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ISSN : 1738-3110
The Effect on Logistics Cost of Incompatible Packaging Sizes in T-11 and T-12 pallet systems
Yoon, Nam-Soo
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Abstract
Purpose - This is a case study aimed at finding a solution for improving the pallet loading efficiency in the process of delivering products through a transshipment using the T-11 and T-12 pallet systems. The study proposes a solution by demonstrating the case of a certain manufacturer A, who aims to reduce the logistics cost by using packaging sizes that are commonly applicable and can improve the compatibility between the T-11 pallet system, designated as the standard pallet in Korea, and the T-12 pallet system, which is commonly used in other foreign countries. The use of common sizes increases compatibility among the two systems and reduces both logistics and environmental costs. Thus, this case study calculates the quantitative benefits of applying common packaging sizes to improve the compatibility between the T-11 and T-12 pallet systems. These systems are considered to be the most important and widely used transportation systems in the global logistics industry. Research design, data, and methodology - This study examined manufacturer A's representative product and delivery system and assessed how manufacturer A was affected by the use of incompatible packaging sizes in the T-11 (1100 mm×1100 mm) and T-12 (1200mm×1000 mm) pallet systems, which were specified in the KS T 1002 standard. In addition, this study analyzed the impact of these packaging sizes on A's logistics cost. The TOPS program (Total Packaging System) was used to simulate pallet loading efficiency,and the main parameter studied was volume, as calculated from length, width, and height. Results - When the sizes of secondary packaging were not compatible across the T-11 and T-12 pallet systems, a reduction in loading efficiency was observed, leading to an increase in logistics cost during transshipment. Such low loading efficiencies led to a further loss of efficiency in transportation, storage and unloading. This may have a possible environmental impact with high social expenses, such as increased CO<sub>2</sub> emissions. Hence, this study proposed that the KS T 1002 standard be amended to include 21 packaging sizes, including 7 sizes of the 600 mm×500 mm category, which are compatible with both the T-11 and T-12 pallet systems. Conclusions - This study found that the 69 standard sizes under the T-11 pallet system and the 40 standard sizes under the T-12 system in the KS T 1002 standard can be simplified and reduced to 21 mutually compatible packaging sizes, enabling logistics standardization and reducing national-level logistics costs. If the government pays attention to this study and considers the standardization of common sizes for the T-11 and T-12 pallet systems and amends the KS T 1002 standard, this study will deliver practical value to the global logistics industry, apart from being of academic significance.
- keywords
- Pallet Systems, Common Sizes, Loading Efficiency, Logistics Cost
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