Millions of loading units are being transported around the globe every day. Harmonized standards ensure that they can pass through different points in the process chain without any obstacles. This is backed up by a complex logistical system - Efficient Unit Loads. 
Management Summary Efficient Unit Loads (EUL)
Millions of logistics units, such as parcels and pallets, are moved every day world-wide. Standards ensure that these logistics units, so-called Unit Loads, pass through the logistics chain without any problems. This success is based on a complex system called Efficient Unit Loads.
Efficient Goods Flow Based on Standards
Unit Loads are a vital factor throughout the logistics chain: they pool single products and shipping units to logistical units like parcels and pallets. The risk at every single level of the supply chain is that involved parties only plan their warehouse and shipping capacities on a stand-alone basis. If a supplier stacks a pallet incorrectly this inevitably leads to considerable additional work and expense in a retail company’s warehouse. These problems can be avoided if the dimensions of parcels, pallets and storage boxes as well as the stacking order on shipping units are clearly defined by standards. Efficient Unit Loads (EUL) defines such standards. Efficient Unit Loads is a logistics system to efficiently design the stream of goods throughout the entire logistics chain.
What are Efficient Unit Loads?
In traditional Supply Chain Management partners in the logistics chain only focused on their own company’s needs. This blinkered focus led to the creation of proprietary solutions to the detriment of process steps down-stream. The efficiency of the supply chain can be boosted if manufacturers and retailers apply the Efficient Unit Loads system (EUL system). Thanks to EUL standards the goods stream can be designed based on standard and compatible shipping and warehouse units.
Companies from manufacturing and retailing – including METRO Group - submitted a recommendation for the efficient deployment of warehouse and shipping units in a working group initiated by GS1 Germany. This recommendation also defines what the partners expect from one-way packaging (ETW). GS1 Germany has also developed a guideline on reusable shipping systems and on labeling packaging and shipping units.
Companies from manufacturing and retailing – including METRO Group - submitted a recommendation for the efficient deployment of warehouse and shipping units in a working group initiated by GS1 Germany. This recommendation also defines what the partners expect from one-way packaging (ETW). GS1 Germany has also developed a guideline on reusable shipping systems and on labeling packaging and shipping units.
What do Retailers Expect from One-Way Packaging?
Retailers focus their attention on two points when it comes down to Efficient Unit Loads: Firstly, efficiently handling goods in the central warehouse, in the store itself and during shipping. Secondly, making sure that goods packaging is presentable on the shelf.
In central warehouses Efficient Unit Loads and their standardized dimensions ensure that pallet and high-rack capacities are fully exploited. Even the choice of packaging material and its manufacturing quality are of significance. Retail groups need to ensure that staff in their stores can open and dispose of cardboard boxes and crates quickly, cleanly and without any additional help. Retailers are demanding one-way packaging, which is simple in construction and marked with clear handling instructions. GS1 Germany has defined five types of one-way packaging: low-walled trays, trays with low facing, L-trays, high-walled trays and stackable trays. These basic packaging types meet the needs of efficiency in store and warehouse handling, while also benefiting the presentation of the goods.
In central warehouses Efficient Unit Loads and their standardized dimensions ensure that pallet and high-rack capacities are fully exploited. Even the choice of packaging material and its manufacturing quality are of significance. Retail groups need to ensure that staff in their stores can open and dispose of cardboard boxes and crates quickly, cleanly and without any additional help. Retailers are demanding one-way packaging, which is simple in construction and marked with clear handling instructions. GS1 Germany has defined five types of one-way packaging: low-walled trays, trays with low facing, L-trays, high-walled trays and stackable trays. These basic packaging types meet the needs of efficiency in store and warehouse handling, while also benefiting the presentation of the goods.
What do Manufacturers Expect from One-way Packaging?
Retailers are increasingly raising their demands for one-way packaging, which involves costly re-fitting of packaging machines or even fresh investment for manufacturers. In the long-term manufactures benefit from cost advantages, because they can rely on their investment being sustainable thanks to EUL standards, because is signifies an agreement to only use standardized packaging dimensions and materials.
