Bay Cities Packaging and POP Mfg

BAY CITIES PACKAGING GLOSSARY

A practical reference for terms used across packaging manufacturing, POP displays, packout, fulfillment, and retail compliance.

3PL (Third-Party Logistics)An outsourced logistics provider that handles warehousing, inventory, and shipping. A 3PL moves boxes. A contract packager creates the boxes and assembles what goes in them.

ASN (Advance Shipping Notice)An electronic notification sent to the retailer before a shipment arrives. Late or incorrect ASNs are one of the four most common causes of Walmart chargebacks.

AssemblyThe process of combining multiple components into a finished product or package. Ranges from simple (inserting product into a box) to complex multi-step builds with quality checks.

BRC (British Retail Consortium) Global StandardA global food safety certification demonstrating that a facility meets rigorous quality and safety standards. Required by many major retailers for food and food-contact packaging operations. Bay Cities is BRC certified.

BundlingCombining multiple products into a single sellable unit. Examples include a 3-pack of soap bars, a holiday gift set, or a promotional buy 2 get 1 offer.

ChargebackA financial penalty deducted from your payment for compliance failures. Triggered by wrong label placement, incorrect pallet configuration, missed delivery windows, missing ISTA certification, or any deviation from a retailer's vendor guide. Walmart and Kohl's are particularly aggressive.

Club Store PackagingPackaging designed to meet the requirements of warehouse club retailers like Costco, Sam's Club, and BJ's. Requires specific pallet configurations, larger quantities, and display-ready formats.

Co-PackingShort for contract packaging. A business arrangement where a third-party facility handles some or all of a brand's packaging operations, including receiving, assembling, labeling, and shipping.

Contract PackagingOutsourced packaging services provided by a specialized facility. Used interchangeably with co-packing.

CorrugateCardboard made of fluted paper sandwiched between flat liner boards. The standard material for shipping boxes, retail displays, and product packaging. Comes in various flute sizes (A, B, C, E, F) depending on strength and thickness requirements.

CPG (Consumer Packaged Goods)Products consumers use regularly that require frequent replenishment. Food, beverage, personal care, household products.

Cross-DockingA logistics practice where incoming shipments are unloaded, sorted, and immediately loaded onto outbound trucks with minimal or no storage time.

D2C (Direct-to-Consumer)A business model where brands sell directly to end consumers rather than through retailers. D2C brands often require custom packaging, inserts, and personalization.

Direct ImportA service where a packout facility receives products straight from overseas shipping containers at port, bypassing intermediate warehouses. The facility then handles packaging, assembly, storage, and shipping under one roof. Bay Cities' Midwest Packout facility operates a Direct Import program.

Direct ManufacturerA company that owns and operates its own manufacturing equipment rather than brokering work to third parties. A direct manufacturer controls its own timeline because it controls its own plant.

Display FulfillmentThe assembly and packout of retail displays, including floor stands, endcaps, sidekicks, counter displays, and pallet displays.

Dock DoorA loading bay where trucks back up to load or unload goods. The number of dock doors indicates facility throughput capacity. Bay Cities' Midwest Packout has 50 plus dock doors.

EcoVinoBay Cities' sustainable wine packaging product line, designed for the beverage industry with responsible materials and retail-ready formats.

EDI (Electronic Data Interchange)A standardized system for electronically exchanging business documents like purchase orders, invoices, and shipping notices. EDI capability is required by most large retailers.

EncorrBay Cities' in-house corrugator, powered by off-energy from the New Indy Paper Mill. The Encorr facility produces the corrugated sheets used in Bay Cities' packaging and display manufacturing.

EndcapA retail display positioned at the end of a store aisle. One of the highest-visibility placements in retail and a common format in Walmart, Costco, and grocery programs.

ESOP (Employee Stock Ownership Plan)A company structure where employees own shares of the business. Bay Cities is 100% employee-owned, which means every team member has an ownership stake in the outcome.

FDA RegisteredCompliance with U.S. Food and Drug Administration requirements for facilities handling food, pharmaceuticals, cosmetics, or medical devices. Bay Cities is FDA registered.

Flexo PrintingFlexographic printing, a high-speed print process that uses flexible relief plates. Standard for corrugated packaging and displays at production volume.

