Packaging Distributors Industry Terminology

ABC Analysis

An inventory classification method that groups items into A, B, and C tiers based on value and/or velocity, to focus effort where it yields the greatest impact (A items are few and critical; C items are many and less critical).

- We used ABC analysis to prioritize which packaging SKUs get safety stock. - A-items (stretch film and RSCs) moved to weekly review; C-items shifted to make-to-order. - Sales and ops aligned reorder points after reclassifying A/B/C.

Amazon SIOC

Ships In Own Container, Amazon’s requirement and test method (e.g., ISTA 6-Amazon SIOC) for products to ship without an overbox, reducing damage and packaging waste.

- The new e-commerce carton passed ISTA 6 SIOC, removing the Amazon overbox. - We redesigned for SIOC to cut prep fees and improve customer unboxing. - SIOC certification helped us meet Frustration-Free Packaging goals.

ASN (Advance Ship Notice)

An electronic document (often EDI 856) sent before delivery that details shipment contents, packaging levels, and SSCCs so receivers can plan dock schedules and perform scan-based receiving.

- The ASN includes pallet, case, and item barcodes to speed receiving. - Our 3PL requires ASNs for all LTL shipments. - ASN and SSCC labels cut our customer’s check-in time by 40%.

Box Maker's Certificate (BMC)

A stamp printed on corrugated boxes listing compliance details such as ECT or Mullen rating, maximum size limit, and gross weight allowed.

- The buyer requested a 32 ECT BMC for all 0201 shippers. - The BMC confirmed the plant switched from Mullen to ECT specs. - QA rejected the lot because the BMC didn’t match the PO.

Break Strength (Strapping)

The maximum tensile load a strap can withstand before breaking, expressed in pounds or newtons; used to select proper PET, PP, or steel strapping for unit load containment.

- We upsized to 16 mm PET for higher break strength on tall loads. - Strap break strength must exceed peak containment forces during transit. - Testing showed the PP strap’s break strength was insufficient for brick loads.

Box Strength Ratings (ECT vs. Mullen)

Two standards for corrugated strength: ECT (edge crush test) measures stacking performance; Mullen (burst) measures resistance to puncture/rupture. Selection depends on supply chain and load type.

- Retail DCs often specify 32 ECT; industrial shippers may still require 200# Mullen. - We switched to ECT after moving from floor stacking to racking. - The spec calls for 44 ECT due to high unitized weight.

Case Erector

A machine that forms and squares knocked-down RSCs, usually with tape or glue on the bottom, increasing throughput and consistency vs manual erecting.

- Adding a case erector freed two operators per shift. - The erector’s changeover kit handles 8 carton sizes. - Poor board caliper caused misfeeds on the case erector.

Case Sealer

Equipment that closes and seals case flaps with tape or hot-melt glue; available in semi-automatic and fully automatic configurations.

- We standardized on tape sealers for mixed-case operations. - Hot-melt sealers improved bond in cold-room packing. - Tool-less case sealer changeover cut downtime by 15%.

Corrugated Board

A packaging material made of fluted medium sandwiched between liners (single-, double-, or triple-wall), used for cartons, pads, and protective components.

- Switching to double-wall corrugated prevented sidewall bulge. - We specified kraft liners for higher recycled content. - Flexo print quality depends on liner smoothness.

Dimensional Weight (DIM)

A carrier pricing method that bills by the greater of actual weight or a volume-based dimensional factor (L x W x H divided by a DIM divisor).

- Redesigning the carton lowered DIM weight and parcel costs. - Our TMS flags shipments where DIM, not actual weight, drives charges. - Right-sizing void fill reduced DIM surcharges.

Dunnage

Materials used to protect, pad, or stabilize products inside a container (e.g., paper, foam, air pillows, honeycomb, edge protectors). Often used interchangeably with void fill.

- We replaced foam dunnage with recyclable paper. - Honeycomb dunnage improved edge protection on appliances. - Dunnage optimization cut material spend by 12%.

Drop Test

A performance test simulating impacts from handling, often specified in ISTA protocols, validating pack integrity and product protection at defined heights and orientations.

