PUSH/PULL & SLIPSHEET HANDLING MANUAL

Global Solutions in Materials Handling

PUSH/PULL & SLIPSHEET HANDLING MANUAL Table of Contents

■ INTRODUCTION BACKGROUND & REVIEW What You May Not Know About Slipsheets ...... 4 Palletless Load Handling–Is It Your Future? ...... 6 Put It On A Slipsheet ...... 12 Push/Pulls Global Progress ...... 15 Slipsheets: The ’s Successor? ...... 21 Are Packagers Ready For Slipsheets? ...... 24 Making A For Slipsheets ...... 28 Slipsheets Save Weight And Cost In The Air ...... 31 Germany Says No To North American ! ...... 34 US Tells Importers: Pests Are Unpalletable ...... 36 Freight Processing Centers: Logistics’ Missing Link ...... 38 ■ COST COMPARISONS Slipsheets & Pallets: A Cost Comparison ...... 41 Why General Foods Converted To Slipsheets ...... 47 Cost Comparison Worksheets (Examples and Blanks) ...... 50 Slipsheets vs. Pallets – The Decision Making Process ...... 61 ■ CASE HISTORIES & INDUSTRY UTILIZATION Slipsheeting The World – Apple Computer ...... 67 Cascade Plays Key Role – Apple Computer ...... 68 Slipsheets Generate Hyper Savings – Apple Computer ...... 70 You Must Use Slipsheets – Home Depot ...... 74 Lift Truck Attachment Eliminates Pallet Use – Quaker State Oil ...... 79 Prior To Slipsheets – Speech By Jim Chase, President Jewell Foods, Inc...... 84 Unitizing 30 Lb. Cans Saves 75% Labor – Pik'd Rite, Inc...... 88 On-The-Job Application Report – Simplot ...... 89 On-The-Job Application Report – Northern Fruit ...... 94 Industries Using Push/Pulls ...... 95

1 Table of Contents (cont.)

■ CONVERTING TO SLIPSHEETS Slipsheeting – From Team To Reality ...... 101 Slipsheeting – Making It A Success For Suppliers ...... 103 Do’s & Don’ts Of Converting To Slipsheets ...... 111 Recommended Guidelines To Follow For Successful Push/Pull Test ...... 114 Slipsheet Specifications – Apple Computer ...... 115 Home Depot's Conversion Spurs Interest In Slipsheets ...... 120 ■ OTHER INFORMATION Load Push/Pull Equipment & Operator Guide ...... Cascade Insert U.S. Slipsheet Suppliers ...... 125 Cascade Field Organization & Customer Support ...... Cascade Insert

■ ELECTRONIC CUSTOMER SUPPORT Brochures/Advertising Materials ...... Cascade Insert

2 PUSH/PULL & SLIPSHEET HANDLING MANUAL Introduction Background & Review

The palletless handling of unitized There are two main components at In the following sections, potential goods through the use of slipsheets the heart of the Cascade Push/Pull users of the push/pull handling and push/pulls can save money and Handling System: system will find helpful information reduce damage. This manual will 1. A load push/pull attachment including magazine articles provide you with the information mounted on the front of an collected over many years, case you need to assist you in deciding lift truck. histories, brochures, and slipsheet whether the Cascade Push/Pull 2. The slipsheet used in the specifications. Handling System would be an push/pull handling system is advantageous and cost-effective a thin, corrugated, solid fiber alternative to the use of traditional or plastic sheet used in place pallets. of the traditional pallet.

Specific application or supportive data can be obtained by contacting Cascade Corporation @ 800-CASCADE (227-2233)

3 Slipsheets

WHAT YOU MAY NOT are cheap enough to be discarded times that required for the fork/ KNOW ABOUT SLIPSHEETS after each trip. The costs of tracking, pallet method. recovering, and repair or disposal, There is no low-cost lift vehicle for Applications for slipsheets are which are characteristic of the the horizontal transport of slipsheet growing at a steady rate. Has reusable wooden pallets, are not unit-loads that is the equivalent of the information about their savings required for slipsheets. In keeping inexpensive low lift manual pallet reached you yet? with present-day environmental truck or jack. Slipsheet loads can be By C. W. Ebeling concerns, the used sheets are easily placed onto pallets for in-house assimilated into the wastepaper mar- handling, but the transfer process is To the vast majority of shippers, ket for into new products. another cost to be justified. wooden pallets are synonymous with The of a slipsheets is unitized shipping and handling. In typically two to three pounds each or APPLICATIONS recent years, outside of an occasional 20 to 30 times less than the tare What then are the applications for article in a trade magazine, little weight of wooden pallets in a carload slipsheets in which the advantages information has been disseminated or truckload shipment. The space it outweigh the drawbacks? about the continued use of slipsheets. occupies under a unit-load is The earliest applications of the slip- It is no wonder that a new generation insignificant compared to the 10% or of shippers and logistics managers sheet method took place in the mid more taken up by a typical pallet. 1940’s, several years before the has grown up not fully aware of what Most net payloads of unitized product a slipsheet is, let alone why and beginning of unitized shipping in the can be increased 10% or more with U.S. The sheets were used to reduce where slipsheets are used as an slipsheets. Putting it another way, the alternative unitized shipping method. the costs of long term storage of unit- same amount of freight that requires loads on pallets for products such as Meanwhile, new applications for 100 semi-trailers for shipments on canned fruits. The inexpensive sheets slipsheets continue to appear pallets can be shipped in 90 semi- avoided huge investments in pallets worldwide. The manufacturers of trailers when unitized on slipsheets for the buildup of inventory during slipsheets report steadily (see T&D, Feb. ‘92 Slipsheets Save the short harvest seasons. increasing annual sales of 10% or Weight and Cost in the Air, p.53). more. Currently over 150 million With palletized shipping expanding Slipsheets can be used economically rapidly throughout the food industry slipsheets are produced to provide a unitized loading and annually. Further indication of the in the 70’s, a number of large manu- unloading method for lightweight facturers began converting to slip- extensive use of the slipsheet method products that cannot economically be comes from the manufacturers of the sheets for their long haul shipping shipped on pallets due to lightweight operations to get out of the costly and handling attachments. Approximately transportation penalties. 18,000 push/pull attachments are in difficult-to-control pallet exchange The disadvantages of slipsheets are operation in the U.S. Of the top 100 program. The problems of pallet usually related to the cost and per- industrial corporations listed in the repair and the sanitation of reused formance concerns of shippers in 1991 Fortune 500 list, 33 were using pallets gave further impetus to the comparison to the pallet method. slipsheets somewhere in their logis- manufacturers’ changeover to slip- These are: tics operations. sheets. During the conversion The cost of a lift truck push/pull process it was found that the thin Slipsheets, like pallets, have their attachment to handle slipsheets is lightweight slipsheets made higher advantages and their disadvantages. $6,000 to $8,000 compared to about density payloads in many shipments Applications in either case are found $400 for standard fork truck tines. possible, which resulted in reduced where the advantages outweigh the transportation costs. disadvantages. The main advantages The lift truck operators require for slipsheets are: special training to effectively operate In 1988 Apple Computer introduced the push/pull attachments. The time slipsheets to the electronics industry Most slipsheets are made of light- required to become proficient in the with the first ocean ship- weight paperboard, which averages a operation of the equipment is several ments of cased computer parts from dollar or less each unit-load. They

4 Slipsheets

Home Depot developed this battery powered, push/pull-equipped dock vehicle in cooperation with the Raymond and Cascade Corporations to improve the unloading of slip- sheeted unit loads at its store docks. Home Depot has implemented a pro- gram encouraging all its suppliers to convert to slipsheets.

overseas suppliers in the Far East and A semi-bulk container carries the space. Pallet loads speed unloading Europe. Pallets were unaffordable for equivalent of an entire pallet load of but require the eventual disposal of ocean container shipments due to smaller . In 1982 General thousands of used wooden pallets. their cost along with the cube loss Foods introduced the use of semi- According to Matthew Pitts of Home that would reduce payloads. bulk containers with built-in slipsheet Depot, each pallet received at their Consequently, the goods had to be bases for the transport of coffee Northeast stores results in a disposal hand stacked case by case in the powders from supply locations in cost that averages $2.50 each. ocean containers. The replacement of South America to coffee packaging To facilitate the unloading of slipsheet the hand-stack operations with lift plants in the U.S. The slipsheet method unit-loads at the store docks, Home truck slipsheet loading and unloading increased handling productivity more Depot developed a special battery saved the company millions of dollars than ten times that of the traditional powered, push/pull equipped dock annually and speeded the turnaround methods of packaging and shipping vehicle in cooperation with Raymond of ocean containers at the shipping coffee powder. Today the slipsheeted and Cascade corporations. Home docks for improved utilization. (See semi-bulk are used for a wide Depot is currently carrying out a T&D Presidential Issue, 88/89.) variety of raw and in-process materials program to encourage all of their In 1991, Micropolis, a computer for long haul and international ship- suppliers to convert to the company with manufacturing ments (see T&D, April ‘93, Bronze slipsheet method. facilities in Singapore and Bangkok, Age Method Aids International Shipments, p. 53.) With growing interest in the costs, eliminated pallets under loads of productivity, and environmental cased computer peripherals that The growth of home product and do- concerns associated with shipping were shipped by air freight from the it-yourself consumer stores such as methods today, logistics professionals Far East to the U.S. and Europe. Their Home Depot, Walmart, and K Mart should take a serious look at the program demonstrated the practicality has in the 90’s generated new interest slipsheet method and the advantages of the use of slipsheets for air freight in the slipsheet method. These huge it may offer. and the economic benefits of retail stores have their own receiving increasing load densities in air freight docks and may receive truckload shipments through the use of slip- shipments from suppliers of a variety As seen in . . . sheets in place of pallets (see T&D, of merchandise ranging from Transportation & Feb. ‘92, p.53). plumbing, heating, and electrical Distribution supplies to step ladders and paint. The semi-bulk container method of Copyright © 1993 by shipping raw and in-process materials Trailers arriving at store docks with hand-stacked loads take hours to Penton Publishing, Inc., and goods is still another growing Cleveland, Ohio 44114 application for the slipsheet method. unload and tie up the limited dock

5 Palletless Load Handling

PALLETLESS LOAD continue to increase in the same lating directly into a more produc- HANDLING – ratio as the cost of wood goes up. tive operation. IS IT YOUR FUTURE? The most noticeable benefits with Whether transporting by container, palletless handling of unitized loads truck or rail, less weight equals Handling costs are a major factor is the reduction of cubic space more payload, for example: in any distribution system. However, required and a reduction in weight. ■ A 40" x 48" grocery pallet they can be reduced with the use of It is possible to increase product weighs between 65 and slipsheets instead of pallets. For storage capacity in the warehouse 75lbs.compared with the neg- example, in the US, a typical quality by 10 per cent, often eliminating ligible amount for an equiva- fiber slipsheet once costing 50 the need for new warehouse con- lent slipsheet struction as product distribution cents is now US$1.50; a good quali- ■ For a truckload of 40 pallet- ty wood pallet has risen from US$5 requirements increase. Space is saved due to higher stacking capa- loads, the payload is reduced to about US$15.00. Although the by about 3,000lbs. cost of both have tripled, the differ- bility, the elimination of pallet stor- ential cost has gone from US$4.50 age space, and reduced needs for ■ For a rail car shipment of 56 to US$13.50 per unit. This cost dif- racking. More space means more palletloads, 4,200lbs. can ferential will products in the warehouse, trans- be saved. It doesn’t take long to see the potential savings palletless handling can provide in transport costs. Add to this the other savings mentioned in this article and it is easy to see how those non-value-added costs can be translated into additional company profits, or lower prices to customers. PROBLEMS WITH PALLETS While palletized cargo handling is entrenched in the shipping and dis- tribution industry and has worked well for several decades, many problems remain and some are becoming more critical. A key concern today is the destruction of a natural resource to produce pallets. There is an enormous demand for lumber from the pallet industry; according to one estimate, 50 per- cent of all hardwood lumber is used for pallets; 6 percent of total lumber Traditional wooden pallets are an expen- sive, environmentally-unfriendly, space- consuming and relatively awkward way of supporting goods for transportation and storage. US company, Cascade Corporation, presents the Push/Pull slip- sheet system – a low cost, smoother way to deliver, store and receive unit loads Figure 1: Slipsheet palletless handling system

6 Palletless Load Handling production in the US is consumed by age to product caused pallet manufacturing. Roger Rij, of by broken pallets. the Agricultural Research Service, US Slipsheets also offer Department of Agriculture in Fresno, the distinct advantage California, has been researching of reduced worker another disadvantage of pallets –dis- injuries when com- posal of the one-way softwood pal- pared to wooden pal- lets. No matter whether these ship- lets. Manual handling ments are heading to terminal mar- of wood pallets weigh- kets or chain store operations, those ing any where from 25 on the receiving end are still faced to 65lbs. can cause Figure 3: The system in use with the problem of disposing of the hand, arm, back and foot injuries. area of $1.00 each. Industry efforts pallets. Rij notes that one-way pallets Splinters and nails can also be to control the quality of pallets in the still have to be broken down, thus troublesome. Most of these prob- exchange system were not proving to adding to the cost. Slipsheets, on the lems are eliminated when using be successful. Problems of sanitation other hand, are easily recycled and slipsheets and, since they take up increased with general deterioration offer the distinct advantage of being a only 1-2 percent of the space of the pallets in the pool and dam- re-sellable item. required by pallets, slipsheets can age to products caused by broken often be stored indoors, where they boards and protruding nails became stay cleaner and are protected from common. With the onset of the ener- the elements. gy crisis and the demand for high The greatest source of warehouse utilization of transportation equip- contamination usually arrives on ment, carriers realized that pallets pallets – rodent droppings and were taking considerable space and insect infestation as well as chemi- displacing room for revenue pro- cals and residues from previously ducing payload. carried products. Since slipsheets General Foods had early concerns are flat and made of inert materi- about slipsheet use, but soon found als, they do not provide a medium that the obstacles were minor and for infestation or contamination. solutions existed for most prob- Slip-sheets also eliminate the fire lems. An example was its concern hazard associated with inside or for high stacking on slipsheets on outside storage of a large amount warehouse floors. At the time, the of wood pallets. company could not conceive grip- Figure 2: One problem–pallet storage ping a sheet under a top load and Converting to slipsheets offers many PALLETLESS HANDLING— pulling it onto an attachment with- more cost savings, the largest being THE US EXPERIENCE out pulling the entire stack over. As the capital investment required for Food products it turned out, it was not a problem pallets – US$150,000 for a 10,000- once workers had been properly General Foods, now part of Kraft trained and slipsheet loads were pallet system versus US$15,000 for Foods, has experimented with an equivalent slipsheet operation. stabilized. In time, the shrink or pallets and slipsheets since 1962. stretch film wrapping commonly Other savings include the expense During the following decade, the associated with pallet repair, return used today proved to be the most problems with pallets were becom- efficient form of load stabilization. shipping, lost pallets, sorting of ing obvious. The cost of new pallets pallets, bookkeeping of pallet Special non-slip have also had doubled as had the costs of been developed to allow cases to be exchange, pallets returned that are repair. Few pallets lasted even a year inferior to those shipped, and dam- easily lifted from the slipsheet while and cost per pallet trip was in the at the same time preventing sliding.

7 Palletless Load Handling

General Foods was also concerned implications for many other to reduce shipping and handling about the substantial capital invest- electronics companies, included an costs. It also wanted to identify a ment required in order to convert 18-month program to change the way to reduce the impact that use of automatic to slipsheet supplier network to unitized loads wood pallets was having on the unitizing and to provide slipsheet on slipsheets. During the first full environment, so slipsheets were its attachments for the lift trucks. In year of operation, Apple saved over natural choice. In addition to the some cases it was necessary to U.S. $2.5 million on a U.S. cost savings, one of the company’s replace the lift-trucks that did not $200,000 investment in equipment vendors reported a 30 percent have sufficient counterweight and start-up costs. Broken down, this decrease in damage due to the use capacity for installation of a slip- represented cost savings everywhere of slipsheets. sheet attachment that weighed 750 in the distribution chain: to 1,000 lbs. and still carry the ■ 20% reduction in freight costs. EUROPEAN SKIDBOARDS required payloads. The expenditure ■ 75% reduction in unloading labor. In the UK, where slipsheets are proved to be justified, however, by ■ 78% reduction in pallet costs. more commonly known as ‘skid- the reduction in pallet costs and the “Another requirement for boards’ or ‘slip pallets’, at least 28 benefits from higher density storage large shippers use slipsheets where and shipping of more products. successful pallet-less handling is commitment” economic justification is often related “Slipsheets... are easily recycled to shipments of exported goods in and offer the distinct advantage A key to Apple’s successful palletless containers. For this reason major of being a re-sellable item” handling scheme was its partnership exporters of liquors – Dewar, Haig, with Cascade Corporation, the push/ Chivas, Strathleven Bond and Johnny In addition to General Foods, many pull attachments supplier. A com- other food processing companies Walker – are all slipsheet users. Not puter-aided warehouse management all UK applications are related to use slipsheets and push/pull handling system (SPOC) was also designed to attachments such as Campbell Soup, exports, however. At English China reap the benefits from using slipsheets Clays Sales Co., Ltd., Cornwall, fifty Kellogg, Carnation, Del Monte, Heinz and Cascade push/pulls. According and Ralston Purina. Beverage, paper 55lb. sacks of powered ball clays to Apple, another requirement for are unitized on 52" x 47" expend- product and building material successful palletless handling is companies also use this method. able skidboard sheets. The loads are commitment – from top management, stacked five-high in the warehouse, sales and marketing, and manufac- Electronic products and sideloaded for shipment onto turing. In addition, all the people lorries using Cascade push/pull In the electronic products arena. directly impacted by the change – attachments. The clay company’s Apple Computer, Hewlett-Packard, vendors, carriers, and customers – promotional literature informs and Micropolis Corporation have must be educated about how the customers that the skidboards are been very successful with palletless system works and what the supplied free, offering many advan- distribution systems, shipping benefits are. tages over pallets such as lower cost, computer products on slipsheets in easier disposal, greater stack stability ocean containers and by air freight. Hardware products with a 20 percent saving in space, In 1987, Apple Computer, with Home Depot converted to palletless and the fact that they can be used Cascade Corporation’s assistance, handling to meet one overriding with or without pallets on the became a pioneer in the implemen- goal: the reduction of financial and receiving end. Other slipsheet users tation of an international (US, Europe environmental costs. In mid-1994, in England include the consumer and Singapore) palletless handling the company set a very ambitious electronics companies Sharp, Sony system. Apple’s idea was unique in goal, based on its knowledge of and Panasonic. that it required the entire supply Apple’s earlier successes – to convert The use of slipsheets is also chain from end-users to OEMs to itself and all its vendors (over 5,000 shippers to use the same handling/ increasing in France, Germany, suppliers) to a palletless handling Belgium, Holland, Italy, and Spain. shipping method, namely slipsheets. system by January 1, 1995 in a bid The plan, which had major One industry observer noted recently

8 Palletless Load Handling that; “The investment carried in pal- tabs are being used to import auto sheet supplier, who will assist in lets is usually greater than the parts by Nippon Denco in Holland considering such things as: investment carried in the lift-trucks for distribution throughout Europe. ■ Weight and dimensions of the themselves”, and any way of reduc- . ing this massive investment must be PALLETLESS HANDLING ■ Size of gripper tabs and num- given careful consideration. A new IN JAPAN law in Germany affecting US busi- ber of score lines required. The concept of palletless handling ■ How many times the unit load nesses’ use of pallets states that was introduced in Japan by Cascade companies which originate a pack- will be handled in the most in the mid-1960s. It experienced extreme situation. aging product which eventually ends little growth until 1978, when ■ up in the solid waste stream in changes in Japan’s transportation What conditions, such as Germany will be held responsible codes strictly forbade overloading humidity or contamination, for disposing of that packaging. This highway vehicles. The reduced pay- might exist that could affect means that one-way wooden pallets loads caused by the weight and slipsheet strength. are not acceptable. cube of pallets used for truck ship- ■ If a surface treatment is ment, along with the very high cost required to prevent slippage of wood pallets in Japan, accelerat- between the load and slipsheet. ed interest in the palletless method. Fortunately, today a large knowl- companies that have recently con- edge base exists in the use of slip- verted to slipsheets for highway sheets, as well as complete pallet- transport of goods include shippers less handling systems, costs of electrical appliances, electronics, and attachments. milk, rice, confectionery products, liquors and canned goods. The LIFT-TRUCK ATTACHMENTS Japanese Physical Distribution A successful palletless handling sys- Figure 4: The slipsheet, what it is all about Rationalization Institute enthusiasti- cally promotes slipsheet utilization tem is dependent on the functional- ity and quality of the slipsheet’s Europeans seeking innovative alter- via the distribution of literature, training seminars, and study team partner: the attachments used on natives to pallets have found some the lift truck. creative and unique ways to use slip- tours to observe application in the sheets. One example is the use of US and Europe. Push/Pulls captive sheets in place of captive pallets to facilitate loading. The Van QUALITY Cascade makes two types of push/ Der Ploeg Zaden BFA Seed Company The slipsheet, made of corrugated pulls currently in use worldwide: the of Barendrecht, Holland, is one of paper, solid fiber or plastic, must Model 35E/45E dedicated units, and several European companies using be matched to the job for optimum the Quick Fork Mount (QFM) push/ this approach. Seed unit loads performance in a palletless han- pull units for dual usage lift-trucks. are stacked, three and four high, in dling system. A key part of the eval- The 35E push/pull is a rugged, the warehouse. When they load into uation includes an accurate cost lightweight unit designed for outbound trucks, a special sheet estimate of the slipsheet type. It short-wheel-base counterbalanced retaining device on the lift-truck may be possible, after a successful trucks in the 3,000 to 4,500lbs. push/pull attachment grips and holds conversion to slipsheets, to experi- capacity range. Its high produc- the sheet as the load is pushed off. ment with lower cost sheets, but to tion slipsheet handling capabili- The sheet can be reused several justify the project based on a mar- ties include platens that are times whereas a pallet would be ginal quality sheet can often be a adjusted just like conventional impractical for this type of operation mistake. To determine what type of forks, full bottom taper platens, because of its height and sharp cor- sheet is the best value requires the 4° tilting faceplate, high visibility ners. Corrugated boxes with slip support of a knowledgeable slip- pantograph, and faceplate and

9 Palletless Load Handling

Figure 5: Another option, the clamping system gripper mechanism designed to forks and can be installed or packaged foods, paper products, handle all types of slipsheets. The removed in approximately one wine, consumer electronics and unit is specifically designed to pro- minute. This type of push/pull is plastic products. Carton clamps can tect the products and slipsheets designed for operations that fre- be used successfully with any prod- from damage. Features include T-1 quently require both pallet and ucts that have sufficient strength or steel platens, protected hydraulics slipsheet handling. Both the stan- packaging to withstand the clamp- and unitized construction with cast dard and QFM push/pulls use the ing force. Additional benefits of primary and secondary arms. same pantograph mechanism and clamps are that no slipsheet is The 45E push/pull has all the same faceplate. required, and that it has the ability features as the 35E with the differ- to order-pick tiers off a unit load. ence being that it is designed for all Carton clamps Carton clamps work best with uni- general slipsheet handling applica- The other popular method of pal- form loads that don’t have voids, tions for lift trucks in the 4000- letless handling is clamping unit- but have a carton height greater 5500lbs. capacity range including ized loads directly. Carton clamps than seven inches and a shipping those requiring double-load stack- have been adopted by many manu- container with enough strength to ing. The Quick Fork Mount (QFM) facturers and distributors for han- protect the commodities. Clamping push/pull mounts directly onto the dling goods such as: appliances, provides the same efficiencies of

10 Palletless Load Handling

Figure 6: A sequence of loaded Cascade push/pulls better space utilization in ware- loads during trailer or railcar CONCLUSION houses and in transport vehicles as breakout. The 15D and 25D Clamps In the product handling and distri- the push/pull and slipsheet system are designed for lift trucks in the bution future, there will be provides. Often, productive pallet- 2000-5000lbs. capacity range, and increased demand to reduce costs less handling will mean using both are used for handling relatively light and to be more environmentally push/pulls and carton clamps. unit loads such as consumer paper responsible. Material handling unit- Cascade Carton Clamps are made in products. The 35D Clamp is a gen- ized loads without pallets will three weight categories: Models eral-purpose clamp suitable for reduce costs, save trees, and 15D, 25D, 35D, and 50D, with vari- nearly any single unit load, and is reduce the energy required to ous pad surfaces and size configura- designed for lift trucks in the 3500- transport, manufacture and store tions available. The units are specifi- 5500lbs. capacity range. The 50D pallets. The cost differential cally designed for durability and Carton Clamp is used for heavy sin- between pallets and slipsheets will high visibility, and feature balanced gle unit loads such as wine, and continue to increase. Also expect force distribution over the entire double unit load handling. It is governments to continue legislating pad surfaces. Thin-profile outside designed for lift trucks in the 6000- sanitation and disposal regulation arms provide easier knifing between 8000lbs. capacity range. that will make pallet use even more difficult and costly.

Industrial Vehicle Technology ‘95 Contributed by Liz Nakazawa and Bill Peterson, Technical Communications; and Mike Tobin & Madalyn Piar-Katter, Cascade Corporation, USA

11 Unitizing & Slipsheeting

PUT IT ON A SLIPSHEET! of pallets between shipper and with sufficient strength to protect the receiver. It was called the Grocery commodities. The clamp was prima- “There is an opportunity to save Pallet Council (GPC). rily used in the warehouse for stor- money in palletless handling.” In theory, the exchange system will age although it can be used to floor Unitizing and slipsheeting are two work. In practice, it failed and in load product in railcars and truck ideas. January 1979, the GPC was disbanded. trailers. Most clamp loads are trans- By David K. Spencer The reason – pallets returned were ferred to pallets or slipsheets for inferior to those shipped. Pallets shipment. It has steadily grown in To understand the present and future had increased in cost from $3.00 to popularity. Today, 80-90 percent of trends in unit load handling, a brief $8.00. Pallets were not returned in all paper rolls are handled by clamps, review of it is in order. The greatest some cases, the pallet now consumes a high percentage of cartoned paper growth in unit load handling 50 percent of hardwood produced products, appliance, and some food occur-red following World War II. It in the USA and 15 percent of total products are also clamp handled. was determined then that a load wood production. Pallet maintenance The slipsheet palletless unitized load could be handled more economically was costly, loss of cube and weight system was also evaluated by many by unitizing it rather than hand of the pallet and sanitation became companies and was adopted initially stacking and hand unstacking. a problem due to rodent leavings in by companies primarily to ship and Several methods of handling unitized the pallets which were stored out- receive their product at their own loads were originally considered. side. Because of these reasons, pal- manufacturing and distribution cen- Some of these included unitizing on letless handling systems are being ters. The slipsheet eliminated the a pallet or palletless with clamp or reevaluated. cost of the pallet exchange systems, slipsheet. The unitized load on a weighed less, and utilized space wooden pallet was adopted as the THE CLAMP more efficiently. Companies like most popular system initially because The clamp is one alternative that has Hunt Wesson adopted carton clamps the wood pallet was low in cost, been adopted by manufacturers and to warehouse their products at the availability of wood was adequate, distributors for handling loads processing plants on the West Coast and it was easy to teach an operator which lend themselves to clamp and transfer their loads by clamp to to handle the product on the wooden operations. Clamps work well with slipsheets for shipment to Midwest pallet. The necessary equipment to uniform loads that have no voids, and East Coast markets. They were handle the product on the wooden have a carton height greater than 8 received at the company owned-and- pallet was also lower in cost. A inches and a operated distribution centers and pallet exchange system was estab- transferred back to pallets initially. This article is adapted from a lished under the direction of the About six years ago, they eliminated presentation made at a transferring the loads back to pallets GMA (Grocery Manufacturers meeting of the Association) to govern the exchange for storage and began warehousing Packaging Institute. directly on slipsheets. Other ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■

1. Line up the platens squarely with the 2. Raise the platens about three inches 3. Tilt the mast forward until the tips of load. above the floor the platens touch the floor.

12 Unitizing & Slipsheeting

4. Drive the truck forward until the platen 5. Extend the pusher plate so that the 6. Retract the pusher plate. The gripper tips are under the slipsheet lip. slipsheet lip fits into the gripper bar will automatically clamp the slip- channel opening sheet lip. companies ship and warehouse their Times are changing. One major ■ added cost of equipment to products similarly, including such receiver, Jewel in Chicago, is handle slipsheet companies as Libby’s, Cal-Pak, requesting suppliers to ship to them ■ driver training required Carnation, Seagrams to name a few. on slipsheets because they want to ■ additional time to transfer The latest major company to make eliminate the problems associated loads back to pallets the switch is General Foods. Other with the exchange pallet on their ■ major processors are now evaluating loading docks. Truck shipments are poor condition of the slipsheet this system or have made the com- common between producer and loads sometimes requires more mitment to make the conversion. their distribution center where the than one person to unload Examples of these companies include distribution center is unloading the the load standard Brands and Lever Brothers. truck trailer rather than the truck These problems can be overcome at Slipsheets have been received at driver. Most major grocery receivers the shipper, receiver and equipment major grocery chain warehouses on have not actively requested unitized suppliers work together. Examples railcar siding for a number of years. slipsheet loads across their docks of the benefits from this cooperation Few truck shipments have been made and some have discouraged these include: because it is the common practice shipments because they did not feel Lower cost of equipment for the truck driver to unload his they will benefit from this system. own vehicle and the cost for Some of their reasons include: ■ Crown outrigger truck with unloading the truck trailer is sideshift push/pull having a included in negotiated tariff rate. capacity of 3,000 pounds lifts up to 60 inches. Cost $15,000.

8. As the weight of the load is transferred to the platens, they will deflect down- ward slightly. Raise the carriage about 7. Move forward slowly as the load is one inch to prevent the platen from 9. Tilt the mast back, and raise the load being pulled onto the platens. digging into the floor. Slowly tilt the three-to-four inches above the floor. mast to a vertical position as you Your are now ready to transport the scoop up the load. load.

