ISTA Views

OCTOBER | 2016

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Transitioning to systems based design of global supply chains Today the research, education, design, manufacture, and standardization of the unit load supply chain components is silo-ed or compartmentalized. What is needed to significantly improve supply chain operating costs? 1.More research and understanding of how packaging, pallets, and the machinery used to move and store products, mechanically interact. 2.Education of a new supply chain/unit load design professional that is knowledgeable of packaging, pallet, and equipment design. This can be achieved through interdisciplinary studies. 3.Provide these new professionals with tools that model how the components of the supply chain interact, such as the supply chain simulator Best Load™ shown in Figure 4 4.Supply chain owners and users must take "ownership" of the supply chain design. This includes new supply chains as well as periodic reviews of current supply chain operations. These supply chain owners and operators lead teams and direct a collaboration of component designers. Take this process away from procurement, whose purchasing priorities do not necessarily result in improvements in supply chain efficiency. 5.Collaboration between professional and trade associations that represent professionals and manufacturers of the supply chain components. Formal liaison activities between ISTA (Packaging) and NWPCA (pallets) and MHI (materials handling equipment) should be initiated. 6.Harmonization of the pallet, packaging, and materials handling equipment standards. The international size standards for rigid packaging (ISO 3394), for pallets (ISO 6780), for Freight Containers ISO 668) and for Air Cargo Platforms (ISO 4117), do not fit together efficiently. As palletization of product in freight containers grows, this is leading to shipping inefficiencies. As shown in Table 2 containers for shipping are based on imperial units and packaging are metric and pallets are essentially both imperial and metric units. The most common box sizes will not fit well on 4 of the 6 common Figure 4: Best Load TM Supply Chain Simulator a Standard ISO 668 Freight Containers ISO 4117 Air Cargo Pallets ISO 3394 Packaging Sizes ISO 6780 Pallet Sizes Size 20, 40, etc ft. long 8 ft. wide multiples of 600X400mm, 600X500mm, 550X366mm 1219X1016mm, 1067X1067mm 1200X1000mm, 800X1200mm 1100X1100mm, 1140X1140mm Technical Committee TC 104 TC 20/SC9 TC 122 TC 51 Table 2: Harmonize the standards for each supply chain component > MORE ON PAGE 18 17 ista views • October 2016 • www.ista.org

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