- The pack failed the corner drop; we added corner blocks. - ISTA 3A includes sequence-based drop tests for parcels. - Passing the drop test allowed us to downgrade board grade.

ERP (Enterprise Resource Planning)

Integrated software platform for finance, purchasing, inventory, order management, and production that provides a single system of record across the distributor’s operations.

- The ERP feeds item masters to WMS and CPQ. - We tied vendor lead times in ERP to automatic reorder points. - Lot traceability for WAT adhesive rolls lives in ERP.

EPR (Extended Producer Responsibility)

Policies that assign producers responsibility for post-consumer packaging waste, often via fees or recycling targets; impacts material choices and labeling.

- We modeled EPR fees for plastic vs paper mailers in Canada. - Clients asked for PCR content to mitigate EPR risk. - New EPR rules drove a switch to mono-material pouches.

FDA Food Contact Compliance

Regulatory compliance (e.g., 21 CFR) ensuring materials are safe for direct or indirect food contact; common for liners, films, inks, and adhesives.

- The WAT adhesive requires FDA indirect food-contact compliance. - We secured FDA letters of guaranty for the new shrink film. - QA audited vendor certificates for 21 CFR compliance.

FEFCO Code

A standardized catalog of corrugated box styles published by FEFCO (e.g., 0201 for RSC, 0427 for die-cut mailer), simplifying design specifications globally.

- The RFP calls for FEFCO 0201 with hand holes. - We quoted a 0426 die-cut to improve pack-out speed. - Engineering changed from 0203 to 0201 to save board.

Freight Class (NMFC)

Numeric classification under the National Motor Freight Classification for LTL freight that affects rates based on density, stowability, handling, and liability.

- Increasing case count per pallet improved density and lowered freight class. - The NMFC code change reduced LTL costs by 8%. - TMS flags low-density shipments at class 250 or higher.

FSC Certification

Forest Stewardship Council chain-of-custody certification verifying fiber is sourced from responsibly managed forests; often required on paper and corrugated.

- The retailer mandates FSC-mix cartons for all private label. - We added FSC on the dieline and BMC panel. - Supplier provided FSC COC documentation for audit.

GMA Pallet (48x40)

A common North American pallet standard (48 by 40 inches) with 4-way entry, widely used across grocery and CPG; key for pallet patterns and trailer cube.

- We designed the case to fit a 10 x 5 pattern on a 48x40. - Switching to GMA improved compatibility with our 3PL. - Overhang was eliminated by resizing to the 48x40 footprint.

GS1-128/SSCC Label

A logistics barcode label using GS1-128 symbology that carries the Serial Shipping Container Code (SSCC) and other data for pallet/case traceability and ASN matching.

- The warehouse scans SSCCs to reconcile against the ASN. - We added GS1-128 labels at the stretch wrapper output. - Retailers reject pallets without SSCC compliance.

Hazardous Materials Packaging (UN/DOT)

Performance-oriented packaging certified to UN recommendations and DOT regulations (e.g., 4G fiberboard boxes) for shipping regulated dangerous goods.

- The chemical kit ships in a UN 4G box with absorbent. - We confirmed closure instructions for the UN package. - Testing to UN 6D validated the inner container system.

Hot Melt Adhesive

Thermoplastic adhesive used for carton sealing and case forming; selected for bond strength, set time, and environment (hot, cold, humid).

- Hot melt outperformed acrylic tape in the freezer. - Reducing bead size cut hot-melt consumption by 15%. - Case flap memory required a higher tack hot melt.

ISTA Testing

Transport simulation tests from the International Safe Transit Association (e.g., 3A parcels, 3E LTL, 6-Amazon), covering vibration, drop, compression, and climate.

- The new mailer passed ISTA 3A, enabling carrier claims. - We used ISTA 6-Amazon Type B for SIOC certification. - ISTA data justified a switch to lighter film gauge.

Inventory Turns

A metric showing how many times inventory is sold and replaced over a period (COGS divided by average inventory), indicating working capital efficiency.

