Packaging and logistics in the grocery trade - LIAA...Packaging and logistics in the grocery trade...

Packaging and logistics in the grocery trade

Guide for effective and rational item movement in

the grocery trade!

DAGLIGVAREHANDELENS MILJØ- OG EMBALLASJEFORUM

Guide for effective and rational item movement in the grocery trade

of 13 Ver 020530

Packaging The grocery trade is an extremely logistic intensive business. Effective standardized transportation carriers are essential in improving transportation, warehousing and handling effectiveness throughout the value chain (Pallet, distribution unit (D-pak) and consumer unit (F-pak)). In order to satisfy customer expectations with respect to what they wish to find on the store shelves, it is important that all of the actors in the value chain keep an eye on the total picture and strive for the optimal solution. This brochure describes the most important areas in the value chain of the grocery business, and what considerations must be made to ensure optimal solutions at the item line and product level. It is a guide that aims at exemplifying part of the challenges that need to be taken on when optimizing the value chain. Focusing on the entire packaging chain is important when evaluating new packaging or changing a packaging solution. The trade expects producers to evaluate their product portfolio according to the following constraints. Dagligvarehandelens Miljø- og Emballasjeforum (DMF – The grocery trade’s environment and packaging forum) initiated this guide. It was developed in cooperation with Dagligvareleverandørenes Forening (The grocery vendors’ organization) and approved by Standardiseringsutvalget for norsk dagligvarebransje (STAND – The standardization committee for Norwegian grocery business), the formal collaborative organization between DMF and DLF. STAND was created to ensure effectiveness and cost reduction in goods flow all the way from the producer to the consumer. Many of the points in this guide are concretely defined in the standards, which STAND has drawn up and you can find at www.stand.no. One of the key goals of the participants responsible for this brochure is to further develop the packaging chain’s way of thinking. All of the projects that have been carried out based upon the “Packaging chain’s” methodology have shown that great potential savings, environmentally and financially, are obtainable by each player. The savings can be realized by communicating throughout the value chain, and working in a planned and structured manner towards a common goal. We talk about the customer’s customer, this customer’s customer, etc. *Note: The terms D-pak and F-pak are terms used in Norwegian to describe the distribution unit and consumer unit. In translating this guide to English it was decided to utilize the Norwegian terms, in order to retain the flow of the document.

4

1

2

3

5

6 7

8

9

10 Choose problem

Find reasons Find solutions

Carry out

Guide for effective and rational item movement in the grocery trade

of 13 Ver 020530

Main Goals ................................................................................................................................................... 4 Store............................................................................................................................................................. 4 Packaging ..................................................................................................................................................... 5 The package’s roles .................................................................................................................................. 5 Packaging design........................................................................................................................................ 6 The module system................................................................................................................................... 6 Euro-pallet .................................................................................................................................................. 6 Standardization of pallet, D-pak and F-pak ..................................................................................... 7 Basic module 600 x 400 mm .................................................................................................................. 7 Minimum 90 % utilization of the pallet’s area ................................................................................. 7 Pallet height (incl. pallet) – 1200 mm.................................................................................................. 7 Stacking of pallets ................................................................................................................................... 8 Marking of pallet and distribution unit after EAN/UCC 128 ..................................................... 8 Requirements of disposable pallets..................................................................................................... 8 1/3 and 1/2 pallet of cardboard........................................................................................................... 9 D-pak and F-pak......................................................................................................................................... 9 D-pak............................................................................................................................................................. 9 F-pak ............................................................................................................................................................ 11 STAND standards .................................................................................................................................. 12 Return of used packaging ..................................................................................................................... 12 Ideal modules for euro pallets ........................................................................................................... 13 Note! Some of the pictures used in this guide are meant to illustrate a problematic area and are not necessarily errors from an overall evaluation, but rather used to illustrate a particular point!

A description of external conditions for the value chain in the grocery trade

of 13 Ver 020530

Main Goals • Everyone within the grocery trade’s value

chain wants the consumers to be able to shop in stores with good item selection from shelves that have a proper article impression.

• In order to succeed with this in a cost effective and proactive way, players within the value chain must not only understand the customer’s needs, but also the “customer’s customer’s needs”.

• With this brochure, we wish to point at the most important challenges of the value chain, and what should be considered when developing or changing the packaging and packing systems of a product.

Item impression!

The Store • It is important to utilize all of the available

area in the store for sales. Consequently there is little leeway and considerable resources are used in trying to optimize this effectively. It is therefore important to

consider the entire value chain when changing and developing products.

.

Leeway in the store!

Plano gram for shelf utilization


of 13 Ver 020530

Packaging The package’s roles • Be sales promoting and consumer friendly.

Design and information should convey the correct and necessary message to the consumer.

• Fulfill current laws, rules and consumer requirements.

