling

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How does packaging influence handling ?

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Overview on packaging and handling

PACKAGING AND HANDLING

3. Handling
1. Packaging Perspectives
•Mechanized systems

•Semi-automated systems
2. Packaging for Material Handling
Efficiency •Automated systems

• Package design •Information-directed systems

•Unitization •Special handling

considerations
• Communication

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1. Packaging perspectives

• Packaging is typically viewed

as
– Consumer - marketing focus
– Industrial – logistics focus

• Master cartons are containers

used to group individual
products

• Containerization or
unitization refers to grouping
master cartons into larger
units for handling

• Grouped master cartons are

called unit loads

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Why do we need containerization ? Why cannot we just put
every piece of product into the truck/ship/rail/etc ?

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1. Packaging perspectives – reviewing the key roles

• Unitization—modular
packaging

• Handling—appropriate for
automation?

• Security—can package be
sealed to detect break-in

• Stowability—cube efficiency

• Information—identification
and tracking

• Protection—spoilage or
damage

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2. Packaging for material handling efficiency

• Package design using standard configurations and order

quantities facilitates efficiency
– Cube out of vehicle results in shipping “full” without
reaching weight limit
– Weight out of transport vehicle results in shipping air in
space that can’t be filled with product
– Cube and weight minimization are special challenges of
mail order and e-commerce
• Unitization is the process of grouping cartons into unit loads
• Communication role is to identify package contents for all
channel members

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2. Packaging for material handling efficiency - example

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What are the benefits of this concept ?

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2. Packaging for material handling efficiency – example + benefits

• Improves overall material movement efficiency

• Reduces damage in handling and transit
• Reduces theft of part of the contents
• Reduces protective packaging requirements
• Provides greater protection from environment
• Provides a shipment unit that can be reused many times
– Reduces waste
– Reduces need to dispose of the container

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2. Packaging for material handling efficiency - unitization

• Unit loads take 1/5 the

time required for
manual loading and
unloading
• Unitization methods
– Rigid containers
• Air Freight Containers
• Sea-Land Containers
• Returnable Racks
– Flexible containers
• Pallets
• Slipsheets

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2. Packaging for material handling efficiency – more examples

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2. Packaging for material handling efficiency – communication

• Identification displays key logistical

info
– Manufacturer, product, container
global type, count, etc.

• Tracking provides the ability to

determine the exact location of an
item
• Special handling instructions
– For example, glass, temperature
restrictions, stacking considerations,
or environment/safety concerns

• Technologies facilitating
communication include
– Bar Coding, RFID, GPS
– “Nested RFID” for items in a unit
load

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3. Basic handling considerations

• Method depends on the

materials!
• Bulk materials are handled
without master cartons
– E.g. powders/liquids,
– Need specialized
equipment
• Unit loads, containers and
master cartons can be
handled many ways

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What are the key enablers of effective and efficient handling ?

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3. Basic handling considerations – principles of handling
 Equipment for handling and
storage should be as
standardized as possible
 When in motion, the system
should be designed to
provide maximum
continuous product flow
 Investment should be in
handling rather than
stationary equipment
 Handling equipment should
be utilized to the maximum
extent possible
 In handling equipment
selection the ratio of dead
weight (stationary) to
payload should be
minimized
 Whenever practical, gravity
flow should be incorporated
in system design
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3. Basic handling considerations – handling systems

• Manual systems
• Mechanized
• Semi-automated
• Automated
• Information-directed
• Fully robotic ?

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What are the characteristics of each method ?

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3. Basic handling considerations – manual systems

• Labor-intensive
• Slow
• Human Limitations
– Repetitive motion
– Strain injuries
• Higher error rates

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3. Basic handling considerations – mechanized systems

• Most mechanized systems

combine different
handling devices
• Moderate fixed and
variable cost with good
flexibility
• Examples
– Forklift
– Rider pallet trucks
– Towlines
– Tractor trailers
– Conveyors
– Carousels
• Paperless picking
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3. Basic handling considerations – semi-automated systems

• High fixed cost, low variable

cost with low flexibility
• Examples
– Automated guided
vehicles (AGV)
– Sortation systems
– Robotics (see video)
• Build and breakdown
unit loads
– Live racks

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3. Basic handling considerations – automated systems

• Highest fixed cost, lowest

variable and labor cost with
low flexibility
• Potential to automate is the
elimination of direct labor
by substituting capital
equipment
• Examples
– Order selection systems
– Automated storage and
retrieval system (AS/RS)

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3. Basic handling considerations – fully robotic systems