13 Unitizing & Slipsheeting

■ Yale ESC modified electric York Chamber of Commerce as well counterbalance truck with as a major slipsheet manufacturer sideshift push/pull, lifts 2,500 have conducted seminars. Cascade pounds up to 60 inches and has participated in these seminars 2,100 pounds to 130 inches to train the key representatives of and can carry pallets. the users of slipsheets, the local lift Cost: $21,000. truck dealer salesmen and slipsheet ■ Clark Walkie with push/pull salesmen in the proper techniques having a capacity of 3,000 of material handling with slipsheets. pounds. Cost: $15,000. Slipsheets, properly used, will bene- ■ New Walkie Push/Pull fit your system and save money in scheduled for release from materials handling. Improperly Cascade September 1979. used, they create frustration and can Cost: $11,000 approximately reduce economical justification. with OEM Walkie. Capacity Cascade has assembled a manual 3,500 pounds. that reviews the benefits of slip- ■ Light-weight push/pull sheet handling, proper driver tech- scheduled for release from niques, how to assemble a load, Cascade August 1979 for speeches and periodicals on the counterbalanced truck and subject, slipsheet suppliers, types outriggers, 3,000 pound of slipsheets, outline for justifying capacity, 500 pounds lighter economically, the slipsheet han- than the present unit and 1 dling system and on-the-job 1/2 inches less lost load to reports. One of these can be fur- increase truck capacity. nished to you. Slipsheet Standards In summary, the slipsheet system Committee can be used by itself or in conjunc- tion with the wooden pallet. You ■ ANSI (American National must make the decision. There is Standards Institute) form of an opportunity to save money in adhoc committee members of palletless handling of your prod- companies and personnel ucts by using slipsheets. The deci- interested in establishing sion is yours. slipsheet standards. ■ API (American Paper Institute) composed of slipsheet manu- facturers representatives to establish volunteer slipsheet standards and a movie on the proper method of handling slipsheet standards. Regional seminars are being pre- sented throughout the nation to Reprinted from the October educate users and to assist them. 1979 issue of Paper Board McDonald’s has recently staged Packaging with permission of coast-to-coast visits with these semi- Joel J. Shulman, Editor, nars. In addition the United Fresh Magazines For Industry, Inc. Fruit and Vegetable Association, New

14 Global Progress

PUSH-PULL’S GLOBAL The concept was introduced in plastic sheets, and the difficulties of ROGRESS Japan ten years ago by the Cascade adapting sheets to warehouse oper- P Corp-oration, a U.S. manufacturer ations, many of which utilize nar- of lift truck attachments. It experi- row aisle reach trucks. Slipsheets are spreading world wide enced little growth until 1978, a as innovative applications appear. Where successful applications are year which brought changes to found, economic justification is Japan’s transportation codes that uring a recent visit to the United often related to shipments of export- D strictly prohibit overloading high- States, members of a Japanese ed goods in containers. For that rea- way vehicles. The reduced payloads physical distribution study team son, major exporters of liquors – caused by the weight and cube of were asked what they called slip- Dewar, Haig, Chivas and Strathleven pallets used for truck shipments, sheets in Japan. Without hesitation Bond – are all slipsheet users. along with the high cost of wooden and with hardly a trace of accent, pallets in Japan, accelerated inter- One of the large shippers using they chorused, “Slipsheets.” The est in the palletless method. sheets is Cadbury at Marlbrook generic terminology as well as the (Herefordshire). To assure good technology appears to have been There are seven key suppliers of space utilization for the company’s successfully exported to the Far East. slipsheets in Japan today. Rento, chocolate products in ISO contain- Mead, and Bunyusha supply solid Invented in the United States 33 ers, pallets had been avoided, and fibre sheets; Fukoka Seishi, corru- years ago, (see H&SM, Oct. ‘78, pg. the cases handpiled into containers. gated sheets; and Nippon Petro 42), the push/pull slipsheet method Chemical, Mitsui Toatsu and Loading a typical container took of unitized handling and shipping is Idemitsu Petro, plastic slipsheets. about six manhours, and that was beginning to spread throughout the costly since half the company’s world. Today slipsheets are used in In addition to Cascade, several annual chocolate production is Europe, South America, and the Far Japanese companies, Toyota, exported in containers. East, to handle goods ranging from Komatsu, Mitsubishi and Nippon chemicals and electrical appliances Yusuki, have joined the ranks of The use of sheets permit fast unit- to food cases, seed , cement push/pull attachment manufactur- ized handling on both shipping and and beer . ers. Sales of slipsheet attachments receiving ends. reportedly have doubled within The reason for the interest in the Not all English applications are a year. method abroad are the same in the related to exports, however. At United States. The sheets offer a rel- The Japanese Physical Distribution English China Clays Sales Co., Ltd., atively inexpensive unit-load base Rationalization Institute, chaired by Cornwall, fifty, 55-pound sacks of that uses little space, weighs only a Sojiro Kamiyama, has actively pro- powdered ball clays are unitized on couple of pounds, and requires no moted slipsheet use through distri- 52" by 47" expendable skidboard repairs – all increasingly important bution of literature, training semi- sheets. The loads are stacked five- economic factors in today’s envi- nars, and study team tours to high in the warehouse, and side- ronment of continuously rising observe applications in the loaded for shipment onto lorries by labor, material, and energy costs. United States. Cascade push/pull attachments. The firm’s promotional literature Japanese companies that have BRITISH APPLICATIONS informs customers that skidboards recently converted to slipsheets for are supplied free, offer many highway transport of goods include In England, slipsheets are more advantages over pallets such as shippers of milk, electrical appli- commonly known as “skidboards” lower cost, easier disposal, greater ances, confectionary products, and “slip pallets.” At least 28 large stack stability with a 20 percent liquors, and canned goods. The shippers use sheets. The relatively saving in space, and finally, can be sheets are used mostly for trans- slow growth compared to the used with or without pallets on the port. Unit-loads are warehoused on United States is attributed to the receiving end. pallets then transferred to slip- scarcity of high quality, low cost sheets for over-the-road haul. paperboard sheets, the high cost of

15 Global Progress

A lift-truck with a push/pull attachment loads an ISO container Three separate U.S. companies manufactured the lift truck, slip- with electrical appliances. Slipsheet shipping is increasing in sheet attachment, and the slipsheet in use at Van Der Ploeg Zaden Japan due to a new law banning highway vehicle overloading. BFA Seed Company in Barrendrecht, Holland. EUROPEAN PRACTICE ment in pallets must be given under each tier in the unit-load. careful consideration.” The sheeted loads are then staged Slipsheet use is also increasing in along a warehouse aisle and a France, Germany, Italy, and Spain. Slipsheets have sometimes been stacker vehicle with a special grip- There are six suppliers of paper- criticized for not being as univer- per-puller device on board, moves board sheets; five suppliers of sally applicable as pallets. However, along the aisle and grips and pulls plastic sheets. industry innovators have found some unique ways to use sheets. one or more tiers of each product Push/pull attachments are available onto a low wheeled “buggy”. in most European countries One such application is the use of The sheets permit transfer of one through Cascade and three other captive sheets in place of captive or more tiers at a time. The method manufacturers; Meyer and Kaup in pallets to facilitate loading. The Van is more functional than suction Germany, Bolzoni in Italy. Der Ploeg Zaden, BFA Seed Company of Barendrecht, Holland, head units which can transfer only Applications in Europe have been is one of several European compa- single tiers at a time. mostly for bagged or sacked goods nies using this approach. Assembled unit-loads of mixed like cement, seeds, and feeds. These products are then delivered to the loads are often handled by conven- Seed bag unit-loads are stacked on staging area and pushed onto the tional forks in conjunction with sheets, three and four high in the outbound route vehicles. “take-it-or-leave-it” type pallets and warehouse. When loaded into trucks, the chisel-under handling method. a special sheet retainer device on the In New York, the popular air cargo This handling avoids immediate push/pull attachment grips and holds pallet of Containair Systems purchase of push/pull attachments. the sheet as the load is pushed off. Corp., has recently become available The sheet is used several times. with heavy duty slipsheets substitut- Use of sheets as an alternative to ed for the pallet bases. The box can pallets is under study at many Due to height and sharp corners, be handled easily by conventional European companies for economic pallets are impractical for this kind forks chiseling under each load. reasons, since, as one observer of operation. noted recently, “the investment At Bahlsen, a large biscuit manu- According to Julius B. Kupersmit, carried in pallets is usually greater facturer at Hanover, Germany, president of Containair, the slipsheet than the investment carried in the paper sheets have been integrated version costs less, reduces tare weight lift trucks themselves, and any way into the order assembly process. 28 pounds for each box, and increas- of reducing this massive invest- Products are unitized with a sheet es the useable volume 12 percent.

16 Global Progress

Paper sheets have been integrated into Another kind of large corrugated the order assembly process at a compa- container with a slipsheet base has ny in Hanover, Germany. Products are been developed and tested by Union unitized with a sheet under each tier in the unit load. Sheeted loads are staged Camp Corp. for produce shipments. along a warehouse aisle and a stacker Even watermelons have been vehicle with a special gripper-puller shipped in the large bins. device on board moves along the aisle and grips and pulls one or more tiers of Flexibility of base dimensions is a each product onto a low wheeled buggy. distinct advantage for slipsheets As assembled unit-loads of mixed prod- over pallets for many users. One ucts are then delivered to the staging shipper observed that “for years we area and pushed onto the out-bound route vehicles. (left) were tied to the 48" x 40" pallet base since it was impractical to maintain separate inventories of ROLLAX TIERING MACHINE several different size pallets. It is a relatively simple matter to change Loads In Rollax Gravity Feed Racks base sizes on slipsheets.” 1. Transfer Device Mounted ▲ Even rapid turnaround methods On Stack Crane Slipsheet Lip have been successfully adapted to slipsheet unloading. Automatic Transfer Table ▼ Truckloading Systems (ATS) of

▼ Easton, PA, exhibited an innovative trailer cable floor system at the 1979 Buggy To Receive National Material Handling Show Load Layers that can unload an entire trailer of slipsheet unit-loads in minutes. (See H&SM, June ‘79, pg. 60) 2. ▼ Such a system is in use at the Hershey Chocolate plant at Hershey, PA., to shuttle loads both within the plant complex and to a warehouse in Mechanicsburg, PA. 3. UNTAPPED POTENTIAL Potential exists for annual savings ▼ exceeding 150 million dollars for common carrier transport of food products on slipsheets, according to John C. Bouma, of the Market Research Division of the USDA. 4. Speaking at a meeting of the Food Distribution Research Society at Portland, Oregon recently, Mr. Bouma based his reasoning on

▼ USDA field studies of comparative costs of shipping methods, and a survey of 129 food warehouse operators that revealed unitized

17 Global Progress

A large corrugated container with a slipsheet base made by Union A slipsheeted, stretch-wrapped load of citric acid is placed on a Camp Corp. has been used to ship produce, including watermelons. pallet with standard forks in an experiment at Pfizer’s Southport, N.C. plant. Cables in decking of trailer move to Staff, contained cost data on a variety transfer slipsheet loads from trailer of grocery product shipments based to receiving dock at the Hershey Chocolate Plant in Hershey, PA. on the observations of field researchers during 1974 and 1975. most grocery loads are pre- Due to delays in data reduction and paid and the carrier does the publication, the report was not un-loading as part of the rate. issued until June, 1978. Slipsheet use Mr. Bouma suggests that the had grown substantially during the first step to implement slip- interim. sheet unitization in common At the time of the USDA study, items carrier trucks be transfer of observed on slipsheets were pre- the unloading allowance now dominantly high bulk low-density unloading of common carrier included in the tariffs from carrier types like cases of cereals or paper trucks is almost non existent. to receiver. products that averaged only 39 Mr. Bouma noted that although cases per unit-load. Pallets were low-cost material handling equip- PALLET VS. SLIPSHEET carrying mostly low bulk, high den- ment exists for unloading pallet Despite the successful integration of sity items like cases of canned loads across truck docks, carriers slipsheets and pallets in many appli- goods, which averaged 68 cases lose revenue due to pallet weight cations, the methods continue to be per unit-load. and cube, which offsets a large part debated by those intent on proving of the potential savings of there must be “one best way.” These fundamental differences in the palletized handling. kinds and quantities of items shipped This was evident in the reactions by each method, coupled with data Slipsheets do not result in such loss following issuance of the USDA summarization in terms of cost-per- of revenue, he noted, but are not in Marketing Research Report No. 1000 cases and 1000 pounds, result- wide use either because suitable 1075, titled “Systems for Handling ed in incorrect interpretations. equipment to handle slipsheet loads Grocery Products from Supplier is seldom found on truck docks. to Distribution Warehouse.” For example, in the data summary concerned with loading rail cars, Furthermore, little incentive exists The report, prepared by the USDA labor, equipment, material, and for the receiver to provide the dock Science and Education dunnage costs, averaged $51.26 equipment as the freight costs for Administration’s Federal Research per car for the palletized loads and

18 Global Progress

A low-cost lift truck is adapted to pull unit-loads on slipsheets from trailers (below) onto Containair’s air cargo pallet box has captive pallets for warehouse recently become available with a heavy- storage (1.) at Nabisco. duty slipsheet base. $36.78 per car for the slipsheet would have been $27.51. loads. The smaller cases on pallets Actually, little can be con- totaled 3,012 cases per car, versus cluded from such data 1,863 cases per car for the bulkier except that the number of cases on slipsheets. cases on pallets and slip- Cost-per-1000 cases therefore cal- sheets was not comparable, culates to $17.01 for pallet ship- and the density of goods ments and $19.74 for slipsheet handled will affect unit-load shipments. This led several trade handling costs, whether pal- publications to announce the USDA lets or sheets are used. report with superficial headlines to The American Paper Institute unit-load weights and case counts the effect that “Government (API), a trade association repre- used in the report. The API subse- research proves superiority of pal- senting most U.S. Sup-pliers of quently decided to pursue the mat- lets over slipsheets.” fiberboard slipsheets, became con- ter directly with shippers and On the other hand, several readers cerned with the adverse publicity potential users of slipsheets. immediately noted that if adjust- about the USDA data (on costs-per- ANSI RECOGNITION ment to the weighting factors were 1000 cases) that failed to explain made to show the same number of the differences in unit-load weights Within the past year, slipsheets have cases per unit-load on slipsheets as or case counts. been recognized for the first time on pallets, the cost-per-1000 cases by the American National Standards Subsequent discussion between the Institute (ANSI). The title of the for slipsheets would drop to Institute and USDA officials resulted $12.21. Conversely, if the pallets ANSI standards committee MH-1 in a USDA letter to the API confirm- that previously considered strictly had been carrying the bulkier ing the significant differences in the cases, their cost-per-1000 cases pallets as a means of unitization,

19 Global Progress has been changed to “MH-1, loads received in trailers, onto pal- Standardization of Pallets, slip- lets for storage. sheets, and Other Bases for Unit- Generally needed is a low cost Loads.” An ANSI MH-1 subcommit- dock truck to extract slipsheet tee is drafting a proposed slipsheet loads from trailers as efficiently as standard that will provide standard low cost pallet jacks and trucks definition and basic specifications remove pallets. Several companies for industry wide use. market low lift pallet trucks with In anticipation of continued expan- slipsheet attachments, but cost is sion of the slipsheet method abroad about $15,000 each. At least two and for international containerized manufacturers are working on the shipments, attendees of the TC-51 equivalent of a pallet jack for slip- committee of the International sheets that will sell for about Standards Organization (ISO) in $5,000 each, but are not yet ready. London, England, in January 1979, So, as new equipment continues to were posted on progress in the appear, and innovative ways to development of an ANSI slipsheet employ slipsheets are found, there standard and the possibility of it appears to be little doubt that the becoming an ISO standard. slipsheet method has gained a Although the rationalization of slip- strong foothold. The method will sheets as a unitized method is well continue to grow and contribute to underway, the issue of pallets ver- economical handling and shipping sus sheets continues because the goods and materials throughout sheets have emerged only recently the world. as a viable alternative and are still in the adaptive stage. Many shippers already know that sheets can complement pallets in a unitized system, with pallets used in storage and slipsheets in transit. This is particularly the case where unit-loads are stored in racks which require a rigid base. Slipsheets either ride with the loads on pallets through the storage rack system, or the unit-loads may be transferred from the pallets onto sheets at the shipping docks. The needs for new and improved material handling equipment to provide cost effective interface of the two methods at shipping docks continues. In the absence of com- mercially manufactured equipment Reprinted from the December to do the job, one shipper, Nabisco, 1979 issue of Handling & developed its own equipment to Shipping Management transfer inbound slipsheet unit- Magazine H.G. Becker, Jr., Editor.

20 The Pallet's Successor?

SLIPSHEETS: find ways for disposal. Disposal, in Other advantages include: The ship- THE ALLET S fact, may be the foremost problem per normally gets back a pallet in P ’ with pallets. There have even been worse shape than the one he SUCCESSOR? pallet pools (exchange programs) shipped; wooden pallets require established, but with limited success. repair, while paperboard slipsheets Kansas City – Will the slipsheet Just recently, a member of Grocery are easily disposable; there is a eventually replace the wooden pal- possibility of hardwood shortages, let in the fresh produce industry? It Pallet Council (GPC) spoke at a meeting and said unless the pallet but not with slipsheet materials; may be too early for an accurate fifty paperboard slipsheets can be prediction, but with uncertainties pool is turned around in the next two years, the GPC will be out of placed in the same area as one pal- over future wood availability, esca- let; 10 percent more space is lating lumber costs and the prob- business. Not only have problems existed at the mill level where some obtained in rail cars with slip- lems of what to do with large, cum- sheets; slipsheets are safer without bersome wooden pallets once they poor quality pallets are being pro- duced, but the return program for splinters and nails, and no return is reach their receiver, it is little won- required with fiberboard slipsheets. der other alternatives to this dilem- pallets has been a miserable failure ma are being considered. in many instances. While the advantages of plastic sheets are similar to the advantages When it comes to produce han- Shippers commonly talk about shipping their fresh produce east- of paperboard sheets over wooden dling, slipsheets have been creating pallets, there are a couple of differ- interest within the fresh fruit and ward on top-notch wooden pallets, only to have pallets returned dam- ences. In produce shipments vegetable industry. Slipsheets are where top icing in general is not new. While fiberboard slip- aged and in such poor condition they have to be thrown away. This involved, paperboard slipsheets sheets have been in production have been known to tear, a prob- about 25 years, plastic slipsheets is where slipsheets come in – they are easy to dispose of. lem which does not affect plastic have been around less than a slipsheets. And at least one manu- decade. But slipsheets in general While shippers are showing interest facturer of plastic slipsheets offer a are relatively new to the produce in slipsheets, they also must look at 40 percent return on every dollar industry, although they are com- the advantages and disadvantages to its customers who return their monplace in grocery shipments. of the plastic slipsheet – versus purchased slipsheets. paperboard, fiberboard and corru- Just about anywhere one looks Plastic slipsheets in 1976 normally today, slipsheets, if not being used, gated slipsheets. But first, the pros and cons of slipsheets in general ranged from $1 to $3, depending are at least being considered. While on size, thickness and entry. the problem in produce shipments versus the wooden pallet are more pronounced. Depending on size, a softwood dis- has often centered on a standard- posable pallet cost $2.50 to $4. ized wooden pallet, some produce Speaking at a transportation meeting last fall, Gordon Bard, head of the shippers are wondering whether PALLET PROBLEMS they should use wooden pallets at Productivity Committee of the all. American Frozen Food Institute’s One example of the produce indus- Physical Distribution Council, point- try’s interest in slipsheets is in For example, there are the one-way California. Roger Rij, Agricultural 35"x 42" softwood pallets used by ed out the advantages of paperboard slipsheets over wooden pallets. Research Service, U.S. Department the grape and tree fruit shippers in of Agriculture, Fresno, has been California. Overall in the produce COST COMPARISONS researching slipsheets for the industry, there is greater use of the California Tree Fruit Agreement, a 40"x 48" hardwood pallets. These While hardwood pallets cost any- study stemming from grower inter- particular shippers may like the where from $4 to $13 per pallet in est. Shippers of plums, nectarines, wooden pallets, but this is not nec- 1976, paper board slipsheets aver- peaches and other tree fruit here essarily the case with receivers in aged only 37 cents to $2.50 apiece. have been unitizing their shipments the Midwest and East who have to But this is just the beginning. on 35"x 42" one-way softwood dis-

21 The Pallet's Successor?

The Extender of this push/pull attach- ment is shown extended to the end of the platens. The gripper jaw, at the end of the attachment, is open and ready to clamp onto a slipsheet. (Photo courtesy of Cascade Corp.) Phil Hale of the USDA’s Agricultural Research Service in Orlando, Fla., said corrugated slipsheets have been in commercial use by citrus packing houses in the “Sunshine State” for four or five years now. These slip- sheets are even being used success- fully in many export shipments. But strategic produce growing states such as California and Florida are not the only areas where slipsheets have made inroads. Shippers of potatoes in Oregon, Idaho, Washington and Wisconsin are turn- posable pallets. But whether these goes (slipsheets or wooden pal- ing more to the method. shipments are directed to terminal lets); we just want the best markets, or chain store operations, method,” Rij said. SPUDS ON SLIPSHEETS receivers are still faced with dispos- One advantage of slipsheets cited In December 1975, Jay Arend of al problems. Rij said these pallets by the researcher is that by using Central Sands Produce, Inc., have to be broken down into small- the product on a truckload of tree Bancroft, Wis., started using 350- er pieces for disposal and even fruit, a shipper can load up to 600 pound corrugated slipsheets. Arend then they “can’t even get the more pounds of fruit than if he began using the produce after he garbage disposal companies to get were using wooden pallets. But had observed their use in other rid of them.” He noted California before he gives a final stamp of areas. The potato packer-shipper shippers would use the hardwood approval on slipsheets, Rij has a lot said the “cost of products (pallets) two-way pallets, but they don’t like more testing to conduct. was getting outrageous.” Arend still the idea of shipping out good pal- uses wooden pallets, but only on an lets and “getting junky ones back.” He said there “are things we do not know yet. How does it (slipsheets) in-house basis. “In our case and One move that has helped in this affect air distribution and cooling? with any shipper, you have a grave- area is the free pallet program, We want to get down to the real yard of broken pallets,” Arend Says. which the Santa Fe Railroad initiat- nitty gritty,” Rij said. “We want to “My feeling is this (slipsheets) is the ed in the fall of 1976. For every five compare the ease of handling, way for the produce industry to go.” car-lots of produce shipped east, quality and cost in our research.” Arend said wooden pallets were one carlot of pallets will be alright to use on short hauls if an returned. Shippers are not charged The project included two shippers last summer who cooperated in the exchange program is available, but for the transportation of the pallets the extra weight of the pallets on the in either direction. tests and Rij said about four more shippers have shown an interest in load, plus extra use of fuel are still Although Rij is still in the middle of participating in the study next sum- negative factors to be considered. the study, he seems to be impressed mer. One of the main problems in The shipper said he feels some of with slipsheets. However, at the conducting the experiment has been his peers haven’t realized as yet same time, he stresses the USDA is finding receivers with the proper their advantages in using slipsheets, conducting an impartial study. “The equipment to handle the slipsheets. but he noted that at least three or USDA does not care which way it

22 The Pallet's Successor? four other shippers in the area have However, there is one alternative to At BQP, a recycling program is taken this direction. the costly lift trucks. Clark Equip- available on plastic slipsheets. The Arend saves from $120 to $140 a ment has recently placed on the company pays 40 percent of the semi-trailer load with slipsheets. He market a “Walk/Ride Pul-Pac,” original cost of the slipsheet when can load 4,000 unitized 10-pound possible better known as a returned by a customer. Upon bags of potatoes on 20 slipsheets. If “walkie.” While a lift truck in 1976 return, the product is run through a customer had to have these same with the special slipsheet attach- a grinding machine, and potatoes in 8,000 master contain- ment cost $22,000 to $24,000, a reprocessed with a certain amount ers, costing 16 cents apiece, it walkie only cost about $13,000, of virgin resin added. would cost $128 more. Arend also including the push/pull attachment. maintains receivers like the idea of The operator can ride this walkie, quick unloads. Instead of manual or operate it as a walkie unit. unloads taking two hours, unitized Still, the old adage of “you pay for unloads of potatoes on slipsheets what you get” applies here. The only take 15 minutes. The shipper walkie cannot stack loads, which said his palletized loads of potatoes would limit its usefulness in a ware- normally are shipped in 110-, 115-, house. However, the walkie can be and 120-pound packs. useful moving palletized loads in or BQP Industries, Inc., Denver, Colo., out of trailers and rail cars. has been manufacturing plastic This particular walkie has a 3,000- slipsheets for eight years and a pound rated capacity, operates spokes-man said the company is from a 24-volt battery and has a the oldest and largest manufacturer three-speed control, traveling up to of this product. He noted the food six miles per hour, while unloaded. and beverage industries are the But there are other problems in largest users of plastic slipsheets using slipsheets besides just the and one major beer producer cost of special equipment. alone has two and one-half million Apparently most receivers, at least sheets in its system. in the produce sections of ware- While the use of slipsheets in gen- houses, do not have this equip- eral within the produce industry ment. Proponents of slipsheets say has a lot of growth potential, the the cost savings of the produce grocery industry is much more alone as compared to the wooden familiar with this alternative to pallet, will allow receivers to buy wooden pallets. One of the main special equipment. However, this problems, however, is the special claim has not been readily accept- equipment required to handle slip- ed. Another problem involves the sheets. Fork lifts require a labor unions. “push/pull” attachment to move In some areas of the nation, labor Reprinted from the Sept. 30 these slipsheet-based loads. Cost of unions are much stronger than in 1978 issue of The Packer with these special devices in 1976, not other areas. While some produce permission of W.E. Coon Vice including fork lift (lift truck), warehouses are able to borrow lift President and Publisher. ranged from $5,700 to $8,500, trucks with push/pull attachments, according to officials at Clark others, where there is union resist- A Special Section of Equipment Company, Battle Creek, ance, are not allowed to cross over Transportation & Distribution, Mich., who build lift trucks as well into another department to borrow Edited by Thomas J. Andel, as the slipsheet attachments. this equipment. associate editor.

23 Packagers Ready?

ARE PACKAGERS READY What happened to the pallet? First, In addition, packagers, with the FOR LIPSHEETS there’s the constantly rising cost. help of freight carriers, organized S ? Sixteen years ago a 48" x 40" four- pallet pools that provided a way of way hardwood pallet cost perhaps returning pallets to a shipper on a If current efforts to replace wood $3. Today it runs near $8. Then, one-for-one basis. One of the pallets with slipsheets prove suc- there are the periodic materials widest and most active of these was cessful, industrial packagers may shortages due to the tremendous organized by the Grocery have to reconsider their standards demand for lumber by this industry. Manufacturers Association (GMA), on load limits and operating costs. By one estimate, .6% of all lumber which also set standards for pallet By Alan Serchuk, produced in the US goes into pallet quality. Unfortunately, the pools did managing editor manufacture. Looking at hardwoods not function as originally planned, Industrial packaging may be on the alone, 50% to 55% goes into pal- and it was their failure that most verge of a new era—one in which the lets, and by 1982, the estimate is observers blame for the current tried and true pallet gives way to a for between 75% and 90%. shift to slipsheets. 30-year old newcomer: the slipsheet, Another area of concern: the rising For their part, shipsheets have not or, as some call it, the pull pack. cost of moving freight. With pallets been met with total enthusiasm by For years, the pallet formed the weighing up to 75 lbs. each, the packagers. The early history of these base of unit-load shipments. Some cost of shipping them can be signif- load unitizers included considerable go as far as to credit the pallet with icant. For example, on a truckload failure. The sheets just didn’t hold the current state of efficiency of the of 40 palletized loads, payload is up to the demands of carrying per- nation’s physical distribution sys- reduced by 3,000 lbs; for a railcar haps a ton of merchandise. tem. But, for all of its virtues—and shipment of 56 palletized loads the Even now, slipsheets must be care- there are many—and its almost payload loss comes to 5,000 lbs. In fully selected for the application. ubiquitous use, the pallet may final- addition, there’s a cube loss of Being paper products, corrugated ly be falling victim to a combination 10% to 12%. styles, for instance, don’t stand up of circumstances and ailments But, these problems aren’t new. well to cooler temperatures com- brought about by those depending Pallet users have had to deal with mon to produce storage and ship- on it most—the shippers them- rising costs, sanitation, materials ment—the flaps tear off easily selves. In its place, more and more shortages and a host of other when they get wet. In fact, the high volume shippers, such as Jewel headaches over the years. They’ve United Fresh Fruit and Vegetable Foods and General Foods, are developed lightweight wood pallets Growers Association advises ship- adopting specially constructed and as well as plastic and corrugated pers to use 100% virgin kraft fibre treated sheets of corrugated and versions. Suppliers even designed board sheet. Such sheets, especially solid fiber board and plastic to form legs that can be strapped to a load when coated with a or the base for their unitized loads. in place of a pallet. other moisture barrier, have been

24 Packagers Ready?

tested for extended periods in tem- CALIPER (pt)5060 7080 a set of wide forks. The full range peratures as low as –20F. MD 340 414 468 511 of pallet-handling equipment can Completely submerged in water for CD 148 198 216 221 be had in slipsheet versions, with 24 hours they pick up only 4% fully equipped lift trucks selling for moisture and that has little effect Matters are somewhat different $30,000. A stand-up truck with a on flap strength. Where shippers when considering plastic slip- 2,500-lb capacity costs about insist on corrugated, many pro- sheets. These 30- to 70-mil thick $21,000; and 3,000-lb rated outrig- duce organizations suggest using sheets presumably resist dents and gers and walkies go for $15,000. double slipsheets. puncture that could destroy corru- For stations already equipped for Slipsheet suppliers unanimously gated or solid fibre units. pallet handling, push/pull attach- acknowledge early problems with The biggest drawback to plastic is ments are available at considerably moisture and lip failure, but note price, which is about $2. That lower cost. For example, estimates quickly that technology has improved compares with 50¢ for corrugated for converting a fork lift truck run in recent years to overcome most of and 70¢ for solid fibre. However, from $5,000 to $8,000. Just con- them. methods have plastic sheets are reusable and verting the normal forks to the 15", improved, lips can be reinforced for recyclable. One major cosmetics wide highly polished and case added strength, and surfaces can be user can get 15 to 25 trips for a hardened chisel-tipped slipsheet coated to resist shipping and storage sheet: three trips is considered forks runs near $600. environments. Further, plastic sheets break-even. (Most plastic slip- A word of caution, though, when are also available, which suppliers sheets are used in tightly controlled converting this equipment. The claim can carry any load that a pallet distribution systems so that the push/pull attachment sits astride can carry. shipper maintains control over the lift forks, effectively reducing Industry performance standards do them.) And, to increase the sheets’ their length. But more importantly, not yet exist. However, the competitive standing, at least one lift trucks must be derated to com- American Paper Institute and the supplier allows a 25¢/lb rebate on pensate for the attachment’s American National Standards plastic slipsheets turned in for weight—a normally rated 4,000 lb Institute are both working on them recycling. So far, though, plastic truck might be derated to 2,900 lb, and expect to have proposals ready represents a fairly small part of the 3,780 lb for a 5,000 lb rated unit. soon. Until then, prospective users total slipsheet market. (Equipment manufacturers have will have to continue working with full details.) As a practical matter, EQUIPMENT: derating could prevent a piece of suppliers to develop their own per- A MAJOR OBSTACLE formance requirements. equipment’s being used to move The relative merits of one type of double tiered loads. Suppliers explain that so many vari- slipsheet over another may be ables must be considered in Yet another cost comes with this type debatable-able. But, there’s little of equipment. All sources emphasize describing slipsheet perform- question that the high cost of equip- ance—materials and manufacture, the need for special operator train- ment is probably the largest obsta- ing to make slipsheet systems work. types of load, environment, amount cle to wider implementation of slip- of handling, and equipment design Special techniques have been devel- sheet systems of any type. Consider oped for pulling slipsheeted loads are the major factors listed—that that all stations in a physical distri- the only realistic way to design a onto lift forks, chiseling under loads, bution system now own pallet-han- picking off and depositing upper-tier slipsheet system is the empirical dling equipment. To adopt slip- “cut-and-try” technique. loads, and maneuvering in railcars sheets requires an investment of and truck trailers. Still, most suppliers have enough $5,000 or more for a simple piece data on their products to provide a of gear. MAKE YOUR OWN PLANS starting point. For example, one The basic device is a push/pull unit The best and most consistent advice lists tensile strengths for four that grips the lip of the slipsheet that packagers who have switched weights of solid fibre board as: and pulls the load onto a platen or to slipsheets can offer those consid-

25 Packagers Ready? ering the conversion is to study ing areas, slipsheeted loads are their own distribution system in stored on pallets to keep them off detail, including incoming ship- the floor. ments and those receiving their Further, certain heavy loads that loads. Those experienced are of one might damage the paper units, or voice in emphasizing that each sys- loads with high moisture content, tem is different, so what works in may have to continue riding on one place may not apply to another. wood. Pallets will also be used in Among the major justifications for distribution systems where conver- slipsheet use have been: sion isn’t cost effective. ■ Low unit cost—between 40¢ In short, the slipsheet is here to and $2, depending on the stay, but it will have to share the type and design. nation’s physical distribution chan- ■ Lightweight—about 3 lbs vs nels with the wood pallet for a long perhaps 75 lbs for wood. time to come. ■ Smaller size permits perhaps 10% to 12% more cube in freight carriers. Being thinner and lighter, some 12,000 slip- sheets can be shipped in the same truck trailer that carries only 430 pallets. ■ Slipsheets aren’t considered as dangerous a fire hazard as wood pallets and may be stored indoors where they can be protected and kept clean. They eliminate the expense of repair crews and other main- tenance chores long a part of wood pallet use. Negatives exist also. Cost of equip- ment has been cited as the number one obstacle to wider slipsheet use. The shipper must be equipped to move slipsheeted loads onto rail- cars and truck trailers. Truck driv- ers often unload their own trailers onto receiving docks, so they must A Special Section of be trained in the new methods and Transportation & Distribution, equipment. And, of course, the Edited by Thomas J. Andel, receiver must be equipped to deal associate editor. with slipsheets. Reprinted with permission of Will slipsheets ever replace pallets? Modern Packaging, a That depends largely on who’s talk- publication of Morgan-Grampian ing. In many shipping and receiv- Publishing Co., April, 1979 issue.

26 Packagers Ready?

ARE SLIPSHEETS FOR YOU? Deciding the relative merits of pallet and slipsheet systems requires a detailed analysis of the costs associated with each, as they would apply to a given company’s needs. Cascade Corporation, which produces equipment for each system, sug- gests the following points be included in such a study.

PALLETS SLIPSHEETS 1. Number of units shipped. 1. Number of loads. 2. Cost per pallet. 2. Cost of slipsheets. 3. Average pallet life. 3. Cost of slipsheet dispenser. 4. Number of pallets owned. 4. Slipsheet dispenser average life. 5. Cost of money in percent. 5. Number of slipsheet dispenser 6. Average weight of outbound units required. freight. 6. Cost of push/pull equipment. 7. Weight of pallets. 7. Load push/pull average life. 8. Cost of pallet return freight. 8. Number of load push/pull 9. Total pallet repair cost annually. units required. 10. Time required to store and 9. Time to store and remove load remove loads from storage. from storage. 11. Time required to stage and 10. Time to stage and load. load with pallets. 11. Labor rate. 12. Labor rates. 12. Cost of captive pallet. 13. Time to unload and return 13. Number of captive pallets. pallets, inspect, sort, and 14. Average life of captive pallets. administrate. 15. Repair of captive pallets. 14. Fire insurance for pallets. 16. Storage space required. 15. Pallet shortages due to float. 16. Space occupied by pallet, versus that used for product. 17. Damage caused by pallets— broken deck boards, over or under hand of product, nails, etc. 18. Sanitation: The FDA inspects pallets for rodent leavings with black lights. 19. Pallets returned inferior to those shipped. 20. Storage space required. 21. Potential future shortage of pallets and increasing costs. 22. Safety.

