Optimize Global Shipments with Customized Dunnage Solutions Scott Krebs and Jenny Orszula

Global Dunnage and Packaging Solutions Value of reusable dunnage for the global automotive industry Current automotive packaging trends and the impact that dunnage has on each: Shipping new materials International supply loops Managing transportation costs Standardization Shift to small lot Review of common materials and applications

Review of Shipping Forms of Reusable Packaging Bulk Containers Unit loads of pallets, totes and top caps Custom Protective Dunnage Steel Racks Today’s focus is protective dunnage. Collapsible Totes

Why Reusables and Dunnage for the Global Automotive Industry? Better part protection Improved pack density Reduced waste Better part presentation Standardized work flow/line side Optimized transportation

Current Global Packaging Trends New Materials Being Shipped International Supply Loops Managing Transportation Costs Standardization Shift to Small Lot

Packaging Trend #1 Shipping New Materials: Challenges of handling and protecting the new materials being used in vehicles to reduce the total vehicle weight and increase MPG Aluminum replacing steel New light weight resins for plastic parts Dunnage Impact: Through testing, new dunnage materials have been developed that outperform the traditional dunnage materials when used to protect the new lightweight automotive parts.

Packaging Trend #2 Global Supply Loops: With the increased growth of global vehicles, the supply chain for these vehicle parts also needs to be global. New challenges for part protection, with the increased number of miles the package travels Different modes have their own unique challenges (Truck, rail vs ocean) Dunnage Impact: Getting the correct part protection is essential to these long loops. Damage rates have to be minimized, due to the time and cost associated with replacing damaged parts. Collapsibility or part flexibility versus expendable

Packaging Trend #3 Managing Transportation Costs: Need to understand the entire supply chain to make the best decision on the correct packaging. Avoid optimizing one specific area, only to drive up the total cost by negatively affecting other areas. Dunnage Impact: Cube utilization with the correct container for the mode of transport is essential. Accounting for the required level of part protection can lead to different material options and can impact the number of parts than can fit in the container. Examples?

Packaging Trend #4 Standardization on Packaging: OEMs and suppliers are pushing to reduce the overall number of packaging SKUs to simplify the management process and, in theory, increase the amount of reuse. Dunnage Impact: Designs need to accommodate multiple parts so they are not limited to a specific part or supplier Two solutions: Using a very simple design (divider set) can keep the dunnage cost down, but can reduce the cube utilization and part protection More sophisticated engineered design will drive up the cost of the dunnage, but will reduce the impact on the cube utilization and part protection

Standardization Examples North American Standard versus Metric NA Standard 48” x 45” Metric 1000mm x 1200mm Make the correct decision for the entire supply chain

Packaging Trend #5 Moving to Small Lot: Moving away from bulk quantities to hand-held tote quantities for certain size parts/components. This can allow for better utilization line side and can reduce inventory space. This change does increase the velocity of the packaging through the supply chain. Dunnage Impact: Different ergonomic considerations need to be taken into account when designing dunnage for bulk containers than handheld containers. Pack density and part protection remain important, but the way you achieve them can be drastically different.

Common Materials and Applications Foam and Plastic Inserts Flexible Fabric Solutions Molded Foam Components

Foam and Plastic Inserts Materials vary widely in type of base resin, thickness and color. Plastic corrugated and solid plastic sheets can be die cut and combined with all types of foam to meet protection requirements. Benefits: Flexible and less sensitive to part changes Fully flexible for L x W x H dimensions A variety of materials, thickness and colors Plastic corrugated or solid sheets Can be laminated with thin sheets of foam or fabric to prevent product scuffing. Popular Applications: Most common solution for a wide array of Tier 1 and 2 components Typically placed into standard containers Critical “Class-A” protection option Smooth surfaced components

Flexible Fabric Solutions Fabric dunnage is industrial strength and skillfully sewn. Can be used in combination with rigid materials to create unique packaging solutions Benefits: Flexible and less sensitive to part changes Easily accommodates part nesting for increased pack density Fully flexible for L x W x H dimensions Variety of materials, thickness and colors Popular Applications: Critical “Class-A” surface products Parts with complex geometry or curvature such as, long trim parts, spoilers, mirrors, door panels, etc. Designed for totes, bulk containers and steel racks

Molded EPP Foam Dunnage Completely customer EPP foam trays, stand-alone totes and dunnage logs can help to protect and separate sensitive products. Benefits: Clean, smooth, one-piece construction Fully recyclable Fully flexible L x W x H dimensions Lightweight and ergonomically-friendly Durable to withstand sharp edges and protrusions Multiple densities and color options available Popular Applications: Critical “Class-A” surface products, like grilles, fascias, & wiper blade assemblies Irregular shaped parts Tray Insert Stand-Alone Tote

Implementation Best Practices Analyze your entire global supply chain to find opportunities for re-use Understand different materials available and benefits Consider mode of transportation and shipping distance Design dunnage that meets protection requirements, while providing future flexibility

Q & A