New Study Identifies Risks of Product Damage During Transport Due to Unit Load Performance

October 30, 2006


Press Release

CHICAGO — October 30, 2006 – Poor unit load wrapping could potentially cost manufacturers approximately $388 million in product damage, says a new study released today by Carolina Supply Chain Services (CSCS), a Carolina Logistics Services (CLS) company. Inconsistent application of packaging material and limited and inappropriate use of stabilization devices (dunnage) in trailers are contributing to poor stabilization of unit loads, and may lead to significant product damage as the unit loads move through the supply chain.

CSCS and the study's sponsor, The Dow Chemical Company, unveiled the detailed findings of the study at Pack Expo in Chicago. Pack Expo runs from October 29 – November 2.

"Manufacturers that are trying to get their products to store shelves without damage could reduce a significant amount of that damage by taking a closer look at how they unitize their loads," said Joe Laehu, market manager for Industrial & Consumer Packaging at Dow. "The CSCS study shows that poor unitization technology can have an impact on the bottom line, and manufacturers may benefit from alternatives to their current technologies – alternatives such as stretch hoods, for example."

The 2006 Unsaleables Benchmark Report* stated that packaging improvements were one of the major factors in manufacturers reducing their payments for unsaleables between 2004 and 2005.

"One of the key findings of the study is that the most prevalent types of damage to unit loads include shifting, ripped or loose packaging, crushing, water damage and infestation – all scenarios that can be minimized by the proper use of the right unitization technology," said Mike Rawlins, director of performance research systems at CSCS.

The CSCS study identified and quantified damage drivers through an examination of shipment, unit load, pallet and shipper performance at the point of manufacturer distribution center (DC), customer DC and retail store shipment receiving. More than 28,000 unit loads in 886 shipments of dry, chilled and frozen goods were audited as part of the study.

Other findings included:

  • Nearly 48 percent of shipments had no stabilization devices (dunnage) used within the trailer
  • Nearly 39 percent of unit loads did not fit effectively within the pallet footprint
  • Approximately 14 percent of unit loads did not have wrapping that attached the load to the pallet
  • Nearly 9 percent of unit loads that had stretch wrap exhibited wrap issues that would promote both poor stabilization and damages to shipping units

Tailored Packaging Solutions May Reduce Damage

"We approached CSCS about the study because we wanted to identify the widespread trends in damage sustained by unit loads and determine where improvements in pallet stabilization can be made," said Laehu. "When you look at the study results, it's clear that no single unitization technology is going to protect every unit load. Manufacturers have to carefully consider their unitization options."

One solution is stretch hoods, which provide five-sided protection without the need for an additional topsheet (like with stretch wrap), and improve load stability by attaching the load to the pallet.

The CSCS study concluded that wrapping the unit load to the pallet could further reduce shifting and protrusions, and limit the amount of damage caused by overhang and underhang.

"Dow supplies resins for a number of high performance unitization films that are used in pallet packaging," said Laehu. "Our resins for stretch hood technology in particular offer significant benefits in terms of package integrity, weatherability, display properties and logistics management. We believe the CSCS study shows there are real opportunities for manufacturers to reduce damage in the supply chain with stretch hoods."

As a leader in the global packaging market place, Dow offers a comprehensive portfolio of high-performance and high-quality resins for a wide range of packaging applications. Dow's specialized product mix provides packaging converters, logistics managers and brand owners with broad and versatile options to meet today's evolving requirements for packaging, including increased convenience, attractive appearance and functional excellence.

* 2006 Unsaleables Benchmark Report, Joint Industry Unsaleables Steering Committee, 2006

About Carolina Supply Chain Services

CSCS, a CLS company, is an industry leader in providing technology-driven reverse logistics and supply chain solutions to the consumer goods and healthcare markets. By combining excellent execution with information intelligence, our solutions provide the foundation for collaboration between our clients and their trading partners to improve the overall supply chain. Our solutions include:

  • Returns Management
  • Asset Recovery & Financial Transaction Management
  • Regulatory Compliant Disposition
  • Recall Management
  • Supply Chain Analysis
  • Web-based Analytics
     

More information about CSCS and their parent company CLS can be found at http://www.cls.inmar.com/ or http://www.carolinasupplychainservices.com/

About The Dow Chemical Company

Dow is a diversified chemical company that harnesses the power of science and technology to improve living daily. The Company offers a broad range of innovative products and services to customers in more than 175 countries, helping them to provide everything from fresh water, food and pharmaceuticals to paints, packaging and personal care products. Built on a commitment to its principles of sustainability, Dow has annual sales of $46 billion and employs 42,000 people worldwide. References to "Dow" or the "Company" mean The Dow Chemical Company and its consolidated subsidiaries unless otherwise expressly noted. More information about Dow can be found at http://www.dow.com/.

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