• Packaging materials should be environmentally sound and recyclable.

• Utilize the base module 400 x 600 mm. • Ensure stability of the pallet • Stackability • Ensure reasonable handling • Intuitive and easy opening mechanism • F-paks should keep together and protect the

product. • D-paks should keep together and protect the

F-paks. • The number of F-paks in a D-pak should

ensure good turnover

The packaging must tolerate consolidation in the truck!

Consolidation on roll-cages is one of packaging’s challenges.

Breakage is expensive and harms the environment.


of 13 Ver 020530

Packaging design In the store: • Easy to hold • Easy and intuitive to open • Weight • Rigidity • Size • Cutting damage • Packaging on roll container At the distributor: • Easy to hold • Weight d-pak – aim for max 15kg • Size – module 40*60cm • Pallet use – min 90 % of area • Friction between layers • Cutting damage

The module system All carriers must fit a modular system in order to ensure an effective utilization of the production facilities, transportation and store systems. The basic module is 400 mm * 600 mm.

The four modules in the system are: 1M 400 * 600 mm 2M 600 * 800 mm 4M 800 * 1200 mm All smaller package carriers should be able to build up to these modules.

Example of ideal modules. For a complete overview, see appendix.

1/1 pallet, 1/2 pallet, 1/4 pallet and module cases.

Euro-pallet Effective distribution is only possible with standardized load carriers, such as euro pallets. The following points regarding pallets aim at the superior goal – greatest net weight/number of items per pallet.

400 * 600

1200

800


of 13 Ver 020530

Example of euro pallet with products that accommodate the pallet. Area ≈ 100 % and height ≈ 1200 mm!

Standardization of pallet, D-pak and F-pak

Basic module 600 x 400 mm The goal is to standardize a basic module, not a D-pak. The individual producer must construct their D-paks in such a manner that one or more of these fill up a basic module in the best possible way. The measurements 600 x 400 mm are chosen because the modules fill up 100% of the most important pallet sizes. It is important not to solve the pallet utilization requirement by “building air” into the consumer and distribution units.

Minimum 90 % utilization of the pallet’s area A minimum of 90% utilization of the pallet’s area is required to ensure optimal space management while providing necessary stability and stackability. Pallets with less than 100% area utilization require focus upon securing against creepage within the pallet. The Euro-pallet is 800 x 1200 mm, and hangover is not acceptable. (This must be taken into consideration with products that settle, e.g. flour.)

Going from 70 % to 100 % pallet utilization allows us to reduce the number of trucks by 30%, which again reduces the strain on the environment while reducing costs!

Pallet height (incl. pallet) – 1200 mm A prescribed pallet height of 1200 mm ensures flexibility and optimal utilization of transportation with trucks and containers. Goods with a low turnover can be allowed a pallet height of maximum 600 mm including pallet. This provided that the height of the individual layers build up to the pallet’s net height of 450 mm, so that such pallets are a natural sales carrier to the wholesaler.


of 13 Ver 020530

Stacking of pallets A complete pallet should at least be able to handle its own weight in order to utilize the truck’s load area. Pallet labels should show gross and stacking weight.

Two pallets totaling 2400 mm

The majority of products in the trade are light/bulky so the limits today are found in volume and not weight. In addition to utilizing the volume within the 1200 mm height, it is also important to construct packages that contain as little amount of air as possible, so the net product’s weight per pallet is optimal. In doing this we ensure that we get net item volume to the end user in the most optimal way.

Marking of pallet and distribution unit according to EAN/UCC 128 Identification and transport marking shall keep to the EAN standard. This helps ensure trace-ability and allows for rationalization in all of the links. The standard can be found at the EAN NORGE homepage: www.ean.no under the heading ”publikasjoner”.

Example of EAN 128 label with gross and stacking weight.

Requirements of disposable pallets Disposable pallets of wood are not to be used, as there are no return arrangements and therefore these pallets would just go to refuse, generating undesired waste and costs. Disposable pallets in cardboard are a real and good alternative!


of 13 Ver 020530

1/3 and 1/2 pallet of cardboard

Disposable 1/2 pallet of cardboard

F The size of a 1/3 pallet, gross area: 400 mm x 800 mm (1/3 of a euro pallet) F The size of a 1/2 pallet, gross area: 600 mm x 800 mm (1/2 of a euro pallet) F The size of a 1/4 pallet, gross area: 400mm x 600mm F With the use of 1/4, 1/3 and 1/2 pallets it is important to remember that there will be a ”slave pallet” (1/1 pallet) underneath. So the gross height before the slave pallet is 1050mm. F The pallet must be made of a type of cardboard that can be recuperated along with the store’s other cardboard/corrugated paper. F For more information: www.stand.no – STAND005.