27 A Case For Slipsheets

MAKING A CASE loads,” says Sam OR LIPSHEETS Caufield, section manag- F S er with Procter & Gamble and member of They’ve been the Rodney the Pallet Subcommittee. Dangerfield of the Grocery “In thinking of alterna- Industry for years. However, new tives to the GMA pallet, developments may win new slipsheets were never respect for slipsheet technology. taken very seriously. No By Tom Andel, matter how you cut it, all associate editor product ends up on a pallet in a rack, regard- hat’s 48 x 40 inches, has nine less of how we handle it internally. Apple Computer's requirement that W overseas trading partners ship to them legs, weighs 30 pounds, is flat on We take on the system the cus- on slipsheets cut container unloading top, protects whatever is placed on tomer uses. The common denomi- time from seven man hours per it from damage, is reusable and nator for the grocery distributor is container to 45 minutes, using lift recyclable, and costs only $3? the pallet.” trucks with push/pull attachments. Nothing – yet. Grocery shippers taking issue with Eighteen years ago, Coors shipped Such a shipping platform is the this opinion formed a users group its beer on wooden pallets. They Holy Grail of shippers in many to continue a dialog about slip- had a pallet exchange program, but industries, particularly grocery sheets with their customers. This the more good pallets they shipped manufacturers. In fact the Grocery ad hoc committee includes repre- out, the more damaged, low quality Manufacturers of America (GMA), sentatives from General Mills, replacements they got back. Next the National American Wholesale Coors, Ralston-Purina, Nestle, they tried paper slipsheets, but Grocers’ Association (NAWGA), and Quaker Oats, Lipton, Pillsbury, moisture quickly made them unus- the Food Marketing Institute spon- Kelloggs, Kimberly-Clark, and able. Then they experimented with sored studies analyzing various pal- Hunt-Wesson. plastic extrusions and started using let makes and designs, looking for “Some in the food industry would a plastic copy of the paper slipsheet the best one. like to see slipsheets go away,” says they had used. That worked until This search has received a lot of Ben Janson, vice president and Coors started making their cans press recently, but a small group of director of logistics/customer serv- from lighter, thinner aluminum. shippers feels the committee is ice for the Grocery Products Group “As we lightweighted our cans overlooking an old but proven plat- of Ralston-Purina. more and more, the weak point in form – slipsheets. “We’re not trying to force slipsheets the chain became the slipsheet,” Over the past decade, slipsheets down everybody’s throat,” he adds, says Bill Longaker, business devel- have been relegated to a narrow “we just don’t want to see restric- opment manager for Golden niche in the food industry – unitiza- tions until some satisfactory alterna- Technologies, a Coors subsidiary. tion of mostly lightweight, bulky tives emerge. So far they haven’t.” “We discovered as we shipped our loads during long haul transport. cans down the road, the first tier Horror stories about stacking dam- PLASTIC DESIGNS would collapse. We learned we age and the cost of the push/ pull Companies in the slipsheet users needed more cushioning.” equipment needed to handle slip- group are working on ways to Their next alternative was a sheeted loads kept this medium’s overcome the problems associated slipsheet. This growth in check. with slipsheets. Coors, for exam- provided a modicum of shock “The pallet committee estimates ple, used itself as a guinea pig absorption, so they used this design that 15% of grocery distributors are when it started experimenting with from 1986 to 1988. prepared to take slipsheeted plastic slipsheets. Further experimentation yielded the

28 A Case For Slipsheets design they use today – a vacuum- back every slipsheet his company “If you’re going to have to put a formed slipsheet with small spheri- manufacturers, at a price he says is unit load on a slave pallet, why not cal dimples arranged in a close pat- good for both the user and GTC. put a slipsheeted load on it and tern across the sheet. Longaker save 6 inches of stacking height?” ROI REQUIRES EDUCATION says this design provides more Even the most ardent slipsheet pro- cushioning than the corrugated Slipsheet critics say return on invest- ponents admit that much work needs design did. The design proved so ment gets stifled by the expensive to be done to make slipsheets a successful, Golden Technologies equipment necessary to handle slip- more attractive unitizing alternative. was formed in 1989 to market the sheets. There are also sticky side design outside the company. They issues. Who should operate the “The material handling industry has didn’t find a wide audience. equipment – the carrier or the receiv- to come up with an economical way er? Who’s responsible for damages to unload slipsheets,” says Bill “Not everyone needs a platform that Shrack, manager of field distribu- can carry 3,000 pounds,” says caused by improper operation? What if the carrier is left waiting while slip- tion for General Mills. “The cost of Longaker. “We move 3.5 million a big lift truck with an attachment loads that size every year. The sheet handling equipment is tied up elsewhere at the receiver’s dock? has been an impediment. One alter- design was overkill for many. If they native could be a walkie stacker didn’t recover the slipsheet, they’d The Clorox Company overcame that grips and slides under slip- lose money.” these stumbling blocks by doing a sheets. So far, the industry hasn’t Golden Technologies developed a little research and taking the time to put the resources into this technolo- lighter-weight, 20-30 mil slipsheet train its people in slipsheet han- gy. Technically it shouldn’t be hard.” made of polyethylene instead of the dling. Clorox moves over a mil- previous . Longaker lion unit loads a year on slip- ...... says the new design provides a sheets. Sixty percent of those ...... slipsheets are plastic. Clorox ...... better return on investment. To add ...... to its cost-effectiveness and live up engineer Bill Short attributes ...... slipsheets’ image problems to a ...... to environmental concerns, ...... lack of user education...... Longaker says his company will buy ...... “We found that properly trained ...... lift truck drivers can handle ...... INTEGRATED ...... slipsheets with the same speed ...... PACKAGING SYSTEMS ...... they handle wooden pallets,” ...... Slipsheets play an important role he says. “In our tests we’ve ......

. .

in an integrated packaging sys- .

.

.

.

.

.

found that with hydraulically ......

tem. Consultant Charles W. adjustable platens you could ...... Ebeling includes a chapter on ...... pick up a slipsheeted load, take ...... “Unitized Shipping on Slipsheets” . . . . it off a truck, then put it on a . . . .

. .

. .

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in his book Integrated Packaging .

. .

.

pallet. You can then use the .

.

......

. .

. .

.

Systems- for Transportation and .

. .

. .

.

same truck to pick up that pal- . . .

. .

. . . .

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. . . . Distribution. Other chapters letized load and do what you . cover clamps, bulk container want with it. The time differen- transport, and case histories in tial (between slipsheet and pallet Golden Technologies’ vacuum-formed various industries. plastic slipsheet features closely-spaced handling) is not significant.” spherical dimples which provide extra The book is available for $89.75 Short believes there’s a trend in the load cushioning during transport. in the U.S. and Canada, & grocery industry toward high-rise The costs of converting to slip- $107.50 in all other countries. warehouses using slave pallets in sheets vary, but ballpark figures Contact: Marcel Dekker, Inc., their racking systems. He sees slip- include $20,000 for adapting a pal- 270 Madison Ave., New York, NY sheets as playing a logical role in letizer to slipsheets and $7,000 to 10016, (212) 696-9000 that trend. $10,000 for converting lift trucks.

29 A Case For Slipsheets

Golden Technologies’ Bill Lonaker sheets,” says Nigel Johnson, U.S. grocery industry did – to reduce is working on a more attractive logistics manager for Apple. “Now logistics costs.” conversion option. we receive slipsheeted loads right In the next edition of IW &D, we’ll “We’re involved in developing a from our overseas suppliers.” After look at trends in pallet design and hand-operated slipsheet handling their first year of using slipsheets, handling. As this edition goes to device, “ he says. “By next year we’ll Apple cut its freight costs 20%, press, the food industry’s Pallet have a more affordable means of translating to an annual savings of Subcommittee is looking at some handling slipsheets. The cost would $1 million. They also reduced labor new pallet prototypes. We’ll tell you be roughly the same as it would be by 75%, saving an annual $500,000. whether the industry is any closer to convert a lift truck. Plus, you A 78% reduction in pallet costs to finding its Holy Grail. won’t need certified operators.” brought another $500,000 savings. Now in their third year using slip- NEW APPLICATIONS sheets, Apple estimates 1991 sav- Slipsheets have gained proponents ings to be between $3.5 million to in non-grocery applications in $4 million. recent years. Merchandisers are Using computer programs, Apple asking their suppliers to slipsheet evaluated the size of the carton they products ranging from small light- used and established the ideal unit ing fixtures to cement. Ed O’Mara, load to improve cube utilization. product manager for Union Camp, The pallets they purchased over- a slipsheet manufacturer, sees great seas took about 5% to 10% more GROCERY DISTRIBUTION potential for slipsheets in third- space and cost from $25 to $30 September/October 1991 Issue world countries. each. Also, by switching to slip- Productivity in Pallet sheets Apple cut the time it took to “This is new technology to them,” Management. “Chain details unload ocean freight containers he says. “With the acceleration of experience with national from six man-hours down to 30 containerized freight through this pallet pool program.” minutes – a key benefit, consider- decade, the slipsheet lends itself Page 22 very nicely to loading and unload- ing the trend toward rising labor “With pallet manufacturing con- ing. They can just put the slipsheet costs in Pacific Rim countries. stituting the second largest use on the floor of the vehicle and man- In the U.S., Apple selected carriers of sawn lumber in the U.S., the ually build the loads using inexpen- in various regions that could han- potential for savings in lumber sive labor. Slipsheets don’t take up dle their products in full unit loads, is enormous. space or add weight, so they have using lift trucks equipped with no impact on freight costs.” push/ pull attachments. This allevi- In 1988, seven million board feet of lumber were used in Four years ago, Apple Computer ates the damage caused by individ- constructing white pallets. watched what was happening with ual-case handling. Studies indicate that as much slipsheets in the grocery industry “Our competitors are asking us to as 2/3 of the lumber used and adapted it to their overseas share our successes with them, and making these pallets is now, a operations. They also watched what they are looking at going to slip- year and a half later, clogging Panasonic was doing with their sheets,” says Johnson. “At one time landfills nationwide.” slipsheeted shipments to the U.S. when the profit margins were there Apple combined these lessons and for our products, cost wasn’t as came up with a system in which much of an issue. Now competition they not only ship on slipsheets, but is up and margins are down and A Special Section of receive on them as well. logistics is getting attention in the Transportation & Distribution, “We went back to the Far East and electronics industry. We went to Edited by Thomas J. Andel, trained our suppliers to use slip- slipsheets for the same reasons the associate editor.

30 Save Air Freight Cost

SLIPSHEETS SAVE WEIGHT ance to the four-engine Lockheed critical to the economic utilization OST N HE IR C5 Galaxy. How-ever, its maximum of costly cargo aircraft – and the & C I T A takeoff weight of 1,322,770 pounds AN225 is reportedly priced at over As much as 51 pounds of excess is significantly higher than the $200 million. Unitized handling is weight flies with nearly every air 840,000 pounds of the C5. mandatory for fast loading and un- freight shipment in the form of a The fuselage of the AN225, like the loading. But because of its weight wooden pallet. Slipsheets have C5, is hydraulically lowered to and bulk, the pallet seems incon- proven themselves on the sea and facilitate loading. Its nose cone is gruous to air freight transport. now take to the air. rotated upward over the flight deck One company which recognized By C.W. Ebeling and a ramp is extended to the this is Micropolis Corp. A manufac- ground for lift truck and other turer of high capacity computer In February 1991, the largest air vehicle traffic. disk drives and data storage sys- cargo plane in the world, the For the Chernobyl mission, lift tems, Micropolis ships 95% of its Russian Antonov AN225 Mriya, land- trucks carried stretch-wrapped, products internationally by air. It ed at Bradley Field in Hartford, CT, palletized unit loads into on its first visit to the U.S. It was the cargo bay and stacked there to pick up 250 tons of medical them three high, five rows supplies and equipment destined for across. The interior of the the victims of the Chernobyl nuclear cargo aircraft holds the plant disaster. Though loaded to its equivalent of 16 40' ISO full 250-ton capacity, it could have ocean containers – or up carried approximately 10% more to 672 standard pallet- medical supplies. loads. With each pallet In addition to medical supplies, the averaging 75 pounds, the Mriya carried approximately 25 tare weight of that many tons of wood in the form of 672 pallets accounts for standard 48" x 40" pallets. approximately 10% of the Elimination of the pallet base allowed Micropolis to add a fourth tier of The AN225 is like a flying ware- plane’s 250-ton payload capacity product to air shipments. house. Built in the Ukraine, it is and occupy 10% of the available cargo bay space. maintains a manufacturing site in 276 feet long and has a wingspan Singapore and distribution loca- of 290 feet. Powered by three giant RATIONALIZING UNIT LOADS tions throughout the U.S. and turbofan engines underslung on Europe. Air freight is justifiable each side, it is similar in appear- Turnaround time on the ground is because it reduces inventory levels on high-value products while pro- viding more flexibility in meeting customer demands. While it could take three to four weeks to move an ocean container of product from Singapore to the U.S., customers are looking for fast response to orders and just-in-time deliveries. Air freight shipments

The Antonov 225, with its 250-ton cargo capacity, is like a flying warehouse. It offers a good example of the potential savings when slipsheets replace pallets in air freight – a weight and volume reduction of approximately 10%

31 Save Air Freight Cost from Singapore can actually arrive Apple had converted its foreign the same day in the U.S. because of suppliers to slipsheets and had the the international date line. THE FUTURE FOR SLIP- method fully implemented by SHEETS IN AIR TRANSPORT 1990. Annual savings had topped $3 million. The use of slipsheets for inter- national air cargo shipments The slipsheet unitization method can be expected to multiply made sense for international rapidly now that the practicality shipments in ocean containers, of adapting them to air freight and it seemed it would provide systems has been demonstrated even more benefit in air freight. by Micro-polis and now that air The slipsheets weigh four forwarders are installing pounds and so add very little to push/pull attachments on their the gross weight of a shipment. lift trucks. Freight shippers They also occupy a negligible who ship on large cargo planes Micropolis unitizes loads on slipsheets at such as the Antonov 225 and its Singapore plant and places the load amount of space under unit loads. on a pallet for the trip to the airport. In addition, slipsheets cost far less the C5 Galaxy that carry mostly When it arrives in Los Angeles, it is again than a pallet and are easier to dis- military supplies, or those who placed on a pallet for handling ease. pose of on the receiving end. ship in plane-load quantity may Micropolis’ existing shipping also find that the slipsheet alter- method called for product to be Raridan identified a few concerns native can be adapted to unitized three tiers high on wooden connected with the integration of improve payloads and reduce pallets and then overwrapped with slipsheets into an air freight system: shipping costs for their unitized stretch film. The freight forwarder ■ Lift trucks at Micropolis’ freight shipments. at the airport transferred the pal- shipping and letized loads onto LD7 or M1 air receiving loca- cargo container shipping bases for tions – as well loading in widebody jets. as those operat- The typical net payload of products ed by freight for- in each unitload was 932 pounds – warders at the to which the tare weight of the pal- airports – would let added another 55 pounds. have to be Clearances within the cargo bays equipped with kept pallet tiers three high. push/pull hand- ling attachments. Slipsheeted loads are placed on LD7 ■ SLIPSHEET ALTERNATIVE Lift truck operators would re- air freight bases for air shipment and This began to change after Bill quire special training to then removed at the destination. Faridan, corporate packaging engi- become proficient in operat- ing the push/pull attachments Apple Computer’s slipsheet han- neer at Micropolis, attended a dling operations at Cupertino, CA. packaging conference sponsored by and with slipsheet handling methods. What they saw there helped them the Institute of Packaging visualize how to adapt the method Professionals (IOPP). There he ■ Resources would have to be to an air freight program. Since learned of Apple Computer’s suc- provided to set up and coor- their products were hand loaded cess shipping computer products dinate the entire slipsheet onto pallets at Singapore the imme- on slipsheets in ocean containers program. diate plan was simply to place a from sources throughout the world. To build further knowledge about slipsheet onto each pallet and then (See T&D’s 1988/89 Presidential slipsheets, Micropolis’ logistics sys- build the unitload on it. Issue, pg. 30.) tem planners subsequently visited The unitized loads on slipsheets

32 Save Air Freight Cost would remain on the pallet for the make best use of slipsheets. designed for slipsheet use. trip to the airport. There the Raridan clarified that the design Slipsheet use is being extended freight forwarder would install changes which were eventually from finished products to compo- push/pull attachments on the lift made were related to the height nents and assemblies worldwide. trucks to transfer the loads off the dimension of the shipping cases. Containers intended for UPS and pallets and onto the air cargo con- This was necessary in order to other parcel carriers have also tainer bases. The empty pallets optimize the use of the space that been redesigned so they can be were then returned to the became avail-able when the pallets handled unitized on slipsheets at Singapore plant for reuse. were removed from under the Micropolis facilities. Correspondingly, the freight for- loads. Previous packaging design Bill Schubne., manager of corporate warder on the receiving end would changes had already been made to logistics at Micropolis, summarized install push/pull attachments for the achieve efficient configurations for the success of their program as the lift trucks at the airport in order to the 48" x 40" surface dimensions result of the cooperation and joint remove the slipsheet loads. In the of each unitload. effort of the airlines, the freight for- beginning the loads would be trans- Micropolis began initial air ship- warders, and Micropolis. Important ferred back onto pallets for truck- ments of slipsheet-unitized loads in too was the technical support of the ing to the Micropolis facility at July 1991. Airport transfer opera- slipsheet supplier and the push/pull Chatsworth, CA, or directly to cer- tions were not as difficult as antici- attachment vendor. tain customer destinations. pated. Replacement of the wooden Ebeling is an international For the second phase of implemen- pallets with paperboard slipsheets logistics consultant and regular tation, push/pull attachments would reduced the tare weight approxi- editorial contributor to T & D. be installed at the Micropolis ship- mately 51 pounds per unitload. He is author of the book ping and receiving facilities in With pallets removed, it was possi- Integrated Packaging Systems for order to eliminate the need for pal- ble to increase the number of tiers Transportation and lets in the shuttle hauls to and from of product on each unitload from Distribution published by the airports. three to four and still stay within Marcel Dekker Inc., New York required height clearances. A critical accomplishment in the program was gaining the agreement The load density increase of the freight forwarders to pur- amounted to 33%. A typical ship- chase push/pull attachments for the ment is an LD7 space configura- lift trucks and to train their opera- tion increased from 2,325 kb tors to use them. (5,126 lbs.) to 3,100 KG (6,834 lbs.). Translated into cost savings, CHANNEL PARTNERS AGREE Micro-polis projects an annual net savings of $342,000 based on Micropolis’ project managers went current volume. to Singapore for meetings with their operations people and the freight According to Bill Raridan, the forwarders. It was important to company intends to integrate the acquaint all who would play a role slipsheet air freight method into its in the project with the slipsheets entire global logistics system. It will method. Tours of Apple Computer’s include shipments from their Singapore facilities were arranged Bangkok manufacturing centers as so that all involved could observe well as Singapore and will encom- the slipsheet handling methods and pass destinations in the U.S. and Inside Global Logistics, a special equipment firsthand. Europe. Raridan adds that all of Micropolis’ new shipping section of T&D In the plan that evolved, packaging and systems are now being February 1992 T&D was redesigned as necessary to

33 German Perspective

GERMANY SAYS NO TO ary packaging, which includes the goods reached their final desti- ORTH MERICAN cardboard boxes and blister packs. nation. The new packaging regula- N A Sounds like a good April Fool’s tion, however, eliminates this PALLETS! joke, doesn’t it. Starting on option. In the future, all imported January 1, 1993, retailers, distrib- goods are likely to be transferred What happened to the good old utors and manufacturers in turn will from sea pallets to Europallets at days when a pallet company did have to take back sales packaging, the German port; sea pallets will not have to worry about what hap- which refers to packaging needed to not be allowed to leave the port pened to a pallet after it was transport and hold the goods until area. Theoretically, then, the sea accepted by a customer? The pic- consumption. This includes cans, pallets will simply sit at the ture is shifting, but just how far is foil wrapping, plastic containers and Germany port until they are used by it going to change? cardboard packages. German exporters or periodically We have heard stories that U.S. loaded empty onto U.S. bound In some parts of the world, most ships. German importers will want notably Germany, the picture is exporters are going to have to ship on Europallets or pay for having to pass on the cost of the second intense. The Germans used to land- option to American exporters. fill or incinerate unwanted wooden goods transferred to a Europallet, pallets, including North American pay for the Europallet, and pay to One might suggest that U.S. stringer pallets. This is no longer have the pallet shipped back to the exporters simply switch to a permitted. Germany passed a new U.S. for disposal. There is a great Eurostyle pallet. This may not be as recycling law which is generating deal of confusion about what this easy as it sounds. The 80 x 120 cm real concern. According to Brian new packaging legislation will pallet roughly corresponds to a 32 x McGregor, Assistant Chief of the ultimately mean. It is our under- 48 North American pallet. U.S. boxes International Transportation standing, however, that Germany is may not properly stack on this pallet Branch, USDA, it is causing a stir enforcing its pallet rule. size. In addition, the shipping con- throughout Europe, including Under the law, the business entity tainers used to ship to Europe are Germany, as well as with U.S. bring imported goods across the designed to fit 48 x 40 pallets. The exporters. The overall thrust of this German border, be it a German or smaller Europallet will leave a great law is that companies which origi- foreign form, is responsible for the deal of room inside shipping con- nate a packaging product which recycling or reuse of packaging as tainers for products to shift, allow- eventually ends up in the solid described by the ordinance. Either ing for potential product damage. waste stream will be held responsi- the firm must take back its packag- The bottom line is that one-way ble for disposing of that packaging. ing or pay a German firm to dis- wooden pallets are not going to be This includes wooden pallets! pose of it in accordance with the acceptable in Germany. The other Germany’s Packaging Regulation law. German government officials EC countries are studying their passed on April 19, 1991; the new expect foreign firms to follow the options and considering what kind package recycling requirements latter course. of similar action they, too, will take. will come into effect in three stages. Those U.S. firms which ship their They generally do not like the The first stage started December final product from the U.S. to German law, at least partially 1, 1991. At that time, manufactur- Europe and their importers face a because many shippers find the 48 ers and distributors were required major problem. This problem is a x 40 size to be preferable over the to take back all used transportation result of the different shipping pal- 48 x 32 pallet. The U.S. may find packaging. This includes pallets, lets used by American and itself having to ship on Eurostyle , styrofoam containers, and European exporters. Europeans pallets. Block pallet talk is every- other packaging forms used to pro- use a reusable 80 x 120 cm where today. As the world shrinks tect goods during shipment. “Europallet,” while Americans use and seeks uniformity to reduce Starting on April 1, 1992, manu- the one-way 100 x 120 cm “sea shipping costs, block pallets may facturers, distributors and retailers pallet.” In the past, these sea pal- well become the norm. For North will have to accept back all second- lets were simply thrown away when American pallet manufacturers who

34 German Perspective are used to stringer style pallets, take back and recycle the resulting contract the disposal to a recycling this may all seem like so much . The new law is firm located in Germany. folly. Make no mistake about it, being touted as tougher than any- A similar trend is developing in the however, there are some very good thing introduced in any other coun- U.S. A 1988 report to Congress reasons why block pallets may try in the world. The reason is that from the Environmental Protection become the pallet of choice for landfills in Germany are likely to fill Agency (EPA) indicates that since international markets. This alone up within five years. 1978, 70% of the 14,000 operating will cause U.S. firms to move in The new law has many companies landfills have closed. With the drop that direction as they seek to around the world up in arms in the siting of new landfills that expand their export opportunities. because of the substantial increase has occurred over the past 10 Readers may be sensing another in costs to export to Germany. The years, there are now less than direction to this editorial. This law has also been criticized for 6,500 landfills currently operating. whole scenario opens the door that discriminating against small EPA projects that more than 2,000 much further to pallet pools, exporters and interfering with the of these active landfills will close by including pallet rental options. single European market since it 1993. Four states – Florida, Alan French, GKN Chep Ltd. UK. prevents the free movement of Massachusetts, New Hampshire and wrote in the September 1991 goods across borders. New Jersey – will close virtually all Eurofruit magazine, “The topfer The Timber Packaging and Pallet currently active landfills by 1998. legislation (recycling law) in Confederation (TIM CON) located Across the U.S. industry leaders Germany is encouraging the market in the United Kingdom, estimates fear that as more and more land- to move towards standardization the cost to British industry of com- fills close, lawmakers will see few and the use of returnable equip- plying with the law could run into alternatives to creating legislation ment. This is precisely the business millions of pounds. “One can only similar to Germany’s new law. in which Chep specializes.” ask whether this is simply a case of What does this mean in North ill-thought-out legislation or some- America? Brian McGregor of the thing more sinister.” said Alain USDA suggests. “U.S. exporters Skelding, a TIMCON official. “If should get in touch with their buy- other member European states take ers. Inform them what is going on similar action, we can say farewell and ask what they suggest be to the single market before it has (Editors Note: If you have a done. Get the official representa- even begun.” customer that is exporting tive of the U.S. pallet industry to Germany’s new law will be imple- palletized goods to Germany, talk with U.S. Dept. of Commerce, mented in three stages. The first they need to make arrange- U.S. Dept. of Agriculture, and stage began December 1, 1991, ments for the pallets to be foreign services.” and affects transport packaging and taken back or disposed of in items such as wood pallets. In April Germany. One firm that can At this point there is no reason to be contacted which has more do anything rash. But it is time to 1992, stage two will become effec- tive and covers intermediate pack- than 600 partners to handle start acting by talking to the right the removal of packaging from people in positions of influence. aging such as cardboard boxes. And beginning January 1, 1993, all Germany is (Interseroh AG”. Contact Rudolf Trum or ERMANY ETS OUGH packaging will be covered, even G G T items like yogurt containers and Wolfgang Jansen at: ON PALLET DISPOSAL butter wrappers. Industriestrabe 11, D-5000 Koln 90 Germany has adopted a new Manufacturers and distributors of (Porz), Germany, environmental packaging law that is the finished product will be respon- Phone (0 22 03) I 7040 making headlines throughout the sible for their own packaging Fax (02203) 17 04 17 world. The law requires companies waste. They do not necessarily have that ship products into Germany to to take it back themselves, but can

35 Pallets & Pests

U.S. TELLS IMPORTERS: While Aphis has indicated that the The Aphis rule is not very novel or ESTS RE NPALLETABLE rule won’t be enforced immediate- different from what other countries, P A ‘U ’ ly, compliance at any point could such as Japan and Australia, mean substantial additional cost. require, “so this shouldn’t come as USDA to Impose And that’s not playing too well with a massive surprise,” he said. Certification Burden customs brokers and freight for- Fumigation and heat treatment are By William DiBenedetto warders. “common-sense industrywide prac- Journal of Commerce Staff Pallets have always been subject to tices that are well known, if not inspection for pests. But putting the always used. Some people might EATTLE—On Wednesday, an S burden of certification on importers have to clean their act up and importer of, say, sewing machines is new. How, for example, is an spend more money if they have to or refrigerators will have to start importer of widgets – who may not upgrade their pallets.” worrying about tree bark and bugs. even know whether a shipment Fumigation can delay a shipment That’s because inbound pallets – entered the country on pallets, and for a week to 10 days, and fumigat- those ubiquitous flat wooden crates who probably has no direct know- ing pallets is a 40-foot container on which just about any type of ledge of their source and condition can cost $900 to $1,400, depend- cargo is secured for shipment – in the transportation chain – to ing on whether the cargo has to be must be certified as “totally free of make the required certification? unloaded and reloaded, said Crystal bark and apparently free from live “An importer sometimes doesn’t Osborne, president of A.H. Marzolf plant pests” under regulations issued know if the stuff is on pallets or not & Co., a Seattle brokerage and for- by the U.S. Department of and has no idea where the wood warding firm. “Yes, I do have con- Agriculture’s Animal Plant and Health comes from,” said Norman cerns. It’s definitely going to have Inspection Service (Aphis). Other Elisberg, owner of Lafayette an impact.” Ms. Osborne is also types of wooden packing materials Shipping Co., a licensed customers president of the Customhouse also are subject to the new rules. broker in Englewood Cliffs, N.J. Brokers and International Freight Certification that a pallet is bark “And they don’t know what Aphis Forwarders Association of free and pest-free must be part of is. Washington State. one of the import documents, such “It would be like you and I certify- Richard Orr, an operations officer as a manifest, bill of lading or gen- ing there are no cockroaches on for Aphis in Riverdale, Md., said eral permit. If not, the entire ship- Mars,” he said. Brokers, who pre- there will be a grade period of up to ment will be delayed while the pare the import documents, and a year to make sure everyone under- cargo is either shifted to a clean shippers “Often don’t know if there stands the certification requirement. pallet or the suspect pallet is fumi- are pallets involved in the ship- “We don’t anticipate any problems, gated or otherwise treated. ment,” said Mr. Elisberg. but that’s probably naive,” he said. No one knows how many pallets Verifying the certification state- “We do not intend to precipitously are used in the import process and ments could mean “stopping con- start enforcing the rule,” said Jim thus how many will need to be cer- tainer after container. An awful lot Fons, a senior operations officer. tified. But there were about 400 of cargo could get delayed. I agree Delays will occur when bark or live million pallets built in the United there’s a problem that Aphis wants pests are present, he said, but that States last year, so there are proba- to address, but the solution is a is already the case. bly billions of pallets in world com- disaster,” he said. merce, said Sam Baker, director of Once the rule is fully enforced, technical services for the National Mr. Baker, however, said certifica- though, failure to have the certifica- Wooden Pallet and Container tion is a “Logical extension to the tion could result in criminal and Association in Alexandria, VA. inspection process.” civil sanctions. “About 98% of everything we use “It’s not asking too much to expect The pallet-certification requirement was on a pallet at some point,” Mr. that pallets be free of bark and is a part of a larger, more complex Baker said. bugs,” he said.

36 Pallets & Pests regulation that finalizes interim standards for importing logs, lum- ber and items such as wood chips. It includes specific requirements – heat treatment and fumigants – for imports from all countries except Canada and Mexico. Requiring importers to have certifi- cation is the “hang-up,” said Fred Higdon, director of import compli- ance for Fritz Cos. in San Francisco. “They went after the importer, even if they have nothing to do with wood packaging. The burden is on the importer to tell shippers to use bark and pest-free pallets.” Still, Mr. Higdon said, delaying enforce-ment will lessen the imme- diate effect of the rule. “Perhaps it will only be a speed bump,” he said. Mr. Baker said he did not view the Aphis rule as a nontariff trade bar- rier, “although someone may be unhappy and want to make that claim. It’s not taking effect as though a guillotine will fall. There will be time for people to make the adjustment.”

Reprinted from The Journal of Commerce

37 Freight Processing Centers

FREIGHT PROCESSING While highly visible in China, this ENTERS OGISTICS enigmatic condition is not exclusive C : L ’ to any particular part of the world. MISSING LINK The development of physical distri- bution methods and systems has Enigmatic Asia exemplifies the lagged behind the technological need to bring modern logistics progress made in other fields in to emerging nations. Third par- many countries. Government and ties can provide the answer— industrial management priorities and overcome infrastructure are given to the development of limitations. other areas of commerce and By C.W. Ebeling world trade. The products are packaged, shipped, and distributed Inbound cases at Norvanco’s Beijing, China today is a city of by whatever means are expedient to Singapore freight processing center contradiction. A bustling center for the individual shipper. are unloaded and moved to unitizers via conveyor. commerce, it is the hub of the Unfortunately, such traditional nation’s railway and airline net- trade practices do little to improve kind of freight processing facility at works. China’s tallest hotel (52 sto- the physical logistical methods and Singapore. The facility, a three- ries), and its tallest TV Tower with cost efficiencies for the movement story, 300,000 sq. ft. freight pro- an observatory (1,300 ft. high) are of goods and materials in an cessing plant, is the consummation recent additions to the city’s sky- expanding global economy. Third- of a joint venture formed by line. Yet, down on the busy streets, party, independent companies that Norvanco with Integrated Agency thousands of three-wheel pedal specialize in the development and Pte. Ltd. of Singapore. It is operated vehicles still deliver retail products application of new and innovative under the name, Main Distribution and other goods and materials. methods of packaging, handling, Services Pte. Ltd. To Western observers, the contrast shipping, controlling, and distrib- It could be the prototype for similar of primitive freight handling and uting freight can contribute greatly facilities throughout the world by transport methods amidst cities to logistics technology and help it the turn of the century. The new with modern tall buildings and to keep pace in a high-tech world. freight service center brings state-of-the-art communications Norvanco International demon- advanced technology to the plan- facilities is bewildering. Such, strates the value of this approach ning, preparation, loading, dis- however, is the dilemma of logisti- in Asia. patch, control, and delivery of con- cal technology in many countries On April 1, 1992, Norvanco tainerized freight throughout the in Asia. announced the opening of a new logistical process. The facility is equipped with state-of-the-art unit- izing equipment, stretch film wrap- pers, and lift trucks equipped with push/pull attachments. Norvanco International, headquar- tered in Kent, WA, provides a com- prehensive service package that, in addition to the latest freight prepa- ration and material handling meth- ods, includes custom house bro- kerage, transportation and logistics

Pedal vehicles are well integrated into the distribution systems of many Asian countries.

