STANDARD FOR OPTIMIZATION OF CONSUMER UNIT, D-PACK (TRADING UNIT) AND PALLET IN THE NORWEGIAN GROCERY SECTOR Version 3.0 March 12. th. 2015 BY LIVING UP TO AT ALL LEVELS OF PACKAGING SUPPLY CHAIN GETS MORE EFFICIENT ENVIRONMENTAL IMPACT IS OPTIMIZED SALES ARE PROMOTED WASTAGE IS REDUCED Page 1 of 14
Content Revision log... 3 Objective of the standard... 4 Target audience... 4 Goal... 4 Exception from the standard... 4 Social responsibility and commitment... 4 Checklist/Compliance... 5 Definitions... 6 Consumer Unit... 6 Consumer Unit Design Requirements:... 6 D-pack (trading unit)... 6 D-pack Design Requirements:... 6 Reusable crates/boxes... 7 Intermediate cartons... 7 Pallet... 8 Pallets... 8 Principles for building a pallet... 8 Intermediate pallet sheet... 8 Disposable pallets... 8 Module system... 9 Attachments... 10 Attachment 1 Intermediate pallet sheet... 10 Attachment 2 Casefill rate (Consumer units and D-packs)... 11 Attachment 3 Best practice and examples of D-packs not fitted as a D-pack... 12 Page 2 of 14
Revision log Version / date Chapter/Page Changes compared to earlier versions 3 / 2015 March 12. Layout is adapted to other STAND standards. Checklist is revised and reformatted. Overlapping text and explanations which is also described in other standards are removed from the standard, and replaced with a link to where it is defined. New examples/pictures and illustrations. Dictionary with definitions and terms are removed from this standard, and incorporated in a common dictionary for all STAND-standards, and published at www.stand.no Page 3 of 14
Objective of the standard The objective of is to standardize and optimize all packaging types used in the Norwegian grocery sector in order to: Increase efficiency in the supply chain Optimize environmental impact Increase sale Reduce wastage Target audience Target for this standard is managers and others working with product development, assortment and SCM. Goal The most important goals for this standard, and which the trade has agreed upon are: Consumer Optimum and user friendly packaging material Clear and evident product declaration Recycling logos Store Efficient product replenishment Sales friendly and a good visibility when D-pack (trading unit) is exposed in the store Optimum use of space in the shelf Reduced waste of food when number of consumer units is optimized in a D-pack Inbound logistics High casefill rate Pallet stacking Avoid damage to transported goods Outbound logistics Endure pallets being stacked when transported. (See Picture 8) Avoid wastage and damages to the goods Warehouse Stable pallets and D-packs (trading units) (ref. STAND002) Exception from the standard In certain specific cases, exception to this standard can be made. Any exception must be agreed upon by the trading parties, and documented in the checklist. Social responsibility and commitment Standardization reduces environmental impact in the whole supply chain. Packaging optimization is part of the agreement the grocery sector has undertaken with the Government. Page 4 of 14
Checklist/Compliance Product: Sign.: Supplier: Date: Checklist Consumer unit Is casefill rate in % declared on the consumer unit? State the % See attachment 2 Is consumer unit designed in a way to avoid any breakage when the product is handled or opened by the consumer? Is the packaging material in consumer unit and D-pack designed in a way that the environmental impact is as low as possible, and is the consumer unit and D-pack recyclable? Is the number of consumer units in a D-pack optimized to reduce food waste also for small shops with low turnover? Checklist D-pack (trading unit) Is the short end side of a D-pack the exposure side, where this is appropriate? Ref. to STAND Yes No Is the product labelled according to STAND005? STAND005 Is the product labelled with «Grønt Punkt Norge» and relevant pictograms? Will the combination of consumer unit and D-pack endure stacking and transportation without damaging the packaging material or product? STAND005 Is the total weight of the D-pack (product and packaging material) less than 15 kilograms (maximum)? Is the barcoding requirements for a D-pack with variable weight fulfilled? STAND005 Is it simple to open a D-pack, and is there a guideline showing how to open it? Is it possible to open the D-pack without using a knife? Is the D-pack designed in a way that it gives a good exposure of the consumer unit when it is located in the shelf? If the packaging material used on the D-pack is plastic film, does the D-pack stand on a trough or tray? Will a tray of consumer units ensure stability even after the plastic film is removed, when the D-pack is lifted and put on the shelf? Checklist Pallet Is there equal number of D-pack per layer on a pallet? Is gross weight of the pallet less than 1000 kilograms? Is the product adjusted to a valid module? Will the pallet remain stable when the equipment used to keep the pallet stable during transport has been removed? Is the utilization of the pallet footprint minimum 90 %? State the % Is the equipment used to secure the pallet designed to avoid damages to the packaging material? Is one of the accepted pallets of the Norwegian grocery sector being used? STAND004 Comments (necessary if any of the questions above is answered with a NO)) Page 5 of 14