D-pak and F-pak The D-pak is the carrier that transports, contains and protects the F-pak. It is not only the store’s ordering unit with the wholesaler, but often becomes the sales carrier. This is achieved with the help of a lid, rip-tape, etc. In Norway app. 40 % (KIWI, PRIX, RIMI, REMA…) of the total dry goods turnover is displayed

directly in the D-pak. As the D-pak will be set right onto the shelf, the requirements around the D-pak’s design are especially important. When developing new packaging solutions you can contact DMF for a review to ensure that the prospective solution satisfies all!

www.dmf.no

D-pak D-pak measurement’s two main elements 1. The basic module 600 x 400 mm 2. The store’s shelving – minimum shelf depth The depth of the shelves is standardized on 60 cm, but can vary from 80 cm (pallet in bottom on raised shelf) to 30 cm (cosmetics’ shelves).

Ideal depth for d-pak is 20 – 30 cm!

F The D-pak must be of a quality and design that will give the item the necessary protection under normal handling and transportation. F The carton with contents must handle stacking together with other items (It is acceptable that the products / F-pak provide the sufficient stacking support, so that the main role of the D-pak is to keep the correct quantity of F-pak together). Any perforations must tolerate the weight of other items.

F D-paks should be able to be set straight into the shelf as a display. There should be only one layer of F-paks in a D-pak. F On a pallet, there should be the same

number of d-paks in each layer.

Bufferplass


of 13 Ver 020530

F The number of F-pak fronts in a D-pak must be evaluated based on shelf time in the store. The turnover of the item will affect the total number of units that should be in a carton. The number of units in a carton should be in line with sales per week. This increases the flexibility and gives a possibility for displaying many different flavors.

20-pack with 4 fronts

10-pack with 2 fronts

Equal products of different flavors can require different D-pak sizes/number of fronts (weekly turnover).

F The measurements of the carton must be such that it utilizes the basic module. Maximum weight per carton including contents is 15 kg.

Example of modular packing

F The package should be easy to open, i.e. preferably rip tape, perforation etc. Clear directions – symbols – shall indicate the opening method and start point. The packaging should be easy to remove and dispose of. It should also be sturdy, so that trays can be lifted after the outer packaging is removed.

Illustration for opening of D-pak

...and how not to open!

400 mm * 600 mm


of 13 Ver 020530

F The F-pak and item should be in focus and the logo should be visible after the lid is removed. The F-pak should be displayed, not the D-pak.

Focus on the product? F-pak F Optimal measurements for f-pak: Consider in which item group and segment the product belongs. The products should be of similar heights to minimize dead space in the shelves. When developing or changing products, the product’s item group must be considered before deciding upon a height.

The large height differences create a lot of space and give a bad item impression.

The shelves in the store’s racks can move in intervals of 5 cm /3,2 cm. This should be drawn in as a feature in addition to the average height within an item group.

4,5 cm air due to ”wrong” height!

F Optimalization of packaging is a goal and over-packing must be avoided. It must be the aim to reduce the air in the F-pak/D-pak/pallet – the goal says to increase the net product weight per unit.

Practical example of packaging optimalization from Maarud!

5 cm


of 13 Ver 020530

STAND standards

The following recommendations as of 30.05.02:

STAND001: Common guidelines for marking and splitting of shelf life time - Grocery and restaurant/catering

STAND002: Standardization of transport carriers

STAND003: Common guidelines for claims and returns - Grocery and restaurant/catering

STAND004: Specifications for recyclable ½ pallets in wood

STAND005: Specifications for 1/3 and ½ single use pallets in cardboard

STAND006: System of regulations and markings of approved stackable pallets in the grocery business.

STAND007: Service degree – Standard definitions (Prepared by ECR).

STAND008: Specifications for recyclable 1/4 pallets in plastic.

Return of used packaging In 1995, the grocery trade went into a group of agreements with the department of environmental protection about the collection and recycling of plastic, paper goods, cartons and metal. These agreements made into in order to increase material and energy recycling, while decreasing the amount going to the waste depot. (More information can be found at the material businesses’ web pages)

The products must be packed in environmentally correct packaging, which can be handled in the material business’s systems.

Press for plastic and fiber that is to be shipped back to recycler!

Effective redistribution of used packaging

The material businesses work for effective collection and recycling of used packaging: http://www.plastretur.no/ http://www.glassgjenvinning.no/ http://www.resy.no/ http://www.returkartong.no/ http://www.materialretur.no/ http://www.loop.no/ In addition we have Resirk AS, which handles drink-packaging returnables: http://www.resirk.no/


of 13 Ver 020530

Ideal modules for euro pallets

Packaging and logistics in the grocery trade - LIAA...Packaging and logistics in the grocery trade...

Documents

Transcript of Packaging and logistics in the grocery trade - LIAA...Packaging and logistics in the grocery trade...