13-Feb-22

Chapter 4: Packaging and Materials Handling

Lecturer: M.A. Nguyen Le Dong Xuan
Faculty of Economics, HCMC University of Economics and Finance

Content
PRODUCT CHARACTERISTICS

PACKAGING FUNDAMENTALS

UNIT LOADS IN MATERIALS

HANDLING

MATERIALS HANDLING

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LEARNING OUTCOMES

• Understand how product characteristics affect packaging and materials

handling.
• Present packaging fundamentals such as packaging functions and labeling.
• Identify issues that affect packaging such as environmental protection and
packaging inefficiencies.
• Understand unit loads and the unit load platform
• Understand materials handling principles and materials handling equipment.

PRODUCT CHARACTERISTICS

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Product characteristics
Substances
(solid, liquid, gas)

Ability to withstand
Physical
exposure to
characteristics
elements

Product Product density

characteristics (weight to volume)

Chemical Pairs of products

characteristics are incompatible

PACKAGING FUNDAMENTALS

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PACKAGING FUNDAMENTALS

• Packaging
– refers to materials used for the containment, protection,
handling, delivery, and presentation of goods.

FUNCTIONS OF PACKAGING – 3Ps

Protection

Preservation Presentation

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FUNCTIONS OF PACKAGING

FUNCTIONS OF Protect the cargo

PACKAGING

Enable cargo to be staked

Enable cargo to be lifted, moved

and secured

Provide information on cargo

characteristics and handling

FUNCTIONAL TRADE-OFFS

Marketing Quality Control Warehousing

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FUNCTIONAL TRADE-OFFS

Transportation

FUNCTIONAL TRADE-OFFS

Why do the firm usually design perfumes and alcoholic drinks

in very elaborate bottles that cost a lot more to produce?

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DISCUSSION
Apple has redesigned the packaging for iPhone 13 product line
and the way the product is repackaged. Identify reasons that
Apple made decision on redesign the packaging? What are
benefits of this change?

TYPES OF PACKAGING

Consumer
packaging
Types of (interior)
packaging Industrial
packaging
(exterior)

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PACKAGE TESTING AND MONITORING

• Package testing
– Three important kinds of information needed to properly
design protective packaging system:
• Severity of the distribution environment
• Fragility of the product to be protected
• Performance characteristics of various cushion materials
• Packaging monitoring
– Involves sensor technology that allows the transmission of
real-time data.

PACKAGE TESTING AND MONITORING

• Package testing
– Vibrations: https://www.youtube.com/watch?v=efSbTDMvOoQ
– Dropping: https://www.youtube.com/watch?v=OVFOXQ1JH98
– Compression: https://www.youtube.com/watch?v=dYGZYvspfpg
– Horizontal impacts
– Overexposure to extreme temperatures or moisture
– Rough handling

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LABELING
• Labeling
– Occurs at the end of the assembly process.
– Boxes must be labeled when contents are hidden.
– Many regulations govern labeling:
• Weight
• Specific contents
• Instructions for use
– Regulations differ from country to country and from state to state.

LABELING
• Labeling
– Retroflective labels (nhãn phản quang)
– Batch numbers (là một dãy số, được gán cho một sản phẩm nhất định
nhằm thể hiện số lô sản xuất, kích thước lô hàng của các SP)
– Weight
– Specific contents
– Instructions for use
– Information to allow passage through customs
– Compliance labeling
– One- or two-dimensional bar codes
– Smart labels or RFID labels

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LABELING

PACKAGING FUNDAMENTALS
• Labeling - Hazardous Materials
– Governmental regulations address labeling of hazardous
materials.
• Requirements involve:
– Labeling
– Packaging and repackaging
– Placing warnings on shipping documents
– Notifying transportation carriers in advance
• Globally Harmonized System of Classification and Labeling
of Chemicals (GHS) is a global system to classify and label
hazardous materials.

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ISSUES IN PACKAGING

• Environmental Protection
• Metric System
• Identifying Packaging Inefficiencies
• Packaging’s Influence on Transportation Considerations

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UNIT LOADS IN MATERIALS HANDLING

UNIT LOADS IN MATERIALS HANDLING

Container

Pallet

Trolley Trolley

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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

(pallet jack or forklift) as well as by using a pallet or skid.

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UNIT LOADS IN MATERIALS HANDLING

• Advantages
– Additional protection.
– Pilferage is discouraged.
– More fragile items can be stacked inside the load.
– Mechanical devices can be substituted for manual labor.

UNIT LOADS IN MATERIALS HANDLING

• Disadvantages
– Provides large quantity that sometimes is of limited
value to resellers dealing in smaller quantities.
– Must use mechanical or automated device to move.
– Drives need for routine equipment maintenance.
– Lack of standard pallet size.

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MATERIALS HANDLING

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?

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MATERIALS HANDLING

• Materials handling refers to the “short-distance movement

that usually takes place within the confines of a building
such as a plant or DC and between a build and a
transportation service provider”.
• How the products are handled depends on whether they
are packaged or in bulk.
• Handling may change the characteristics of the product.

MATERIALS HANDLING
10 Material Handling principles include:
1. Planning
2. Standardization
3. Work
4. Ergonomic
5. Unit load
6. Space utilization
7. System
8. Automation
9. Environmental
10. Life cycle cost

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MATERIALS HANDLING
Two categories of material handling equipment
– Storage equipment
• Shelves
• Racks
• Bins
– Handling equipment
• Conveyor systems
• Lift trucks
• Carts
• Cranes

CATEGORIES OF MATERIAL HANDLING EQUIPMENT

Conveyor systems
Bins

Lift trucks
Carts
Cranes

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MATERIALS HANDLING

• The choice of handling equipment can influence

the type of storage equipment.

• The choice of storage equipment can influence

the type of handling equipment.

MATERIALS HANDLING
• Material handling equipment can also be
categorized as:
– Labor intensive
– Mechanized
– Automated

• Sufficient volume is needed to justify high cost of

automated equipment.

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MATERIALS HANDLING

• An organization’s order picking and assembly

system can also influence the type of handling
equipment.
– Picker-to-part systems
– Part-to-picker systems

Chapter summary
• Packaging refers to materials used for the containment, protection,
handling, delivery, and presentation of goods.
• A product’s physical characteristics, must be taken into account when
thinking about packaging and materials handling decisions.
• 3 functions of packaging: Protection, Preservation, Presentation
• Packaging can be thought of in terms of the building-blocks concept in
which a very small unit is placed into a slightly larger unit.
• Distinguishing between packaging’s protective and promotional functions.

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Chapter summary
• 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.
• Materials handling refers to the “short-distance movement that usually
takes place within the confines of a building such as a plant or DC and
between a build and a transportation service provider”.
• 10 material handling principles were identified and described and
these principles can improve the effectiveness and efficiency of logistics
systems.

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