Packaging and Materials Handling

MA. Tăng Minh Hưởng

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.

The physical characteristics of some goods can

change while they are moving in the logistics
channel. Consider natural rubber, for example.
Exposure to moisture can make natural rubber
moldy, while cold can cause it to crystalize.
Alternatively, prolonged exposure to heat can
cause natural rubber to soften, which makes it
more difficult to handle and stack.
PRODUCT CHARACTERISTICS
 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. The
area in the bag above the water is filled with
oxygen. Sometimes tranquilizers are added
to water to keep fish calm. The bag is sealed
and placed in a plastic foam cooler, similar to
a picnic cooler, which is then placed inside a
cardboard box. Fish must be transported
within 36 hours, although the time can be
extended if oxygen is added to the bags.
PRODUCT CHARACTERISTICS
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.
PRODUCT CHARACTERISTICS
The various properties of
goods must also be made
known to consumers to help
them make the correct buying
decision and care for the
product properly.
For instance, Figure 11.1 show
a fabric care label that contains
both symbols and words.
Figure 11.2, which shows
lumber markings, provides
information about the type of
wood (S-P-F) and its moisture
content (KD-HT).
PACKAGING FUNDAMENTALS
Packaging, which refers to materials used for the containment,
protection, handling, delivery, and presentation of goods, 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. Consider the various bags, cans,
cartons, jars, and so on that the customer sees on the shelves of a
grocery store. These units were likely unpacked from some larger
container, such as a crate or box, and these crates or boxes might have
been delivered to the store on a unit load
PACKAGING FUNDAMENTALS
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.
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.
With so many potential entities involved in packaging decisions, a
natural question arises— which entity(ies) drive(s) the packaging
design process?
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
 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.
The packages are subject to tests that attempt to
duplicate all the expected various shipping
hazards: vibrations, dropping, horizontal impacts,
compression (having too much weight loaded on
top), overexposure to extreme temperatures or
moisture, and rough handling.
Package Testing and Monitoring
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.
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.
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.
Figure 11.3 shows a small sampling of labels that can be purchased for
individual placement on cartons or pallets.
Labeling
Labeling
Many regulations govern the
labeling of packaging, including
the labeling of weight, specific
contents, and instructions for use.
Moreover, labeling requirements
within a particular country can
differ from state to state (or
province to province).
Nghị định 111/2021/NĐ-CP ban
hành ngày 09 tháng 12 năm 2021
về nhãn hàng hóa
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.
Globally Harmonized System of Classification and
Labeling of Chemicals (GHS)
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.
ISSUES IN PACKAGING
Environmental Protection
Metric System
Identifying Packaging
Inefficiencies
Packaging’s Influence on
Transportation Considerations
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..
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.
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. Possible suggestions to reduce the
amount of packing materials include the use of just one material, which
should improve recyclability, as well as changing a product or format
to minimize packaging waste.
Environmental Protection
Another packaging strategy is to use environmentally friendly
packaging materials.
A third strategy is to use reusable containers, such as refillable glass
beverage bottles. This cannot be done for all products because problems
arise when goods in reused containers are contaminated by traces of
whatever product had been carried earlier.
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.
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. Indeed, some importing nations levy fines against products that
are not sold in metric measurements.
More and more products are being packaged and sold in metric units,
with the nonmetric equivalents printed in smaller type.
Identifying Packaging Inefficiencies
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.
The identification of packaging inefficiencies is important because these
inefficiencies have been described as the “last frontier” of logistics savings
opportunities. Moreover, there can be impressive cost savings as well as
operational improvements from improved packaging efficiency.
For example, a leading packaging consultant indicates that a typical client
achieves a 10% reduction in packaging, transportation, and warehousing costs.
These savings are generated from fewer packing cartons, lower transport
weights, improved case cube utilization, and less packaging support material
(e.g., bubble wrap, packaging peanuts).
 Identifying Packaging Inefficiencies
 According to Table 11.1, less than one-
third of the available case cube is
occupied by actual product, while
approximately three-quarters of available
pallet space is occupied by cases.
Multiplying the case efficiency (31.6
percent) by the pallet load efficiency (75.4
percent) means that less than 25 percent
(23.8 percent) of available pallet space is
occupied by actual product. One
implication of this level of inefficiency is
that an increased number of pallets will
be needed, which in turn leads to higher
storage and transportation costs.
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).
Packaging’s Influence on Transportation
Considerations
 Figure 11.4 shows the type of label (the
“box maker’s certificate,” or BMC) that
motor carriers and railroads require on
fiber boxes used for shipping freight. It is
the fiber box manufacturer’s assurance to
the motor carriers and railroads that the
boxes will be sturdy enough to meet their
handling specifications. Note that a
number of measures are used. For
example, the size limit shown, 75 inches,
means that the material should not be used
in a package where the total length, width,
and height, when added together, exceed
75 inches.
Packaging’s Influence on Transportation Considerations
 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. IKEA, the Swedish-
based home furnishings chain, designs
many of its products so that they can be
shipped in a dense form. Such products
are often displayed unassembled in retail
stores, and customers realize that they
can easily take them home in their
automotive vehicles
Packaging’s Influence on Transportation
Considerations
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.
Packaging’s Influence on Transportation Considerations
It is difficult to know exactly how much carrier tariffs and
classifications control shippers’ packaging. Responsibility for damage
in transit is one issue subject to carrier–shipper contract negotiation; if
the carrier remains liable, the carrier specifies the level of packaging
protection to be used. If the shipper assumes responsibility, the shipper
may choose the type of packaging to use. Carrier deregulation has
allowed corrugated packaging manufacturers and their customers to
innovate with performance outside the traditional carrier packaging
rules. As specific contract rates are negotiated between individual
carriers and shippers, packaging requirements may, of course, be one
element of negotiation.
Packaging’s Influence on Transportation
Considerations
 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. These
companies make extensive use of dimensional
weight (also called dim weight), which considers
a shipment’s density (the amount of space
occupied in relation to actual weight) to
determine a shipment’s billable weight.
 Dimensional weight assumed greater importance
at the beginning of 2015 when both UPS and
FedEx switched to calculating shipping rates
based on dim weight, rather than actual weight.
Because this switch is likely to increase shipping
costs by approximately 30%, many companies are
searching for ways to boost their dimensional
weights.
Case study
 You are a food manufacturer producing a highly popular brand of cookies. Currently, you use plastic
packaging to package your products. However, due to climate change concerns and increased
environmental awareness, you are facing pressure from customers and the community to minimize the
environmental impact of both your product and its packaging.
 Task: You need to make a decision regarding changing the packaging to reduce the environmental
impact. Below are some factors that you need to consider:
 Environmentally friendly materials: You can transition from plastic packaging to packaging made from
recycled materials or other eco-friendly materials such as bamboo fiber, biodegradable packaging, etc.
 Product protection features: You need to ensure that the new packaging remains sturdy enough to
protect the product from damage and the environment during transportation and storage.
 Costs and pricing: You should evaluate the financial impact of changing the packaging on the final
product price and whether you can maintain or increase profitability through higher product pricing.