38 Freight Processing Centers management, warehousing, value- due to the cost of special equip- Upon arrival at the freight process- added distribution (labeling, bar ment and the training required to ing facility, the most efficient unit- coding, serial number retention), operate it properly. As a result, the load patterns for the particular quality assurance, and computer slow, labor-intensive process of products are determined by com- and communications support. hand loading and unloading is per- puter. The cases are then trans- Norvanco does not manufacture a petuated. ferred onto a conveyor and taken to product. Its entire business is the The few large international ship- the unitizing machine for forming application of state-of-the-art logis- pers that have implemented their into compact unit loads on slip- tical methods. It is distinguished for own programs for shipping on slip- sheets. The unitized loads are then its innovative developments such as sheets have gained substantial cost stretch wrapped and moved to the INVENTECH, a computerized, real- benefits. As examples: Apple dock where lift trucks equipped time inventory control and tracking Computer saved millions of dollars with push/pull attachments transfer system, and its automated freight annually by eliminating the time- them into the ocean containers. handling operations at Kent and in consuming and labor- intensive Some shippers may send their Los Angeles, CA. hand unloading operations at their products to the facility already docks. (See T&D Presidential properly unitized on pallets. In KEEPING PRODUCTIVITY UP Issue, 1988/89 pp. 30-34) those cases, special machines are Few shippers, if any, in the develop- available to switch the loads from Another company, Micropolis, inte- the pallets onto slipsheets. ing countries are capable of provid- grated the use of slipsheets in place ing their own in-house systems and of pallets for international air The lift truck operators have been equipment that the facility at freight shipments of their computer well trained and are skilled in the Singapore provides. Even the larger peripheral products and achieved use of the push/pull equipment. shippers in the less industrialized sizable transportation cost savings Loading time for the slipsheet unit- countries have little incentive for through the greatly improved load load method is less than one man- making expenditures to provide unit- densities that resulted. (See T & D, hour for each ocean container. ized shipping and mechanized han- Feb. 1992, pp. 53-55) That compares with five to ten man- dling across their docks. In most hours for each container if loaded cases, they have an abundant source Both Apple and Micropolis by hand. Since the new facility is of low-cost labor for handstacking enjoyed the shipping volumes that mechanically equipped to load over operations. Consequently, the bene- enabled them to maintain in-house 100 ocean containers a day, several fits of unitized shipping and mechan- support for the planning, develop- hundred manhours are saved daily ical handling are lost throughout the ment, and implementation of their in the logistical process on the logistics process. The cost impact of slipsheet programs. shipping end and likewise can be saved at the receiving locations. this use of low-cost labor for hand KEEPING COSTS DOWN stacking is especially unfavorable on the high-labor-cost receiving docks By channeling their exported prod- IMPROVING SERVICE of developed countries as containers ucts through the new cargo pro- Shippers gain the advantage of hav- arrive with freight that must be cessing facility at Singapore, all ing their products properly unitized unloaded by hand. shippers can enjoy the benefits of for the highest load densities possi- slipsheeted unitized shipping with- Pallets are not uncommon in many ble along with the mechanized out investing in special equipment, loading and unloading capabilities. of the developing countries but pal- trained personnel, or specialized letized shipping in ocean contain- Ocean freight and material han- administrative functions at their dling costs are thereby minimized. ers is ordinarily avoided. The tare shipping and manufacturing loca- weight and the space taken up by tions. Further- more, they need not The receiver is able to rapidly pallets under the unit loads adds to change their existing methods of unload the container by lift truck. overall net shipping costs. shipping outbound from their man- The container can be turned Palletless unitized methods such as ufacturing plants. around in less than an hour at the slipsheets discourage most shippers dock, thereby getting it back into

39 Freight Processing Centers productive use sooner as well as Eastern Europe. It could take many freeing up dock space at the years to upgrade the freight han- receiving location. The entire logis- dling and shipping methods of the tical process becomes much more thousands of shippers in those cost efficient. Both large and small countries to the present day unitized companies can benefit from this freight handling methods of the new kind of third-party logistics Western world. The availability of service. One of Norvanco’s first the new kind of cargo preparation customers is the Japanese giant and processing centers would pro- Matsushita (Panasonic). vide a channel through which Not all inbound containerized ship- freight can be shipped to the West ments are routed directly through with the most cost-effective packag- to the ultimate receiving locations. ing and shipping methods available Norvanco’s service at its receiving today. Freight processing centers centers at Kent and Los Angeles could in the future prove to be the includes the consolidation of unit missing links that are urgently need- loads for routing to two or more ed to modernize global logistics. final destinations. Slipsheeted loads might be removed from inbound containers and placed back onto pallets for final delivery to those shippers who prefer to receive the loads on pallets. When necessary the unit loads will be broken down and smaller orders unitized or packaged in large bulk containers for final delivery. Fast response is possible since the instructions for the deployment of products enroute to Norvanco’s terminals are received in advance through the company’s computerized in-transit inventory management system. Cargo processing centers help ship- pers gain the benefits of state-of-the- art unitized shipping methods and freight processing without the invest- ment in the required special han- dling equipment, communications systems, and trained personnel. C.W. Ebeling is an international Norvanco’s new freight processing logistics consultant and regular concept could be the forerunner of contributor to T & D. He is the worldwide network of new author of the book Integrated facilities of this kind. Visualize the Packaging Systems for expansion of trade relations with Transportation & Distribution countries in the Far East such as published by Marcel Dekker China, and with Russia, the of New York. Ukraine, and the newer nations of

40 PUSH/PULL & SLIPSHEET HANDLING MANUAL Cost Comparisons SLIPSHEETS & PALLETS: A COST COMPARISON dictates that using wooden pallets is drive upward carrier costs and a better method for intra-plant/ likewise freight rates. The rising cost of wooden pallets, warehouse handling. But, to main- The high percentage for returned coupled with the industry’s reluc- tain the unit handling integrity and pallet repair costs obviously results tance to engage in a workable cost savings, slipsheets are much from the prudent action by pallet exchange program, has better in an open distribution loop receivers. If pallets are to be opened the way for more wide- (when shipping to customers or returned, needless to say the new spread use of slipsheets. Here, a public warehouses, etc.). The rea- and good pallets will be retained as director of distribution examines son for this is that it is often difficult much as possible and usually those the costs of the two systems, their and costly to handle and arrange in questionable repair will be individual strengths and weak- for the return of wooden pallets to offered for return. This in fact has nesses and arrives at some con- the original shipping point. been one of the major challenges clusions about the future use of We have calculated an outright loss encountered by the National Pallet pallets/slipsheets in the food dis- of approximately 15% of the pallets Leasing Systems Incorporated tribution system. we release when participating in By Michael Pregmon, Jr., the so-called “pallet exchange” Director of Distribution, programs. Further, of those which Michael (Mike) Pregmon, Jr. is Citrus Central, Inc. are returned, 29.8% require director of distribution for repairs before reuse. Why are these Citrus Central, Inc., Orlando, The determination of whether pal- percentages so large? There are Fla. A graduate of Pennsylvania lets or slipsheets should be used is many reasons for this. But, princi- State University, he holds a often a difficult question con- pally, two main explanations sur- Bachelor of Science degree in fronting many distribution of mate- face repeatedly. Transportation and Logistics. In rials managers. There are many addition, he has an MBA degree All carriers recognize the financial from the New York Institute of notable advantages for using slip- benefit of a revenue generating sheets. Foremost of course is the Technology. Prior to his affilia- back-haul. Empty pallets require tion with Citrus Central, Inc., extreme lower capital investment in space which can be utilized for rev- supplies. Wooden pallets currently Mr. Pregmon performed as dis- enue traffic. As a result, pallets tribution manager with the cost approximately $7.50 each. The which may have been tendered to a current price quotation for slip- McCormick & Co., Inc., carrier by a consignee in an Schilling Division, Salinas, sheets is 48.5¢ each. Let’s review exchange are often discarded some other considerations. California. A member of a num- somewhere at the expense of rev- ber of professional and industry Obviously, slipsheets are designed enue freight. This is particularly organizations, Mr. Pregmon is to be expendable once they leave common with motor carriers who also adjunct professor, Graduate the shipping point. However, many use owner-operators. Repeated School of Business, Nova firms reuse slipsheets within their claims against the carrier for non- University, Fort Lauderdale, Fla. warehouse operation. Experience delivery of pallets only serves to

41 Cost Comparisons

(PEP) organized a few years ago. SLIPSHEET BENEFITS IN THE FOOD DISTRIBUTION SYSTEM The problem of exchanging pallets ■ The use of slipsheets in the shipping operation can reduce costs of like quality is ever present. considerably considering the expendable nature of the slipsheet Because of the initial cost outlay for and the uncertainty of regaining like-quality pallets in a wood pallet wooden pallets, most firms must exchange program. Also, freight costs for manufacturers can be undertake a pallet repair program reduced because of the weight differential, slipsheets weighing five to extend the useful life of wooden pounds each and wood pallets 55 lbs. each. pallets. This is a costly venture. ■ In the warehousing operation, slipsheets can be economically In the food industry, warehouse stored inside to eliminate infestation concerns. The storage space cleanliness is imperative. We have required is considerably less than for pallets. Further, use of slip- discovered a considerably greater sheets requires a much lower investment in materials handling incidence of infestation with the use supplies. This is of particular concern to multi-product manufac- of wooden pallets. This is even more turers or food processors who produce their entire annual output prevalent when pallet exchange pro- in a few weeks. grams in the distribution channel ■ Unloading time for the average freight car might be six hours for a are entertained. Nevertheless, this is crew of three workers, or 18 man hours. With slipsheets, it is pos- a greater concern in dry storage sible to unload the car with one man using a push/pull attachment warehouse operations than it is in in two man hours. If pallets were used the shipper would have refrigerated warehouses. expended $390 for pallets versus $25 for slipsheets, adding to A larger number of cases can be product costs. loaded into a rail car when using slipsheets. Of the refrigeration EXHIBIT A equipped rail cars we have available to us 26.6% classified as “interme- UNIT STACKING HEIGHTS diate;” and 44.8% as “jumbo.” Total Height Stacked Exhibit “A” shows the comparative Two Units High Extra Tiers heights of products stacked on Case On On Interior when Using wooden pallets and on slipsheets. Height Pallets Slipsheets RR Car Ht. Sheets Note that in most cases an extra one 8.6" 106.7" 96.7" 114.5" 2 or two tiers of cases can be added when slipsheets are used. Since the 5.00" 110.00" 100.00" 114.5" 2 mechanical refrigeration charge by 10.00" 110.0" 100.0" 114.5" 1 the railroads is a fixed cost per trip, 6.37" 112.0" 102.0" 114.5" 1 the refrigeration cost per case can be reduced. Obviously, where freight tariffs provide for a per car freight charge, the cost savings are dramatic when loading cars to their full volume and weight capacities. The important thing with slipsheet usage is that interior loading space is not sacrificed at the expense of the pallets. Yet, the load can be mechanically loaded and unloaded reducing warehouse labor costs. There is no concern for protruding nails or damaged pallet parts which often cause damage to cases.

42 Cost Comparisons

EXHIBIT B PALLET/SLIPSHEET/DUAL METHOD For this analysis we must make the following assumptions. The average units in storage is 10,000 pallet spaces. The mean inventory turnover is three times per year Ð once every four months. Wooden pallets cost $7.50 each (GMA approved type). Fiberboard slipsheets cost 48.5¢ each. Pallet repair costs $2.50 each. Pallets shipped in an open distribution system loop results in a loss of 15%. Approximately 30% of the pallets returned to the original plant or warehouse requires repair before reuse. Pallets used on an intra-plant basis must be repaired once every two years. Useful pallet life is expected to be five years. Wooden Pallets Only Initial pallets purchase: 10,000 at $7.50 = $75,000 $75,000 Inventory Turnover: Once every four months Loss: 10,000 x 15% = 1,500 x $7.50 = 11,250 x 3 33,750 Repair: 8,500 x 30% = 2,500 x $2.50 = 6,375 x 3 19,125 Effective Annual Cost $127,875

Wooden Pallets and Slipsheets Initial pallets purchase: $75,000 Initial slipsheets purchased: 10,000 at 48.5¢ = 4,850 Inventory Turnover: Once every four months Loss: Pallets: (None Ð retained for internal use only) Slipsheets: $4,850 x 2 = 9.700 Repair: Pallets: 10,000 x $1.25 = 12,500 Effective Annual Cost $102,050

Fiberboard Slipsheets Only Initial slipsheets purchase: 10,000 at 58.5¢ $4,850 Loss: 10,000 at 48.5¢ x 2 = 9,700 Effective Annual Cost $14,550 First Year Cost Comparison: Wooden pallets only $127,875 Dual System 102,050 Slipsheets only 14,550

Five Years Cost Comparison Year 1 Year 2 Year 3 Year 4 Year 5 TOTAL Pallets Only Beg. Yr. Pur. $ 75,000 Loss 33,750 33,750 33,750 33,750 33,750 Repair 19,125 19,125 19,125 19,125 19,125 $127,875 52,875 52,875 52,875 52,875 $339,375 Dual Method Beg. Yr. Pur. $ 79,850 4,850 4,850 4,850 4,850 Loss 9,700 9,700 9,700 9,700 9,700 Repair 12,500 12,500 12,500 12,500 12,500 $102,050 27,050 27,050 27,050 27,050 $210,250 Slipsheets Only Beg. Yr. Pur. $ 4,850 4,850 4,850 4,850 4,850 Loss 9,700 9,700 9,700 9,700 9,700 $ 14,550 14,550 14,550 14,550 14,550 $72,750

43 Cost Comparisons

The use of slipsheets is more appli- Now let’s consider some draw- Finally, a special slipsheet attach- cable to the module concept. This backs when using slipsheets. ment or Push/Pull lift truck should concept is a relatively new idea in Obviously, almost all ideas or con- be used. This equipment is special- materials handling and is gaining cepts have some shortcomings. So ly designed to grip the lip surface wider acceptance. It provides be it with the slipsheet concept. of the slipsheet to pull the load greater flexibility to minimize the First, the use of slipsheets onto or push the load from the lift labor cost for handling individual requires more operator care and plates or forks. Not all firms have cases. Basic unit modules can be training. A slipsheet does not pro- this type equipment since slipsheets designed to fully utilize available vide the forklift “bumping” sur- are not as universally used as pal- storage or volume of space avail- face provided by a pallet. As a lets. The accompanying photos able while minimizing labor han- result, the lift operator must care- depict an example of a push/pull dling costs. fully position the lift surface lift truck. Most “push/pull” attach- A vertical stack of products on slip- under the load and not run into ments sell for approximately sheets will naturally exert less the load before stopping. To do so $6,000 to $7,000. Nevertheless, weight on the bottom case layers would damage the bottom layer of there are many makes and models than will a stack of products on cases nearest the lift. competitively marketed today. wooden pallets. This of course Next, a lift operator must not push Should a load of liquid contents be results from the absence of pallet the lifting forks beyond the load damaged while loading or unload- weight. Each Grocery Manufacturer depth. This is important when ing or while in transit, the slipsheet Association (GMA) size pallet loading a rail car or truck because could become saturated, which weighs approximately 55 pounds. A to do so would damage the unit would reduce the tensile strength of vertical column consisting of six immediately in front of the load he the fiberboard. Slipsheets with a units will provide 275 excess is positioning. special laminated treatment are pounds of pressure on the bottom A rough or abrupt operator can available which may reduce or case layers. easily damage the “lip” surface of eliminate this concern. However, Storage space requirements are con- the slipsheet. There are many this has not been a problem in the siderably less for slipsheets than for slipsheet designs which have shipment of frozen juice or bever- a commensurate amount of pallets. a reinforced lip surface. However, age concentrates. Storage in freezer The differential here is approximate- even these are defied by warehouses or refrigerated rail car ly 20 to 1. Therefore, slipsheets can many inexperienced or oblivious or trailer environment has not thus most effectively be stored indoors. operators. far to our knowledge reduced the effectiveness of slipsheets.

Photo shows storage of wooden pallets. Due to fire Photo shows hundreds of slipsheets stored on pallet, providing sharp safety regulations, pallets can be stored to contrast to wooden pallet storage. maximum of 20 units high.

44 Cost Comparisons

For a comparison of costs for three different unit handling methods, CONCERNS FAVORS Slipsheets Wooden please refer to Exhibit “B”. These Pallets three methods include: (1) Use of hardwood pallets only; (2) Dual Capital Cost X method using wooden pallets and Lift Operator Training Requirements X slipsheets. The wooden pallets are Carrier Cube Utilization X used only for intra-plant move- MHE Cost Outlay X ments and storage. A slipsheet is Reusability Feature X placed upon each pallet before the Infestation X merchandise is palletized. (3) Pallet Repair Cost X Fiber-board slipsheets only. Based Expendability X on certain materials handling expe- Better for Closed Loop Systems X riences as stipulated in Exhibit Better for Open Loop Systems X “B”, here are the relative costs Liquid Damage Retardation X amortized over a five year period: Damage from Protruding Objects X Storage Requirements Advantage X Wooden Pallets only –$339,375 (Unused Pallets vs Slipsheets) Dual Method –$210,250 Slipsheets only –$ 72,750 It should be emphasized that if the inventory turnover of a firm is greater than once every four months (three times per year) the economies favor- ing the use of slipsheets becomes even more appealing. Here is a comparison of some of the overall benefits of each method: In summary, the use of either method will depend largely upon the intended application. As a gen- eralization, the prevailing factors are cost and control. Open distri- bution loop channels favor slip- sheet usage, while closed loop sys- tems favor wooden pallet usage. But, this is a generalization. Many factors must be considered by the decision maker. However, it is most difficult to overlook the tremen- dous cost savings which a firm can realize when using slipsheets.

Reprinted from the May/June 1978, issue of Grocery Distribution with the permis- sion of Richard W. Mulville, Editor and Publisher

45 General Foods

WHY GENERAL FOODS The 48" x 40" four-way wooden By 1974, approximately 65% of our CONVERTED TO SLIPSHEETS pallet emerged as the preferred volume moving between plants and unitized shipping method at the the field warehouses was palletized time for several reasons. It was rel- and 75% of the volume shipped After months of intensive research atively low cost. Good hardwood from the field warehouses to cus- and testing, General Foods began pallets could be purchased for less tomer terminals was palletized. a conversion process that was to than $3.00 each and lasted up to Had this volume been shipped non- eliminate more than 350,000 three years of use. Cost per trip unitized, annual labor costs to load wood pallets from its distribution was in the 10¢ to 15¢ range. It was and unload piece by piece would system through a changeover flexible in that it could be shipped have increased over 4 million dol- wherever feasible to slipsheets. either in railcar or truck and was lars a year and customers costs to By C.W. Ebeling capable of being handled by fork receive General Foods' products Methods and Facilities lift trucks from all sides and by rel- across their docks, over 2 million Development Manager, atively low cost pallet jacks and dollars a year. General Foods Corporation walkies from two sides. Despite the fine record of achieve- Implementation of an industry wide ment for palletized shipping during eneral Foods began the first G unitized program overwhelmingly the early years of the program, the major unitized shipping program in favored the pallet method at the time. quality of the pallets began to dete- the food industry 16 years ago. It Most of fork lift trucks and used pal- riorate as shipping volumes grew represented the culmination of sev- lets for storage of products in their and the pallet exchange pool eral years of planning and testing warehouses. Few, however, had slip- expanded to include a large num- alternative unitized shipping meth- sheet attachments then. Out cus- ber of other shippers and cus- ods. Many different kinds of pal- tomers liked the palletized method. tomers. It became more and more lets, both returnable and one-way Quick turnaround of equipment on difficult to obtain good hardwood types, had been tried during the the docks appealed to them and pallets to the original specifications testing period along with multi-tine many extended the concept all the established for the program and it and slipsheet palletless methods. way to their retail store deliveries. became virtually impossible to keep up with pallet repairs. The obvious space-saving advan- tage of using slipsheets was a The problems of pallet quality in an major factor in General Foods' exchange pool became apparent as change to slipsheets early as 1965. In order to reduce dependence upon the number of

At a General Foods plant, a push/pull attachment handles slipsheet loads of Kool-Aid product. The investment required to equip trucks with attachments to handle slipsheet loads was offset by General Foods through reduction in pallet costs and benefits from increased storage and shipping space.

46 General Foods pallets required in the system, considerable space and displacing a slipsheet rail program, few felt General Foods inaugurated a clamp room for revenue producing pay- ready to accept deliveries of slip- program that year for the handling load. (See photo comparing stack sheet loads in trailers across their and storage of a large number of of 56 pallets, the number in a rail rail docks. There were different rea- the products that were clampable. car, vs. a stack of 56 slipsheets.) sons for this, probably the most That took a sizable number of pal- The free return of pallets in rail common being that there was no lets out of the warehouses but had cars was under questions. Without simple handling equipment the no effect on the number required that privilege the cost per pallet equivalent of pallet walkies to for shipments between plants and was expected to increase about extract slipsheet loads from trailers. warehouses and customer termi- $1.20 each trip in oder to return ■ A substantial capital investment nals. In subsequent years more the pallets. was expected in order to convert products were made clampable by General Foods then took another automatic palletizers to slipsheet shrink wrapping methods until by look at the prospect for the dispos- unitizing and to provide slipsheet 1976 about 50% of the throughput able slipsheet. By 1976, several attachments for the lift trucks. In volume was handled by clamps. large manufacturers had converted some cases it would be necessary to Although very effective for storage, to slipsheets for rail shipments and replace lift trucks that did not have the use of clamps for shipping is most of our customers had sufficient counter weight capacity limited. The problem is at the equipped their rail docks with slip- for installation of a slipsheet attach- unloading ends since maintenance sheet handling equipment. ment that weighs nearly a ton and of voids around the clampable still carry the required payloads. loads to permit entry of clamp pads In the beginning, we had a number is difficult to maintain in transit. of concerns about the use of slip- The concerns listed above That, along with the high cost of sheets. These were: were handled as follows: pre-paring loads for clampable ■ Handling efficiency in ■ In order to establish productivity handling, (many loads require film relation to pallets— of slipsheets vs. pallets, we carried wrapping) discouraged the idea of Pallets, despite their problems are out a long series of test shipments going to an all clamp program. a simple handling device. We and a pilot storage operation. In By the end of 1976, the need to do expected some loss of productivity the process, the importance of spe- something about the problems in a conversion to slipsheet han- cial handling techniques and oper- with pallets had become more dling and storage but were not sure ator training were found to be urgent than ever. The cost of new just how much. especially critical to minimizing pallets had doubled as had the ■ handling penalties. Our field oper- High stacking on slipsheets ations people produced a training costs of repair. Few pallets lasted on warehouse floors even a year and cost per pallet trip film and manual and provided appeared to be especially copies to each field location. They was in the area of $1.00 each. difficult if at all feasible— Industry efforts to control the converted one warehouse com- It is easy to run forks into a pallet quality of pallets in the exchange pletely to the palletless methods and pull off a load 15 feet or more system were not proving to be suc- and used it as a central slipsheet high, and it is a simple matter to cessful. Problems of sanitation training center for super-visors move clamp pads around top increased with general deteriora- from 34 other warehouse and loads, but the idea of gripping a tion of the pallets in the pool and plant locations. sheet under a top load and pulling damage to products caused by ■ it onto an attachment without The problem of high stacking the broken boards and protruding pulling the entire stack over was slipsheet loads was solved partly by nails became common. expected to create problems. training in the technique, but also With the onset of the energy crisis by improved stabilization of the ■ A survey of our customers indi- and demand for high utilization of slipsheet loads. Where justifiable, cated that although just about all of transportation equipment, carriers shrink or stretch film wrapping is them had slipsheet equipment on realized that pallets were taking by far the most efficient form of rail docks and would participate in load stabilization.

47 General Foods

The use of palletizing adhesives The illustration shows proved to be both cost and per- IMPACT—ELIMINATION the impact of the con- formance effective for a number of OF 350,000 PALLETS version to slipsheets at General Foods. More the products. A liquid type glue is than 350,000 wood used that loses its tensile strength EMPTY PALLETS 50 pallets have been elim- after a couple of days thereby mak- HIGH IN STACKS inated from the sys- ing cases easy to lift off on receiv- tem. Stacked 50 high, ing ends. It maintains shear resist- that amount would ance, however, thereby stabilizing represent a wall of pal- lets 25 feet high and the loads for ship-ping and for han- 5.3 miles long. The dling in high stacks. total weight would ■ It was recognized that customers come to 16,000 tons. receiving by trailers, (roughly 50% 650 CARLOADS of our outbound shipments from 350,000 PALLETS field warehouses) would want to 16,000 TONS OF WOOD continue to receive on pallets for and the place the stacks end to end, some time, at least until some sim- you have a wall of wood 25 feet high ple handling equipment is devel- and 5.3 miles in length. It amounts oped that will extract slipsheet to approximately 16,000 tons of loads as effectively as do hand wood that are no longer needed to walkie trucks with pallet loads. Our get our products to market. immediate objective became one of To sum it all up, UNITIZED SHIP- minimizing the number of pallets in PING is essential to cost effective the system and doing all we could handling and shipping in the food to get a slipsheet low lift truck industry. The wooden pallet, the developed for the future. In the mainstay method of unitized ship- meantime, loads stored on slip- ping over many years that con- sheets and clamp loads are simply tributed so much to economical placed on to the pallets for out- handling and shipping and which bound shipments via trailers. was such a simple and effective ■ The capital investment necessary to device to use, ran into changing convert plant equipment to unitize on conditions occasioned by growing slipsheets and to provide slipsheet shipping volumes and the difficul- attachments and new trucks where ties of controlling their quality of needed, was justified by the reduction returnable pallets in a vary large of pallet costs, and the benefits from pallet exchange pool. higher density storage and shipping We at General Foods, feel that dis- of many of the products. posable slipsheets are better suited The conversion to slipsheets was to today's needs and conditions, started early in 1977, and is now and, despite the concerns and the nearing completion at all locations. difficulties of converting a long The number of pallets being elimi- standing unitized system based nated from the system exceeded upon use of wooden pallets, believe Reprinted from the May/June original projections of 350,000. The that a substantial part of unitized 1978, issue of Grocery accompanying drawing gives an idea shipping volume must be converted Distribution with the permis- of how big a pile of wood that many to slipsheets if the food industry is sion of Richard W. Mulville, pallets represents. If you place the to continue to receive the benefits Editor and Publisher empty pallets in stacks 50 high each of unitized handling in the future.

48 Work Sheet

PALLET VERSUS SLIPSHEET COSTS COMPARISON Pallet System – Data Required 1. Number of units shipped ______2. Cost per pallet ______3. Number of pallets owned ______4. Average pallet life ______5. Cost of money in percent ______6. Average weight of outbound freight ______7. Weight of pallets ______8. Cost of pallet return freight ______9. Total pallet repair cost annually ______10. Time required to store and remove loads from storage ______11. Time required to stage and load with pallets ______12. Labor rates ______13. Time to unload and return pallets, inspect, sort and administrate ______

FORMULA (Store & Ship on Pallets)

Cost per pallet x No. of Pallets Owned ÷ Average Pallet Life = Annual Replacement Pallet Expense ______x ______÷ ______= ______

Cost per pallet x No. of Pallets Owned x Cost of $ Percent = TOTAL Interest of Expense ______x ______x ______= ______

Total Pallet repair cost annually = TOTAL Pallet Repair Costs ______

No. of Units x Weight of Pallets x Average Cost of = TOTAL Freight Costs shipped Outbound Freight to Ship Pallets ______x ______x ______= ______

49 Work Sheet

FORMULA (Store & Ship on Pallets) (cont.)

Number of units x Weight of Pallets x Average Cost of In- = TOTAL Freight Costs shipped bound Returned Frght. to Return Pallets ______x ______x ______= ______Time to Unload and x Number of Loads x Labor Rates = Pallet Exchange Return Pallets, Expense Inspect, Sort and Administrate ______x ______x ______= ______Time required to x Number of Loads x Labor Rates = TOTAL Labor Cost Store and Remove to Store and Remove Load from Storage from Storage

______x ______x ______= ______Time required to x Number of Loads x Labor Rates = TOTAL Labor Cost Stage and Load with to Stay and Load Pallets ______x ______x ______= ______

TOTAL COST TO SHIP ON PALLETS = ______

TOTAL COST TO ÷ NUMBER OF LOADS = COST PER LOAD SHIP ON PALLETS ______÷ ______= ______

PALLET VERSUS SLIPSHEET COSTS COMPARISON Additional items not included but should be considered when comparing slipsheets to wood pallet handling: 1. Fire insurance for pallets 2. Pallet shortages due to the pallet float 3. Space occupied by pallet versus used for product can be up to 10% 4. Damage caused by pallets – broken deck boards, over or underhang of product, nails, etc. 5. Sanitation: The FDA is inspecting pallets for rodent leavings with black lights. 6. Pallet returns interior to those shipped 7. Storage space required for pallets versus slipsheets – 100 slipsheets stored is the same as 1 pallet 8. Potential future shortage of pallets and increasing costs 9. Safety

50 Work Sheet

PALLET VERSUS SLIPSHEET COSTS COMPARISON Slipsheet System – Data Required 1. Number of loads ______2. Cost of slipsheets ______3. Cost of slipsheet dispenser ______4. Slipsheet dispenser average life ______5. Slipsheet dispenser number of units required ______6. Cost of load push/pull ______7. Load push/pull average life ______8. Load push/pull number of units required ______9. Time to store and remove load from storage on captive pallet ______10. Time to stage and load with slipsheets ______11. Labor rate ______12. Cost of captive pallet ______13. Number of captive pallets ______14. Average life of captive pallets ______15. Cost of Money ______16. Pallet repair of captive pallets ______

51 Work Sheet

FORMULA (Store on Captive Pallets – Ship on Slipsheets) Number of Loads x Cost of Slipsheets = TOTAL Slipsheet Shipped Expense ______x ______= ______Cost of Slipsheet x Number of Units ÷ Average Life = Annual Capital Dispenser Required Expense for Slipsheet Dispenser ______x ______÷ ______= ______Cost of Load x Number of Units ÷ Average Life = Annual Capital Push/Pull Required Expense for Load Push/pulls ______x ______÷ ______= ______Time to Store and x Number of Loads x Labor Rate = TOTAL Labor Cost to Remove Load from Store and Remove Storage on Captive Pallet Loads from Storage ______x ______x ______= ______Time to Stage and x Number of Loads x Labor Rate = TOTAL Labor Cost to Load with Slipsheets Store and Remove from Storage ______x ______x ______= ______Cost of Captive x Number of Captive ÷ Average Life of = Annual Captive Pallet Pallets Pallets Captive Pallets Replacement Cost ______x ______÷ ______= ______Cost of Captive x Number of Captive x Cost of Money = TOTAL Interest Pallets Pallets Expense ______x ______x ______= ______Pallet Repair of Captive Pallets = TOTAL Repair of Captive Pallets

TOTAL COST TO STORE ON CAPTIVE PALLETS & SHIP WITH SLIPSHEETS = ______TOTAL COST TO STORE ON CAPTIVE PALLETS ÷ Number of Loads = COST PER LOAD & SHIP WITH SLIPSHEETS ______÷ ______= ______SUMMARY PER LOAD SAVINGS PER LOAD TOTAL SAVINGS Pallets Only Captive Pallets & Slipsheets

52 Work Sheet

PALLET VERSUS SLIPSHEET COSTS COMPARISON Optional methods to consider in storing & shipping unitized loads: 1. Store on slipsheet and ship on slipsheets 2. Store products that are clampable with carton clamps – the balance on slipsheets on captive pallets and ship on slipsheets

Because of problems associated with pallets and pallet exchange programs, the food industry is accelerating its transition for handling products either on slipsheets or palletless. The key to a successful program is proper initial planning including:

1. Education of top management 2. Training of lift truck drivers 3. Proper equipment 4. Establishing a test location to develop a successful slipsheet material handling system that will enable personnel within your company to become familiar with the requirements of slipsheet handling prior to expanding it to all of your shipping and receiving locations.

53 Work Sheet

PALLET VERSUS SLIPSHEET COSTS COMPARISON Pallet System – Data Required 1. Number of units shipped ______450,000 2. Cost per pallet ______$8.50 3. Number of pallets owned ______300,000 4. Average pallet life ______3 years 5. Cost of money in percent ______12% 6. Average weight of outbound freight ______40,000 lbs. 7. Weight of pallets ______292,500 8. Cost of pallet return freight ______$1.00 9. Total pallet repair cost annually ______$100,000 10. Time required to store and remove loads from storage ______4 min. 11. Time required to stage and load with pallets ______2 min. 12. Labor rates ______$9.00/hr. 13. Time to unload and return pallets, inspect, sort, and administrate ______.24 min.