From the consumer goods industry’s point of view a range of additional criteria are important besides cost considerations. One-way packaging has to protect goods from damage during storage and shipment. These technical aspects are also considered in the GS1 Germany recommendation. Internationally operating manufacturers stand to benefit from the Efficient Unit Loads system. This concept enables manufacturers to use standards one-way packaging for all countries they supply and cut costs.
From the consumer goods industry’s point of view a range of additional criteria are important besides cost considerations. One-way packaging has to protect goods from damage during storage and shipment. These technical aspects are also considered in the GS1 Germany recommendation. Internationally operating manufacturers stand to benefit from the Efficient Unit Loads system. This concept enables manufacturers to use standards one-way packaging for all countries they supply and cut costs.
What do EUL Expect from Reusable Packaging?
As is the case for one-way packaging a whole range of non-standardized reusable packaging systems are being used. Efficient Unit Loads aims to harmonize packaging standards. This includes that reusable packaging has to be easy to stack. It also has to be sturdy and robust and allow for safe handling.
Reusable beverage crates and the so-called Euro 1 pallet are already in wide-spread use. The so-called CHAP pallet is an alternative to the Euro 1 pallet. In order to be able to use both systems perfectly, retailers and manufacturers have defined general application rules in their GS1 Germany recommendation for Efficient Unit Loads.
Reusable beverage crates and the so-called Euro 1 pallet are already in wide-spread use. The so-called CHAP pallet is an alternative to the Euro 1 pallet. In order to be able to use both systems perfectly, retailers and manufacturers have defined general application rules in their GS1 Germany recommendation for Efficient Unit Loads.
Smooth Processes thanks to Modularity
Efficient Unit Loads impact the entire process chain. One significant pre-condition ensuring that this process chain operates smoothly is the modularity of shipping and warehouse units.
Modularity means that dimensions of secondary packaging such as cardboard boxes fit to tertiary packaging – such as pallets.
The ISO master module is based on dimensions of 600 x 400 mm. According to the GS1 Germany EUL recommendation the modules of pallets, containers, shipping units and the cargo area of shipping vehicles are all compatible to this basic dimension, meaning that they can be divided or multiplied accordingly. Modularizing different components in the logistics system ensures that the exchange process of packaging and shipping containers operates smoothly at interfaces in the supply chain.
Modularity means that dimensions of secondary packaging such as cardboard boxes fit to tertiary packaging – such as pallets.
The ISO master module is based on dimensions of 600 x 400 mm. According to the GS1 Germany EUL recommendation the modules of pallets, containers, shipping units and the cargo area of shipping vehicles are all compatible to this basic dimension, meaning that they can be divided or multiplied accordingly. Modularizing different components in the logistics system ensures that the exchange process of packaging and shipping containers operates smoothly at interfaces in the supply chain.
What are the Advantages of Standardized Shipping Unit Labeling?
Unique numbering systems such as the EANUnique numbering systems such as the GS1-128 barcode (formerly EAN-128 or UCC-128) are vital to Efficient Unit Loads. The fact that the GS1-128 barcode can be read automatically, means that shipping and warehouse units can be identified and moved on at different interfaces in the logistics chain more quickly. This boosts the efficiency of business processes between manufacturers and retailers. A further important factor is the Serial Shipping Container Code (SSCC), which is known as the Number of the Shipping Unit (NVE) in Germany. It is part of the GS1-128 barcode and ensures that even pallets stacked with different goods can be clearly identified.
How does METRO Group use Efficient Unit Loads?
METRO Group is very advanced in the implementation of the EUL recommendation. Similar to many other retail companies METRO Group generally rejects accepting one-way pallets. METRO Group has also achieved highly satisfactory results with its suppliers in the field of one-way packaging. Optimized goods handling based on EUL has not only cut logistics costs, but also had a positive effect on the retailing group’s sustainability management. METRO Group is also driving the international and cross-industry implementation of the Efficient Unit Loads system against the backdrop of mounting internationalization in retailing. The development of the European specification catalog for one-way packaging is of great significance. METRO Group is also expecting Efficient Unit Loads to benefit from additional impulses in the wake of the introduction of Radio Frequency Identification (RFID). The group is driving a number of projects which are dedicated to analyzing the potential of RFID technology and making it available to manufacturers and retailers to design their business processes more efficiently.
