- Log In/Sign Up
- P-ISSN1738-3110
- E-ISSN2093-7717
- SCOPUS, ESCI
ISSN : 1738-3110
The Effect on Logistics Cost of Incompatible Packaging Sizes in T-11 and T-12 pallet systems
Yoon, Nam-Soo
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
Reference
Aha, Jong-Yun (2004). A Study on Introduction to RFID(Radio Frequency IDentification) System in the Pallet Pool System Operation. Seoul, Korea: Thesis for Doctorate in MyungJi University.
Bae, Kyung-Yul, & Kim, Byung-Tae (1997). Production and Operation Management. Seoul, Korea: Myungkyungsa Publishing, 1-160.
Blind,Knut (2004). The Economics of Standards, Edward Elgar, Cheltenham. UK․orthampton, MA, USA, 40.
Bowersox,D.J. (1994). Logistics Information System. The Logistics Handbook Free Press. 697.
Eom, Jae-Kyun (2007). Status and prospect of pallet standardization. Seoul, Korea: Myungji College Publishing, 4.
Eom, Jae-Kyun (2010). Technology of Unit Load System and Trend of Standardization. Korean Agency for Technology and Standards, 20(1), 1-18.
Fox, T. (1994). Logistics Information System Design. Seoul, Korea: The Logistics Handbook Free Press, 714.
Jang, Kyung-Jin (2009). Purpose of Standardization. Seoul, Korea: Korean Standard Association.
Jang, Heung-Hoon (2011).An Empirical Study on the Effects of the Package Standardization on the Business Logistics Performance Korea. The Journal of Korea Logistics Review, 21(2), 5-26.
Jung, Sung-Tae (2012).A Study on the Operation Method of Packaging System to Enhance Logistics Efficiency between Manufacturers and Distributors: Focusing on Retail Ready Packaging. Incheon, Korea: Thesis for Doctorate in Incheon National University.
Jung, Sung-Tae (2013).A Study on Compatible Pallet Sizes between T-11 and T-12 Pallet System: Focused on KS T 1002. The Journal of Korea Logistics Review, 23(2), 63-97.
Kang, Dae-Gyung (1997).Case study on information telecommunication standardization in logistic field. Industrial Developmentand Business Administration of Gwangju University, p.3.
Kim, Dae-Ho (1998). A study on the standardization of 3D automatic warehouse for logistic efficiency. Korean Social Science Journal, 2(1), 73-90.
Kim, Gi-Chul (2004).Development of Efficient Packaging Technique for Physical Distribution of Marine Products. Journal of Package Design Research of Korea Package Design Institute, 15(1), 37-85.
Kim, Kyung-Tae, Kwon, Yong-Jang, Lee, Suk, & Kim, Young-Joo (2009). The Practical Analysis of Pallet Usage in Korea. The Journal of Korea Logistics Review, 19(2), 213-236.
Kim, Sung-Tae, & Shin, Hae-Woong (2009). A Study on the Logistics Facilities and Unit Load Systems in Korea. Seoul, Korea: Korean Standards Association, 69-71.
Kwon, An-Sig (2007).The Building Pallet Pool System among Korea, China, and Japan for Strengthening competitive Power of Logistics. Seoul, Korea: Thesis for Doctorate in MyungJi University.
Lambert, Douglas M., Stock, James R., & Ellram, Lisa M. (1998). Fundamentals Logistics Management. Irwin: McGraw-Hill.
Lee, Soon-Young (1988). Modern Quality Management. Seoul, Korea: Beobmunsa Publishing, 1-576.
Lee, Geun-Hee, & Lee, Kyung-Jong (2000). New Quality Management. Seoul, Korea: Sangjosa Publishing, 1-165.
Lee, Soon-Cheul, Hong, Sung-Wook, & Moon, Dae-Seop (2005). The Economic Effects of Logistics Standardization on Firm Costs: Focused on Pallet Standardization. The Journal of Korea Logistics Review, 45(1), 121-144.
Lee, Chang-Sup (2008). A Study on Success Factors of Logistics Information Standardization in Korea.Busan, Korea: Thesis for Doctorate in Donga University.
Lee, Myung-Hoon, &Jung, Jun-Jae (2009). Study on Development of Export Packaging for Fresh Melon. Journal of Korea Society of Packaging Science and Technology, 15(2), 83-91.
Lee, Suk, Kim, Young-Joo, Kwon, Yong-Jang, & Kim, Kyung-Tae (2010). A Study on Compatibility of Pallets to Domestic Cargo Truck Bodies and Maritime Containers. The Journal of Korea Logistics Review, 20(3), 111-132.
Little,A.D. (1991). Logistics in Service Industries. USA: Council of Logistics Management, 10.
Ok, Sun-Jong, & Kim, Jeung-Hwan (2002). A Reference to the Efficiency of Logistic Standardization Policfast. The Journal of Korea Logistics Review, 10(1), 177-195.
Park, Hyung-Nam, & Kim, Won-Joong (1999). The Effects of Logistics Equipments Standardization on Business Performance. Journal of Society of Korea Industrial and Systems Engineering, 22(52), 155-170.
Park, In-Sool (2008). A Study on the Construction of Eco_Friendly Logistic System in the Receptacles & Bottles Manufacturers. Seoul, Korea: Thesis for Doctorate in MyungJi University.
Shin, Seung-Hyun (2003). A Study on the Expansion and Distribution Plan of Logistics Standardization in Our Country.Seoul, Korea: Master's thesis in MyungJi University.
Shin, Hae-Woong (2011). Efficiency Evaluation Model of the Unit Load System Based on the Principle of Compatibility and Consistency. The Journal of Korea Logistics Review, 21(5), 5-24.
Yoon, Mun-Kyu (2006).A Study of the Pallet Connection System for Logistics Standardization. Soonchunhyang Social Science Review, 12(1), 5-20.
Yuk, Geun-Sung (2006). Standardization plan for service industry. The Monthly technology & standards, April, 18-22.
- Downloaded
- Viewed
- 0KCI Citations
- 0WOS Citations