54 Work Sheet

FORMULA (Store and Ship on Pallets) Cost per Pallet x Number of Pallets ÷ Average Pallet Life = Average Replacement Owned Pallet Expense ______$8.50 x ______300,000 ÷ ______3 years = ______$850,000 Cost per Pallet x Number of Pallets x Cost of $ Percent = TOTAL Interest of Owned Expense ______$8.50 x ______300,000 x ______12% = ______$306,000 Total Pallet repair cost annually = TOTAL Pallet Repair Costs ______$100,000 = ______$100,000 Number of x Weight of Pallets x Average Cost of = TOTAL Freight Costs units shipped Outbound Freight to Ship Pallets ______450,000 x ______65 lbs. x ______$1.00 cwt = ______$292,000 Number of x Weight of Pallets x Average Cost of = TOTAL Freight Costs units shipped Inbound Freight to Return Pallets ______450,000 x ______65 lbs. x ______$1.00 cwt = ______$292,000 Time to Unload and x Number of Loads x Labor Rates = Pallet Exchange return Pallets, Expense Inspect, Sort and Administrate ______.24 min. x ______450,000 x ______$.15/min ($9.00/hr.) = ______$16.200 Time required to x Number of Loads x Labor Rates = TOTAL Labor Cost Store and Remove to Store and Remove Load from Storage from Storage ______4 min. x ______450,000 x ______$.15/min ($9.00/hr.) = ______$270,000 Time required to x Number of Loads x Labor Rates = TOTAL Labor Cost Stage and Load to Stage and Load with Pallets ______2 min. x ______450,000 x ______$.15/min ($9.00/hr.) = ______$135,000

TOTAL COST TO SHIP ON PALLETS = ______

TOTAL COST TO SHIP ON PALLETS ÷ Number of Loads = COST PER LOAD

______$2,261,200 ÷ ______450,000 = ______$5.02

55 Work Sheet

PALLET VERSUS SLIPSHEET COSTS COMPARISON Additional items not included but should be considered when comparing slipsheets to wood pallet handling: 1. Fire insurance for pallets 2. Pallet shortages due to the pallet float 3. Space occupied by pallet versus used for product can be up to 10% 4. Damage caused by pallets – broken deck boards, over or underhang of product, nails, etc. 5. Sanitation: The FDA is inspecting pallets for rodent leavings with black lights. 6. Pallet returns interior to those shipped 7. Storage space required for pallets versus slipsheets – 100 slipsheets stored is the same as 1 pallet 8. Potential future shortage of pallets and increasing costs 9. Safety

56 Work Sheet

PALLET VERSUS SLIPSHEET COSTS COMPARISON Slipsheet System – Data Required 1. Number of loads ______450,000 2. Cost of slipsheets ______$.70 3. Cost of slipsheet dispenser ______$30,000 4. Slipsheet dispenser average life ______10 years 5. Slipsheet dispenser number of units required ______5 6. Cost of load push/pull ______$7.000 7. Load push/pull average life ______5 years 8. Load push/pull number of units required ______10 9. Time to store and remove load from storage on captive pallet ______4 min. 10. Time to stage and load with slipsheets ______4 min. 11. Labor rate ______$.15/min. ($9.00/hr.) 12. Cost of captive pallet ______$20 13. Number of captive pallets ______50,000 14. Average life of captive pallets ______5 years 15. Cost of Money ______12% 16. Pallet repair of captive pallets ______$120,000

57 Work Sheet

FORMULA (Store on Captive Pallets – Ship on Slipsheets) Number of Loads x Cost of Slipsheets = TOTAL Slipsheet Shipped Expense ______450,000 x ______$.70 = ______$315,000 Cost of Slipsheet x Number of Units ÷ Average Life = Annual Capital Dispenser Required Expense for Slipsheet Dispenser ______$30,000 x ______5 ÷ ______10 years = ______$15,000 Cost of Load x Number of Units ÷ Average Life = Annual Capital Push/Pull Required Expense for Load Push/pulls ______$7,000 x ______10 ÷ ______5 years = ______$14,000 Time to Store and x Number of Loads x Labor Rate = TOTAL Labor Cost to Remove Load from Store and Remove Storage on Captive Pallet Loads from Storage ______4 min. x ______450,000 x $.15/min.______($9.00/hr.) = ______$270,000 Time to Stage and x Number of Loads x Labor Rate = TOTAL Labor Cost to Load with Slipsheets Store and Remove from Storage ______4 min. x ______450,000 x $.15/min.______($9.00/hr.) = ______$270,000 Cost of Captive x Number of Captive ÷ Average Life of = Annual Captive Pallet Pallets Pallets Captive Pallets Replacement Cost ______$20 x ______50,000 ÷ ______5 years = ______$200,000 Cost of Captive x Number of Captive x Cost of Money = TOTAL Interest Pallets Pallets Expense ______$20 x ______50,000 x ______12% = ______$120,000 Pallet Repair of Captive Pallets = TOTAL Repair of Captive Pallets

TOTAL COST TO STORE ON CAPTIVE PALLETS & SHIP WITH SLIPSHEETS = ______$1,204,000 TOTAL COST TO STORE ON CAPTIVE PALLETS ÷ Number of Loads = COST PER LOAD & SHIP WITH SLIPSHEETS ______$1,204,000 ÷ ______450,000 = ______$2.67 SUMMARY PER LOAD SAVINGS PER LOAD TOTAL SAVINGS Pallets Only $5.03 Base $.00 Base $.00 Captive Pallets & Slipsheets $2.67 $2.36 $1,062,000

58 Work Sheet

PALLET VERSUS SLIPSHEET COSTS COMPARISON Optional methods to consider in storing & shipping unitized loads: 1. Store on slipsheet and ship on slipsheets 2. Store products that are clampable with carton clamps – the balance on slipsheets on captive pallets and ship on slipsheets

Because of problems associated with pallets and pallet exchange programs, the food industry is accelerating its transition for handling products either on slipsheets or palletless. The key to a successful program is proper initial planning including: 1. Education of top management 2. Training of lift truck drivers 3. Proper equipment 4. Establishing a test location to develop a successful slipsheet material handling system that will enable personnel within your company to become familiar with the requirements of slipsheet handling prior to expanding it to all of your shipping and receiving locations.

59 Slipsheets vs. Pallets

SLIPSHEETS VS. PALLETS: THE DECISION MAKING I. General Comparisons: Pallet vs. Slipsheets PROCESS 1. Costs: Wooden pallets range in cost from $4.00 to $13.00 There are many considerations, depending upon availability of woods and geographical and considerable analysis that has nature of use. Slipsheets range from 37¢ to 50¢; and a to be performed, prior to a deter- plastic slipsheets from $1.75 to $2.50 each. mination by a company, as to 2. Maintenance Costs: whether or not slipsheets should Wooden pallets cost anywhere from $2.20 per year for replace long standing pallet pro- plywood (estimated 7 year life) to $2.74 per year for grams, either board (estimated 4 year life). Currently most compa- partially or totally. nies lost pallets with regularity and for other reasons, There are comparisons and evalua- which will be covered in another section of this paper. tions that must precipitate any 3. Storage: major conversion of this nature. Taking into account the value of storage space, for every What is helping stimulate this think- pallet stored, 50 to 100 slipsheets (depending upon ing process is the abnormally high thickness-caliper) can be stored in the same space. cost of pallets. 4. Space Savings: While it is true that slipsheets do As shown in the comparison, 10% additional storage not have the rigidity of a wooden space can be gained. pallet, there are other considera- 5. Freight Costs: tions that must be examined in the Wood pallets weigh approximately 65 pounds. Assuming potential developmental process. a 40 unit load of low cube pallets were shipped. The internal combustion engine and the airplane were not booming This would mean that 2,600 pounds of pallets have to be paid for in successes the first time out. Proper, freight. If the cost per hundred weight were $1.00, the freight cost does sound economic reasoning must not include the pallets is $26.00. This freight cost does not include the prevail, in order to determine not pallet back haul expense. Slipsheets weigh about 3 pounds a piece; only the financial soundness of a translated to the same freight rate that would be 120 pounds at $1.00 program of this magnitude, but all per hundred weight, only making it $1.20 extra per the slipsheets. the ramifications that are contin- 6. Payload: gent to a program of this scope. It is feasible to measure your payload space 10% on Savings are not the sole purpose, rail cars, trucks, and on containers. although they bear a considerable 7. Safety: reason to go into a slipsheet pro- Wood pallets weighing about 65 pounds can cause back gram. I have broken down this injury, splinters, foot injury, and completely recyclable, comparison into two categories: and offer the characteristics of being a salable item. I. GENERAL COMPARISONS: 8. Disposal: Pallets vs. Slipsheets, and Wood pallets are not recyclable, but are repairable. II: COST COMPARISONS: Slipsheets are completely recyclable and offer the Pallets vs. Slipsheets. characteristic of being a salable item. 9. Damage to product: In the handling and storage of products, damage must be considered. Wooden pallets cause damage. Loose nails and splinters gouge and tear cartons. Loads can settle

60 Slipsheets vs. Pallets

Once this basic data has been collected, the final analysis begins. 9. Damage to product cont.: These are specific formulas that and become deformed through overhang and broken or collected data is then put through mission deckboards. Second tier pallets can partially as you can see by visual material. crunch lower pallets of product. Slipsheets do not cause The economic justification of a pro- damage if properly handled. Slipsheets offer still another gram of this scope is no different advantage. than any other economic justifica- 10. Return Program: tion that you go through, albeit, The elimination reduction of wooden pallets greatly machinery, lift trucks, etc. reduces the cost in pallet return programs. How the program is presented to These costs include: management is also an important ■ Pallets returned are inferior to those shipped factor. No matter how good the ■ Return shipping costs numbers may be, programs still ■ Storage space for consolidated shipments have to be sold. Only you can be ■ Bookkeeping of pallet exchange the judge of that. ■ Lost pallets ■ Storing of pallets Other considerations in the conversion to slipsheet handling should include: ■ Fire insurance cost for pallets ■ Sanitation – infestation of pallets What must also be considered is the economics of converting into a program of this magnitude. II. General Comparisons: Pallet vs. Slipsheets In the course of performing this analysis, there is both pallet system – data and slipsheet system – data required. Pallet system – data required 1. Number of units shipped 2. Cost per pallet 3. Number of pallets owned 4. Average pallet life 5. Cost of money in percent 6. Average weight of outbound freight 7. Weight of pallets 8. Cost of pallet return freight 9. Total pallet repair cost annually 10. Time required to store and remove loads from storage 11. Time required to stage and load with pallets 12. Labor rates 13. Time to unload and return pallets, inspect, sort, and administrate

61 Slipsheets vs. Pallets

II. General Comparisons: IV. TRAFFIC INVOLVEMENT Pallet vs. Slipsheets cont. 1. Customer coordination 2. Carrier responsibility Slipsheet system – data required 3. Product liability 1. Number of loads 3.1 In house carrier 2. Cost of slipsheets 3.2 Outside carrier 3. Cost of slipsheet dispenser 4. Slipsheet program 4. Slipsheet dispenser average life indoctrination 5. Slipsheet dispenser number of units required 5. Rate analysis & revision 6. Cost of load push/pull 7. Load push/pull average life V. DISTRIBUTION ENGINEERING & 8. Load Push/pull number of units required DEVELOPMENT 9. Time to store and remove load from storage on captive pallet 1. Slipsheet indoctrination 10. Time to stage and load with slipsheets 1.1 Customers 11. Labor rates 1.2 Carriers 12. Cost of captive pallet 1.3 Management & other 13. Number of captive pallets company personnel 14. Average life of captive pallets 2. Material handling equipment 15. Cost of money testing 16. Pallet repair of captive pallets 3. Slipsheet testing 4. machinery and film testing REQUIREMENT FOR II. SALES & MARKETING IMPACT 5. Customer analysis – physical DEVELOPING A SUCCESSFUL 1. Advantages to company facilities & equipment 2. Advantages to customer 6. Distribution center analysis SLIPSHEET PROGRAM 7. Systems planning (Palletless Handling System) 3. Advantages to carrier 4. Solicit assistance in selling 8. Pallet tiering & carton analysis 1. Top management approval program to customers (compac) (manufacturing) 2. Sales and marketing impact 5. Industry trends in 1980's 9. Justification and cost savings 3. Customer education analysis 4. Traffic involvement III. CUSTOMER EDUCATION – 10. Equipment purchase or lease 5. Distribution engineering & DATA BASE 11. Personnel training development 1. Impact on customers 12. Program implementation 6. Manufacturing planning operations 13. Program follow-up 7. Hourly personnel training 1.1 Material handling equip- 14. Savings audit 8. Implementation ment VI. MANUFACTURING PLANNING 9. Follow-up 1.2 Product handling 10. Audit savings 1. Revise automatic palletizing 1.3 Slipsheet capacity equipment 1.4 Storage & staging I. TOP MANAGEMENT APPROVAL 2. Revise pallet tiering heights 1.5 Order selection 3. Adapt material handling 1. Explanation: 1.6 Dock configuration equipment Slipsheets vs. pallets 1.7 Work rules for carrier 2. Economics & advantages drop off 3. Impact this will have on 2. Advantages of slipsheet business units program 4. Industry trends in the 1980's 3. Pallet problems 5. Progress & Communications on program

62 Slipsheets vs. Pallets

HANDLING METHOD— SHIPPING MODE

INTERNATIONAL SHIPMENTS OUTBOUND SHIPMENTS: PERCENT OF CASE SHIPMENTS ■ plant to warehouse ■ plant to customer Rail 16% ■ warehouse to warehouse ■ warehouse to customer Common carrier 50% Contract carrier 9% PALLET SLIPSHEET DEADPILED PALLET SLIPSHEET DEADPILED Company fleet 17% RAIL RAIL Backhaul 8% 40% 55% 5% 25% 70% 5% TOTAL 100% Pallet 38% TRUCK TRUCK 90% 10% 60% 5% 35% Slipsheet 22% Deadpile 40% TOTAL 100%

SLIPSHEET COST ANALYSIS PALLETS SLIPSHEETS

INITIAL PURCHASE COST (EACH) $8.00 $ .80 Annual usage/cost Cost per pallet x number pallets owned + avg. lift 8.00 x 10,000 + 2 years = 40,000 24,000 Repair costs (avg. 25% of orig. cost) (25% x 8.00 x 10,000) 20,000 -0- Storage * Insig. Warehouse cube loss * Insig. Special handling equipment Pallet forks: 400 + 5 yr. life 80 Push/Pull: 10,000 + 5 yr. life 2,000 Administration expenses (ordering, recordkeeping, pallet expediting, claims and returns) * Insig. Tare weight freight cost ($1.50 cwt) Pallets at 50 lbs. $1.50 cwt x 50# x 30,000 slipsheets at 3 lbs 22,500 1,350 Pallet return freight cost * -0- Transportation cube loss * Insig. Empty pallet handling (receiving, storing, sorting, retrieval) * Insig. Labor costs (loading, warehousing, unloading, staging) * Insig.

TOTAL ANNUAL COST $ 82,580 $ 27,350 Total unit loads shipped annually $ 30,000 $ 30,000 Cost per unit load $2.75 $ .91

*Additional costs to be considered

63 Slipsheets vs. Pallets

SLIPSHEET COST ANALYSIS PALLETS SLIPSHEETS

INITIAL PURCHASE COST (EACH) Annual usage/cost Cost per pallet x number pallets owned + avg. lift 8.00 x 10,000 + 2 years = Repair costs (avg. 25% of orig. cost) (25% x 8.00 x 10,000) Storage Warehouse cube loss Special handling equipment Pallet forks: 400 + 5 yr. life Push/Pull: 10,000 + 5 yr. life Administration expenses (ordering, recordkeeping, pallet expediting, claims and returns) Tare weight freight cost ($1.50 cwt) Pallets at 50 lbs. slipsheets at 3 lbs Pallet return freight cost Transportation cube loss Empty pallet handling (receiving, storing, sorting, retrieval) Labor costs (loading, warehousing, unloading, staging)

TOTAL ANNUAL COST Total unit loads shipped annually Cost per unit load

Additional cost notes:

64 PUSH/PULL & SLIPSHEET HANDLING MANUAL Case Histories & Industry Utilization

SLIPSHEETING THE ORLD RESULTS ■ Apple has the capability of W — shipping and receiving APPLE COMPUTERS 1. 78% reduction in pallet cost. Annual savings in excess slipsheeted loads worldwide of $500,000. (except 3 European locations OBJECTIVES —implementation targeted 1. Reduce loading and 2. 75% reduction in unloading labor. Annual savings in for July 88). unloading labor. ■ Establishment of a high quali- 2. Eliminate expensive wooden excess of $500,000. 3. 20% reduction in transporta- ty Slipsheet Standard for pallet costs. Electronics Industry. 3. Reduce transportation cost by tion costs. Annual savings in excess of $1,000,000. ■ Use of Cascade push/pull better utilization of the equipment worldwide. Transporting Equipment Total annual savings forecasted to Spec. (trailer/container). be in excess of $2.5 million in the first year of full implementation. ANNUAL VOLUME OF UNIT LOADS IMPLEMENTATION Annual unit load volume of Progress up to date: over 160,000. ■ 85% of unit loads handled on slipsheets in one year from TOTAL INVESTMENT the start of program. Equipment and start-up slipsheet ■ Additional 5% will be imple- cost of $200,000. mented by August 88. ■ 10% of unit loads will be less REQUIREMENTS FOR SUCCESS than container/trailer loads 1. High quality slipsheet. and will continue to be 2. High quality push/pull shipped on wooden pallets. attachments. 3. Design of specifications for HIGHLIGHTS OF THE PROGRAM quality of unit loads. ■ Apple is the first Electronics 4. Extensive operator training Corporation to implement program. this material handling 5. Identification of the method worldwide. Implementation and Support ■ The flow of slipsheeted unit Team. loads start from 6. Dedicated team for strong Manufacturing to Distribution Apple Slipsheet Program internal and external and end at freight carriers. Overview – May 19, 1988 communications. 65 Apple & Cascade

CASCADE PLAYS KEY reach 95 percent compliance from SPOC. Spenner says that another OLE N ORLDWIDE suppliers. What’s more, the slip- factor in the success of slipsheeting R I W sheet concept is expanding beyond is a new Apple unitload system DISTRIBUTION PROGRAM delivery of finished components called SPOC: Shipping, Planning, FOR APPLE COMPUTER from OEM suppliers to incoming Operations Control. Instead of pick- piece goods and to Apple’s own ing a series of individual compo- More often than managers real- shipments to computer buyers. nents to fill an order–1 monitor, 1 ize, the existence of an effective Sony Corporation, which manufac- CPU, 1 printer–Apple’s system will major account program is turers monitors for Apple, is inves- call for, say, 15 unit loads of print- absolutely essential to obtaining tigating slipsheeting for its distribu- ers, 30 of CPUs and 30 of monitors. major new business. The story tion network. It seems that the The SPOC system then provides below tells how the marketing folks at Cascade who played a key shipping with instructions for staff of Cascade Corporation was role in Apple’s program may have sorting the unit loads correctly to able to participate in the Apple touched off a small revolution in fill individual orders. Computer distribution team that the electronics business. revolutionized the way Apple But who does the sorting? For that, handles and ships its products. Benefits. What are the benefits of Apple sought assistance from truck- Moreover, Apple’s success in the slipsheeting, exactly? Well, in a ers. “We negotiated with the freight switch from wooden pallets to word, they’re impressive. Apple forwarders to have them break unit loads on slipsheets has saved $2.5 million in distribution down and sort the unit loads in implications for the entire elec- costs during the first year of full their ware-houses, “Spenner tronics industry. It’s a classic implementation on an investment explains. “The forward thinking case history of national account of $200,000 in equipment and carriers realized it would be to marketing in action. startup costs. In figuring these their advantage to know how to amounts, Dale Spenner says he handle slipsheeting when working “ We change the way people made “the costs high and the sav- with other customers. Those carri- think,” says Dale Spenner, manager ings low to get a very conservative ers that cooperated with our pro- of distribution engineering for measure of benefits. gram are getting additional busi- Apple Computer at Apple’s head- Apple’s savings come mainly from ness from other companies that quarters in Cupertino, California. the elimination of wooden pallets, use slipsheeting.” “We’ve changed the way people which accrue repair and disposal Simple, but. . . Apple’s program think about personal computers. expenses in addition to their ini- may sound simple, and it is–until Now we have a chance to change tial cost, and better use of transit you consider what’s involved in the way the electronics industry vehicle space. With slipsheet han- modifying a worldwide distribution thinks about materials handling in dling, the pallet is replaced by a system from pallets to slipsheets; a shipments from suppliers and to corrugated, solid fiber, or plastic system stretching from Singapore to customers. It’s an important devel- sheet. A “load push/pull” attached Europe to Silicon Valley, USA. opment we can all benefit from. to the front of a fork lift grips the Here’s where Cascade’s major Dale Spenner is talking about an edge of the sheet and pulls the account program proved to be 18-month program at Apple for load onto the truck’s platens, essential. Cascade’s David Spencer changing its entire supply train to which serve as the load base tells the story. unit- loads on slipsheets, which during transport. “Apple had looked at slipsheeting eliminate the cost of wooden pallets “Savings involve cost avoidance in 1984 and decided it was the way and make better use of available because you don’t have to handle to go, though the company wasn’t space in trucks, railcars, and ships. product on a piece by piece basis,” ready for implementation. Then in The company has already passed its Spenner points out. “We don’t ever 1987 Apple decided to make the initial goal of 90 percent utilization expect to go back to pallets so change. Its distribution people of slipsheeting throughout the these savings are permanent.” believed it was a prerequisite to Apple system and believes it will work with a supplier that could be

66 Apple & Cascade a member of the Apple team during Executive of the year. For the implementation. And Cascade had National Account Marketing the right kind of organization. Association, Cascade’s ability to “There were at least 10 of our peo- successfully assist Apple in a global ple heavily involved, “Spencer con- distribution program has extra tinues. “Myself, Andy Anderson, meaning: Robert C. Warren chair- Mark Sonda in Japan and his sales man of Cascade Corporation, was manager, our European representa- selected in 1988 as NAMA tive, and the local Cascade person Marketing Executive of the Year. at each of the locations where slip- In his acceptance speech Mr. sheeting was implemented. Warren underscored the problems “Initially Apple suppliers looked at of selling auxiliary products to slipsheeting with skepticism. They independent lift truck dealers. asked, “if it’s such a good idea, why “Without an intensive and ongoing hasn’t it been done before?’ A num- major account activity, the only ber of objections had to be over- influence we would have with them come. It was only through educa- would be the normal factory of tion, patience, and a lot of enthusi- design, price, delivery, parts and asm that Apple succeeded.” service. The final ingredient needed to assure real success was to create Dale Spenner offers his view of end-user demand. We have highly Cascade’s contribution: “Cascade qualified representatives who work was like one of our partners. closely and continuously with an Obviously Cascade has an interest ever expanding group of compa- in making it work, but many times nies and industries” their people went the extra mile for us–making presentations, making And that's what national account contacts for us, talking with folks in marketing is all about. order to get the program onboard.” Evangelize. Spenner told the NAMA Journal that as a pioneer in slipsheeting in the electronics industry Apple wants to “evangelize the industry.” Early in 1989, proba- bly in February, Apple will hold an open symposium for the computer industry to share its experience with slipsheeting. But why give a leg up to the compe- tition? In Dale Spenner’s words, “we want to do this because the missing link in slipsheeting is how our customers receive goods; so it is to our advantage to promote slip- sheeting; as more electronics com- panies use it, more customers will accept deliveries on slipsheets.” A NAMA case study CASCADE/APPLE

67 Apple & Slipsheets

SLIPSHEETS GENERATE is keeping them together.[2] The maximizing the utilized cube space YPER AVINGS AT ability to both receive and ship by in railroad cars. Early attempts H -S unit loads was critical in the suc- ended in disappointment when slip- APPLE COMPUTER cess of slipsheeting at Apple. While sheets deteriorated in refrigerated Patricia Lyons & Dale Spenner uniform boxes can be assembled cars during transport. However, a Apple Computer, Inc. upon receipt into unit loads on review of the program’s merits con- 20525 Mariani Ave. slipsheets, the best place to do this vinced them that it was a worth- Cupertino, CA 95014 is at the point of origin–factories while project to pursue. Plastic and Original Equipment slipsheets proved to be the optimal ABSTRACT Manufacturers (OEMs). At the solution. Coors manufactured their Over the last 20 years, the food same time slipsheeting was being own plastic slipsheets at a cost of industry has shifted increasing introduced to Apple’s vendors and $.60 each. The pallets they used proportions of unit loads from factories, their warehouses had just cost between $8 and $10 each.[3] wooden pallets to slipsheets– and implemented a unitizing system for enjoyed correspondingly increasing shipping called Shipment Planning BENEFITS cost savings. Other industries, how- and Operating Control (SPOC) The major benefits of slipsheeting ever, have been slow to embrace which also proved significant in are threefold: savings on freight, this technology. Apple Computer Apple’s success with the slipsheet- savings on labor, and savings on has pioneered the use of slipsheets ing program. pallet cost. Of the three, the freight in the electronics industry. savings is the most significant at The authors recap the advantages BACKGROUND Apple. A 20% reduction in freight of slipsheets over wooden pallets Slipsheets are thin (0.35 to .15 cost translated to over $1,000,000 and describe the specific cost sav- inches)[3] fiberboard, corrugated in annual savings. An unloading ings achieved at Apple in the first board, or plastic sheets that are labor reduction of 75% saved Apple year after conversion. Critical suc- used instead of pallets to handle over $500,000. A 78% reduction in cess factors are identified along unit loads of product. When a unit pallet costs again saved Apple over with a checklist for those consider- load is held together by $500,000. Total savings for Apple ing the use of slipsheets. or stretch-wrapping, the slipsheet in the first year have been over $2 provides a stable load base without million, and we project savings in INTRODUCTION the bulk, weight, or cost of a con- fiscal 1989 of over $3 million. In 1987, Apple Computer imple- ventional pallet. The sheets have These figures do not include addi- mented an innovative slipsheeting tabs at two adjacent edges. A fork- tional savings experienced by program that has saved over $2.5 lift attachment, called a push/pull, Apple’s vendors. million in its first year. The object grasps a tab and pulls the unit load Apple realized freight savings by of this paper is to communicate the onto two thin highly-polished steel loading containers and trailers potential competitive advantage plates called platens. The load is more efficiently. Space was saved slipsheeting offers the electronics released by lowering it to the when slipsheets replaced pallets. industry, and the competitive edge ground and pushing the load off Because they could put more prod- it has already given Apple. the platens. The push/ pull attach- uct in trailers, they needed fewer ment can be used for handling pal- trailer loads per year – at least 250 Industrial engineers have long real- lets as well as slipsheets. ized the advantages of handling fewer in 1988. In addition, they products in unit loads, i.e. material Slipsheets have been used success- planned the use of the space better. handling units made up of numer- fully in other industries for many They optimized cube utilization of ous individual items or cases that years. Adolph Coors was one of the sea containers by “configuring” the are moved and stored as a unit.[1] first companies to adopt a slipsheet unit load in terms of unit load There are two objectives in optimiz- handling system. Coors began their dimensions, carton position, and ing unitization. One is putting uni- slipsheet program in 1970 after container pattern. In some cases form boxes together and the other discovering the potential savings in they even redesigned the packaging

68 Apple & Slipsheets that didn’t conform well to contain- In February of 1987 the Distribution The ultimate solution transcended er and trailer dimensions. Labor Engineering Department at Apple the local container unloading savings were realized in un-loading met to brainstorm solutions to problems and has revolutionized ocean freight containers. Some receiving problems. Apple was material handling at Apple. overseas OEM vendors were floor incurring unacceptable expenses loading containers by hand, which and processing delays in manually VENDOR PARTNERSHIPS meant hand unloading on Apple’s un-loading ocean containers from A key element in the success of the docks. It took approximately 6 Far East suppliers. The team agreed program was starting at vendors worker hours to unload a hand that the use of unit loads was the and manufacturing plants. Apple loaded ocean container. The use of solution to the unloading problem, was the first electronics company to slipsheets has reduced the time to and that slipsheets, rather than pal- receive product, components and less than 30 minutes– a twelvefold lets, made sense as the unit load sub-assemblies on slipsheets from increase in productivity. technique. Although Apple had the Far East. Close work with the Pallets are expensive. The average already tried the concept, they apple OEM Purchasing Group was pallet at Apple costs $5.50. The thought that it would work if four instrumental in achieving this pro- average slipsheet is only $1.10. In issues were addressed: gram milestone. Purchasing con- the Far East the savings are even 1. Apple needed a slipsheet tacted, coordinated, and negotiated more dramatic. There cots range design that would withstand with suppliers on slipsheeting from $15 to $28 per pallet. the tearing problem encoun- implementation issues. tered in their previous tests. Conservation is another issue with Industrial Engineers from the This was accomplished the use of pallets. In 1979 pallets Distribution Engineering through close work with used 50% of the hardwood and Department visited Apple’s OEM 15% of all wood produced in the leading slipsheet vendors. [4] vendors and Apple manufacturing United States, Slipsheeting could 2. An education program was sites. They discussed the cost sav- significantly reduce the use of this required to get buy-in from ings, training and special equipment natural resource. Apple management. involved in beginning to ship on Some other benefits of slipsheeting 3. Material handlers needed to slipsheets. They assisted by prepar- include improved utilization of be trained on the use of the ing specific cost and savings data by warehouse dock doors, faster push/pull attachment prior to product, supplying the initial slip- throughput, and improved ware- any implementation of slip- sheets, and arranging the rental of house space utilization. Space is sheeting. Distribution engi- push/pull attachments until pur- saved because product can be neering in partnership with chased attachments arrived. stacked more efficiently, and pallet their equipment vendor pro- At first, Far East vendors expressed storage can be reduced. About 100 vided that training. This time reluctance to change the way they slipsheets can be stored in the the training program was did business with Apple. Although space of one pallet. extended to all the Apple these firms excelled in cost effective Distribution Support Centers. manufacturing, little attention SLIPSHEETING THE 4. The slipsheeting program seemed to be given to making the APPLE WORLD would take a global distribution of those products more Like Coors, Apple also encountered approach, embracing a total efficient. It took several trips to the difficulties in its first attempt at material handling solution Far East and a great deal of support using slipsheets six years ago. The that included suppliers, to get suppliers started. Now that first sheets tore when grasped by freight carriers, and cus- they are realizing the cost benefits the push/pull attachment, and the tomers. The Apple team spirit (pallets cost as much as $28 a piece program was not promoted well that rises above departmental in the Far East) some suppliers have enough to gain the support needed boundaries was essential in become slipsheet disciples who are to succeed. making this happen. starting their own programs to switch their distribution to slipsheets.

69 Apple & Slipsheets

SPOC Apple does have some customers 3. Education of all people who receive product in unit load impacted by the change Once a growing program was quantities, but who are equipped (vendors, manufacturing, under-way to maximize the propor- only for palletized loads. Thus, the carriers, customers, tion of product arriving in unit next challenge is to develop a win- etc.)– especially as the loads on slipsheets, Apple needed win partnership with those Apple changes impact material to keep these unit loads intact as customers who can benefit from handling equipment and long as possible. SPOC (Shipping receiving on slipsheets. techniques. Be certain that Planning and Operation Control), these people have someone Apple’s computer-aided warehouse In addition, Apple is working with to whom they can commu- management system, was already in slipsheet vendors to develop an nicate problems as they place to assist in unitization. Under even better slipsheet. Occasionally are encountered. the previous system, order picking a tab still tears or is crushed. was driven by individual customer Apple wants a slipsheet with an 4. Transportation order. SPOC replaced this with absolutely tear-proof tab. A superi- Department involvement– “wave picking”, a system of pulling or slipsheet will be a key factor in your company’s transporta- product by unit loads.[5] SPOC then the accelerated implementation by tion or traffic department allocates these unit loads to cus- other electronic manufacturers of can be especially valuable tomers and generates unit labels the slipsheet concept over the next in assessing the impact on for shipment. Since not all orders few years. carrier relations, liability are unit loads, the system can also issues, rate analysis, and generate labels for individual boxes IMPLEMENTING A load limitations. composing the unit load. The SLIPSHEET PROGRAM 5. Industrial Engineering essential idea behind SPOC is to Based upon their experience, leadership– Distribution eliminate the need to breakdown Apple recommends the following Engineering was the catalyst the unit load into individual cartons issues be addressed for successful within Apple, and as such at the warehouse. A forwarder implementation of a slipsheeting was involved in every facet of accepts the unit load with its indi- program: the slipsheet program. vidual labels to different customers. 1. Top management 6. Manufacturing planning– The forwarder takes responsibility commitment– although in addition to material pro- for breaking down the unit load slipsheet economics are cessing and handling equip- after it leaves Apple. This system often the most powerful ment, stacking heights may means that Apple seldom handles arguments, industry trends need modification. single cartons throughout its entire and effects on other pro- 7. Implementation– should be distribution channel. Developing a grams must also be staged with clear milestones close partnership with their for- addressed. Once a go-ahead and measurement criteria. warders was instrumental in mak- is received, it is also impor- ing SPOC work. 8. Follow-up at each stage– tant to report regularly minor glitches which hardly on progress. affect existing systems can eas- CHALLENGES 2. Sales and Marketing ily undermine new programs. Now 94% of Apple’s products arrive impact– these departments 9. Audit savings– especially at their distribution centers on slip- are interested in anything where major savings are sheets. Apple Manufacturing is also that affects relationships expected, early reporting receiving slipsheeted unit loads of with customers. They need of interim results can help sub-assemblies and components. All to see the advantages to cus- keep pioneers motivated United States warehouses were receiv- tomers, as well as to the when faced with inevitable ing unit loads on slipsheets by March company, so they can con- problems. 1988, and European warehouses will tribute to a strongly support- be receiving by January 1989. ive environment.

70 Apple & Slipsheets

10. Team spirit– The size of the slipsheeting team will Acknowledgements grow with the project. Team Dale Spenner, Manager of the Distribution Engineering Department at work is essential to the suc- Apple, and Patricia Lyons, Distribution Engineering Project Coordinator cessful implementation of compiled this paper from material gathered from the real authors-all the program, so it is impor- those people inside and outside of Apple who generously recapped tant to keep communication open and flowing between their experiences in implementing slipsheeting at Apple, and who sup- team members. plied articles and documents for background research.

