Cube optimisation
Within multiple retail consumer goods and non-multiple retail goods (including industrial goods), cube utilisation is a key contributor to optimum supply chain performance and to directly reducing transportation costs. With the continuing trend of manufacturing moving East, an ever growing proportion of goods are being resourced through extended supply chains. For these products the signficance of cube utilistion is even greater.
In a modern demand chain the correct approach to cube optimisation is to set the secondary packaging specifications (and therefore dimensions and cube utilisation) from the retail display, order quantity and product point of view. In this way pallet or distribution unit dimensions and cube are determined taking account of factors both upstream and downstream of the shipping process.
Display requirements are those that determine the dimensions (and formats) for display packaging. For many products this now includes the retailers shelf ready packaging (SRP) considerations. Order quantity defines the number of saleable units configured within the secondary collation.
Product requirements are those fundamental size constraints that need to be worked around. Of course in the ideal situation, the product size itself and cube utilisation consideration would be one of the design parameters in the product design brief, but normally the product is a fixed entity. For consumer goods, the display and order quantity requirements are normally the dominant factors. For non-multiple retail goods, product protection and modularity to shipping container internal dimensions are more significant.
Services
Significant savings opportunities normally exist where cube optimisation and shipping container fill efficiency have not been specifically examined.
For over 50 years Pira has been assisting clients with palletisation and container cube optimisation issues. Our capabilities extend to reviewing the physical requirements from the entire supply chain, reviewing commerical requirements such as order quantities, to examination of product requirements and secondary packaging options.
Once the requirements are understood, Pira can assist in identifying suitable optimisation solutions through core expertise and using cube utilisation software (Pira uses both Cape and Tops systems).
The process may involve cost modelling to understand the relative significance of the different factors driving product, packaging and pallet dimensions where the overall best total cost solution is not immediately clear.
Pira also has extensive experience in understanding pallet and distribution packaging physical performance, so our solutions include consideration for stability, capacity to be handled, damage and other key transportation cost factors.
Contacts:
James Raw
email: james.raw@pira-international.com
Tel: +44 1372 80 2102