Definitions Consumer Unit The unit a consumer buys in a store. Consumer Unit Design Requirements: The product must have a design that utilize the shelf and other equipment in the store in an optimum way «Selling» information on the consumer unit must be clearly visible even when the consumer unit is standing on a tray on the shelf Consumer unit, together with D-pack must adapt to a valid module. (see illustration) The consumer unit must be easy to open and to use. The consumer unit packaging material is meant to protect the product. Hence all «air»/empty space in the packaging material must only be used to protect the product «Air»/empty space and packaging material which has the only purpose to increase the volume of the product will not be accepted D-pack (trading unit) The unit a store will order from his supplier. The most important task of a D-pack is to secure a consumer unit from the time when it is produced until it is exposed on the shelf in a store. The D-pack must be adapted to a module, to ensure a rational and efficient picking and distribution process. (See picture 8) It must be designed to endure the handling in the supply chain. Automated warehouses requires a D-pack that can be lifted, stacked, squeezed and handled with different mechanical equipment. D-pack Design Requirements: All D-packs must be designed, and adapt to the module system defined in this standard. As an optimum, a D-pack should not be less than 100 x 150 mm, and not larger than 400 x 600 mm. (See picture 6) The size of a package must take into consideration the size of the shelf where this product group normally belongs. The short end side is the preferred front. All D-packs must have a simple guideline how to open the D-pack, preferably with an illustration. It must be possible to unwrap/unpack the D-pack without using a knife When a consumer unit is exposed within the D-pack, as little as possible of the D-pack package material should be shown in the front A D-pack must not weight more than 15 kilograms The utilization of the pallet footprint must not be less than 90 %, and gross pallet height must be maximum 1200 mm. There must be as little «air»/empty space as possible when building the pallet A D-pack /outer carton must be barcoded according to rules set out in STAND005. The packaging material of a D-pack must be recyclable, made of cardboard or plastic. (See picture 4) Crates made of plastic all variants must be designed for automated handling A D-pack must have s stable form. (See picture 1 and 7) o If plastic film is used as the only packaging material, the D-pack must stand on a trough or tray. (See picture 3) A D-pack must be stackable (See picture 1 and 2) A D-pack must have vertical sides (See picture 1) Page 6 of 14
A D-pack must not have loose lids A D-pack must not have ears sticking up. A D-pack must have a gravity which make it stable on a conveyor. The relation between height and weight should be less than 2 to avoid that the product tilts during internal processes in an automated warehouse. (See picture 6) Glue used for packaging must be of good quality and a sufficient amount must be used to avoid any breakage of the D-pack. (See picture 5) When a D-pack consists of a trough or tray, with a lid or plastic film, the edge must be as low as possible, but high enough for the consumer unit to remain stable when the cover or plastic film is removed. Selling information must be clearly visible Reusable crates/boxes The preferred D-pack is made of cardboard solely, or in combination with plastic film. Reusable crates/boxes can be used as an alternative, but only after agreement between the trading parties. Intermediate cartons The use of intermediate cartons should be minimized, and cannot be used unless agreed upon between the trading parties. An intermediate carton can be accepted if it is not possible to have an ordinary D-pack because of lack of strength or stability, and where intermediate pallet sheet cannot be used. An intermediate carton must be labelled to separate it from an ordinary D-pack. An intermediate carton cannot weight more than 15 kilograms. Page 7 of 14
Pallet The unit the D-pack are stored, stacked and transported on from supplier/manufacturer to wholesaler. Pallet is often referred to as Transport unit. This chapter describes all types of pallets used in the grocery sector in Norway. Pallets Valid pallet types with specifications are defined in STAND004. A definition of Standard pallet and Low pallet is described in STAND005. Principles for building a pallet The following rules applies: A packed pallet must be stable and easy to handle The pallet must endure regular transport as well as all types of handling and storing through the entire supply chain For full pallets containing the same product, all layers must have the same number of D-packs A pallet must neither have overhang, nor less than 90 % utilization of the pallet footprint A D-pack should be placed on a pallet the same way it is exposed in a store The different layers or D-pack s must not be glued together Gross height of a pallet is 1200 mm. If the pallet is secured with shrink- or stretch-film, the film must be tightened in a way that keeps the D- packs stable, but at the same time without deforming the D-packs. No plastic «tails» must hang loose from the pallet. The same rules apply for other types of securing mechanism during transport. Intermediate pallet sheet Intermediate pallet sheets must only be used if this is required for stabilization, friction or weightoptimization of the pallet, not possible to achieve through optimization of the D-pack s itself. If the alternative to this is the use of intermediate cartons, «ears» on the D-pack, or glue between the layers, intermediate pallet sheets should be used. See attachment 1 for requirements for use of intermediate pallet sheets. Disposable pallets The use of disposable pallets must not be used unless agreed upon by the trading parties. Page 8 of 14