CONCLUSION Thank you Cascade Corporation, manufacturer of forklift truck attach- ments, for supplying so many fine articles on slipsheeting and material The success of the Slipsheeting Program hinged on many factors. handling, and for outstanding support of the Slipsheet Program. ■ Global strategy was a basic Thank you to all the Apple suppliers and customers who ship and goal requirement. receive on slipsheets. Thank you to all those in apple’s Distribution ■ Implementation extended Support Centers, Warehouse Operations, Manufacturing, Distribution from vendors to Apple’s dis- Support OPerations, Distribution Engineering, Pacific Logistics, tribution centers to their out- bound carriers. Transportation, and OEM Purchasing, who have worked so hard to make the Slipsheet Program a success. ■ Slipsheeting is a simple process, however it requires extensive communication, [1] Tompkins, J.A. and support, training, follow-up, Smith, J.D., Editors. and patience. The Warehouse However, the essential element that Management Handbook, made it possible was the commit- McGraw-Hill Book Company, ment and dedication of each per- (1988) son involved in the effort. The Slipsheeting Team included people [2] Balough, Mike, inside and outside of Apple work- Unitization, ing to do what’s best for Apple and Lantech, Inc., (1984) what’s best for the industry. [3] Ackerman, K.A., Practical To quote one of Apple’s Distribution Handbook of Engineers, “The slipsheet unit load Warehousing, concept will save any company in The Traffic Service Corp. material costs, transportation (1986) expenses, and handling labor. The [4]Spencer, D., overall savings will only vary by com- Put It On A Slipsheet!, pany depending on their receiving Paper Board Packaging, and shipping volumes.” (October 1979) [5]Yocam, Delbert W., Technology Takes Bite of Success, Transportation & Distribution, (Presidential Issue 1988-1989)

71 Home Depot

“YOU MUST USE SLIP- reason for converting to slipsheets. They were convinced of this after SHEETS.”– HOME DEPOT The number one reason was the seeing what slipsheets did for Apple cost – financial and environmental Computer. Apple had a similar on Home Depot’s suppliers got the – to dispose of pallets in a landfill. again/off again introduction to slip- letter of the law. Now they must The cost of new wooden pallets also deliver on its spirit. factored in. But why slipsheets? It “We found out quickly that certainly wasn’t a case of love at our damage decreased by By Tom Andel, 30% by going to slipsheets.” Associate Editor first sight for Home Depot. –Terry O’Hara, Custom “We encourage you to begin “After a brief period of time con- Building Products. testing slipsheets for all compati- sidering slipsheets, we said, ‘Wow, ble merchandise that is shipped this looks complicated. Let’s find to our stores on regional LTL car- another way to solve this prob- sheets a few years ago – mainly riers, full truckload carriers, or lem,’” recalls Pete Cleveland, vice because of the difficulty of getting your own trucks. After a five president traffic and distribution their suppliers to cooperate. month conversion period, all for Home Depot. “Then we looked “Then Apple said, ‘wait, this isn’t product shipped in this manner at pallet exchange, pallet rental, the Apple way, the Apple way is to must arrive on slipsheets. We will and re-using pallets throughout the run through the walls,’” Cleveland not accept palletized freight after system. We even looked at sending remembers. “Then I realized, that’s January 1, 1995”. our pallets to a mulcher, where we the Home Depot way too. We’re not would bag the mulch and sell it going to let the walls stop us.” Thus began a change of life for back to our stores. After modeling Still, Cleveland doesn’t think slip- 5,000 Home Depot suppliers earli- or testing these alternatives, we sheets would have been practical er this year. For many of these com- determined none of them would do for Home Depot five years ago. He’s panies, slipsheet usage is a anything near what slipsheets convinced slipsheets are a solution new–even intimidating–proposi- would do for us.” for the 90s. First, companies tion. But the thought of losing Home Depot’s business was even scarier, so most of them are now starting to make a go of it. Judging by the experience of suppliers to this chain’s Northeast stores during the first regional trial period, the change might be just what the doc- tor ordered. “We found out quickly that our damage decreased by 30% by going to slipsheets,” says Terry O’Hara, traffic and ware- house manager for Custom Building Products. “This happened in three or four months. With slipsheets, a Some Home Depot vendors move lift truck operator has to be slipsheeted unit loads through their just a little more careful. warehouses on slave pallets. By keeping No damage must go to pallets on their premises, they save the Home Depot.” expense of shipping and losing pallets. But for Home Depot, dam- age wasn’t even the primary

72 Home Depot weren’t feeling the regulatory heat group are the LTL carriers. with another request from Home of environ-mental agencies in the “They were a problem early on,” Depot: direct-to-store deliveries. 80s. There weren’t the criminal says Cleveland. “But our regional “We’ll ship five or six different sanctions for pollution there are carriers came on pretty quickly, and models to one store during the fan today. Second, he feels today’s tech- every one of them put equipment season, but if the order quantities nology and equipment – including into their terminals. Most of them don’t come across in our basic SKU the push/pull attachments and the had some experience with slip- quantities we must break the loads lift trucks they attach to – make sheets, but nobody made the invest- down and rebuild them, “says Roy slipsheets an easier alternative. ment for their entire system before.” O’Brien, distribution manager. “The biggest problem was getting carrier MIXED REVIEWS One Home Depot supplier, Lakewood Engineering, had the compliance with the program.” Vendor reaction to Home Depot’s privilege of riding that learning Lakewood’s loads would go out mandate varies greatly. Two-hun- curve with the carriers. This manu- slipsheeted and wrapped and arrive dred fifty suppliers committed to facturer of heaters and fans slip- at the Home Depot stores loose, the program right away. Another sheeted product right off the according to O’Brien. Apparently 200 are recalcitrant non-believers. assembly line, five years before the carriers liked to use In the middle are the “wait and Home Depot made it a policy. But Lakewood’s shipments as top- see” people. Some in this latter Lakewood was asked to comply freight because products came in individual cartons. This helped car- Bare Bones Vehicles To The Rescue riers maintain cube in their trailers. Home Depot’s slipsheet program “This was a common problem with was almost finished before it started. the long haul regionals,” O’Brien Their pilot program began two-and- says. “Most of them haven’t invest- a-half years ago in the Northeast ed in the push/pull equipment. section of the country. Each store receiving dock was supplied with a Finally the carriers started using quick-fork-mount push/pull attach- platens, which stopped them from ment to put on their lift trucks for breaking loads down. We started handling slipsheeted loads. seeing our freight come through at The problem: every time a load of the other end on slipsheets. The slipsheeted goods came in, receiv- problem is you cannot double stack ing personnel would have to find a forklift, then attach the slipsheet mechanism. in a trailer with platens. If a carrier If the forklift was busy pulling an order for a customer, workers had to wait for the vehicle to be freed up. This meant receiving delays, angry truckers, and ven- tells you they can, they’ll increase dors hit with back charges for the waiting time. damage claims. We try to maintain “It got to the point where our receiving people in the stores wouldn't hook these the cube for the carrier to one des- devices up, “says Matt Pitts, equipment manager for Home Depot. “The program tination so they don’t have to split was pretty close to dying. That’s when we called in Raymond [the lift truck sup- the freight down.” pliers] and Cascade [the attachment suppliers] to design a new concept.” Maintaining trailer cube is especial- The solution lay in designing a vehicle that would be dedicated solely to handling ly important with lightweight slipsheeted loads. They started with a standard Raymond lift truck and modified it to make it more cost effective. The original truck was overqualified for a receiving freight. Deflect-O-Corporation man- dock job where high speed and high lift were not requirements. ufacturers plastic injection-molded “Home Depot did not want all that versatility,” says Michael Romano, director of products –again, top-freight bait national accounts for Raymond. “They wanted a design that would preclude it for carriers. Tim Wells, director of from being useful on the sales floor. That’s why they limited lift height to 66 inch- transportation and distribution, es. Because we didn’t have to outfit the vehicle with all the safety equipment used says when they palletized this prod- on the store equipment, that automatically makes it off-limits to workers on the uct for shipment, doublestacking sales floor. It also took cost out of the unit.” became perilous. “Now what we have the support of receiving, this program is much easier,” Pitts concludes. “If there are stringers missing, you

73 Home Depot introduce all types of problems if Deflect-O-Corporation now ships mechanism can go for $5,000, the you try to double stack in the trail- on slipsheets to 10 customers. return on your money is fairly er,” he says. “With a slipsheet you Wells says it paid off quickly. quick. When I got wind that Home always have a nice solid bottom and “If your product works well on Depot was going to require its ven- you don’t have to worry about a slip-sheets you can cut transporta- dors to use slipsheets, the timing pallet being busted. So as long as tion costs and pallets,” he says. At was right for us because we were your loads are fairly uniform, they $5 a pallet, you can spend a pretty ready to purchase a couple new lift can still cube out the trailer.” good penny. Although a push/pull trucks anyway. I had the vendor add the attachment.”

Carrier Cooperation Crucial RETURN ON INVESTMENT Slipsheets aren’t new to carriers, but once Home Depot’s January 1995 slipsheet compliance deadline kicks in, it may take some time for the LTL carriers to get Different vendors have different used to the volume they’ll handle. pay-back formulas, depending on “As Home Depot gears up their vendor community we are also equipping ourselves their product lines. Super Millwork with whatever is necessary to make handling of slipsheeted shipments easier,” says Inc. provides Home Depot with Bill Graham, v.p. of transportation and operations services for Yellow Freight. pre-hung interior doors, which are “There are techniques for properly handling and stacking slipsheeted shipments. We’re in the process of educating our dock workers in these techniques.” hard to palletize, let alone slip- sheet. Although vice president Doug The participating LTL carriers agree, training is critical to this program’s success. Roadway Express is working with Home Depot in developing training materials– MacMillan didn’t think it could be both for Roadway personnel and for Home Depot’s vendors. done, they gave slipsheets a try. “Our sales force will be an extension of Home Depot as they go into Home Depot’s They designed a cardboard bin in vendors and talk to them about what it will take to be successful,” says Bob Obee, which ten doors can nest. The slip- Roadway’s vice president of operations, planning, and engineering. “By the time we sheet goes under the bin. This solu- take Home Depot’s vendors through our engineered approach, they’ll see the benefit and come on board.” tion works, but is also costly. That engineered approach entails careful examination of slipsheet specifications. “We had to invest $15,000 in a With the additional pushing and pulling slipsheets get in the LTL environment, Obee stretch wrap machine, plus the peo- believes they’ll need more durable specimens than are typically used in the truck- ple to run it” says MacMillan. “We load environment. They’re also looking for better ways to secure unit loads. also had to invest in the slipsheets, “With palletized product you can wrap the stretch bins, and two attachments. But it has film around the wooden significantly reduced truck loading corners to secure product time. It used to take 2-1/2 hours to to the base,” Obee explains. load a truck by hand. Now it takes a “You have a harder time half hour. I would say we run dead doing that with a slipsheet. even, comparing the cost of the pre- Some of the slipsheet manufacturers have shown vious method with what we’re doing us models with interlock- today. I could have gotten out of this, ing corners. On initial test but we view our relationship with they look like they’ll be much better able to be locked in for unitization. We’re also looking at how many wraps are necessary on loads of this type. But such an engi- Home Depot as a partnership.” neered approach will work or not work based on the effectiveness of the training.” Besides, the other pre-hung door Yellow’s Bill Graham agrees, noting that LTL carriers are constantly educating manufacturers aren’t doing it. This themselves and their customers on what it takes to meet higher service levels. gives Super Millwork a competitive Our business is becoming much more service sensitive,” says Graham. “Slipsheets edge with Home Depot. are just another element in an already complex process.” Another challenge that needs Graham is factoring in a learning curve in his assessment of Home Depot’s slipsheet program. addressing before more vendors “We’re training to avoid as many snags as we can, but this is a dynamic business buy into slipsheets is how to keep and every trailer ends up with a different mix of freight. Slipsheets add another product on them. Flotec, manufac- piece to that puzzle.” turers of pumps and water tanks, is

74 Home Depot

still trying to perfect a way to stack cost but because they have to be these items on a slipsheet then equipped to handle the scrap.” stretch wrap them. Tandy Caudill, One of Pete Cleveland’s big selling distribution manager, says they’re points to vendors is the cost com- looking at adhesives. parison between slipsheets and pal- “Some products aren’t made for lets. He tells them if they’re ship- slipsheets,” he adds. “It must be a ping a truckload of slipsheeted standardized product. With our product to Home Depot they’re sav- type of products you can’t stack ing about $100. one load atop another [in a truck]. “Once the equipment is paid for, That means we can’t cube out the you get pure savings,” he says. trailer. But in our warehouse the “We’re told the equipment should slipsheets work better because last from five to seven years. But loads come in from manufacturing I’ve seen push/pull attachments that palletized on slipsheets. We just have been used for well over ten.” take them off the truck and stack them in the warehouse. When guys LESSONS LEARNED pull orders they just take them off the slipsheets, and you don’t have The slipsheets delivered to Home the expense of another pallet. Depot stores are put in a stack, That’s why I think you’ll see more banded, then backhauled to the Slipsheets companies go to slipsheets.” chain’s DC. There they’re sorted into reusable or recycle. Those Add Stability Lakewood Engineering’s Roy deemed reusable will be put to Slipsheets aren’t always used to replace O’Brien agrees. He ran the num- work in the DC. pallets. The two can work together in bers on what it would cost his forming a stable unit load. company to ship on pallets. His “We started with fiber slipsheets, There is a continuing push toward pack- but we realized they wouldn’t work ing more than one thing on a pallet. You company moves 60,000 SKUs a year. Even with less costly pallets, at in our environment because of the may add three or four tiers of one prod- number of uses the slipsheet got,” uct to three or four of another. But a $4.50 each, that would mean an corrugated box is strongest as its cor- annual outlay of $270,000. With says Cleveland. “Our New Jersey DC ners and weakest in the middle. That’s has been doing this the longest and why, if a box in the bottom layer is sup- plastic slipsheets, at 86¢ each, the porting one above it with its middle sec- cost is $51,600. Corrugated fiber- “The pallet’s been around tion, you don’t have the strongest load board is even less – 56¢ each, or for over 50 years, and I’m you can have. $33,600. His company uses both not sure there are many Putting a slipsheet between such layers types of slipsheets to ship to cus- inventions that have a helps distribute the load so the bottom useful life above that. boxes can better support the upper tiers. tomers, although Home Depot Slipsheets can also tie the tiers of a load requires plastic only. I tell my people if they’ve together, adding stability. been doing something for “We were using 200 lb test corru- five years it’s probably For example, if you column stack, keep gated slipsheets,” he says. “These in mind what we said about boxes being wrong now.” strongest at their corners. Column are very easy to dispose of but if –Pete Cleveland, stacking is the most economical way to you don’t catch the lip right there’s Home Depot ship the most product in one unit load. a possibility of tearing it. We were Using slipsheets between tiers maxi- getting two to three turns on the mizes the stability of such a load. they think they’re getting four to corrugated slipsheets we kept in five turns on the plastic slipsheets. Information provided by Steve Beshore, our own warehouse. The plastic With fiber we were having failure program manager for packaging sys- ones have a longer lifetime. We tems research and development at with one turn in many cases. In an International Paper’s Packaging haven’t pursued shipping on plastic LTL environment it could get han- Innovation Center, Middletown, NY. to other retailers – not because of dled three times between the ven-

75 Home Depot dor and our store. With that con- useful life above that,” he argues. stant re-use the tabs would pull off. “I tell my people if they’ve been And if there was any moisture at all doing something for five years it’s in any of the trucks along the way it probably wrong now.” tended to weaken the fiber.” Home Depot’s philosophy of com- One of the biggest surprises to petition will continue to drive their Home Depot involved the poor slipsheet program. It’s built upon a acceptance of equipment – by their smoother, faster-flowing, less costly own stores. The chain uses quick- supply chain. After all, Cleveland fork-mount push/pulls attached to concludes, “It’s not us against our sit-down counterbalanced lift competitor; it’s our supply chain trucks. These weren’t well received against our competitors.” T&D at the stores because the workers weren’t used to maneuvering lift trucks in and out of the relatively close quarters of their store rooms. Electric pallet jacks were their tools of choice. “We worked with Cascade and Raymond Corp. to come up with a vehicle that was more user friendly to our receiving department,” says Cleveland. “Once we put that equip- ment in, our stores turned around completely on slipsheeting. They went from hating it to loving it.” As for carriers, Cleveland pleads guilty to naiveté for expecting carri- ers to welcome this concept with open arms. It took the success of its regional carriers in the Northeast to convince the other carriers this could be done. “Once our regionals saw the suc- cess TNT Redstar was having, they agreed to support what we were doing.” As of January 1st, Home Depot’s slipsheet mandate will be in full force across the country. Pete Cleveland feels their regional trial periods helped put them a step ahead of the competition in chop- Copyright © 1994 ping away at their pallet problems. by Penton Publishing, Inc., Cleveland, Ohio 44114 “The pallet’s been around for over Integrated Warehousing & 50 years, and I’m not sure there Distribution are many inventions that have a

76 Quaker State Oil

LIFT TRUCK Pallet handling was one of the key could be fully automated where it TTACHMENT LIMINATES areas in which Quaker State Oil was unnecessary to use pallets. The A E Refining Co. of Canada Ltd. focused method it finally chose was to use PALLET USE – attention when it moved to a new Load Push/Pull lift truck attach- QUAKER STATE OIL 40,000-sq. ft. plant at Burlington, ments from Cascade Hydraulics By Richard Rix, Ont., recently. (Canada) Ltd., Mississauga, Ont. Assistant Editor This company had completely up- Basically, the Load Push/Pull unit is A curious dilemma exists in one dated its production facilities and mounted on the front of a suitable area of materials handling. If you now looked for a more efficient lift truck and handles loads on use pallets, you face problems of way of handling one of its most paper slipsheets. (The method can having to store them and maintain popular product lines: Motor oil be called palletless handling or some degree of inventory control. If in 1-qt. cans packed 24 to a car- unitized-load handling). Simply you don’t use them, such opera- ton. What it required was a method described, the unit consists of a tions as loading trucks and railcars of handling that could be fully inte- face plate that extends and retracts can prove costly and laborious. grated with pallet use but which by means of a pantograph mecha- nism; a gripper bar and jaw to engage the lip of the slipsheet; and two oversize forks called platens.

PUSHES ON, PULLS OFF In operation, the face plate pro- vides a forward action to push a slipsheeted load off the platens onto the floor (or pallet) or onto another load. Its pulling action, on the other hand, is accom- plished by the gripper bar closing over the protruding lip of the slip- sheet, automatically pulling the load onto the platens when the face plate is retracted. Since the day when it went into operation, the Load Push/Pull unit has proven to be extremely efficient and reliable – the ideal comple- ment, in fact, to Quaker State Oil’s new production facility.

PLANT BLENDS, PACKAGES OIL The facility itself is responsible for blending and packaging motor oils and lubricants and shipping them by truck and rail to the whole Canadian market.

Recently introduced to an oil blending and packaging plant, this lift truck attachment enables handling operators to match production capabilities.

77 Quaker State Oil

At the beginning of the process, the Two of the lift trucks operating at but transferring the loads into refined product arrives at the plant the plant are fitted with the attach- trucks and railcars can be accom- from the parent company’s ment and each operates in the plished in a fraction of the time it Pennsylvania refineries in tank same way: It pulls a load onto its takes to handle them manually. cars. From these cars it is piped platens, transfers the load to the “Speed of operation is the main into tank storage, blended accord- storage area and offloads into reason we chose the Load ing to specifications and packaged, stacks up to four loads high. Then, Push/Pull method,” acknowledges all fully automatic. The packages when they’re called for, these same Pat Irvine, plant manager of Quaker which the Load Push/Pull attach- lift trucks transfer the loads to State Oil. “Before, it would take ments will handle come off the pro- trucks and railcars for shipment. four men one hour to load a truck duction line in such a way that four manually, removing containers layers of ten cases on a slipsheet SAVES TIME LOADING TRUCKS from a conveyor in the truck. Now comprise a load. Each load meas- Not only can all these operations it takes one man just 20 minutes to ures about 50 cu. ft. and weighs be achieved without using pallets, load a truck using a forklift fitted more than 2,400 lb. with the attachment and we’ve elim- inated the use of that conveyor. If Stacking. . . the customer still wants pallets – and many of them do because of their own materials handling meth- ods – we’ll just place the slipsheet- ed loads on the pallets.” The cost factor has also been an important consideration. The slip- sheets cost just 85 cents each whereas the cost of a pallet is somewhere in the region of $10. Multiply this twentyfold (the aver- age truck load consists of 800 cases and it takes 20 slipsheets to accommodate them) and you have costs of $17 versus $200. Of course, the slipsheet is non-return- able whereas the pallet deposit is refundable, but the higher degree of efficiency that accompanies the slipsheet’s use more than compen- sates for this higher cost factor.

REDUCES PALLET INVENTORY PROBLEMS The company also finds it’s been freed from the vagaries of having to

After stacking the slipsheeted load, the lift truck operator reverses his truck while at the same time extending the Push/Pull attachment. In this way, the face plate holds the load in place while the platens are retracted.

78 Quaker State Oil maintain some degree of inventory for example, the uppermost layer WEEK’S TRAINING NEEDED control over its pallets. Explains is that much lower in the heat-rise Any competent forklift truck Irvine, “Generally speaking, you’d area, and there is less risk of operator can safely and efficiently get your pallets back – eventually. obstructing a sprinkler system. In operate a truck fitted with the Load But say a distributor is purchasing transit, too, if the customer does- Push/Pull attachment after a week’s on a monthly basis. He may hold n’t want his load palletized, slip- constant driving, according to the pallets until he’s got a full load sheets can help protect it without Irvine, “He may think he can do it several months later and then ship contributing significantly to right off the bat, but he’s got to pick them back all at once because it’s its height. up additional skills. cheaper for him. The slipsheets Quaker State Oil “Especially critical is an exact “Then again, he may get $12 each uses are supplied by Abitibi Paper judgement of height when stack- elsewhere so you wouldn’t get Co. Ltd., Toronto, and Canadian ing,” continues Irvine. “The front them back at all. There’s really no Inter-national Paper Co., corner of a load being stacked up way of maintaining an efficient Burlington, Ont. high is blind and the operator must inventory control. “Take as an example the figures . . .Unstacking relating to pallets we still use. Some-where in the region of 2,000 pallets went out in the first quarter of this year so you’d expect somewhere near the same figure to be returned in the sec- ond quarter. In fact, I doubt if we’ve had 500 returned. I even had to buy 700 or 800 more. Now I’m just hoping I won’t get 1,200 pallets returned in the next three or four months because I’ll have a plant full of pallets.”

SLIPSHEETS NEED LESS ROOM This raises another important point: The physical size of pallets com- pared with slipsheets. The area it takes to store pallets is significant, costs money and reduces plant effi- ciency. Slipsheets, on the other hand, take up very little space. Even in use, the comparatively in- significant thickness of slipsheets can be an important consideration. When several are used in a stack, To unstack, the attachment’s face plate engages squarely against the load with the edge of the slipsheet in the gripper jaws. Then, as the attachment retracts, the gripper closes and the load is pulled onto the platens.

79 Quaker State Oil

A significant chunk of floor space is required to store pallets (left) whereas the hundreds of slipsheets shown below take up little room.

coordinate his judgement of height plate. When hydraulic pressure is lb. category. In this way, different with being able to push the load off applied, the arms open (stretch types of lift trucks with various and pull away at the same time. out), pushing the face plate forward capacities can be accommodated. Don’t forget, too, he always has the to the outer end of the platens. Various modifications and acces- weight of the load on the platens Conversely, when pressure is applied sories also exist, such as a tilting whereas with a straight forklift, to the opposite end of each cylinder, face plate for handling sensitive once he lowers the load he just the arms close and pull the face loads and an attachment for pulls out.” plate back against the frame assem- retrieving slipsheets from loads Stacking at Quaker State Oil’s plant bly. The gripper bar, at the same after stacking. There are even cams is restricted to four loads high, but time, has closed over the protruding which can be mounted at the end this is not due to any limitations on lip of the slipsheet and pulls the load of the cylinder rods to prevent the the part of the trucks or attach- onto the platens as it retracts. forks from protruding beyond the ments. Rather it’s mainly because of edge of the load and damaging the weight on the bottom layer. PLATENS COME loads already stacked, an impor- IN VARIOUS SIZES tant consideration with loads of varying depths. STRAIGHTFORWARD The platen arms consist of two CONSTRUCTION polished and tapered platens, 48 REQUIRES LITTLE The construction of the Load Push/ in. long and 15 to 20 in. wide, MAINTENANCE Pull unit is quite straightforward. It depending on model and capacity. consists of a base frame assembly Multiple-fork versions are available From the maintenance point of in which is mounted a pair of dou- that have been specially designed view, the Load Push/Pull unit ble-acting hydraulic cylinders for the food industry but which are requires very little servicing, whose circuitry is connected to the used for other operations. Both according to Irvine. “It’s very main- lift truck’s hydraulic system through models can be supplied with side- tenance free, though like any other a valve assembly. shifting capabilities. piece of equipment, you have to have a good maintenance program The hydraulic cylinder rods are Several versions of the Load Push/ to keep it that way.” attached to the pantograph arms by Pull units are available, both in the heavy-duty linkage, and the arms, 4,000-lb. capacity Quaker State Oil At the end of each day, the plant’s in turn, are linked to the load face operates and in the higher 6,000- own maintenance man carries out a

80 Quaker State Oil

10-minute inspection on each of charge, it’s generally able to com- the Load Push/Pull attachments. plete an 8-hour shift operating the Mainly he concentrates on the attachment. If it’s really pushed, hydraulic hoses and checks that the according to Irvine, the company gripping mechanism hasn’t been rotates the attachments among its twisted. Ironically for Quaker State lift trucks, because a battery which Oil, the attachment requires no is too low to power a Load major lubrication. Push/Pull unit will still run a stan- Once a month, a technician from dard lift truck reasonably well. J.H. Ryder Machinery Ltd., Toronto, Irvin points out, too, that there (who supplied the lift truck and are products for which his com- Load Push/Pull attachment com- pany will continue to use pallets, plete) visits the plant and checks because of their greater stability over the equipment. He’s also on in handling such loads as Quaker call should any problems arise that State Oil’s 46-gal. drums, 35-lb. Quaker State Oil’s maintenance pails and 120-lb. kegs. But for man cannot solve. moving loads packed in cartons, Irvine is convinced the Load FULLY INTERCHANGEABLE Push/Pull unit is the best attach- All told, the plant uses four lift ment there is. “To my knowledge, trucks – the two fitted with the nothing is more efficient in this Load Push/Pull attachment and area,” he says. “It’s certainly two which operate as standard lift superior to forklift and pallets for trucks. All the lift trucks are iden- our purposes.” tical (Model EC 500-40 from Clark Equipment of Canada) and are fit- ted with the hydraulic control lever required to maneuver the attachment, so the attachments are completely interchangeable. This operation is carried out in ten minutes, the attachment being connected by just two quickchange mounting hoods and the hydraulic hose coupling. Needless to say, using a Load Push/ Pull attachment does impost a greater battery drain than just oper- ating a standard forklift truck. When powering the attachment, the battery is directly responsible for its forward and retracting motion as well as the other functions of a Reprinted from Materials standard truck. Management & Distribution, Even so, by using the largest battery July 1977. possible in its lift trucks. Quaker State Oil finds that, on a 24-hour ©1977 Maclean-Hunter Ltd.

81 Jewell Foods, Inc.

PRIOR TO SLIPSHEETS on order for 1978 delivery. Now 2. There are no storage let’s take a look at the different problem of pallets when in United Fruit & Vegetable aspects and pickups of going into a slipsheet operation – slip- Association Committee Meeting slipsheet material handling from sheeting at packer level great- Washington, D.C. – three different perspectives in the ly increases packer plant uti- September 26, 1977 total distribution process. These lization of space when you do are the grower, carrier and the not have to store pallets. speech delivered by Jim receivers. Then I will address some Estimates are 15-20% space Chase, President of Jewel opportunities that need to be saving in a plant using slip- Foods, Inc., Chicago, IL. thought about and concentrated on. sheets versus pallets. I would like to personally thank I will close my remarks with some 3. Sanitation problems all of you for allowing me to blue sky projections we have at throughout the distribution spend a short time with you at Jewel for product flow concepts rel- system are greatly reduced by your annual meeting and share ative to shipping the product to our not having pallets which with you our thoughts in the dis- stores and ultimately the consumer. decrease the USDA by RDA tribution area at Jewel Food Stores risk at plant level. It is fore- regarding the use of slipsheets in FIRST, THE SLIPSHEET seen that in our industry that receiving and shipping. ADVANTAGES FOR THE the standards and interfaced First, perhaps a little informational GROWER-SHIPPER with these governmental agen- background about Jewel Food 1. There are large labor savings cies will continue to increase Stores as one of your customers. to be captured at the grower, in the future, so the sanitation We operate approximately 186 packer ends of the business pickups with slipsheeting are a stores in the Chicagoland area in as exhibited in the Florida real operating benefit and addition to super-markets in Iowa, citrus packers conversion to concern. As it is commonly Indiana, Michigan and Wisconsin. slipsheet handling. As wages known that the wood pallet is Our primary market, of course, is get higher and higher for one of the greatest vehicles of Chicagoland and suburbs where we labor to perform the dock rodent and insect infestation have the largest share of the food and loading function at the in the distribution centers. market – 30 to 35% depending on packing house level, this area There is significantly less dol- which Chicago newspaper you is prime for improved materi- lar investment throughout the read. al handling through the use total distribution system by the of slipsheeting. use of slipsheets freight han- So much for information on us and dling compared to the $5 -6 let’s, for a few minutes, discuss our The use of automatic palletizing wood pallet. feelings and perceptions at Jewel machines onto slipsheets to Food Stores on slipsheeting. further eliminate labor are 4. There is improved in-plant common and one or two safety in handling slipsheeted We at Jewel, for the last year, have product versus pallets with been pursuing vigorously with slipsheet fork truck operators are common in running an wood splinters and exposed growers and packers, particularly nails, which can convert to dol- in the Florida citrus area, the slip- entire packing house dock and loading operation. Labor is also lar savings in absence and dis- sheeting concept and completed a ability claims against the plant. tour of the citrus packing plants in saved in loading a magazine of central Florida discussing this issue slipsheets versus loading a pal- Less in-plant building and and arranging for test loads with letizer magazine with pallets. equipment damage will occur the different citrus packers. One magazine of slipsheets may moving your product around hold as many as 100. A strap- on slipsheets. Damage to We now have in our produce distri- ping device can also be incor- walls, machinery, doors, con- bution center, two slipsheet porated into the automatic pal- duit, etc. machines and an additional two are letizer to secure the product.

