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Pick-up from supplier, transport to distributor / retailer

This sub process describes the requirements, recommendations and guidelines STAND has on how physical delivery is to take place, with the emphasis on the controls to be carried out when taking responsibility for the delivery.

The areas described are:

  • Transfer of responsibility for a product at Ex Works delivery terms
  • Checks to be performed by the carrier, and possible complaints related to this
  • Labelling of transport information and guidelines for labels on Distribution Units (DU)
  • Requirements for pallet / palletization on Distribution Units (DU)
    • Valid pallets and requirements for these
    • Requirements for the design of the Distribution Unit (DU) and palletization
    • Placement of Stock Keeping Unit (SKU) on pallet
    • The top load labelling system

Transfer of responsibility for products at Ex Works delivery terms

The responsibility for the products is transferred when the seller has made the product available for the buyer in accordance with the agreement.

Unless otherwise agreed, the buyer is responsible for loading of products.

The buyer is liable for any risk of loss or damage to the products from the time the products is placed at the buyer’s disposal.

Check of products at loading, receipt at warehouse, and retailer at Ex Works delivery terms

The buyer or the party acting on behalf of the buyer shall, when the responsibility for the products has been transferred, control the quantity and possible damage to a reasonable extent.

  • When loading:
    • The number of load carriers and external damage is checked, and whether an exchange or reusable pallet is used.
  • Reception at distributor’s warehouse:
    • Number of load carriers, external damage, correct product, and if used
      exchange or reusable pallet.
      Date labelling and number of Stock Keeping Units (SKU) are checked when placed on a stall or pick-up place.
  • Reception in store:
    • Damage that could not have been discovered when receiving the delivery at the distributor’s warehouse.

Complaints by Ex Works delivery terms

The buyer shall make a complaint about errors or defects in the products within a reasonable time after the error or defect is discovered or should have been discovered.
Seller who claims that the complaint deadline has been exceeded must do so immediately after the complaint has been received.

The buyer may require replacement, redeployment, price reduction, etc. pursuant to the provisions of the applicable law (Kjøpsloven).

All errors and defects must be based on the things that the seller is responsible for.

Transport information on pallet with example of transport label

Standard shipping label for the Norwegian grocery sector contains the following information:

Name, address etc. on sender.

The pallet must be labelled with the sender’s name, street address, postal code and postal address in human readable text.

Recipient’s name, address, etc.

The pallet must be labelled with the consignee’s name, street address, postal code and postal address in human readable text.

Buyer’s reference.

The pallet must be labelled with the buyer reference number (such as the customer’s order number). It is allowed to enter more references.

Gross weight (in whole kg)

Shall be labelled in human readable text on each pallet. Gross weight means weight of products, packaging and pallet (load carrier).

Max. Top load (in whole kg)

Must be labelled in human readable text.

SSCC (License Plate)

GS1-128 AI 00 should be labelled on each individual Promotional Unit in human readable text and in the bar code.

For shipment via Crossdocking terminal this applies in addition:

Name, address, etc. for the Crossdocking terminal.

The pallets shall be marked with the Crossdocking terminal name, street address, zip code and city. This information should be in the via-field.

Content of the Standard shipping label for the Norwegian grocery sector.

Overview of labelling of Standard shipping label:
Information  Human readable text GS1-128 (bar code) AI Format
Sender’s name, street address, postal code, city Must be labelled Not labelled
Recipient’s name, street address, postal code, city Must be labelled Not labelled
Name, address, etc. for the Crossdocking terminal Must be labelled when the delivery is via the Crossdocking terminal Not labelled
Buyer’s reference Must be labelled Not labelled
Gross weight Must be labelled Can be labelled 3300 n4 + n6
Max. Top load1) Must be labelled Not labelled
Temperature requirements Must be labelled Not labelled
SSCC (License Plate) Must be labelled Must be labelled 00 n2 + n18
1)    Max Top load is omitted for Mixed pallet.

