Design and Optimization of Shipping Container for Package-Less Units

Abstract

Package-less shipping aims to deliver units without company X’s added packaging. This requires the fulfillment systems and processes to have gentler handling. Part of this change involves the design and implementation of a container that will carry units from a distribution center to a delivery facility. This thesis presents the container analysis that was completed to determine what the optimal container features and container type are for package-less shipping. Collapsible bags provide the best solution for package-less shipping in comparison to nestable and collapsible totes. Since ergonomic weight is the limiting constraint, the lower weight of the collapsible bag will allow for 1 or 2 more units per container. In addition, it benefits from 1) lower process cost for returning to dock (3.7% cost reduction as compared to a nestable tote) 2) better ergonomics (collapsible tote has undesirable pinch points) and 3) improved cycle time (estimated 2s to open/collapse compared to 4s for collapsible tote). Additional considerations that require more analysis relate to units per container and relocation. Based on company X’s past orders and unit types for the package-less shipping process, it is estimated that ~210 units per container (17.08 cu. Ft.) is the max achievable for NA before it reaches the ergonomic weight cap. However, company X is expecting the package-less shipping distribution center process to be constrained to ~105-133 units. Analysis of container relocation from delivery facilities to distribution centers indicates it is worthwhile investigating alternative relocation strategies in lieu of dedicated 53-foot container trailers to achieve lower relocation costs. The collapsible bag is the best option assuming it has at least an expected lifetime of 2 years, which is when its NPV exceeds that of the two alternatives. These results are sensitive to assumptions made, and it is necessary to fine tune this analysis when the end-to-end package-less shipping process has been fully mapped out.