82 Jewell Foods, Inc.

5. Trailer weight cub Now let’s look at the advantages dependent on lumbers for utilization can be increased on our side of the business – the unloading can put a ware- by the pallet weight of 1400- receiving warehouse. A number house in serious jeopardy 1500 lbs. of additional freight of your stated advantages also regarding dock turnover if the if slipsheeted versus pallets. apply to us as your receiving lumber service becomes unre- Actual gross weight pickup warehouse customers. liable or disappears. can be higher figuring space 6. In our first few railcars of slip- picked up timers case weight; RECEIVING WAREHOUSE sheeted produce, we found if it still falls into legal truck ADVANTAGES significant labor savings there transit weights. 1. It is suggested to secure the versus the former floor loaded Additionally, as is well known, freight in transit and secure a railcars – example, a large truckers prefer unitized loads, suitable slipsheet unloading floor load rail car would take slipsheets or pallets versus operation that the slipsheet a man eight hours to unload floor loads and in time of product be taped or bound and when we received it slip- motor carrier shortages, the or in some cases, with the sheeted, it took 3-31/2 hours. plants that are unitized gener- use of glue. ally get preference by the driv- 2. As mentioned in your pickups, OTHER VERY PERTINENT er in accepting their freight. we also share the improved INFORMATION ON WAREHOUSE 6. Reduced product damage safety aspects of handling slip- RECEIVING – OF SLIPSHEET- has been noted by our experi- sheets versus pallets – less ING VERSUS CURRENT NON ence in slipsheets versus pal- employee accidents and 48" X 40" GMA PALLETS IS lets particularly in the loading reduced absence and disabili- AS FOLLOWS: and unloading process, due to ty costs and minimized OSHA In 1976, we received approximately pallet abrasion against cases. risk violations. Broken and 10,000 non 48" x 40" pallets at 7. Reduced capital investment unsafe pallets constitute an an approximate cost to us the cus- – Currently Jewel Food Stores OSHA violation. tomer, and ultimately the consumer is spending almost one million 3. Reduced product damage from of $50,000. dollars per year on wood pallet abrasion on the side of the car- Granted, the material handling replacement due to a variety of tons in the unloading process. advantages in receiving and dock reasons such as receiving 4. Some increased dock space turnover are received from non 48" pallets in poor repair, stolen at utilization with a reduced x 40" pallets, but they present the store level and having our amount of excess pallets in tremendous costs to us on our end good pallets exchanged with the area. Increased warehouse of the distribution cycle: direct delivery vendors for space utilization if products their bad pallets at the store are stored on slipsheets and SOME OF THESE level. Obviously with slip- are able to be double stacked. DISADVANTAGES ARE: sheets, the massive dollar investment and continued 5. Many warehouses have out- 1. Tremendous increased costs to replacement of wood pallets side unloading services (lum- our business because we con- would be significantly bers) which are in many sider non 48" x 40" pallets one reduced. There are much less cases, unreliable and their trip throw-aways and they are labor dollars expended in employees are a safety and not compatible with the grocery receiving and storing slip- liability risk. Getting freight industry standard as would sheets versus pallets. off of the floor onto slipsheets your product being received on will reduce our dependency a 48" x 40" slipsheet. There are some of the signifi- on them and ultimately cant advantages for a grower- 2. We now unload and stack no reduce or eliminate the need shipper to convert to slipsheet 48" x 40" pallets onto a 48" x for this service. Being too operations. 40" pallet wherever possible

83 Jewell Foods, Inc.

but under numerous circum- SOME ADDITIONAL CHALLENGES before we could unload it. stances it creates an unsafe AND INFORMATION FOR ALL OF Taping of the top tier of freight condition throughout the US TO WORK ON TOGETHER. is recommended or strapping material handling process par- 1. Numerous produce case sizes or glue. ticularly if double stacking or and configurations do not 3. Caution should be used in the using metal reserve storage conform to the 48" x 40" gro- selection of the proper slip- racks leaving the receiving cery pallet or slipsheet design sheet on its size and lip size warehouse vulnerable to acci- so as to be compatible with and caution should be used in dent and disability risk as well the major food distribution the selection of the proper as OSHA violation. pallet system. To be compati- slipsheet on its size and lip 3. Our labor is approaching $9 ble with our system and our size and additionally, how per hour—expended daily to slipsheet forks, we need to cooler temperature, moisture sort, transfer, stack, store and have a 40"-48" slipsheet. It is and humidity will affect it in hopefully finally get rid of our opinion that the retail the distribution cycle. these non 48" x 40" pallets. industry can adjust, order and In our experiences recently 4. Within the last two years we sell any container size you with the Florida citrus slip- have had increasing difficulty convert to if it is compatible to sheet receipts, we are discov- in getting rid of them. a 48" x 40" slipsheet. Example ering a large amount of deteri- Currently we give them away I believe in some commodities oration of the slipsheet due to for free. At times we could not the gross case weight has the above reasons. We are get rid of them at all and we remained un-changed for now working with them on feel eventually we will have to many years. Yet, in most labor testing moisture retardant pay to get rid of them. We feel environments including our plastic coated sheets or full the future is in slipsheeting on own, it costs us the same to plastic sheets. Be careful you a sheet compatible with the handle a 25 lb. case versus a test sheets properly before 48" x 40" grocery industry or 50 lb. case—we should move committing to a mass pur- in some cases, a conversion to to larger case weight sizes. I, chase. Wherever possible, the newly approved grocery understanding objectives in these sheets should be recy- pallet council softwood 48" x this area. I suggest you exam- clable either to make more 40" pallet for areas where ine your shipments and you slipsheets or mixed with cor- hard wood is unavailable. probably will find the largest rugated for recycling. share of your product goes to 5. Our pallet repair—sorting the large volume retailer who 4. We suggest from experience, facility costs have increased 4 uses the 48" - 40" dimension before you buy a particular times since 1972. In 1972 we shipment mode. slipsheet machine or a conver- had 4 nailer-sorters—today sion kit of an existing fork we have 12 nailer-sorters to 2. In looking at future packaging truck, that you test several keep up with all types of pallet in light of handling and dam- brands before you purchase. repair, sorting and expediting age reduction further study Some work better than others. of non-usable pallets. We should be conducted on the Find out what works best for applauded in the past, your feasibility that would lend the you and your products. A conversion from floor load cases to interlocking tier recent bid we had to convert products to the non 48" - 40" stacking to promote stability an existing for truck to a slip- pallet, but we encourage you of frights on the slipsheet in sheet attachment was to look at slipsheeting and transit and in the unloading $5,700.00. how does it fit into the total process without damaging the contents, or additional manual 5. As a point of information to food distribution cycle from give an example of the food field to customer. labor at the warehouse will be needed to straighten the load industry’s interest and shift

84 Jewell Foods, Inc.

from pallets to slipsheet, we were recently served notice by one of the nation’s largest manufacturers that within 2-3 months they would be out of pallet deliveries and into full slipsheeting in our area. In conclusion, we at Jewel would be happy to work with any of you in test shipment loads. We will pro- vide documentation on the condi- tion of the receipt and if you want, even pictures. We, at Jewel, are seriously looking in the future to design stores and receiving docks in a manner which promotes the end of the pallet as a major device to ship groceries to the store on and will be looking at conducting tests in slipsheet receiv- ing at store level. The future, we believe, is definitely slipsheeting and other forms of unitization. We think for a number of reasons, in time the sanitation, safety, space utilization of trailers, warehouse and store back room and huge dol- lar investments in pallets, that the wood pallet use as we know it, will be greatly digressed in the total dis- tribution system. Thank you very much for this opportunity to speak with you and if you are in Chicago, we extend an invitation to tour our warehouse distribution facilities. Thank You. Plain sheets in volume 50 – 90¢ depending on strength Plastic sheets $2.00 - $3.00 – must be recyclable

85 Pik'd Rite, Inc.

UNITIZING 30-LB CANS SAVES 75% LABOR – PIK'D RITE, INC. Slipsheet shipment of net- wrapped loads eliminates pallet interchange, lessens damage. Anthony J. Grcich, President Larry Grcich, General Manager, Pik’d Rite, Inc. Karl Robe, Editor-West

NEW SOLUTIONS TO PLANT PROBLEMS Problem: Pik’d Rite, Inc., Escalon, CA, wanted to mechanize and unitize all handling and ship- ping of frozen fruit products in retail-size cases and 30-lb cans. Particularly tough to handle were the 30-lb tins of frozen berries. When stacked in the rail cars or Polypropylene netting unitizes 80 cans. Load is removed by gripping the slipsheet, trucks, loads would shift in transit and is placed in car in less than a minute and covers would sometimes come with push/pull attachments Push/Pull® attachment for fork off. Stacks were unstable, and unload the shipment. trucks is described in literature injuries from handling fallen stacks available from Cascade Corp., P.O. at the receiving end could not R esults: Compared to manual Box 20187, Portland, OR 97220 always be avoided. loading of 30-lb cans, labor savings “Tension-Net” polypropylene net- are about 75%. Shipping damage, ting for unitizing loads of cans, Solution: Pik’d Rite stacks unit from load shifting and loosened loads of both cased goods and cans cases, trays, pails, or drums is , has practically been eliminat- furnished by Conwed Corp., on slipsheets placed on their cap- ed. Unit-loads can be stacked 4- tive 48" x 40" pallets; unitizes the Plastics Div., 770-29th Ave. SE, high without aids such as corner Minneapolis, MN 55414. load by wrapping it in polypropy- posts or ties, plus extra labor. The lene netting; and stores the unit- expense of returning pallets and of Sidewinder II® system, which load 4-high in the freezer. At ship- damage and loss during shipment can be programmed in any ping time, a push/pull attachment is has been eliminated. Major desired pattern for unitizing put on one of the fork trucks (a receivers likewise benefit in lower loads with film or netting, is matter of 10-15 min). labor and damage costs. described in literature available For shipment, the net-wrapped from Infra Pak (Dallas), Inc., unit-load is pulled off the pallet 4911 Cash Rd., Dallas, RX 75247. onto the forks, taken into the van Reprinted from April 1980 or car, and pushed into place. At Food Processing the receiving end, fork trucks

86 Simplot

ON-THE-JOB CASCADE LOAD PUSH/PULL INCREASES PRODUCTION APPLICATION REPORT Caldwell, Idaho

SHIPMENTS INCREASE TWO MILLION POUNDS WEEKLY J.R. Simplot Company, one of the world’s largest processors of frozen and dehydrated potatoes, ships as much as two million pounds of products daily. Speed, reduction of product damage and labor are sig- nificant requirements when handling such large volumes of product. That’s why Simplot has installed the food industry’s most modern pal- letized operations at their Heyburn and Caldwell, Idaho plants. The company’s palletizing system was first installed at Heyburn in 1970 and it resulted in dramatic improvement in product handling. The task of efficiently handling up to Production through the warehouse pallet for a stack of three tiers then 60,000 cases per day of Simplot increased up to two million pounds another slip- sheet and three more products is capably handled by per week and product damage was tiers, etc. Cascade’s Load Push/Pull. reduced approximately 75%. A lift truck equipped with Cascade’s loads two high in storage – a total Consequently, the same system has Load Push/Pull attachment picks of 24 tiers. been installed at Caldwell. up the load on a wooden pallet and An integral and vital part of moves it to frozen storage. The Simplot’s palletizing operations has complete double cube stacking and been the use of Cascade’s Load lift truck loading operation takes Push/Pull lift truck attachments. less than two minutes. By using They are used exclusively in prod- reusable slipsheets instead of uct handling at both plants. wooden pallets for the cube load, SIMPLOT Simplot estimates their total pallet PALLET COSTS CUT IN HALF costs have been cut in half. PALLETIZING Volume handling of Simplot prod- The double cube is delivered on ucts starts when cases are moved the wooden pallet to frozen storage OPERATION & by conveyors from the processing by the Push/Pull equipped lift truck CASCADE’S plant to a palletizing center. The and is carefully maneuvered into cases are fed into an automatic pal- position. The face-plate of the Load LOAD PUSH/PULL letizer which stacks a double cube Push/Pull is then extended and load on a wooden pallet nine cases pushes the load off the platens as REDUCE PRODUCT to a tier, twelve tiers high. A double the lift truck backs away. With the cube load starts with a solid, re- use of corner angle stacking aids, DAMAGE 75% usable fiber slipsheet placed on the Simplot can stack the double cube

87 Simplot

J.R. Simplot Company automatically palletizes double cube loads of 108 cases for frozen storage. Cascade’s Load Push/Pull hauls them away from the palletizing center.

Cardboard Slip Sheet Pallet

Cardboard Slip Sheet Pallet Double Cube Load

Cardboard Slip Sheet Pallet Single Cube Load

} One tier Cardboard Slip Sheet Pallet

Wooden Pallet (For use in Cold Storage Warehouse)

88 Simplot

CASCADE LOAD PUSH/PULL ELIMINATES TWO MEN At shipping time, the double cube load is picked up on the wooden pallet from frozen storage and driv- en to the rail or truck loading dock. At this point, the platen arms are removed from the wooden pal- let and the push plate is extended. The Load Push/Pull is then raised so the attachment’s gripper bar located at the bottom of the face plate can seize the leading edge of the slipsheet. After the gripper bar has firmly clamped the slipsheet, the load is pulled back onto the platens and driven directly into the railcar or van. The use of the Load Push/Pull for these opera- tions reduces the risk of damage which often occurs when running With the addition of corner angle stacking aids for protection against chisel forks underneath the load. crushing, Simplot can stack double cube loads two high in storage. When loading a railcar, the double cube load is placed in the car two cubes high. For truck loading, one and one-half cubes or nine tiers are removed from the twelve tier double cube load and positioned in the truck. This entire procedure, including car loading, requires only one man – the lift truck operator. Previously three men were required to perform these same functions – a driver and two people to stack and unstack. The old hand-stacking method of loading a railcar took 1.5 days (12 man hours). Now, with a Load Push/Pull equipped lift truck, Simplot can load a rail car in less than a day (7.5 man hours). Another advantage of mechanical loading is the reduction of product damage in transit. This is due to the tighter packing in rail cars or vans which in turn reduces the amount of carton movement. Cascade’s Load Push/Pull stacks double cubes two high in frozen storage.

89 Simplot

Here’s how they used to do it! It took three men to load a car or van, plus others to operate a fork lift or conveyor. With the Cascade Load Push/Pull, it takes only one man.

With a firm grip, the Load Push/Pull pulls a stack of cases onto the platen arms for delivery to loading docks.

90 Simplot

SIMPLOT CUSTOMER REDUCE COSTS TOO According to R.S. Farish, vice presi- dent of Simplot sales and market- ing, the palletizing system has been enthusiastically received by Simplot customers. Their enthusiasm is due to: 1) Increased unloading speed. This faster handling virtually eliminates danger of thawing during unloading of shipments and helps prevent demurrage charges. 2) Labor is cut to a bare minimum. 3) “No return” slipsheets enable customers to use them in their own storage operations. 4) Handling of frozen fries in cube loads greatly reduces damage to this brittle product which is usually incurred It takes less time and two less men to load a railcar or truck with a Load Push/Pull. Here you see the lift truck operator using the Load Push/Pull face plate to tighten when cases are handled indi- the load in a railcar. vidually. Avoiding this damage provides maximum servings per pound of product.

For additional information on Cascade Load Push/Pull Attachments go to: www.cascorp.com

c P.O. Box 20187 Portland, Oregon 97220 800 CASCADE (227-2233) www.cascorp.com

91 Northern Fruit Co.

ON-THE-JOB APPLICATION REPORT Wenatchee, Washington A few years ago Northern Fruit Company, Inc., a cold storage and fruit processing facility located in East Wenatchee, Washington, was confronted with the need to opti- mize their production and handling systems. Several areas to look at were how to increase their dock and storage capacities, how to increase product flow through the dock and how to minimize the fruit handling and resultant product damage. Their products, consisting Cascade’s Load Push/Pull. . .helping to boost production and profits at Northern Fruit Co. of apples and pears, are delicate to product is handled and shipped on Truck turn around time at the dock handle and perishable. the slipsheets. is minimized. One 40' van can be The three and one half (3.5) hours To handle these unit loads from the loaded by one lift truck in thirty it took to manually load or unload through the storage opera- (30) minutes. Two lift trucks can a standard 40' truck van was a tion and shipping, a cushion tired lift be used to further reduce loading major time consumer. Lengthy truck is used. This truck operates on time. Warehouse capacity is also truck turn around time for the driv- LP gas and is equipped with a increased by this method. er was also a problem. Pallet stor- Cascade “Load Push/Pull” attach- Previously loads were only stacked age, pallet repair costs and space ment. The push/pull is equipped 15 boxes high, by the new method consumed during shipment and with 15" wide platens which also described they are now stacking 21 storage were additional factors. allows handling of product on wood- layers high. A storage capacity To Northern Fruit the obvious solu- en pallets as well as on slipsheets. increase of 40%. tion was the implementation of slip- A sideshifting feature on the Implementation of the slipsheet sheets into their handling, storage Cascade Push/Pull allows easy method in conjunction with the and shipping system. This method maneuvering during the pick up Cascade Load Push/Pull attachment uses a 40" x 48" slipsheet which is and placement of the load, which has streamlined the Northern Fruit automatically placed on a pallet by minimizes the drivers need to repo- operation. Improved production a slipsheet feeder machine after the sition the lift truck. efficiency has minimized produce fruit is boxed and ready for stack- handling while increasing storage ing. The boxes are stacked seven Northern Fruit has put into process and shipping capacities. a unique combination of conven- (7) per layer and seven (7) layers Northern Fruit Company is yet high on the slipsheeted pallet in an tional pallets and slipsheets. The slipsheet method allows them to another example of a progressive interlocking pattern. The ‘unitized’ organization realizing increased load is then strapped and wooden increase their handling capacity and speed up production, particu- production and profits’ by applying corner- posts installed. This then is new material handling techniques. the storage unit, averaging about larly beneficial during the peak 2,100 pounds. season. They have increased pro- For additional information and spec- duction from 2,000 boxes a day, a ifications on the complete line of Before shipment the corner-posts few short years ago, to 7,000 boxes Cascade Load Push/Pull attachments are removed. The wooden pallet this past season. A production contact: Cascade Corporation— remains at the warehouse while the increase of 250%! see end of Article 8.

92 Northern Fruit Co.

INDUSTRIES USING PUSH/PULLS FOOD PROCESSING Cadbury Lecmceister, U.K. Distribution California Packing Corporation Campbell Soup Sacramento, CA Cannery & Distribution Center Carnation Los Angeles, CA Corporate Headquarters Carnation Jefferson, WI W/H and Distribution Cargil Amsterdam Holland Grain Coast Oyster Co. South Bend, WA Cannery Colonial Sugar Grammercy, LA Sugar Refinery Contadina Riverbank, CA Cannery David Processing Walla Walla, WA Fruit Processor Del Monte Alameda, CA Processing & Distribution Center Domino Sugar New Orleans, LA Sugar Refinery Frito-Lay Bakersfield, CA W/H and Distribution General Mills Lodi, CA Dry Case Goods & Distribution General Mills Chicago, IL Distribution Green Giant Minneapolis, MN Hunt-Wesson Foods White Plains, NY Food Processing & Distribution Hormel Stockton, CA Cannery & Distribution Center H.J. Heinz Tracy, CA Cannery H.J. Heinz Stockton, CA Cannery & Distribution Center Hills Richmond, Indiana Pet Food Hunt-Wesson Hayward, CA Processing & Distribution Center J.R. Simplot Burley, ID Potato Processor J.R. Simplot Caldwell, ID Potato Processor J.R. Simplot Harburn, ID Potato Processor Kal-Kan Columbus, OH Cannery (Pet Food) Keebler Cookies Chicago, IL Food Processor Kellogg Company Battle Creek, MI Food Processing & Distribution Kraft Foods Chicago, IL Distribution Kraft Foods San, CA Distribution Kraft Foods Clifton, NJ Distribution Kraft Foods Laselle, Que, Canada Distribution Libby, McNeill & Libby Chicago, IL Cannery & Processor Maple Leaf Montreal, Canada Flour Mill Nabisco East Hanover, NJ Food Processor Nabisco Portland, OR W/H and Distribution Nabisco Montreal, Canada W/H and Distribution Nestle Aubigny, France W/H and Distribution Nestle Gorinchen, Holland W/H and Distribution Nestle Germany Hamburg W/H and Distribution Ralston Purina Battle Creek, MI Dry Case Goods Ralston Purina Cincinnati, OH Mill and Distribution Center Rodger Cannery Walla Walla, WA Cannery Senca Janesville, WI Distribution

93 Northern Fruit Co.

FOOD PROCESSING CONTINUED Stokely-Van Camp Fairmont, MN Cannery Stokely-Van Camp Oakland, CA Cannery Stokely-USA Poynette, WI Cannery Tri-Valley Growers Sacramento, CA W/H and Distribution T.J. Lipton Englewood Cliffs, NJ Dry Case Goods Bristol-Meyers Hill Side, NJ Dry Goods Hunt-Wesson Foods Fullerton, CA Food Processing & Distribution Nestle Glucksklee Neustadt, Germany W/H and Distribution Nestle York Distribution Ogilvy Mills Montreal, Canada Flour Mill

FOOD FRESH Growers and Shippers Alturus Packing Connersville, FL Fruit (Citrus) Bordo Citrus Products Citrus World Lake Wales, FL Fruit (Citrus) Diamond Fruit Hood River, OR Fruit (Apples, Peaches, Pears) Florida Citrus Packers Assoc. Lakeland, FL Food - Fresh Gracewood Fruit Vero Beach, FL Fruit (Citrus) Gulf & Western Fellsmere, FL Fruit (Citrus) HHLA Hamburg, Germany W/H & Distribution Indian River Exchange Vero Beach. FL Fruit (Citrus) Lakeland Packing Lakeland, FL Fruit (Citrus) Lake Hamilton Citrus Lake Hamilton, FL Fruit (Citrus) Lykes Pasco Dade City, FL Fruit (Citrus) & Distribution Center Orange Co. Lake Hamilton, FL Food - Fresh Seald Sweet Sales Packing Co. Tampa, FL Food - Fresh Sunkist Ontario, CA Frozen and Fresh Fruit Processors Texas Citrus & Vegetable Harlingen, TX Food - Fresh

FOOD DISTRIBUTION CENTERS Alford’s Cold Storage Dallas, TX Big Bear Columbus, OH Warehouse California Canners & Growers Milipitas, CA Warehouse Carnation Stockton, CA Warehouse Distribution Centers, Inc. Cincinnati, OH Warehouse (Public) Empire Freezer Syracuse, NY Fernandes Supermarkets, Inc. Norton, MS Distribution Center Geneva Cold Storage Darien, WI W/H & Distribution Giant Foods Landover, MD Food Distribution Center Holman Transfer Portland, OR Warehouse (Public) Inland Underground Warehouses Kansas City, MO Jewell T Company Melrose Park, IL Food Distribution Center Kroger Columbus, OH Warehouse Livingston Laval, Que. Canada Warehouse W/H & Distribution National Distribution Warehouse Clearfield, UT Warehouse (Public) Penn-Central Columbus, OH Warehouse (Public)

94 Northern Fruit Co.

FOOD DISTRIBUTION CENTERS CONTINUED Perlman Rocque Lamont, IL Distribution Center RJR Foods Winston-Salem, NC Warehouse SLW Warehousing Lachine, Que. Canada W/H & Distribution Safeway Richmond, CA Warehouse Safeway Portland, OR W/H & Distribution Servmark St. Bruno, Que. Canada W/H & Distribution Terminal Ice & Cold Storage Woodburn, OR Cold Storage Warehouse Van de Water Raymond Laval, Que. Canada W/H & Distribution Winn Dixie

FROZEN FOOD Adams Packing Association, Inc. Auburndale, FL B & W Frozen Foods, Inc. Bradenton, FL Birdseye (General Foods) Woodburn, OR Citrus World, Inc. Lake Wales, FL General Foods Winterhaven, FL Holly Hill Fruit Products Davenport, FL Lamb-Weston Portland, OR Fresh Food Processors Libby, McNeill & Libby Darien, WI & Ocala, FL McLain’s Martin-Brower DesPlaines, IL Martin-Brower Halthorpe, MD Morton Frozen Food Crozet, VA Ore-Ida Portland, OR Fresh Food Processors Pik’s Rite, Inc. Plymouth Citrus Products Plymouth, FL

STONE, CLAY, Baroid New Orleans, LA Clay Mill (Bagged) Industrial Minerals Florin, CA Clay Mill (Bagged) Riverside Cement Crestmore, CA Cement Plant (Bagged)

BEVERAGE Allied Distilleries Dumbarton, Scotland Distillery W/H & Distribution Barton Guestier Blanqefort, France Winery Belgium Packhoed Antwerp, Belgium Container Unloading-Spirits Chauteavent Bonnieries, France Winery Chivis & Glenlivet Paisley, Scotland Distillery W/H & Distribution Coors Tustin, CA Distributor Coors Golden, CO Brewery Drambuie Edinburgh Distillery W/H & Distribution Heineken Den Bosch, Holland Brewery Hough Colorado Distribution Mumms Reims, France Winery

95 Northern Fruit Co.

BEVERAGE CONTINUED Oregon Liquor Control Portland, OR Distribution Warehouse Quebec Liquor Board Montreal, Canada W/H & Distribution R.D.S. California Distribution Seagrams Lawrenceburg, IN Distillery Seagrams LaSelle, Que. Canada Distillery W/H & Distribution United Distillery Kilmarnock, Scotland Distillery W/H & Distribution United Distillery Valleyfield, Que. Canada Distillery W/H & Distribution WM Grant Bellshill, Scotland Distillery W/H & Distribution White Horse Glasgow, Scotland Distillery W/H & Distribution

AGRICULTURAL PRODUCTS Albers Mills Co. Portland, OR Feed Mill (Bagged) Cities Services Tampa, FL Chem Fertilizer Plant (Bagged) Citrus World Lake Wales, FL Citrus Pulp (Cattle Feed) Lake Hamilton Citrus Lake Hamilton, FL Citrus Pulp (Cattle Feed) Lykes Pasco Dade City, FL Citrus PUlp (Cattle Feed)

PAPER PRODUCTS American Tissue Tomahawk, WI Pulp Bales* Gaylord Container Carol Stream, IL Corrugating Plant Mead Corporation Cincinnati, OH Corrugating Plant Packaging Corp. Tomahawk, WI Pulp Bales* Stone Salinas, CA Corrugating Plant Waterway Terminal Portland, OR Pulp Bales* Weyerhaeuser Colton, CA Corrugating Plant New Orleans, LA Corrugating Plant BUILDING MATERIALS *using pushers only Clorox Excell Dist. Houston, TX W/H & Distribution G.E. Lamp Division Houston, TX W/H & Distribution Home-Depot Bridgeport, CT Building Materials Johns-Manville All Locations Insulation Raymond Shake Waterville, OH Insulation Weyerhaeuser (Shake Division) Raymond, WA Shake & Shingle Mill Raymond, WA Shake & Shingle Mill ELECTRONICS Apple Apple Itasca, IL W/H & Distribution Apple Les Ulis, France W/H & Distribution Apple Apeldoorn, Holland W/H & Distribution Apple Munchen, Germany W/H & Distribution Apple Hemel Hempst. W/H & Distribution Bosch/Blaupunkt Cork W/H & Distribution Cannon Hildesheim, Germany Mfg. W/H & Distribution Amsterdam, Holland W/H & Distribution

96 Article 8 (cont.)

ELECTRONICS CONTINUED Cannon Crawley, U.K. W/H & Distribution Cannon Europe Amstelveen Mfg. W/H & Distribution Compaq Gorkum Mfg. W/H & Distribution Hewlett Packard Corvallis, OR Mfg. W/H & Distribution Hewlett Packard Amersfoot Mfg. W/H & Distribution Panasonic Cardit, South Wales, U.K. Mfg. W/H & Distribution Panasonic Hamburg Mfg. W/H & Distribution Phillips Eidhoven, Holland Mfg. W/H & Distribution Sharp Wrexham, U.K. Mfg. W/H & Distribution Sony South Wales, U.K. Mfg. W/H & Distribution Sony Koln, Germany Mfg. W/H & Distribution Xerox Yamaha Rellingen, Germany Mfg. W/H & Distribution

RETAIL Home Depot WalMart

CHEMICAL Ciba Geigy Manchester, U.K. Distribution Hoechst Frankfurt, Germany Production & Shipping Hoechst Oberhausen, Germany Production & Shipping Kodak Stuttgart Distribution Kodak Hemel Hems, U.K. Distribution Procter & Gamble Manchester, U.K. Distribution

OTHER Amway Denver, CO. Distribution Becton Dickinson Temse, Belgium Pharmaceutical Meyer Corp. Benicia, CA Importing Nippon Denso Weesp, Holland Auto Parts Quaker State Oil

c P.O. Box 20187 Portland, Oregon 97220 800 CASCADE (227-2233) www.cascorp.com

97 PUSH/PULL & SLIPSHEET HANDLING MANUAL

Converting to Slipsheets

■ Carrier conversion Vendor win-win strategy SLIPSHEETING – ■ ■ FROM TEAM TO REALITY Distributor director shipment Trail shipments Apple Computers support Why did we decide on the slip- Communications Phased program— sheet handling process? Concept, process, benefits, implementation process objectives with: ■ Communications Solution to receiving problem ■ ■ Distribution center (project overview) Project champion (defined ■ ■ team responsibilities) Equipment procurement ■ Manufacturing (specifications) Unit load handling benefits ■ OEM procurement ■ Trial shipments (video’s) vs. standard wood pallet ■ Transportation ■ Start-up training and ■ Variety of carton sizes ■ Vendors & distributors checkout (certify) ■ Shipping equivalent of 250 ■ Follow-up support & quality truck loads of pallets a year Commitment – ongoing process support required control participation Why was slipsheeting the Packaging engineering Long term planning ■ Product changes ■ Two-year project from idea to correct solution? ■ Labor requirements - reduced New products 100% implementation New vendors Training (start-up & follow-up) Warehouse utilization/ Quality control program & scheduling - improved support requests Customer satisfaction Material expenses - reduced (follow-up communications) Implementation plan outline: Transportation costs - reduced Select core team members Potential problems to (inside & outside) implement slipsheeting Implementation strategy ■ Project champion (defined Global logistics Process issues and concerns team responsibilities) ■ Apple distribution network Converting truck carriers ■ Committed team slipsheet Dedicated team approach vendor Can we succeed 100% FG or a must ■ Committed team equipment have some hand stacking? ■ Slipsheet vendor qualification (attachment) vendor Number of locations to convert ■ Equipment vendor Develop slipsheet specification (extensive effort) qualification ■ ■ Company global buy – in ■ Custom slipsheet for OEM vendors conversion and support ■ electronics Distribution warehouse Required commitment from support Develop unit load configura- all groups ■ Manufacturing participation tions & specifications & support

98 Converting to Slipsheets

Benefits Cost savings for apple and vendors ■ Transportation ■ Material ■ Labor ■ Reduced product damage ■ Shorter receiving turn around or time to market ■ Better cube utilization of warehouse facilities ■ Better space utilization of warehouse facilities ■ Cleaner and safer warehouse environment ■ Have also implemented incoming vendor materials

Summary The first electronics corporation to implement the slipsheet process on a global basis The results have exceeded our expectations

99 Pallets

Slipsheeting – Container Pattern Using Pallets Making It A Success For Suppliers Total Cartons Per Container: 1,012 Key to success: Example: Win – Win Part Number: 12345 Description: Computer Product Vendor: Overseas Supplier

Container Size: 474" x 92" x 93.7" (12040mm x 2337mm x 2380mm)

Unit Load Size: 48.3" x 44.7" x 36.4" (1227mm x 818mm x 925mm)

Unit Load: 9 per level & 4 levels high

Carton Size: 16.1" x 14.9" x 9.1" (409mm x 379mm x 230mm)

Number of Unit Loads: 44

Number of Cartons Per Unit Load: 36

Total Cartons Per Container: 1,584

Carton Weight: 15 lbs.

Total Container Weight: 23,760 lbs.

Utilized Width: 89.4"

Utilized Height: 83.5"

Load Fill Top View End View

100 Slipsheets

Slipsheeting – Container Pattern Using Slipsheets Making It A Success For Suppliers Example: Key to success: Part Number: 12345 Description: Computer Product Win – Win Vendor: Overseas Supplier

Container Size: 474" x 92" x 93.7" (12040mm x 2337mm x 2380mm)

Unit Load Size: 44.7" x 32.2" x 45.5" (1135mm x 818mm x 1156mm)

Unit Load: 6 per level & 5 levels high

Carton Size: 16.1" x 14.9" x 9.1" (409mm x 379mm x 230mm)

Number of Unit Loads: 68

Number of Cartons Per Unit Load: 30

Total Cartons Per Container: 2,040

Carton Weight: 15 lbs.

Total Container Weight: 30,600 lbs.

Utilized Width: 89.4"

Utilized Height: 91"

Load Fill Top View End View

101 "Old Box" Method

Slipsheeting – Container Pattern Using “Old Box” Method Making It A Success For Suppliers Example: Part Number: 87926 Key to success: Description: Another Computer Product Win – Win Vendor: Another Far East Supplier Container Size: 474" x 92" x 93.7" (12040mm x 2337mm x 2380mm) Unit Load Size: 45" x 40" x 39.5" (1143mm x 1016mm x 1003mm) Unit Load: 4 per level & 5 levels high Carton Size: 22.5" x 19.8" x 7.8" (572mm x 503mm x 198mm) Number of Unit Loads with 5 Layers: 22 Number of Cartons Per Unit Load: 20 Number of Unit Loads with 6 Layers: 22 Number of Cartons Per Unit Load: 24 Total Number of Unitized Cartons: 968 Number of Cartons Hand Stacked: 44 Total Cartons Per Container: 1,012 Carton Weight: 17 lbs. Total Container Weight: 17,204 lbs.

Utilized Width: 90"

Utilized Height: 86.8"

Top View End View Slipsheet Before Hand Stacking

102 "New Box" Method

Slipsheeting – Container Pattern Using “New Box” Method Making It A Success For Suppliers Example: Key to success: Part Number: 87926 Description: Another Computer Product Win – Win Vendor: Another Far East Supplier

Container Size: 474" x 92" x 93.7" (12040mm x 2337mm x 2380mm)

Unit Load Size: 45" x 40" x 44.4" (1143mm x 1016mm x 1143mm)

Unit Load: 4 per level & 6 levels high

Carton Size: 22.5" x 19.8" x 7.4" (572mm x 503mm x 188mm)

Number of Unit Loads: 44

Number of Cartons Per Unit Load: 24

Total Number of Unitized Cartons: 1,056

Number of Cartons Hand Stacked: 48

Total Cartons Per Container: 1,104

Carton Weight: 17 lbs.

Total Container Weight: 18,768 lbs.

Utilized Width: 90"

Utilized Height: 89.8"

Top View End View Slipsheet Before Hand Stacking

103 "Hand Stack" Method

Slipsheeting – Container Pattern Using “The Hand Stack” Method Making It A Success For Suppliers Example: Key to success: Part Number: 67890 Description: Another Computer Product Win – Win Vendor: Overseas Supplier #2

Container Size: 474" x 92" x 93.7" (12040mm x 2337mm x 2380mm)

Carton Size: 19.4" x 17.2" x 14.8" (493mm x 437mm x 376mm)

Total Cartons Per Container: 756

Total Container Weight: 20,412 lbs.

Utilized Width: 91"

Utilized Height: 89"

Top View End View

104 Slipsheets

Slipsheeting – Container Pattern Using Slipsheets Making It A Success For Suppliers Example: Key to success: Part Number: 67890 Description: Another Computer Product Win – Win Vendor: Overseas Supplier #2

Container Size: 474" x 92" x 93.7" (12040mm x 2337mm x 2380mm)

Unit Load Size: 52" x 39" x 44.5" (1321mm x 991mm x 1130mm)

Unit Load: 6 per level & 3 levels high

Carton Size: 19.4" x 17.2" x 14.8" (493mm x 437mm x 376mm)

Number of Unit Loads: 42

Number of Cartons Per Unit Load: 18

Total Number of Unitized Cartons: 756

Number of Cartons Hand Stacked: 0

Total Cartons Per Container: 756

Carton Weight: 27 lbs.

Total Container Weight: 20,412 lbs.

Utilized Width: 91"

Utilized Height: 89"

Top View End View

105 Slipsheets

Slipsheeting – Making It A Success For Suppliers

How are suppliers approached with regards to slipsheeting?

Present method of shipping and why we want to change

How it is going to affect suppliers

Advantages to both suppliers and Apple

“Preferred Vendor”

Assistance in implementation

Emphasis on “Win – Win”

Why are suppliers important?

Accountable for configuration of product

Responsible for ensuring load is safe for transit

Responsible for proper utilization of container/trailer

106 Apple's Distribution

Sunnyvale Chicago U.S. Distribution

Boston Dallas

Charlotte U.S. Staging

Distribution

Engineering

International

Staging Far East OEM’s

Zeist Cork

Paris

Singapore Australia Manufacturing International & OEM’s Fremont Canada Distribution

107 Slipsheet Specifications

SLIPSHEET SPECIFICATION SLIPSHEET SPECIFICATIONS Quality of Slipsheet— 4 Key Issues Pull Tab Scores  Strength of the sheet Tray Tab ■ Cardboard Perception ■ WW Transportation ■ Quality 4 Ply Sheet  Length of Pull Tab ■ 6" Tab Story ■ Scores Improve Tab Roll  Unit Load Design ■ Tray to Secure Unit Load ■ Stretch Wrap Spec ■ Many Product Sizes  Vendor Qualification ■ Vendor Process ■ Tooling Costs ■ Order Quantities ■ Support and Delivery

Goal—To Provide The Best Quality Slipsheet in the Electronic Industry Locking Corner Tray Tab Pull Tab

MATERIALS HANDLING SYMPOSIUM MARCH 1, 1989 Santa Clara, CA

108 Slipsheet Specifications

SLIPSHEET WITH LOCK-IN CORNER

 Unit Load  

Lock-in Corner

Pull Tab

Pull Tab

 Apple Computer, Inc.

