Subject: Minutes, EIPS Meeting #3
Author: btsander@us.ibm.com
Date: 3/10/99 9:40 AM


I would like to personally thank each of you for your interest and support. In particular, Paul Russell, John Clarke, and Jorge Marcondes who have been major contributors already. I invite all members to make a personal commitment to add to the knowledge base in some way as they have done.

We don't want this to be a 3 or 4 man show with dozens of spectators. The results we all want will come far sooner and be of better quality if we all actively participate.

Following is a summary of my notes taken during our meeting on Feb. 25, 1999 in Orlando. As always, please correct any inadvertent omissions or misstatements. If there are any please bring it up at the next conference call (Thursday, March 18, 11am eastern time).

bulletAttendees:

Perry Biancavilla (HP)
J. Richard Black (AMP)*
John Clarke (VTU)
Kevin Howard (HP)*
Ron Johnson (Intel)*
Dr. Jorge Marcondes (SJSU)
Paul Russell (HP)
Doug Smith (IBM)
John Morris (IBM)
Dennis Traynor (Lexmark)
John Joseph Brown (Liebert)
Darek Lewis (Sony)
John Bridges (Dell)
Laura Nelson (Clariion)
Bob Sanders (IBM)

* Phone Attendee

Minutes:

bulletRevisited the Mission: Develop a global electronics industry standard for shipping platforms.
bulletRevisited the Goal: Start by establishing a global standard for the computer industry specifically.

 

bulletApplicability: All major pallet users in the computer industry integrated supply chain:
bulletIncludes these Users: Component / Subassembly suppliers, Manufacturers, Distributors, Retailers
bulletAlso Includes: Transportation/Forwarders, and Academia for research and consulting
bulletExcludes: Unitization practices (could be phase 2 effort after agreement on platform design)

 

bulletTeam Objectives:
bulletImprove quality of construction for improved durability, reduced product damage
bulletImprove overall process efficiency in transportation, handling, and storage
bulletReduce the total end to end cost in the global computer industry supply chain
bulletAchieve improved environmental attributes with regard to reduce, reuse, recycle
bulletEstablish a consistent repeatable test protocol for new and existing pallet designs
bulletEstablish a minimum performance criteria which would apply to std and non-std.
bulletAgree on a limited set of design styles and sizes for general use (Goal: 1)
bulletFind the best overall solution considering disharmony dimensionally (air, ocean, surface)
bulletBuild enough industry wide momentum to overcome imposed limitations in the pipeline

 

bulletCurrent EIPS Membership: Discussion centered around building membership beyond the US Computer Manufacturers. Specifically, to include more suppliers to the industry and distributors as well as international representation. It was suggested to add the transportation industry also at least in a consultative role. Retailers have not been quick to nominate anyone to this. I believe our list of retailers should focus on computer/electronics specialists vs. department stores like Sears or Walmart.

 

bulletDistributors are perhaps more motivated since virtually all of their shipments are affected. Two major distributors, Ingram Micro and Dickens (Atlanta) have expressed interest. All EIPS members should take personal effort in identifying at least one potential member from the supplier, distributor, or retailer community. Note: One distributor suggested off-line that we arrange to retrieve and reuse any custom pallets that we use such as those that might be used for higher end products.

 

bulletFor Clarity, Examples of each (some companies qualify in more than one of these categories):
bulletSuppliers: Such as Sony, Sanyo, Seagate, Samsung, etc. (does NOT include pallet suppliers at this time)
bulletManufacturers: Such as HP, IBM, Compaq, Dell, etc.
bulletDistributors: Ingram, Hallmark, Dickens, Merisel, etc. - Retailers: CompUSA, Circuit City, Best Buy, etc.
bulletOthers: Universities, Hisco, Inhale, etc.

 

bulletTask: IBM will develop a simple survey to collect the most compelling information from the EIPS members. This information might reveal the clear solution, help build the consensus, and also give us a better idea of what obstacles or investments might be required.

 

bulletStandardization Organizations: Discussion centered around establishing linkages at this time with various standards issuing bodies. This was considered important only if the outcome of the group was in fact a rigid standard. Note: IoPP is an educational institution and not a standards issuing body. Decision Made: Target to establish a voluntary guideline. It is expected that with sufficient consensus via EIPS that enforcement by an official standard would not be required.  The guideline could refer to existing standards such as ASME, ANSI and so on for construction or testing procedures. Contacts with these groups on an informational level can help to spread the word. Advantage: Less bureaucracy, we want to get this done within our lifetimes, maybe even before Y2K????