- Increasing turns from 6 to 9 freed cash for growth. - VMI boosted turns on stretch film SKUs. - Slow-moving dunnage dragged down inventory turns.

Landed Cost

Total cost to bring a product to the customer’s door, including product price, freight, duties/taxes, insurance, handling, and compliance costs.

- Landed cost made local converting cheaper than imports. - We modeled ocean plus drayage in the landed cost worksheet. - EPR fees are now included in landed cost scenarios.

Lead Time

Elapsed time from order to receipt, including production, transit, and receiving; key input for reorder points and customer expectations.

- Film lead time extended from 2 to 5 weeks. - We set reorder points based on vendor lead times. - Air-freighting reduced lead time during the ramp.

LLDPE Stretch Film

Linear low-density polyethylene film used to unitize pallets; available in cast or blown, hand or machine grades, with performance defined by gauge, pre-stretch, and cling.

- Blown LLDPE provided better puncture resistance on sharp loads. - We standardized on 20 in hand film for pack stations. - Downgauging stretch film saved 12% with no damage increase.

LTL (Less-Than-Truckload)

Freight mode where multiple shippers share trailer space; pricing depends on freight class, distance, and accessorials; often used by distributors.

- We consolidated LTLs into a single weekly pickup. - The TMS selects the best LTL carrier by lane. - DIM rules affected parcel, so we moved to LTL.

Lightweighting/Source Reduction

Design strategy to reduce material usage and weight while maintaining performance, lowering cost, emissions, and EPR exposure.

- We moved from 44 to 32 ECT via pallet pattern changes. - Pre-stretched hand film reduced material by 40%. - Mono-material mailers enabled further lightweighting.

MOQ (Minimum Order Quantity)

The smallest order size a supplier will accept, driven by setup costs, freight efficiency, or raw-material constraints; affects cash and storage.

- The MOQ for printed cartons is 5,000 due to plate costs. - We negotiated lower MOQs in exchange for a blanket PO. - MOQ constraints triggered SKU rationalization discussions.

OCC Content (Old Corrugated Containers)

The percentage of recycled fiber in corrugated products derived from post-consumer boxes; often specified as OCC percent.

- The spec calls for 35% minimum OCC in liners. - We sourced OCC-rich medium to improve sustainability claims. - EPR compliance favors higher OCC content.

On-Time In-Full (OTIF)

A delivery performance metric measuring whether orders arrive at the promised time and with complete quantities; often tied to retailer scorecards.

- OTIF penalties drove us to add safety stock on A-items. - Our OTIF improved after TMS implementation. - The customer pays bonuses for 98% OTIF or better.

Pallet Pattern

The arrangement of cases on a pallet, typically expressed as Ti x Hi (cases per layer x number of layers), affecting stability, cube, and cost.

- We changed from 9x6 to 10x5 to fit truck cube better. - Column stacking improved compression vs interlock pattern. - The pattern eliminated overhang on the 48x40.

PCR (Post-Consumer Recycled) Resin

Plastic resin made from consumer-recovered materials, used in films, bottles, and mailers to increase recycled content and meet sustainability goals.

- The mailer now includes 30% PCR to meet retailer targets. - PCR in stretch film reduced virgin usage without performance loss. - We validated FDA-compliant PCR for indirect food contact.

PET/PP Strapping

Polyester (PET) and polypropylene (PP) plastic straps used for unit load containment; PET offers higher strength and recovery vs PP, which is lighter and more economical.

- We switched from steel to PET for safer handling. - PP strap was adequate for light beverage trays. - PET’s memory maintained load integrity in transit.

Pre-Stretch (Film)

The percentage a stretch film is elongated before or during application; correct pre-stretch improves containment force and reduces material usage.

- We set the wrapper to 250% pre-stretch for cast film. - Pre-stretched hand film cut worker fatigue and waste. - Over-stretching reduced puncture resistance on irregular loads.

RFP (Request for Proposal)

A structured sourcing document outlining scope, specs, volumes, and service requirements to solicit competitive bids from packaging suppliers.

- The RFP includes FEFCO codes, print, and freight terms. - We ran an annual RFP for films and corrugated. - Clear RFP timelines improved vendor response quality.

