1. PACKAGING & MATERIALS HANDLING Industrial Logistics (BPT 3123) Industrial Technology Management Programme Faculty of Technology

2. Chapter Outline • Introduction • Packaging Perspectives • Packaging For Materials Handling Efficiency • Unitization • Communication • Containers • Package Design • Materials Handling

3. Lesson Outcomes • Understand important of packaging that affects the cost of every logistical activity • Explain several reasons of material handling that impact warehouse productivity

4. 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

5. 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

6. Packaging Packaging protects the product and facilitate ease of handling in a number of ways: • Create one large container out of several smaller units (known as containerization / unitization) • Eg.: individual soft drinks are frequently packaged in six-packs

7. Packaging • 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)

8. Packaging • Packaging concern is the relationship between the boxes size, order quantity and retail display quantity (rigid / flexible containers) The determination of final package design requires a great deal of testing to assure that both marketing and logistics concerns are satisfied

9. Packaging • 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

10. Materials Handling Principles of Materials 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 to payload should be minimized • Whenever practical, gravity flow should be incorporated in system design

11. Materials Handling Classification of Handling Systems:

12. Packaging & Materials Handling 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

13. 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

14. 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