 

Example of Standard shipping label for the grocery industry

 

Transport label for Standard pallet
Standard pallet is labelled with Standard shipping label for the grocery industry
A GS1 product label on a Standard pallet requires labeling of SSCC, gross weight, top load weight and temperature requirements.
This information can therefore be omitted from Standard shipping label for the grocery industry.

If both product label and transport label are used, SSCC can be labelled on both labels provided that the identical number is used.

Transport label for Promotional Unit
The Distribution Unit (DU) containing one or more Promotional Units is labelled with Standard shipping label for the grocery industry.
The Distribution Unit (DU) is identified and labelled with its own SSCC
If the Promotional Unit a 1/1 pallet, the same labelling of transport label as for Standard pallet is used.

Transport label for Mixed pallet
Mixed pallet (both with and without interlayer pallet) is labelled with Standard shipping label for the Norwegian grocery industry.
If the Mixed pallet is not stackable, information on Top load is omitted.

Transport label for Customer packed pallets

The Customer packed pallet is labelled with Standard shipping label for the grocery industry.
Note in particular:

Recipient’s name, address, etc.
As recipient transit warehouse is given and transit address is given as delivery address. The pallet must be labelled with the transit warehouse’s name, street address, postal code and postal address in human readable text.

Name, address, etc. for the distribution warehouse.
The via-field the distribution warehouse is given. The pallet must be labelled with the distributions warehouse’s name, street address, postal code and postal address in human readable text.

 

Transport label for Customer packed units

The Customer packed unit is labelled with a transport label containing the following information:

Name, address etc. on sender.
As a sender, supplier is given. The unit must be labelled with the sender’s name, street address, postal code and postal address in human readable text.

Recipient’s name, address, etc.
As a recipient, the end recipient / end delivery address is given. The unit must be labelled with the consignee’s name, street address, postal code and postal address in human readable text.

Name, address, etc. for the transit warehouse.
In the via field it’s entered the transit warehouse where the pallet is to be splitted /Crossdocked. The unit must be labelled with the transit warehouse’s name, street address, postal code and postal address in human readable text. 

Transport Information.
On this label, a separate field has been created for transport information. This is information that the buyer sends to the supplier in his order and which the supplier must put on the Customer packed unit’s transport label.
Format and content of transport information is agreed between the parties.

Buyer’s reference.
The unit must be labelled with the buyer reference number (such as the customer’s order number). 

Gross weight (in whole kg)
Shall be labelled in human readable text on each pallet. Gross weight means weight of products, packaging and pallet (load carrier).

Temperature requirements
Shall be labelled in human readable text if the product has a temperature requirement.

SSCC (License Plate)
GS1-128 AI 00 should be labelled on each individual Promotional Unit in human readable text and in the bar code.

 

Content in transport label for customer packed unit

Transport label for customer packed unit:
Information   Human readable text GS1-128 (bar code) AI Format
Sender’s name, street address, postal code, city Must be labelled Not labelled
End recipients’s name, street address, postal code, city Must be labelled Not labelled
Name, address, etc. for the transit warehouse Must be labelled Not labelled
Transport information1) Must be labelled Not labelled
Buyer’s reference Must be labelled Not labelled
Gross weight Must be labelled Can be labelled 3300 n4 + n6
Temperature requirements Must be labelled Not labelled
SSCC Code (licence plate) Must be labelled Must be labelled 00 n2 + n18
1) Transport information is agreed between the parties

 

Example of shipping label for Customer packed unit

 

 

Guidelines for labels on Distribution Units (DU)

Placement of labels on pallet
Two types of labels shall be used; label for product information and label for transport information.