 Question: Decide whether you should change the packaging for your cookie products to minimize the
environmental impact. If you choose to change, describe the type of new packaging you will use and
explain the rationale behind this choice, including the expected impact on the environment and your
business.
UNIT LOADS IN MATERIALS HANDLING
 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.
 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).
 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. Also, a pallet can be
stacked so that the cartons containing the more valuable or more fragile items
are on the inside of the unit load.
The major advantage of the unit load is that it enables mechanical devices to
be substituted for manual labor and numerous machines have been devised
that can quickly build up or tear down a pallet load of materials.
UNIT LOADS IN MATERIALS HANDLING
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.
Therefore, it is of limited value to companies that deal in small quantities.
Although one unit load advantage is that mechanical devices can be
substituted for manual labor, these mechanical devices cost money to
purchase or lease. Manual pallet jacks (trucks) can range in price from $275 to
$4,500 dollars, whereas conventional forklifts can range in price from $7,500
to $30,000. As a general rule, pallet jacks tend to have lower maximum load
capacities than do conventional forklifts
UNIT LOADS IN MATERIALS HANDLING
 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. If these shipments are
exported from the United States, they must
be repalletized, which means an increase in
manual labor, and thus a diminution in
potential advantages to the unit load
concept
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. The
choice of pallet material has increased in
importance, in part because highly mechanized
and automated materials handling systems
subject pallets to greater stress than when
materials handling involved less mechanization
and automation.
The Unit Load Platform
Each pallet material has its advantages and disadvantages, with price
being a major drawback to both plastic and metal pallets.
Another important consideration is pallet weight, with a typical 48″ by
40″ wood pallet weighing approximately 40 pounds, compared to 30
pounds for a similar-sized plastic pallet and 65 pounds for a similar-
sized metal pallet.
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.
The Unit Load Platform
 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.
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.
Beyond the Unit Load
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.
Some goods are so heavy that they utilize the railcar’s, trailer’s, or
container’s weight capacity without filling its cubic capacity (a situation
called weighing out). These loads, such as heavy machinery, must be
carefully braced, and the weight must be distributed as evenly as
possible.
MATERIALS HANDLING
As a supply chain is linked together, one of the concerns of those
involved with logistics is the physical transfer of the product from one
party to another: How will product be handled? In what form will it
be? In what quantities? What kind of equipment is needed to handle or
to store product?
Materials handling generally receives little public attention, although
there are periodic exceptions, perhaps most notably with respect to
crane accidents.
Materials Handling Principles
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. The principles are particularly
important when laying out the design of a warehousing facility or
when troubleshooting to learn why a system is not performing well.
Materials Handling Principles
 Implementation of these principles may yield positive impacts on an organization’s profitability, customer
service, and productivity.
 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.
 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
LOAD DEVICES USED IN INTERNATIONAL
TRANSPORTATION
The term intermodal transport is often used in transportation. This is where freight moves
within a loading unit (known as an ITU – intermodal transport unit). This loading unit may
move upon a number of different transport modes, but the freight remains within the unit at
all times. The great advantage of intermodal transport is that it reduces the amount of time
the freight within the container needs to be handled (we refer to these as ‘freight
touchpoints’) and this obviously then reduces the chance of damage or loss of freight.
Container
Container volumes are calculated in twenty‐foot‐equivalent measures (TEU),
which means that a 40ft container is equivalent to 2 TEU. Containers vary not
only in size and payload but also in their use. In addition to the standard dry
containers, there are other types of containers, such as refrigerated (‘reefer’),
open top/flat rack, insulated, ventilated, side opening (often referred to as
‘curtain‐siders’), tank containers (where a tank is enclosed within a container
shell) and platform (these are without sides, ends and roof – so just comprise
a base platform – and are used for odd‐sized cargo which does not fit on or in
any other type of container).
Container
Other specialised containers include those used in the fashion and wine
industries. The fashion industry has developed containers that are specially fitted
out with clothes rails to allow for easy loading and unloading of hanging
garments. The wine industry is increasingly transporting wine in bulk in 20ft
containers, also known as flexi tank containers, which contain a single‐use
inflatable man‐made bladder which can hold up to 24,000 litres of wine.
Understanding Container Markings – What do they mean?
The container number is the most important and complex marking on the door and is a unique
alpha-numeric sequence of four letters and seven numbers to identify containers
internationally. It is assigned by the classification agency ISO under their code ISO6346:1995(E).
– Owner prefix first three capital letters, in this case, CBC = Container Brokerage Company or for
example MAE for Maersk) which must be unique and registered with the Bureau International des
Containers et du Transport Intermodal (BIC) to avoid duplicates
– Equipment category identifier which is “U” for this container and stands for freight containers.
Other categories are J – detachable freight containers related equipment and Z – trailers and
chassis. Together with the owner code, the category can be grouped under one term, known as an
alpha prefix.
– The serial number or registration number (200031) consists of six digits and is left to the owner
to decide on.
(2) The last number of the container number is placed out of the rest of the numbers on the right
side and is called check digit. Although it seems insignificant, it is of vital importance as it
determines whether the entire ID is valid or not. When the unique BIC code and the 6-digit serial
number is types into the BIC Check Digit Calculator it displays the Check digit which validates the
container.
Understanding Container Markings – What do they mean?
(3) Each container is given a unique ISO
code by the BIC in order to avoid problems in
naming the container. Why? Because a 20ft.
standard container for example is called dry
van, general purpose or dry container in
different countries. In our case, 22G1 means it
is a 20’ container 8’6’’ high with a tare weight of
2250 kilograms.
The first character represents the length, the
second character represents width and height
and the third character is an identifier for
container type and other characteristics. The
4th position is a new type of container code
that indicates a container of reduced strength.
 Understanding Container Markings – What do they mean?

