From the manufacturer perspective in using the test unit, several implications
were found. First, the manufacturer had to invest in a new
packaging line in order to handle this unit efficiently. Hand-packing
can of course be viable at the start, but, if sales take off as indicated,
automation is inevitable. This will incur a higher product cost due to
equipment investment. On the other hand, reduced use of cardboard
material in production and an increase in sales volume, due to
increased communication, customer value and convenience, will allow
depreciation of that investment.
Another and more difficult implication to resolve is the use of
quarter-sized standard Euro pallets. Much of the infrastructure in
handling food products is built around full-size pallets where halfmodules
can relatively easily be handled, since forklifts and other
systems such as pallet racking can be utilized. When it comes to the
quarter-sized Euro pallet there has to be a separate set-up. As one
example, the quarter-sized Euro pallet has to be stored on a slave pallet,
normally a full-sized Euro pallet. This will make the height of the unit
too high to place in the normal pallet racking system, which leads to less
package layers on the pallet, resulting in a lower packaging efficiency.
The same type of complication as for the manufacturer is valid for any
party in the value chain, such as the wholesaler, that is storing products
on pallets. Physical handling is also more complicated due to low flexibility
on the forklifts, ie the distance between the forks. The quarter-sized
Euro pallet demands flexibility to avoid instability. In addition, such
instability caused by the format of the pallet will have negative impact in
terms of higher risks of package damage in transportation and handling.
This demands special systems for fixation in transport and handling,
which is another infrastructure investment to be made. One positive
effect of the test unit is the lower frequency and volume of single-tray
order picking, which leads to higher customer value in terms of lower
personnel requirements and also convenience in handling packages. Less
handling of the package will yield a higher-quality package to the end
consumer, and hence increased customer value.
From a retail point of view, the test unit is convenient, and easy to
locate and handle due to its size and format. Enhanced communication
and customer value are achieved through enabling flexible location