1. 1 © 2014 SSI Schäfer United States Reusable Packaging Right-Sized: How to Evaluate the Right Reusable Container for your Product’s Protection, Internal Handling and Logistics By: David R. McCulloch VP and Managing Director, Packaging Systems Division Plastics Group Schaefer Systems International, Inc.

2. 2 © 2014 SSI Schäfer United States How do we select a Reusable Container System?  What are we shipping?  How will we protect it?  How are we shipping it?  How will it be handled?  Where is it being shipped?  How many, how often?  Etc., etc., etc……  The choices are endless, but ONE THING drives the choice “Logistically”

3. 3 © 2014 SSI Schäfer United States Packaging is not driven by the Product but by LOGISTICS!! l In school I was taught that packaging is driven by the need to protect the Product being Distributed. – Using the Primary / Secondary / Tertiary Principles m Primary = DUNNAGE m Secondary = Container m Tertiary = Pallet / Skid / Palletized Load The Primary Tool for Calculating all of this is a Cube Analysis Process, one popular is CAPE™. l So you say, what is the problem? – CUBE in the DISTRIBUTION CHAIN, which was highlighted quickly when Gasoline and Diesel Fuel went over $ 4.00 USD / Gallon. m You pay for Correct Reusable Packaging only ONCE, you pay for freight forever!

4. 4 © 2014 SSI Schäfer United States Packaging is driven by LOGISTICS, not the Product!! l What is taught in school is in reverse order for Distribution and Logistics!! Many Consider Packaging & Method of Distribution last! – Using the Primary / Secondary / Tertiary Principles, we add a CRITICAL Fourth level or unit, and call it Quaternary. m Primary = DUNNAGE m Secondary = Container m Tertiary = Pallet / Skid / Palletized Load m Quaternary = Truck / Train / Ship We still are working in Reverse, for Logistics: l Note: Automated Storage Systems: Packaging 1 st = Money $$$$ Saved in your System Installation

5. 5 © 2014 SSI Schäfer United States How am I shipping my product?

6. 6 © 2014 SSI Schäfer United States How do I determine what I need with So Many Choices?

7. 7 © 2014 SSI Schäfer United States AIAG Straight Wall Container Choices  Collapsible / Stackable  Stack Only

8. 8 © 2014 SSI Schäfer United States Product Protection - Considerations  Dunnage for Part Protection / Separation  ESD for Electro Static Sensitive Parts

9. 9 © 2014 SSI Schäfer United States Custom Steel Racks and Dunnage Designed for Part  Work-In-Process / Washing  SolidWorks 3D / Glass Rack

10. 10 © 2014 SSI Schäfer United States Economic Benefits / Cost Evaluation (RPA) Reusable packaging can reduce costs throughout the supply chain. Example, Reusable Packaging Systems: Reduce over­all packaging costs Deliver rapid ROI Reduce costly product damage Reduce labor costs Reduce inventory, therefore requiring less space For the purpose of this presentation we will assume that using Reusable Packaging has been cost evaluated and determined to be feasible, using the Cost Evaluation tools on RPA www.reusables.org or www.usereusables.com/costwww.reusables.org www.usereusables.com/cost

11. 11 © 2014 SSI Schäfer United States Packaging is driven by LOGISTICS, not the Product!! l What is taught in school is in reverse order for Distribution and Logistics!! The Correct Decision Order is: – Using the Primary / Secondary / Tertiary / Quaternary Principles, considering Method of Distribution First!! m Primary = Truck / Train / Ship m Secondary = Pallet / Skid / Palletized Load m Tertiary = Container m Quaternary = Dunnage (if Needed) l We are no longer working in Reverse from Logistics!!! – Savings will be had everyday your products are distributed with a Package Developed from the Method of Shipment backwards! This is the only way to Maximize Cube Utilization and Minimize Freight.

12. 12 © 2014 SSI Schäfer United States Shipping via Sea Container? Common Pallet Sizes: 1200 x 1000 mm, 1190 x 1140 mm and 1200 x 800 mm Common Containers sizes vary – standards being evaluated All are metric (mm) based on one of the Pallet sizes above

13. 13 © 2014 SSI Schäfer United States Shipping via Tractor-Trailer? Most common today is 53’ High Cube (110”) Common Pallet Sizes: 48 x 45 Inch, 48 x 40 Inch and 32 x 30 Inch. Common Containers sizes vary – Standards vary by Industry Most are by Inches based on one of the Pallet sizes above

14. 14 © 2014 SSI Schäfer United States For our Example, we will use the following Criteria: We are shipping product from our Manufacturing Plant to our Customer Personalization / Distribution Center. Product will ship via full 53’ Truck loads using 48 x 45 Pallet and Tops, and hand held Containers. Mixed with other products using compatible palletized products. So how do we select the best container?

15. 15 © 2014 SSI Schäfer United States Tape Measure with the Printed Carton / Dunnage / Quaternary Unit

16. 16 © 2014 SSI Schäfer United States Container Cube Calc ©

17. 17 © 2014 SSI Schäfer United States Container Options: 12 x 15 x4.0” vs. 12 x 15 x 5.0”

18. 18 © 2014 SSI Schäfer United States NF121504RS Solution: Parts are very close to the top and may rub on bottom of container above it during transit. Result

19. 19 © 2014 SSI Schäfer United States NF121505AS Solution: Parts have space at the top to prevent rub on bottom of container above it during transit. Result

20. 20 © 2014 SSI Schäfer United States NF121505AS Solution / w Optional Lid: Parts have space at the top allowing for optional lid for added protection from debris. Result

21. 21 © 2014 SSI Schäfer United States In conclusion considering the Method of Distribution First!! l Our Solution used: – Using the Primary / Secondary / Tertiary / Quaternary Principles, considering Method of Distribution First!! m Primary = 53’ Truck m Secondary = 48 x 45 Pallet / Top Cap / Palletized Load m Tertiary = 12 x 15 x 5” Stack Only Container m Quaternary = Dunnage is the Printed Carton shipped to the Customer. l We are now working in Maximized Cube for Logistics!!!

22. 22 © 2014 SSI Schäfer United States Thank you for your interest in SSI SCHAEFER SYSTEMS INTERNATIONAL Packaging Systems Division packaging.ssi-schaefer.us