  • The minimum requirement is that the pallet should be labelled on two sides with both label types; one of the short sides of the pallet and the right hand long side (seen from the short side).
  • Product and transport label must be on the same side of the pallet.
  • When multiple labels are used on the same side of the pallet, the labels should be placed underneath each other. The label that contains SSCC placed at the bottom.
  • The labels should be placed so that the bottom of the lowest bar code should be at least 400 mm above the floor, and the top of the uppermost bar code should not be more than 800 mm above the floor.
  • The label should be placed at least 50 mm from the vertical edge.
  • For pallets lower than 400 mm the labels should be placed as high as possible.
  • If all information is known at the time the pallet is labelled and there is space on the label, all information can be labelled on one single label.
  • To ensure automatic reading of the bar codes Promotional Units, Customer packed pallet and Mixed pallet should only the transport label on the transport unit be readable
  • Product label on Standard pallet with height 60 cm (Standard pallet – Low) should be placed as high as possible.

Identical information
Same information (GS1-128 AI) shall only appear once on the product and transport label.
This means in practice that the same information can not be repeated on the same label or that the same information may appear on multiple labels on the device (pallet).
The exception is SSCC which is allowed on both labels if it is an identical number used.

Size and design of the labels
The following recommendation applies:

  • The width of the label should be 105 mm or 148 mm
  • The height of the label may vary

Recommended formats are:

  • A5 (148mm x 210mm)
  • A6 (105mm x 148mm)
  • 105 mm x 192 mm

Quality of labels

  • It is a prerequisite that the labels are readable throughout the value chain for the entire life span of the unit
  • It is a requirement that the quality of GS1-128 bar codes minimum meets print quality with “Grade C” according to Standard ISO / IEC 15416.
    To achieve “Grade C” when reading, “Grade B” or better by printing is recommended
  • When affixing the labels, it is important to ensure that the bars in the GS1-128 symbol are correct and unbroken (avoid “wrinkling” on the label).

Valid pallets

This is an animation that show what pallets are valid for distribution.

Requirements specifications can be downloaded here:

Requirements for approved EUR-pallets
Specification for reusable 1/1 plastic pallet
Specification for reusable 1/2 plastic pallet
Requirements specification for reusable 1/3 plastic pallet (from NLP)
Specification for reusable 1/4 plastic pallet
Requirements Specification reusable 1/2 wooden pallet
Requirements specification for 1/3 and 1/2 disposable cardboard pallet

Requirements for the design of the Distribution Unit (DU) and palletization

The Distribution Unit (DU) is the unit the Stock Keeping Units (SKU) is stacked on / packed in for transport to distributor.

Design of a Standard pallet (Standard pallet and Standard pallet – Low)

A Standard pallet must contain the same product (same GTIN) with a fixed number of Stock Keeping Units (SKU), in a fixed pallet pattern, with equal number of Stock Keeping Units (SKU)on each layer, and where labelling of unique product information on the Distribution Unit (DU) is possible.

The pallet structure shall contain as little excess volume of “air” as possible.

Standard pallet
Maximum pallet height must be 1200 mm incl. pallet.
Tolerance limit for existing products is 1249 mm.

Standard pallet – Low
Maximum pallet height shall be 600 mm incl. pallet.
Standard pallet – Low is used for low-frequency products and for products with short shelf life.

 

Principles for the construction of a palletpattern, central in calculation of top load weight, ref Top load labelling system.

When creating a pallet pattern, the following applies:

  • A packaged Distribution Unit (DU) must be form stable and handling-friendly
  • A Distribution Unit (DU) shall withstand regular transport, handling and storage through the value chain
  • For single article Distribution Units (DU), all layers must contain the same number of Stock Keeping Units (SKU), and in a fixed pallet pattern
  • Requirements for equal number of Stock Keeping Units (SKU) on each pallet / identical layer from pallet to pallet, with the possibility of variation between the layers
  • The pallet should not have overhang
  • The Stock Keeping Unit (SKU) should be placed on the pallet as it is exposed in the store
  • Do not glue between pallet layers or between Stock Keeping Units (SKU) in the same pallet layer
  • Gross height of pallet is 1200 mm. Tolerance limit for pallet height on existing products is 1249 mm

 

Types of pallet pattern

When constructing Distribution Units (DU), the Stock Keeping Unit (SKU) must be placed in accordance with a given pallet pattern. These are referred to as bond stacking and column stacking. Pallets can also be built as a combination of bond stacking and column stacking.