 

bulletBackground/History: John Clarke offered a brief but thorough review of similar industry efforts in addition to his excellent presentation at TransPack on ways to improve pallet quality.
bulletGrocery: 48x40 (US), 1200x1000 (Europe)
bulletChemical: 48x40, 52x44, 45x45 (US), 9 sizes (Europe) Printing: 44x44, 48x42, 48x40, 42x42.
bulletAutomotive: 30x32, 40x48, 45x48, 54x48
bulletEuro Pallet: A prescriptive standard which by its design eliminates substitutes. No one in US can make a stamped DIN standard pallet right now.

Note: The Euro pallet is particularly strong in Germany, but not as strong elsewhere.

Main Message: Other industries tried but could not settle on one dimension.
Comments: 19" rack items which are the standard for large computers now fit best on 45x48 pallets (40" dimension too tight).
Observations: 48x40 is one of the choices in all industries. No other dimension is repeated on all.

bulletPallet Footprint Analysis: I (Bob Sanders) presented a spreadsheet which compared 7 common pallet sizes against various transportation vehicles, including air, ocean, and surface. The vehicle sizes were derived from CAPE and also Cigna's "Ports of the World" publication. Since there were some slight variations between the two references, further verification of those dimensions is needed. I hereby ask for volunteers to take as a "to do" to verify those dimensions with the transportation industry. Important will be to collect the true "usable" space to allow for efficient loading. For instance, if the actual i.d. of a truck is 102" this does not mean we can use all 102". We will need to know how much slack space to allow for fork truck handling. Same goes for ocean and air cargo containers. Conclusions: Based on this cursory evaluation the 48x40 ranks #1 based on an overall average. The Euro 1200x800 ranks last on overall efficiency but ranks #1 on a specific truck size. This is likely the root of the push for that dimension in Europe. On that same truck, the 1200x1000 is only 3% less efficient.
bulletComments: Stacking stability is an important consideration also. A smaller footprint leads to less stable stacks and less efficiency in warehouses with floor storage. Another key factor is fit. It is far more difficult to fit loads on smaller pallets. Actually, the larger the pallet, the better chance you have of using a high percentage of its surface. A surprising performer was the 40x44, not commonly mentioned but it does the best on air cargo (the most valuable space) and is also 90% efficient on other modes. Key Question:  Is 90% overall efficiency enough or do we need to provide a nearly 100% efficient solution for each mode?
bulletPallet Testing Protocol: Jorge Marcondes presented an initial draft of the test protocol. The purpose is to establish a consistent methodology for evaluating all pallets (new and existing) so that fair unbiased decisions can be made. This will also serve to filter the inevitable deluge of new innovations seeking acceptance by this group. Task: All members must review the proposal and offer any suggested comments or changes to Jorge. Please try to do this prior to the next conference call. The draft is on the website (Paul please post the draft test protocol).
bulletNew Pallet Concept: Paul Russell presented a scale model of a pallet design that HP is developing. It is constructed from molded EPP sections which go together like a puzzle and then attached to a solid top deck made from Homasote. Steel rods can be inserted for racking strength. The topdeck could be made of various sizes if needed while maintaining the same base components. The main objective is get away from the problems of wood and also to use recycled materials in the construction.
bulletTasks for all EIPS Voting Members:
bullet1. Find one name from an area of the industry we don't have represented yet (supplier, distributor, or retailer) including non-US contacts
bullet2. Review the pallet testing protocol and advise Jorge Marcondes of any changes or discuss at next meeting.
bullet3. Join the next conference call on 3/18 at 11am eastern time (Agenda will be follow-up on all of the above).

 

Regards,

Bob Sanders
WDOS, Dept. VQZ, Bldg. 002-3, Office MM302 RTP, North Carolina, USA, 27709-2195
Phone: 919-543-1260, Fax: -4253 (IBM T/L: 441) email: btsander@us.ibm.com
IBM Intranet: w3.wwd.ibm.com/documentation/packaging