109 Slipsheet Specifications

SOLID FIBER SLIPSHEET

Locking Corner

B Z

Datum

SINGLE SCORED SLIPSHEET Z Dimensioning: Z-L-P x Z-W-P L P Figure 1

W P A

Locking Corner

B Z

Datum

MULTI SCORED SLIPSHEET Z Dimensioning: Z-L-S-S-S-P x Z-W-S-S-S-P L Figure 2 S P

LEGEND W L = Smallest Length W = Smallest Width Z = Fixed 101.6 mm

[4.00] Tab P S = MIN. 25.4 mm A [1.00] Scoring P = MIN. 50.8 mm  Apple [2.00] Tab Computer, Inc.

110 Slipsheet Specifications

SOLID FIBER SLIPSHEET ■ Minimum pull tab exposed for Example: PECIFICATIONS handling the load is 50.8 mm APPLE COMPUTER, INC. S [2.00]. SIZE 12119.1 mm x Sheets are to be constructed ■ 1066.8mm [48.0 x 42.00] from 100% Virgin Fourdrinier All scores to be parallel with- Kraft Linerboard, Laminated in allowable tolerance of with waterproof . Must 1.5 mm [.06] non-cumulative meet minimum specifications and measured from the listed below. datums -A- and -B-. Dimensioning: Caliper: 1.17mm .076mm Unit load length and width is [0.046 0.003] specified by a user according Ply: 4-Ply, 18.9 kg to unit load dimensions [42.0 lbs.] (Figure 1). The pattern is used to specify the exact Average Tensile Strength: dimensions of each required MD 428 PSI Slipsheet. The dimensions of [30.2 kg/cm2], the tray tabs and pull tabs are CD 178 PSI listed in the scoring section of [12.5 kg/cm2] this document. Refer to : Top side of sheets to be Figures 1 and 2 for the fol- striped with Anti-Skid lowing dimensioning notation. Coating to cover at least (Figure 1) 50% of the sheet. Z-L-P x Z-W-P Scoring: See slipsheet drawing. (Figure 2) 1. Tray Tabs (Z) Z-L-S-S-S-P x Z-W-S-S-S-P Scored at 101.6 mcm [4.00] Locking Corner: from edge of slipsheet. Deep Designed to provide a per- score in grain direction. manent lock of the tray tabs Perforated score on the cross at a 90° angle. (See Figure 1 grain tab in increments of 6.4 and 2) mm [.25] perforation per 25.4 mm [1.00] length. Corners: All corners, other than the 2. Pull Tabs (P) locking corner, are cut in a Additional scoring on Pull Tab 101.6 mm [400] radius with allows for unit load dimension the centers located 101.6 mm increase up to 50.8 mm [2.00] [4.00] from each corner on in each of the overall length the length & width scores. and width directions while still accommodating a minimum of :Print 50.8 mm [2.00] pull tab for APPLE COMPUTER, INC. handling the unit load. Size L x W in minimum of ■ Scores must be a minimum of 19.1 mm [.75] letters down 25.4 mm [1.00] apart. the center of the top side of  Apple ■ Pull tabs (P) are not to the sheet. Computer, Inc. exceed 101.6 mm [4.00].

111 Slipsheet Specifications

Vendor Dimensions (Inches) Part No. Size Figure L S S S W S SS 942-1201 1 1 40.5 N/A N/A N/A X 29.5 N/A N/A N/A 942-1202 2 1 40 1 N/A N/A X 34 N/A N/A N/A 942-1203 3 1 43 1 N/A N/A X 39.5 N/A N/A N/A 942-1204 4 1 43 1 1 N/A X 40 2.5 N/A N/A 942-1205 5 1 45 N/A N/A N/A X 34 N/A N/A N/A 942-1206 6 2 45 2 1 N/A X 39 1 2 N/A 942-1207 7 1 45 N/A N/A N/A X 45 N/A N/A N/A 942-1208 8 1 46 N/A N/A N/A X 31 N/A N/A N/A 942-1209 9 2 46 1.5 N/A N/A X 39 1.5 1 N/A 942-1210 10 1 47 N/A N/A N/A X 44.5 N/A N/A N/A 942-1211 11 1 48 1 1 1 X 42 1 1 N/A 942-1212 12 1 49 N/A N/A N/A X 37 N/A N/A N/A 942-1213 13 1 49 N/A N/A N/A X 38 N/A N/A N/A 942-1214 14 1 50.5 3.5 N/A N/A X 35.5 1 N/A N/A 942-1215 15 1 50.5 N/A N/A N/A X 44 N/A N/A N/A 942-1216 16 1 51.5 N/A N/A N/A X 43.5 N/A N/A N/A 942-1217 17 1 52 N/A N/A N/A X 39 N/A N/A N/A 942-1218 18 1 54 N/A N/A N/A X 37 N/A N/A N/A

Notes: 1. All “Z” tabs (Fig 1) measure 101.6 [4.0]. 2. All “P” tabs (Fig 1) measure 50.8 [2.0]. 3. Tensile strengths shown are minimum.

 Apple Computer, Inc.

112 Converting Do's & Don'ts

DO’S & DON’TS OF years, or so, in a great variety of 4. Proper understanding of the ONVERTING TO industries, which has proven that slipsheet, how it is supposed to C the slipsheet system can work function and how it must prop- SLIPSHEET HANDLING extremely well if properly erly match the material han- By Lloyd C. Dick designed and installed. dling equipment to be used. Manager, Manufacturing Services We suggest that anyone planning to 5. Proper consideration for the Mead Paperboard Products use slipsheets begin thinking of the receiver’s unloading and slipsheet as a new materials han- storage facilities. INTRODUCTION dling system. Various parts of the 6. Dedication to the new system by system must work together proper- key individuals within the C ompanies contemplating a ly for success. These most impor- organization covering planning, change to slipsheets must under- tant ingredients can be summarized purchasing, marketing and stand that it is a materials han- as follows: operations. Ideally, one individ- dling system which must be prop- ual within the company will 1. A proper unit load for the erly planned and executed to assume responsibility for the product. insure success and to obtain max- system’s success. imum benefits. They should also 2. A proper slipsheet for the unit understand that there is neither load, product and distribution reason for anyone to fail in his system conditions (a wide variety attempt to adopt the system nor is is available). there reason for anyone to re- 3. Proper equipment and adequate invent the wheel. Much has been training in its use. accomplished during the past ten

Check List For Establishing Proper Slipsheet Unit Load Handling Operation “THE SLIPSHEET DO’S” A. Is the slipsheet correct for the unit load?

1. Size, Length-Width Stacking surface same size as unit load—never larger 2. Unit Load Weight Light Weight Cases Corrugated or light caliper solid fiber Heavy Weight Cases Heavy caliper solid fiber required to avoid tab tearing 3. Stiffness For Bagged Products Heavy caliper solid fiber for stiffness so attachment can grasp tab properly. 4. Moisture Exposure Coating of outer liners with moisture barrier material and high sizing to resist moisture penetration that would weaken tab area. 5. Tensile Strength If only one use planned, sufficient tensile strength for 6 to 10 pulls without tab tearing. If sheet to be returned and reused, much greater tensile strength required. 6. Tabs Required 3" or 4" deep tab for each direction or pull. If side and end tab used, must relieve intersecting corner so tabs can fold independently of each other. May be need to consider “extra” tabs for use with stretch film to stabilize load in transit.

113 Converting Do's & Don'ts

“THE SLIPSHEET DO’S”(cont.) B. Has the unit load been prepared properly?

1. Overall Unit Load Size Determine size to best fit cube of shipping container (trailer, car, etc.) consistent with capacities of shipping and receiving material handling equipment. This will minimize freight costs. 2. Stacking Pattern Determine stacking patterns for various case sizes to best fit overall unit load size selected. Turn and interlock cases on alternate layers for improved load stability. 3. Placement of Production Keep score lines and tabs completely free of product. Keep first cases Slipsheet 1/4" to 1/2" away from score lines. This will permit tabs to be folded up against unit load in transit and will minimize tab tearing. 4. Load Stabilization Needs Bottom cases must be prevented from shifting onto tab areas in transit. Use either palletizing adhesive on slipsheet or wrap unit load with stretch film, trapping tab in 90° up position. 5. Breaking The Slipsheet Tab Pre-breaking the tab on the score line will facilitate necessary up fold when loading and will minimize tab tearing when tab edges are hit by handling equipment. C. Have push/pull operators been trained properly?

1. Approaching The Unit Load 2. Picking Up The Unit Load 3. Decking The Unit Load 4. Undecking The Unit Load 5. Positioning Unit Load On Warehousing Pallet 6. Removing Unit Load From Warehousing Pallet 7. Placing Unit Load In Shipping Container 8. Removing Unit Load From Shipping Container 9. Maintenance of Push/Pull Equipment D. Has the loading operation been performed properly? (Loading should always be performed with the receiver in mind)

1. Leave front tab readily Push tab into 90° up position against each unit load. This will restrict accessible and in good movement of bottom cases onto tab area in transit. Tape front tabs in up condition for receiver position at trailer tailgate or before positioning bulkhead in railcar. 2. Maintain straight Obtain straight alignment on dock against backstop prior to loading vertical alignment of if equipment has capacity to lift two unit loads. Use sideshifter to obtain tired unit loads good vertical alignment. Use dunnage to fill void areas, as necessary.

114 Converting Do's & Don'ts

“THE SLIPSHEET DON’TS” 1. Don’t place cases of product on the slipsheet tab area or score line. This will prevent tab from folding properly and cause tearing. 2. Don’t push tab so it “crumples”. A bent or crumpled tab can damage other unit loads and tear when moving the unit load, unloading, etc. 3. Don’t approach load at an angle. Approach unit loads squarely. Damage can occur to cases if a corner of the push/pull plate makes contact first. 4. Don’t slam the push/pull faceplate into the unit load when squaring cases during loading. Hidden dam- age may result. 5. Don’t attempt to pull a unit load from a stack with the mast tilted back. The platens may be pulled into contact with the unit load underneath the one being moved, causing damage. 6. Don’t leave unit loads stacked so that one is out of line vertically with the other or damage will result. Use the sideshift to place one unit load squarely on top of another. 7. Don’t use reverse gear to drive the truck from under the unit load or damage will result. Always use proper technique when pushing a unit load off platens. 8. Don’t leave slipsheet tabs in positions where they can be easily damaged. Loose tabs can jam or get caught causing damage to cases during the following unit load moves. Tabs can be taped against unit loads to avoid such damage. E. Will the slipsheet perform at all levels in the distribution cycle?

1. Receiver unloading Each receiver must have proper size and capacity equipment. equipment Sideshift capability is recommended to avoid product damage. 2. Receiver driver training Each receiver Push/Pull operator must also receive training outlined in “C” above. 3. Receiver warehousing If wood warehousing pallets are used, pallets must be properly facilities constructed and sized to avoid damage to slipsheets and product. Fork tines can damage slipsheet tabs unless proper equipment and methods are used.

115 Converting Do's & Don'ts

RECOMMENDED Lift truck driver training GUIDELINES TO FOLLOW ■ Cascade 1/2 inch VHS video FOR SUCCESSFUL available to illustrate use of PUSH/PULL TEST the push/pull. ■ Driver training brochure Load Preparation (Owner’s & Operators ■ First load—pick a stable Guide) illustrating important product easily handled. driver techniques. ■ Weight—approximately 1500 ■ Obtain sample slipsheet to to 2000 lbs. enable drivers to practice with ■ Interlock cases. slipsheets prior to initial ship- ment of loads. ■ 40" x 48" load base – 40" to 50" high. ■ Select one or two proficient ■ drivers that are anxious to Stabilize top of load with band operate new equipment. of tape, stretch wrap, etc. ■ ■ Have driver practice picking Dunnage—If load is suscepti- up floor load plus stacking ble to movement in transit, and de-stacking second tiered consider dunnage for last two loads. unit loads over truck/trailer wheels to prevent movement. ■ If possible, the first slipsheet load should be sent to distri- Slipsheet bution center in time to ■ Solid fiber, strong heavy duty allow the driver an opportu- slipsheet that can compensate nity to become familiar with for initial inexperienced lift slipsheet handling prior to truck driver. sending observers to watch test loads. ■ Test the use of break away ■ glue between the load base Ship test loads to Distribution and the slipsheet to determine Center of both difficult and if the glue is needed to prevent easy to handle load. the load from walking or mov- ■ Have observers watch load. ing on the slipsheet in transit. Lift truck ■ Capacity—Without push/pull attachment, at least 1200 lbs. Cascade Sales Aids more than the maximum load Cascade video tapes are available for purchase at a cost of $40.00 net weight to be carried. price. Prices include postage and handling. Format standard 1/2" VHS. ■ Mast—Free lift 50" to stack E-Series Push/Pull Features Video #209207 and de-stack inside truck/ trailer. Overall mast lowered Push/Pull Driver Training Video #677557 height 83” or less to enter Palletless Handling Program Video #204320 through truck/trailer doorway. • Palletless Handling • Slipsheet Handling at Northern Fruit • Receivers Your Day • Slipsheet Handling at Bristol Meyers

116 Home Depot

HOME DEPOT’S THE HOME DEPOT STORY change, the company provided plenty of support and training for its vendors, ONVERSION SPURS Converting to slipsheets is a major C including one-day seminars and a undertaking that requires careful INTEREST IN SLIPSHEETS slipsheet hotline that’s been in place planning and preparation, as illus- the WERC sheet since August. trated by Home Depot’s experience. Warehousing Education & Research Council When Home Depot talks, vendors listen. And that’s what happened last year when Home Depot, Inc., announced that it was converting from pallets to slipsheets and would not accept palletized freight after January 1, 1995. Slipsheets–which for a time seemed to be the stepchildren of the material handling world–were dismissed by companies in most industries for many years. Even before Home Depot’s announce- Although converting from pallets to slipsheets is an involved process, many companies ment, however, use of slipsheets had may be forced to make this transition in the future. begun to spread beyond the traditional food industry application. Slipsheets Citing potential cost savings and “We wanted to help our vendors are now being used to ship electronics environmental benefits of slipsheets, come on line,” recalls Home Depot’s (including personal computers Home Depot introduced its program Travis Szwast, who mans the and laser printers), chemicals, in stages, beginning with its Northeast Company’s slipsheet hotline in pharmaceuticals, liquor, and textiles stores in 1993. In May of 1994, the Atlanta, “not just force our policy on such as apparel, linens and hosiery, company announced to its vendors: them.” He fields questions with ven- says Cynthia Holloway, marketing ■ That it was expanding use of dors who might be having problems manager for slipsheet manufacturer with slipsheets or have questions Lydall, Inc., Richmond, VA. slipsheets to its other regions; ■ such as where to get equipment or That all stores would be different types of slipsheets. Substantially greater slipsheet use equipped to receive product may be in the cards for many WERC on slipsheets beginning As a result, vendors are buying into members. Holloway reports that her August 1; the program, Szwast says. “We’ve company has seen strong interest ■ had a very good response.” Close to from one major retailer carrying That vendors were encouraged to test slipsheets for product 300 vendors fully support the slip- such a broad spectrum of products sheet program, he says. that its conversion to slipsheets shipped to its stores via could have an even greater impact regional LTL, truckload or pri- The retailer also worked closely with than Home Depot’s. If this retailer vate carriage trucks; its carriers. For example, Roadway requires vendors to ship on slip- ■ That five months later vendors Express and Home Depot tested sheets, Holloway predicts, “a whole would be required to slipsheet shipments in the less-than-truckload group of people who have never all product shipped in that (LTL) environment for a year and a been exposed to slipsheets before” manner. half. “We began with relatively small scale tests,” notes Bob Obee. might find themselves required to Recognizing that converting to pallet- convert to their use. Roadway’s vice president of opera- less handling would be a major tions, planning and engineering,

117 Home Depot

“putting some 50 shipments through the system.” Slipsheets 101 Using ideas generated from analysis of results, Roadway and Home Depot Slipsheets are available in three loss of tensile strength as the tested specific proposals and differ- materials: corrugated, fiberboard, recycled fibers get chopped into ent slipsheets by running some 70 and plastic. Corrugated slipsheets shorter and shorter pieces. shipments–perhaps 100 unit loads– are made by sandwiching corrugated Reusability of slipsheets depends on through the network. Roadway care- (fluted) material between a top and the situation and the durability of fully tracked the shipments, photo- bottom liner. Fiberboard slipsheets the slipsheet. A toy manufacturer graphing them on both ends of the are made of three plies of kraft that uses and reuses slipsheets for shipments and feeding data back to liner board laminated together. interplant shipment of product Home Depot, whose personnel in The material used in corrugated specifies a fairly substantial slip- many cases was on-site. and fiberboard slipsheets weakens sheet, with a specially reinforced The tests revealed important infor- when it gets wet. Plastic slipsheets, tab. “Most users without a closed mation. “We were able to confirm the most expensive, are frequently loop distribution system don’t reuse that there was a definite need,” used in moisture-laden or wet slipsheets,” explains Rick Diermeier, Obee says, for a sturdier slipsheet environments. While Home Depot sales and marketing manager for than typically used in the truckload is encouraging use of plastic slip- Menasha Corporation. (TL) environment where slipsheets sheets by its vendors, fiberboard “When selecting a slipsheet for a have traditionally been used. This slipsheets are used most widely specific application, several factors finding held true for both plastic and throughout industry. must be taken into consideration,” corrugated slipsheets. Many slipsheets are custom-designed, Diermeier says: “number of times Home Depot and Roadway worked according to Randy Wise, National the unitized load is handled by closely with slipsheet manufacturers, Sales Manager for Shippers Paper push/pull equipment; unit load developing designs potentially more Products Company, Lancaster, Pa. A weight, composition and stability; suitable for the LTL environment. A variety of slipsheet designs and moisture exposure; operator successful design involved adding weights are available from slipsheet experience; receiver requirements; two tabs, one on each side of the manufacturers, depending upon the case size, product characteristics slipsheet. This change resulted in size of the footprint of the load, and and packaging or type of container.” interlocking corners on the slip- the number of tabs or lips required. “Specifying a slipsheet that’s too sheet. When the freight and slipsheet Slipsheets are described in terms of flimsy and weak is a false economy. are shrink wrapped, Obee says, the their thickness, or “caliper”. Caliper Test a variety of slipsheets to deter- slipsheet acts as a tray for the freight, measures one-thousands of an inch, mine performance,” advises Diana making for a more stable load. And or a “point”. A .060 caliper board Twede, assistant professor in the the additional two tabs make it pos- may be referred to as a 60 point School of Packaging, Michigan State sible to approach the slipsheet from board. University, reporting that companies any side with a push/pull attachment. Thickness of the sheet does not cor- like Apple Computer have the school test slipsheets and develop perform- TRAINING IS KEY relate necessarily with the strength of a sheet. Tensile strength, rather ance specifications based on tensile Converting from pallets to slipsheets than thickness, is the primary deter- strength and coefficient of friction. requires a major change in work minant of which slipsheet is right Some loads may have a tendency to methods, materials and equipment. for your application, Wise says. slide off a slipsheet. This can be Roadway, for example, is introducing Some users specify recycled avoided by using an adhesive, two types of equipment: at lighter material, but the use of recycled shrink or stretch-wrapping the slip- volume facilities, wide platens which paper instead of first run Kraft sheet to the product, or using a slip over forklift tines; at heavier paper, for example, can result in four-sided slipsheet. volume facilities, hydraulic push/ pull attachments.

118 Home Depot

Training employees in the use of the But, he says, companies should also program. Pallets are recyclable, new equipment is critical to the be sure they’re fully aware of the but sortation and storage can success of the slipsheet program. A requirements necessary to imple- be an issue. training program was developed for ment a slipsheet system successfully. ■ If slipsheets get wet, they lose Roadway, Home Depot, and vendors’ Converting to slipsheets, like any their strength. Wet corrugated employees. The program is presented system-wide change, requires care- slipsheets in particular will in two half-hour modules. ful consideration and analysis of tear immediately. “This can be Safety is a key component in the benefits and trade-offs. Here’s a mitigated with special coating,” training program, which combines round-up of information to help you notes consultant Robert B. video and written materials. do so. Silverman, partner, Gross & Operators are shown how to ■ Slipsheets cost less than pal- Associates, Woodbridge, N.J., install and remove equipment lets, ranging from under a “but then the price of the slip- safely, how to prepare the surface dollar to $5 each. Pallets may sheet goes up, and it still to ensure that it’s level, and how cost $6-9 each. won’t have the same strength to handle freight properly. as the pallet.” ■ Many slipsheets can be used ■ Included in the training is a clear just once; plastic slipsheets Slipsheets require far less explanation of why Home Depot and may be reused a limited room than pallets to store, Roadway are converting to slip- number of times. Pallets can but, unlike pallets, can’t be sheets. Explaining the whys and be reused many times. So stored outside. wherefores of the change, says calculate per-trip cost as well ■ Slipsheets don’t store in pallet Roadway training and development as cost per item. racks easily. “You have to specialist Patti Powell, helped ■ Slipsheets are maintenance- deck the pallet racks with a employees–and Home Depot ven- type of decking that the slip- dors–understand the environmental free, without the problems of extruding nails or broken sheet won’t get caught on,” and financial benefits of doing so. Silverman says. Employees have bought into the boards. ■ change, rather than resisted it. Now, ■ Use of slipsheets frees up as Use of slipsheets limits the Powell says, employees are enthusi- much as 10% additional height to which you can floor- astic about the conversion. space in a truck trailer or stack product. “It’s tough to container. “If you’re shipping access a slipsheet 16 feet in WEIGH THE TRADE-OFFS a light density product,” the air from the ground,” Silverman explains. “A pallet “Slipsheets are a load-base alterna- observes Don Allison, “That saving goes straight to the gives the lift truck operator a tive that should be considered when four inch hole to aim for with adopting a system to handle unit bottom line. And 10% of a freight bill is a huge number.” the fork. With a slipsheet, costs,” according to David Spencer, there’s no margin for error, Corporate Manager Materials Allison heads up Computerized Packaging Consultants in and the required depth per- Handling, Jefferson-Smurfit Co., a ception is tough to master.” slipsheet user and manufacturer Greenwood, Ontario. ■ located in Alton, IL. The space saving achieved Slipsheets may not be appro- through use of slipsheets is priate for products that require “They’re not for everyone, but they air circulation, compared to offer a growing opportunity to save meaningless, however, if trailers weigh out before they pallets, which create a four money and space and ultimately inch gap underneath the load. have a more cost-effective end user cube out. ■ product. Companies should evaluate ■ Slipsheets create less waste Use of slipsheets requires spe- whether use of slipsheets,” he con- and are easier to dispose cial push/pull lift truck attach- tinues, “can make their product of–they can be included in ments or equipment that’s more competitive for the end user,” your corrugated recycling more costly than the fork lift

119 Home Depot

truck. Many distribution cen- loads that you ship and receive. design your packages so that you ters currently don’t have such In addition to material and space can take advantage of the additional attachments or equipment. savings, calculate the cost of storage space. Allison redesigned pretzel ■ Customers and/or vendors and handling equipment, training, packages for Snyders of Hanover may not have the equipment the difference in productivity, and when it converted. The result: more required to handle slipsheets, any effect the conversion might have than $350,000 savings annually. thus may be forced to purchase on your operation (such as widen- Certainly slipsheets are not right for such equipment, handstack ing the aisles or adding deck rack- every operation or for every product. product or unload it by hand. ing). Factor in what effect the use of But if your product is compatible ■ Lift truck operators must be slipsheets might have on your trans- with slipsheets and you haven’t con- trained in using push/pull portation rates, if any. Then examine sidered them lately, industry experts equipment, which requires your organization’s payback criteria suggest you revisit the topic. “a higher skill level for the to determine whether it’s worth “Slipsheets fall in between a operator,” Silverman says, making a change to part or all of palletized load and handstacked “More training is required; your operation. load,” explains Bob Silverman. more experience is required “Slipsheets aren’t necessarily an all- “Slipsheeted loads allow you to for proficiency.” Operations or-nothing proposition,” explains approach the container/trailer that use temporary labor or Silverman. “They might be applicable utilization of a handstacked load, have high turnover may incur to a certain portion of your opera- while approaching the productivity excessive training costs. tion.” Some companies’ plants, for of a palletized load. In the right ■ While productivity with slip- example, ship to distribution centers situations, slipsheets can help you sheets over time can get close on slipsheets to increase trailer come close to achieving the best of to what it is with pallets, the utilization, while the DC makes out- each of those options.” consultant continues, it doesn’t bound shipments on pallets. equal productivity that’s Also consider the impact a conver- achievable with pallets because sion might have on vendor and For More Information of the greater number of han- customer relations. “System-wide dling steps involved. implications are important,” ■ Home Depot’s Slipsheet Hotline: 404-801-5710 (can ■ Slipsheets may require wider explains Diana Twede, Assistant be used by all companies, not aisles in storage. “The lift Professor in the School of Packaging just Home Depot vendors). truck must turn a full 90 at Michigan State University. “If your degrees to access a slipsheet,” conversion to slipsheets means that ■ “Fiberboard Slipsheet Silverman explains, compared 100 of your customers will have to Manual” by American Paper to the 60-70 degree turn purchase special materials handling Institute, available from required to access pallets. equipment, the cost will probably Menasha Corporation (414- outweigh the benefits.” 751-1511) and other slip- ARE SLIPSHEETS “Shippers and consignee’s gain sheet manufacturers and RIGHT FOR YOU? separate economic benefits from a distributors. When considering the use of slip- slipsheet system,” Twede continues. ■ National Wooden Pallet and sheets in your operation, carefully “Cost and benefit have to be shared Container Association, (703- evaluate the cost of storage and equitably among both parties in the 527-7667). Request handling to ensure that the use of relationship.” Technical Information slipsheets doesn’t actually add more Be prepared to take full advantage Sheet–Slipsheets or Pallets? cost because of increased handling. of the benefits offered by slipsheets. “Reproduced with permission Consider the amount of handling “Space is dollars,” notes packaging of the Warehousing Education you do internally, advises consultant consultant Don Allison, so if you do and Research Council” Silverman, versus the number of unit switch to slipsheets, be sure to re-

120 How Push/Pulls Work

1. Extend the pusher plate so that the slipsheet lip fits into the 2. Retract the pusher plate.The gripper bar will automatically gripper channel opening clamp the slipsheet lip.

3. Move forward slowly as the load is being pulled onto the platens. 4. Raise the carriage about one inch. Slowly tilt the mast to a vertical position as you scoop up the load. Types of Push/Pulls A. Sideshifting standard on all C. Sideshifting platens. E. Mark 55 push/pull (pg. 125) carriage mount push/pulls. • Works like basic sideshift except the • Platens open for slipsheet handling and B. Hydraulically adjustable platens. frame doesn’t move. close for pallet handling. • For applications requiring extensive • For narrow or restricted applications. F. Sheet Sav.® (pg. 126) pallet handling. • 8” sideshift capacity. • Allows the driver to retain the slipsheet • Allows driver to adjust the platen D. Load Push when the load is pushed off. spread from his seat. • Does not have gripper mechanism to G. Inverta Push™ (pg. 127) pull slipsheet. • Return your pallets in-house, and • For loads that are “scooped” onto reduce your total pallet inventory. the platens.

A. B. C.

122 35E & 45E Push/Pulls

35E & 45E Carriage The 45E is a heavy duty push/pull, OPTIONS well suited for double load stacking ■ Quick-Change Hydraulic Mount Push/Pulls applications, as well as for rail car Couplers All E-Series carriage mount loading and unloading. ■ Hydraulic Flow Control Valve push/pulls are equipped with ■ Extended Height and Cascade’s SIDESHIFTING feature Width Faceplates (see A.) for unbeatable maneuver- ■ Faceplate Stop Group ability and with Q.D. hooks for ■ Attachment Mounted Solenoid convenience. The 35E model is Adaption Group rated for maximum load capacity ■ Optional Platen Sizes of 3,500 and 45E for 4,500 lbs. ■ Forks and Multiple Fork Groups Other differences include: The 35E is designed for short wheel-based, counter-balanced trucks in the 2,500 to 4,500 lbs. capacity range. The small truck 35E combination provides maximum net load handling capacity, short overall length and excellent maneuverabili- ty. It is ideal for truck trailer and rail car work, as well as for general slipsheet warehousing applications.

123 QFM™ Push/Pull

(Quick Fork Mount)

2. Connect quick-change hydraulic couplers

1. Position forks under platens 3. Engage lower hooks

Mounts directly on FEATURES OPTIONS the lift truck’s forks Protects both products and ■ Quick-change hydraulic couplers slipsheets from damage ■ Special faceplate heights in one minute. and widths High production slipsheet ■ Faceplate stop group APPLICATIONS handling capabilities ■ Truck mounted solenoid QFM Push/Pulls are ideal for Strength and durability to work adaption group applications requiring quick and in demanding applications ■ Class III mounting convenient removal and installa- ■ Various platen sizes tion of a push/pull attachment. ■ Extended opening ranges The rugged Cascade QFM can be installed or removed in less than one minute and does not require removal of the lift truck forks. Typical applications are those requiring an attachment for slip- sheets on an intermittent or irregular basis.

124 Mark 55 Push/Pull

Mark 55 Push/Pull offers flexibility to handle slipsheeted and palletized product Platens open for slipsheet handling and close for pallet handling. APPLICATIONS The Cascade Mark 55 Push/Pull is the solution for operations that must handle both slipsheeted and pal- letized product. Hydraulically posi- tionable outer platens are easily opened for conventional slipsheet handling, and closed to allow pallet handling. In addition, the Mark 55 Push/Pull allows four-way handling of the popular Mark 55 block pallet. FEATURES ■ Hydraulically adjustable outer platens 1. Platens spread ■ Sideshifting capability standard ■ Class II mounting standard ■ High visibility pantograph, gripper jaw and faceplate ■ 4˚ tilting faceplate ■ Protected hydraulics ■ “Cushion” cylinders OPTIONS ■ 3,500 and 4,500 lb. capacity models available 2. Close platens for 2-way handling of traditional ■ Quick-Change hydraulic couplers GMA pallets or 4-way handling of Mark 55 ■ Hydraulic flow control valve block pallets. ■ Extended height and width faceplates ■ Faceplate stop group ■ Optional platen sizes ■ Truck-mounted solenoid adaption group ■ Hydraulic load cushion ■ Quick Disconnect and Class III mountings 3. Open platens for conventional slipsheet handling

125 Sheet-Sav™ Push/Pull

Save your slip sheets using a Sheet-SavTM Push/Pull. ➀ Grip slipsheet and pull ➁ Press Sheet-Sav™ knob load onto platens. button and activate lever Transport load to to raise foot. desired location.

➂ Press Sheet-Sav™ knob button ➃ Push load off platens ➄ Press Sheet-Sav™ knob but- and activate lever to lower foot. while retaining slipsheet. ton and activate lever to raise foot, then remove sheet.

Slip sheet handling FEATURES OPTIONS High production slipsheet ■ Quick-change hydraulic couplers with the added ability handling capabilities ■ Hydraulic flow control valve ■ to retain and reuse ■ High visibility pantograph, Extended height and width faceplates your slip sheets. gripper jaw and faceplate ■ Extended push strokes ■ ■ Adjustable platens Faceplate stop group ■ APPLICATIONS ■ 4° tilting faceplate Optional platen sizes ■ Use the Cascade Sheet-Sav™ ■ Chamfered platen corners and grip- Forks and multiple fork groups Push/Pull to keep your slip sheets per jaw design protects the slipsheet ■ Class III mounting (45E only) in house. This is a popular attach- ■ QFM models: Frame mounts ment for manufacturers who han- between forks (20” wide) for dle product on slip sheets within minimum effective thickness their operation and who transfer (lost load) product without a slip sheet onto a Strength and durability in pallet, into a container, or onto a demanding applications flatbed truck. Popular for bagged cement, bagged seed and grain, packaged food, dairy products, fruit and produce and corrugated box blank handling.

126 Inverta Push™

2

1 3 Retain your pallets Retaining your expensive pal- ➁ As truck moves to load-out lets in-house eliminates the point, Inverta Push turns 180° in-house, and reduce your need to dead-head pallets after so pallet is on top of load. total pallet inventory. unloading at the destination. Slipsheet or customer pallet (if APPLICATIONS The receiver has no return costs to used) is now on bottom. Cascade’s Inverta Push may be used pay and you can reduce your total ➂ Forks lift pallet off load. in nearly every operation that ships pallet inventory. Operator pushes off and backs unit loads of bags or cartons, such The Inverta Push consists of two away simultaneously. as fertilizer, grain, cement, mail, opposing sets of forks for clamp- sugar, canned goods, boxed goods, ing, an automatically sequenced glass and plastic. stabilizer arm on the side with Retrieving your pallets with an forks, an integral sideshifter, a Inverta Push rotator to invert or rotate the load and a push plate for push-off The Inverta Push enables you to load deposit. warehouse your products on in- house, ‘captive’ pallets. For shipping, How it Works the Inverta Push places the load on a ➀ Bottom forks are inserted in slip-sheet, customer pallet or direct- pallet. Load is clamped against ly on the transit vehicle floor, then upper forks. Side stabilizer retrieves your pallet. Your pallets engages load to secure it need never leave the warehouse. for rotation.

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