Bond Stacking
Bond Stacking means that the units on every other layer are different, thus locking each other to a greater or lesser extent, but it reduces the compressive strength by approx. 40%.

Example of good pallet utilization and stacking with bond stacking, for good stability.

Column Stacking
Column stacking means stacking packages on top of each other without overlapping with other packages. This form of stacking gives maximum strength in terms of pressure load due to that the corners have better roll stiffness than the sides, but the stack gives poor stability without additional use of shrink wrap, strap, ribbon or similar.

Example of column stacking in the lower pallet layers, and bond stacking on the top layer. Combining the different stacking methods achieves good stack strength on the lower layers while the pallet is locked on top.
This is often a good alternative to intermediate pallet sheets.

Use of plastic to secure the pallet through the value chain

  • Shrink / stretch film must not be so tight that the packages are deformed
  • Shrink / stretch film must be tight around to the pallet
  • No tail of plastic must hang loose
  • Shrink / stretch film must not cover the fork lift openings on the pallet
  • Shrink / stretch film must not be fastened around the pallet blocks

Use of intermediate pallet sheets
Intermediate pallet sheets must be minimized and used only if this is necessary to ensure quality and transportability of the pallet.
Intermediate pallet sheets are preferred if the alternative to this is intermediate cartons, “Ears” on the Stock Keeping Unit (SKU) or use of corner trims.
Where intermediate pallet sheets are used, the following requirements apply:

  • The pallet sheet to be used for standard euro pallet should have dimensions of 750 mm * 1150 mm, ie 50 mm less than the length and width of the current load carrier
  • The pallet sheet must be of rigid cardboard or corrugated cardboard.
    • The stiffness of the pallet sheet must pass the following test: If the short edge of the plate hangs 500 mm from a flat surface (eg a table), the pallet sheet must not bend down more than 50 mm, see illustration below
  • No more than one intermediate pallet sheet between each layer
  • The intermediate pallet sheet must not be fastened and be flat
  • Only a whole intermediate pallet sheet, i.e. without holes or perforations, shall be used
  • In case of questions, one is encouraged to contact the packaging supplier

See also Automated storage at distributor – greater understanding of the depalletization process

Example of intermediate pallet sheet that does not meet quality requirements. The intermediate pallet sheet is a thin paper and is not suitable for automatic warehouse systems

Example of what happens when using “thin paper” intermediate pallet sheets.
The sheet is hanging down in the robot. It blocks for sensors that check that the layer is separated from the rest of the pallet. The robot will stop, and manual error correction must be carried out before the machine can be restarted.

 

 

Example of pallet with intermediate pallet sheets, too big – hanging on outside the pallet.
Is not suitable.

Intermediate pallet sheets with holes. Is not suitable.

Placement of Stock Keeping Unit (SKU) on pallet

It is a prerequisite for maintaining strength, that Stock Keeping Units (SKU) are placed within the edges of the pallet with a small margin.
Devices placed on or outside the edge can cause damage with subsequent reduced carrying capacity / risk of injury.

The pallet area should be utilized as best as possible with products. By following the

Modular system

To ensure efficient utilization of production facilities, transport, storage and retail systems, etc., all packaging levels – Consumer Units (CU), Stock Keeping Units (SKU) and Distribution Units (DU) must be adapted to the modular system.

The modular system is based on physical goals; length, width and height.

The starting point for the modular system is a Basic module.
This has the dimensions; 600 mm * 400 mm and must be adjusted to a height as one Standard pallet (this amounts to 1050 mm ex. pallet, 1200 mm incl. pallet.

When optimizing an existing product, a deviation of a maximum of 49 mm is allowed.
This allows a total height including pallet of 1249 mm.

Example of optimized pallet with base module 600 x 400 mm

Examples of sizes that are widely used on Stock Keeping Units (SKU), and which are customized to basic modules

 

optimal use of the pallet is ensured and reduces the risk of the load shifting during transport.

Overhang is not accepted.