• Some bulk and container

loading/unloading facilities
have gone completely
robotic
– Example is the Port of
Brisbane in Queensland,
Australia

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Special handling considerations

• E-fulfillment
– Places special demands on a firm’s warehousing and materials
handling

• Environmental concerns
– Impact of equipment or hazardous materials

• Regulatory environment
– Extensions of regulatory influence over warehouse operations
and technology

• Returns processing
– Traditionally done using manual methods

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e-Fulfilment

• Large volume of small orders

– Difficult to achieve economies
of scale in picking operations

• Wide range of products

requires large inventories
– Requires ability to receive and
merge a large number of small
orders rapidly

• People-intensive facilities
needed to provide flexibility
in picking

• Consumer expectations
require many activities within
the warehouse to be
electronically scanned and
tracked
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What is the problem with product returns ?

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How to avoid common mistakes when selecting packaging ?

MULTI – FOCUS VIEW

Damages,
Keeping track of Leveraging
contamination,
important steps business image
rejects

Environmental
Handling work Quality and
considerations and
floor problems legislation issues
penalties

Thinking out of Risk of choosing

Hidden costs
the box wrong packaging

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What damages can packaging suffer from ?

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Packaging damages

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 What is the chain/cycle of packaging ?

(think about the fact that packaging in logistics is reusable ! )

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How not to miss important steps !

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Boosting your company’s image!

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 What “work-floor” related problems do you foresee ?

(think about packaging operations and their efficiency !)

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Handling problems on the work-floor!

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What type of quality is involved in packaging operations ?

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Ensuring quality !

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Environmental considerations !

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Thinking out of the box !

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What hidden costs are involved in packaging operations ?

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Hidden costs !

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The risk of choosing the wrong packaging !

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The global packaging market !

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The global packaging market !

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The global packaging market !

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What are the drivers of these tremendous increases in the
packaging market ?

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Key drivers of the global packaging market !

+ Product customization ?
+ Market liberation and global flow of products ?
+ Increasing living standards ?

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Russian packaging market forecasts !

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Russian packaging market forecasts !

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 Manual handling is one of the most sensitive business
operation when it comes to packaging and handling since
people are directly involved. What handling risks do you
foresee and what is their outcome ?

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Managing handling-related risks

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Managing handling-related risks – others...

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Managing handling-related risks

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Managing handling-related risks - mitigation

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Key points !

Manage the
Packaging modes Choose the right
balance between
are critical for handling methods
user packaging
efficient and safe according to your
and shipping
transportation ! products !
packaging !

Account for Account for

Think out of the
handling risks and packaging
box while packing
develop mitigation standards and
the box !
strategies ! regulations !

Keep in touch with

the global
packaging trends !

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Resources
Readings: Chapter 5 Grant, D.B. (2012) Logistics Management. Pearson Education Ltd. and Chapter 10, Bowersox,
D., Closs, D, Cooper, M. B., Bowersox, J.C. (2010) Supply Chain Logistics Management. 3rd edition, McGraw-Hill
Education – Europe

White Paper: Robinson, C.H. (2012) Live loading: Developing effective transportation strategies. C.H. Robinson
Worldwide, Inc.

http://www.curtec.com/uploads/Downloads/White_Papers/How_to_avoid_common_mistakes_in_selecting_pack
aging_EN.pdf

World Packaging Organization www.worldpackaging.org/i4a/doclibrary/getfile.cfm?doc_id=7

Packaging magazine: http://www.packworld.com/

http://www.slideshare.net/Visiongain/industrial-bulk-and-transport-packaging-market-2015-2025

http://ec.europa.eu/environment/waste/packaging/legis.htm

https://www.worksafe.vic.gov.au/__data/assets/pdf_file/0020/9425/large_bulky_awkwardVs3.pdf

http://www.hsa.ie/eng/Publications_and_Forms/Publications/Manual_Handling_and_Musculoskeletal_Disord
ers/Guide_on_Manual_Handling_Risk_Management_in_Transport_and_Storage.pdf

https://osha.europa.eu/en/publications/e-facts/efact23

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Contact us !
Prof. Panayiotis H. Ketikidis
Vice Principal
The University of Sheffield International Faculty, CITY College
Thessaloniki, Greece
ketikidis@city.academic.gr www.citycollege.sheffield.eu

Mr. Adrian Solomon

Project Manager – Resource Efficiency, Environmental Sustainability & Digital Projects
South East European Research Centre
Thessaloniki, Greece
ssolomon@seerc.org www.seerc.org https://www.facebook.com/adrian.solomon.12

Prof. Panos H. Ketikidis, PhD Mr. Adrian Solomon

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