PACKAGING AND MATERIALS HANDLING

SUBMITTED TO DR H. INDURKAR SUBMITTED BY ADITYA YADAV ANKIT SINGH ROHAN GARUD MBA(MS)- 5 YEARS IXTH SEMESTER

EVOLUTION OF LOGISTICS TOWARDS SUPPLY CHAIN MANAGEMENT

 Packaging is done to make handling and transporting cost effective. It protects the product in transit and handling. Packing is expected to facilitate lifting and moving by providing easy access to forks or hooks. Packing is also expected to display universal symbols and other instructions for handling.

Eg. Pallets and containers, wooden boxes, wrapping etc.

TYPES OF PACKAGING
CONSUMER PACKAGING Here importance is given to marketing appeal and packaging the finished product. Packaging is designed for consumer convenience and appeal, marketing consideration and display. The main emphasis is on marketing. The marketing manager is more concerned with the consumer packaging because it provides information which is important in selling the product, in motivating the customer to buy the product or giving the product maximum visibility when it competes with others on retail shelves.

 INDUSTRIAL PACKAGING focuses on the handling convenience and protection during transportation, material handling and storage. This packaging protects the goods that a company will move and store in the warehouse and also permits the company the effective use of transportation vehicle place. It also has to provide information and handling ease.

 Industrial packaging is performed at various stages. The first stage is packaging for the product itself. For example soft drinks are packed in cans.

 The next stage involves packaging these products into larger cartons for enabling quantity handling. The carton is referred as Master cartons. The next step of packaging involves unitization. In this case the master carton is consolidated into a single large unit to facilitate handling, transportation, storage and protection.

 The next is containerization, here the unit loads are placed in

rigid containers for protection and handling facilitation. This enables efficiency in transport.

FUNCTIONS OF PACKAGING
1.PROTECTION: Protection from damage, contamination, physical effects and environmental conditions. Packaging design and material utilized is a balancing of economic consideration and adequate protection. The higher the value of product the more protection it deserves and more expensive the packaging. Packaged product can be damaged during transportation, handling and storage due to vibration, piercing, crushing, temperature, humidity etc. Packaging provides a protection against all this adds and makes the product available to the consumer in the right condition. 2.UTILITY: packaging the product in the form of master cartons, unit loads and containers promotes handling, transportation and storage efficiencies by speeding up handling higher quantities to be transported, more quantity storage in the same space and faster retrieval from storage. Packaging facilitates securing and stacking during transportation, storage and handling.

 3.FACILITATING HANDLING AND HANDLING USING: fruit juices in tetra packs, handling and consumption by users 4.FACILITATING STORAGE AND REUSE: ink cartridges for printers, floppies, CDs, reusable corrugated boxes, bottles and refill packs 5. GROUPING GOODS INTO CONVENIENT UNIT FOR DISTRIBUTION: mangos in boxes, milk bags in crates, cola bottles in crates.

 6. COMMUNICATION a] Content identification - What does this contain? Product, manufacturer, universal code etc. with high visibility b]Tracking: bar codes and scanners

c] Handling instructions: fragile, which side up? Temperature restrictions, environment concerns, potential dangers etc

KEY POINTS
A value adding operation. Consumer packaging attracts attention. Single most important factor in purchasing decisions. Made at point of sale. Industrial packaging - makes logistical activities of handling storage moving easy. Display - attraction, easy identification etc. Communication - recipe, hazard, special care etc.

LOGISTICAL FUNCTIONS OF PACKAGING

Facilitating storage & reuse - corrugated boxes. Weight minimization - plastic bottles, plastic crates, milkbags. Grouping goods into convenient unit for distribution - mango boxes, cola bottles, cotton bales, wire rope Protection - physical damage, bubble pack, corrugated sheet cartons etc.

ROLE OF PACKAGING IN LOGISTICS

UnitizationModular packaging. HandlingAppropriate for automation? SecurityCan package be sealed to detect break-in? StorabilityCube efficiency. InformationIdentification and tracking. ProtectionSpoilage or damage.