(4) The container can carry a maximum weight of 30,480 kilograms inclusive its own weight of 2,180
kilograms.
(5) The tare weight of a container is the actual weight of an empty container and 2,180 kilograms in this
case. It is given by the manufacturer and needs to be considered for every ship operator to avoid planning
issues and disasters at sea.
(
 Understanding Container Markings – What do they mean?

6) Is the max weight that can be packed (= max. payload) and the difference between (4) Maximum
weight and (5) tare weight. In our case you could load the container with 28,300 kilograms of cargo. Thats
the weight shown on the bill of lading and it does not include the tare weight.
(7) Cube – Max. volume that can be packed in cubic capacity and it is of course not possible to over pack
the container by volume.
Understanding Container Markings – What do they mean?
(8) Every container used for
international transport needs to have a
valid CSC plate to ensure good
condition for safety reasons. It contains
for instance manufacturing data and
information about the equipment owner
(9) A container has to be operated either
under an ACEP or a PES (Periodic
Examination Scheme) from day 1. The
fist inspections isn’t required until 5
years, but it must have a scheme in
place in order to be operated. Without a
valid ACEP sticker or Next Examination
Date (under the PES), the container
should not be loaded onboard a ship.
CSC Plate for Shipping Containers

Every container used for international transport needs a valid CSC plate to ensure a
good condition for safety reasons. When Malcom McLean invented the standardized
cargo container, there was nothing to regulate the safety of container logistics. The
International Maritime Organisation (IMO) undertook a study to find about more about
the safety of containerization as the number of containers increased over the years. The
container itself emerged as the most important safety reason for humans working
around it which led to the foundation of the Convention for Safe Containers (CSC) by the
United Nations and the IMO in 1972 with two main goals to maintain the highest level of
safety in transportation and logistics and facilitate international container transport by
providing standards. Nowadays every container used for international cargo transport
must have a valid CSC approval. Doesn’t matter if COC or SOC Container, it would not be
able to move the equipment for international maritime transport without a valid CSC
plate.