Module system In order to achieve the goal of efficient use of production facilities, transport, warehousing and systems in the store, all levels of packaging (consumer unit, D-pack and pallets) must comply with the module system. The base module is 600 mm * 400 mm, and must adapt to the height of the pallet of 1050 mm (excl. pallet), 1200 mm incl pallet. By optimization of an existing product, it is possible to have a maximum height of the pallet of 1249 mm., pallet included. 1050 mm 150 mm Fig. 1 An optimized pallet with a base module of 600 x 400 mm Examples of commonly used D-pack sizes in the grocery sector complied with the base module 400 x 600 mm 400 x 300 mm 400 x 200 mm 400 x 150 mm 200 x 300 mm 200 x 200 mm Page 9 of 14
Attachments Attachment 1 Intermediate pallet sheet If intermediate pallet sheets are used, the following rules apply: No pallet sheet on top of the pallet If the pallet sheet is not used on each layer of a product on the pallet, it is important that the pallet sheet is used under the same layer for a product each time. I.e. if a pallet sheet is used under layer 2,4,10 for a specific product, it must be under the same layers always for this product The pallet sheet must be made of cardboard or corrugated cardboard (with corrugation inside), not paper o Thickness of the cardboard: > 1 mm. Corrugated cardboard: >2 mm o Deflection: When the short end side of the pallet sheet hangs 500 mm outside a flat surface, the deflection must not be more than 50 mm (see illustration below) Not more than one pallet sheet between each layer The pallet sheet must not be fastened to the pallet or to the D-packs. No glue or «ears» must be used. The pallet sheet must not have too much friction; The friction coefficient between the D-pack and the top-side of the pallet sheet should be less than 0,35 The friction coefficient between the D-pack and the under-side of the pallet sheet should be in the range 0,35-0,60 The pallet sheet must be flat (not shaped as a trough or lid, no outside corrugation or profiles) The pallet sheet must not have a bigger surface than the pallet itself Preferably the pallet sheet should be in one piece, with no holes. If there are holes in the pallet sheet, they must be evenly distributed on the sheet, and the area of the holes must not cover more than 1 % of the sheet Figure illustrating maximum deflection Page 10 of 14
Attachment 2 Casefill rate (Consumer units and D-packs) «Air»/empty space in the supply chain increases costs and has a negative impact on the environment in the entire supply chain. Casefill rate is used to express the relation between volume of the product (consumer unit) and the packaging (D-pack). The casefill rate is expressed in dm 3 (litre). All products must be optimized (casefill rate and turnover) to achieve: Increased product pressure in the store Reduced wastage (the size of a D-pack must be optimized to the turnover and shelf life of the product) Examples how to measure casefill rate for a consumer unit and D-pack: Consumer Unit D-pack 31,37 % 28,14 % Content: 500 ml Volume of the consumer unit: 1,594 l (24,4 x 10,8 x 6,05) cm Casefill rate consumer unit: 0,5 l / 1,594 l Content: 500 ml x 12 = 6,0 l Volume of the D-pack: 21,319 l (25,2 x 22,5 x 37,6) cm Casefill rate D-pack: 6,0 l / 21,319 l Page 11 of 14
Attachment 3 Best practice and examples of D-packs not fitted as a D-pack Example 1: Rectangular shape and stability Bags, sacks and buckets should not be used as D-packs Best practice Example of a packaging not fitted as a D-pack Example 2: Stack ability A D-pack must have a shape that allows a mix of D-pack to be stabled on the same pallet to a store Best practice Example of a packaging not fitted as a D-pack Example 3: A D-pack with plastic film as package material A D-pack must not have plastic film as the only package material. The consumer units should stand on a trough or tray. Exceptions from this must be bilaterally agreed upon. The plastic film must be strong enough to make the D-pack stable even when it is palletized or de-palletized. Best practice Example of a packaging not fitted as a D-pack Page 12 of 14
Example 4: D-pack with cardboard as the packaging material The consumer units making a D-pack must be enclosed by a lid or plastic film. Consumer units standing on a tray with no lid or plastic film might fall out during internal processes in the warehouse or store. Best practice Example of a packaging not fitted as a D-pack Example 5: Glue The glue must be sufficient and of good quality Best practice Example of a packaging not fitted as a D-pack Example 6: Physical dimensions The D-packs must adapt to a module, but not smaller than 100 x 150 mm, and not larger than 400 x 600 mm. The relation height/width should be less than 2, to avoid the D-pack to tilt during transport. Dimensions: Width: 298 mm Height: 228 mm Length: 398 mm Dimensions: Width: 77 mm Height: 164 mm Length: 210 mm Best practice Example of a packaging not fitted as a D-pack Page 13 of 14
Example 7: A stable form/shape The D-pack must be strong enough to resist deformation when it is stacked, with as little as possible of «air»/empty space. It must endure stacking of 2 pallets when transported to the warehouse, and when handling at a distribution centre. Best practice Example of a packaging not fitted as a D-pack Example 8: Mixed pallet ready for distribution to a store This picture shows how your products are palletized with other products for distribution to a store. Important areas in order to achieve an efficient supply chain, optimise the impact of the environment, promote the sale and reduce the wastage, is to have focus on: Top-load Stackabilty of products Adaption to module system Page 14 of 14