RSC (Regular Slotted Container)

The most common corrugated box style (FEFCO 0201) where all flaps are of equal length and meet at the center; efficient and versatile shipper.

- 0201 RSC remains the lowest-cost shipper for this SKU. - We added inner packs to reduce RSC damage rate. - Auto case erectors prefer true-square RSCs.

Safety Stock

A buffer quantity held to protect against demand variability and supply delays; calculated using service levels, lead time, and forecast error.

- We raised safety stock on A-items before peak season. - Safety stock reduced OTIF penalties during disruptions. - The new policy sets safety stock by ABC class.

SKU Rationalization

The systematic review to reduce or consolidate low-value or redundant SKUs, improving inventory turns, purchasing leverage, and complexity.

- Rationalizing tape SKUs cut inventory by 18%. - We eliminated slow movers after ABC analysis. - Commonizing board grades simplified sourcing.

Shrink Film (POF/PVC)

Heat-shrinkable films, typically polyolefin (POF) or PVC, used for bundling or retail display; selected by clarity, shrink force, seal strength, and equipment.

- We replaced PVC with POF for better clarity and recyclability. - Higher shrink force solved product migration issues. - FDA-compliant POF enabled direct food contact.

Stretch Wrapper

A machine (turntable, rotary arm, or ring) that applies stretch film to stabilize pallet loads; critical for consistent containment force and throughput.

- Adding a rotary-arm wrapper stabilized tall pallets. - Inline wrappers now print and apply SSCC labels. - Film program changes at the wrapper cut costs 10%.

Sustainability Scorecard

A customer or retailer framework tracking environmental metrics such as recycled content, recyclability, EPR exposure, GHG emissions, and packaging reduction.

- The scorecard requires 30% PCR in mailers by 2026. - We reported corrugated OCC content for the scorecard. - Scorecard results justified a lightweighting project.

TCO (Total Cost of Ownership)

A comprehensive cost view over the lifecycle, including price, freight, damage, returns, labor, equipment, changeovers, and disposal/EPR fees.

- TCO analysis favored auto case sealing over manual. - Lower damage rates outweighed higher film unit cost. - TCO revealed DIM savings from right-sized cartons.

TMS (Transportation Management System)

Software to plan, optimize, and execute freight moves, manage carrier rates, tender loads, audit invoices, and analyze performance.

- The TMS selects carriers by cost and OTIF history. - DIM versus LTL routing is automated in the TMS. - TMS data exposed accessorial charge patterns.

Unit Load

The combination of product, packaging, and pallet as a single handling unit designed for efficient storage and transport, considering stability and mechanical handling.

- We optimized the unit load with corner boards and film. - Unit load redesign eliminated toppling in LTL. - Testing showed the unit load survived 0.5g vibration.

VMI (Vendor-Managed Inventory)

A replenishment model where the supplier monitors consumption and maintains agreed inventory levels at the customer site, often via consignment.

- VMI improved fill rates on A-class packaging. - We set VMI min/max for tape and stretch film. - Consignment VMI reduced working capital needs.

Void Fill (Air Pillows, Paper)

Materials used to fill empty space in a shipper to prevent product movement, such as kraft paper, air pillows, or foam; a subset of dunnage.

- Paper void fill is preferred for recyclability. - Switching to on-demand air pillows saved space. - Right-sizing cartons reduced void fill usage.

Water-Activated Tape (WAT)

A gummed paper tape that bonds to corrugated when moistened; provides tamper evidence, strong bonds on recycled content, and good cold performance.

- WAT cut pilferage versus BOPP pressure-sensitive tape. - Reinforced WAT improved top-load during parcel shipping. - The customer wanted custom-printed WAT branding.

WMS (Warehouse Management System)

Software that manages inbound, storage, picking, packing, and shipping operations; integrates with ERP, TMS, and automation for accuracy and efficiency.

- WMS directed pick-to-light improved pack speed. - We print SSCC labels from WMS at the dock. - Cycle counting in WMS raised inventory accuracy to 98%.