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. Weigh out of transport vehicle results in shipping air in space that cant 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.

ILLUSTRATION OF FOUR STANDARD MASTER CARTON SIZES TO ACHIEVE MODULAR COMPATABILITY

UNITIZATION HAS THE BASIC OBJECTIVE OF INCREASING HANDLING AND TRANSPORT EFFICIENCY
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

BENEFITS OF RIGID CONTAINERIZATION

Improves overall material movement efficiency. Reduces damage in handling and transit. Reduces pilferage. 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

COMMUNICATION FUNCTIONALITY OF PACKAGING IS INCREASINGLY CRITICAL TO IDENTIFY AND TRACK PACKAGES

MATERIALS HANDLING
Basic handling considerations Mechanized systems Semi automated systems Automated systems Information-directed systems Special handling considerations

PRIMARY HANDLING ACTIVITIES

The primary handling objective in a warehouse is to sort inbound shipments according to precise customer requirements.
The three handling activities are Receiving, In-storage handling, and Shipping.

RECEIVING
Merchandise and materials typically arrive at the warehouse in larger quantities than when they depart. The first handling activity required is unloading the transportation vehicle. In most warehouses, unloading is manual. Limited automated and mechanized methods have been developed that are capable of adapting to varying product characteristics. The product is hand-stacked on pallets to form a unit load for movement efficiency. In some cases, conveyors are employed to unload vehicles more rapidly.

IN STORAGE HANDLING
In-storage handling consists of all movement within a warehouse facility. Following product receipt, it is necessary to transfer merchandise within the warehouse to position it for storage or order selection. Finally, when an order is received, it is necessary to accumulate the required products and to transport them to a shipping area. The two types of in-storage handling are transfer and selection.

TRANSFER
A second internal movement may be required prior to order assembly depending on the operating procedures of the warehouse.
When products are required for order selection, they are transferred to an order selection or picking area. When the merchandise is physically large or bulky, such as a stove or washing machine, this second movement may be omitted. In the final transfer, the assortment of products required for a customer shipment is moved from the warehouse to the shipping dock.

SELECTION
The selection process groups materials, parts, and products into customer orders.
It is typical for one section of the warehouse to be established as a selection area to minimize travel distance. The typical selection process is coordinated by a computerized control system.

The primary focus for warehouse automation is the selection process.

BASIC HANDLING CONSIDERATIONS

Bulk materials are handled without master cartons Need specialized equipment
Unit loads, containers and master cartons can be handled many ways

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

MATERIAL HANDLING SYSTEMS

Manual sorting Mechanized Semi-automated Automated Information-directed Require different amounts of Labour and Capital Investments

MANUAL SYSTEMS FOR PICKING, SORTING AND MOVEMENT OF INVENTORY

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

MECHANIZED SYSTEMS
Most mechanized systems combine different handling devices Moderate fixed and variable cost with good flexibility Employ a wide range of handling equipment Examples Forklift Rider pallet trucks Towlines Tractor trailers Conveyors Carousels Paperless picking

SEMI AUTOMATED SYSTEMS

High fixed cost, low variable cost with low flexibility often supplement mechanized equipment Examples Automated guided vehicles (AGV) Rotation systems Robotics Build and breakdown unit loads Live racks

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 Now focus on high-rise storage and retrieval

INFORMATION RELATED SERVICES

Moderate fixed and variable cost with high flexibility and utilization Offers selected benefits of automation without substantial capital investment Combine controls of automated handling with flexibility of mechanized Main drawback is accountability regarding work assignment Examples RF wireless (Wi-Fi) Use lift trucks, RFID scanners and data collection terminals Pick-to-light carousel system

SPECIAL HANDLING CONSIDERATIONS

E-fulfillment Places special demands on a firms warehousing and materials handling Environmental concerns Impact of equipment or hazardous materials Regulatory environment Returns processing Traditionally done using manual methods

E-FULFILLMENT DEMANDS INFLUENCE WAREHOUSING AND MATERIALS HANDLING IN FOUR WAYS

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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