Floor StandA freestanding retail display, typically corrugated, that holds product and sits on the retail floor. Requires assembly before shipping.

FSC (Forest Stewardship Council)A certification confirming that paper and wood products come from responsibly managed forests. Bay Cities corrugate is FSC certified.

FTZ (Foreign Trade Zone)A federally designated area where imported goods can be received, stored, handled, and converted without triggering import duties. Tariffs are deferred until product leaves the zone and enters domestic commerce. Bay Cities' Midwest Packout facility is located in the Chicago FTZ.

G7 CertificationA color management and print standard ensuring consistency across printing devices and locations. Bay Cities is G7 certified.

GMP (Good Manufacturing Practices)Guidelines ensuring products are consistently produced and controlled according to quality standards. Required for food, pharmaceutical, and cosmetic packaging.

HACCP (Hazard Analysis Critical Control Points)A systematic food safety approach that identifies hazards and establishes preventive controls. Required for food packaging operations.

Hand AssemblyManual assembly performed by people rather than machines. Used for complex kits, delicate products, or configurations that cannot be automated.

ISTA (International Safe Transit Association)The organization that sets transit testing standards for packaging. ISTA testing confirms packaging can survive shipping without product damage.

ISTA 3Transit testing standard required by Walmart for corrugated display programs. Displays must survive 1,200 miles double-stacked under vibration, compression, and impact.

ISTA 6Transit testing standard required by Amazon and Sam's Club for e-commerce packaging. Simulates the e-commerce shipping environment including drops, vibration, and compression.

JIT (Just-in-Time)An operations model where product moves through the facility on a defined timeline rather than sitting in long-term storage. Bay Cities' Midwest Packout is a JIT operation, not a public warehouse.

KittingGathering multiple components and packaging them together as a single sellable unit. Subscription boxes, gift sets, promotional bundles, and multi-packs are all examples of kitting.

Lead TimeThe time between placing an order and receiving the finished product. Industry average for Walmart POP display programs is 8 to 12 weeks. Bay Cities runs programs in 2 to 4 weeks.

Litho-LaminatedA printing technique where a high-quality litho-printed sheet is laminated to corrugated board. Produces retail-quality graphics on structural packaging.

Lot TraceabilityThe ability to track products through every production stage using lot or batch numbers. Critical for recalls, quality control, and regulatory compliance in food and pharmaceutical categories.

LTL (Less Than Truckload)A freight method for shipments too small to fill a full trailer. Multiple shippers share truck space.

MABD (Must Arrive By Date)The deadline a shipment must reach the retailer's distribution center. Missing the MABD triggers chargebacks or order rejection. Walmart collect freight from the West Coast requires 21 days before MABD. Prepaid freight over the road from the Midwest requires 6 to 7 days.

Midwest PackoutBay Cities' 233,199 square foot contract packaging, kitting, assembly, and fulfillment facility in Oak Forest, IL. Opens February 2026. Built for high-volume recurring programs and Direct Import conversion.

MOQ (Minimum Order Quantity)The smallest quantity a supplier or packager will accept on a single order.

Multi-Vendor Pallet ProgramA retail display program where products from multiple brands are packaged together on a single pallet and shipped under one purchase order. Requires a neutral vendor of record. Bay Cities is a confirmed neutral vendor of record at Walmart, Target, HEB, and Meyers.

OMA Awards (Outstanding Merchandising Achievement)Annual awards presented by Shop! Association recognizing excellence in retail merchandising design. Bay Cities has won multiple OMA Awards.

OTIF (On-Time In-Full)Walmart's compliance program measuring whether shipments arrive at the distribution center on time and with the correct quantity. Violations trigger a 3% chargeback on the cost of goods for that PO, automatically deducted from your invoice.

PackoutThe process of assembling, packaging, and preparing products for shipment. Covers display builds, kitting, and product packaging.

Pallet ConfigurationThe arrangement of cases or products on a shipping pallet. Different retailers require different configurations, often expressed as TI-HI (cases per layer times layers high).

Pallet DisplayA retail display built on a standard pallet footprint, designed to ship fully loaded and be rolled directly onto the retail floor.

PartitionDividers placed inside boxes to separate and protect individual products. Made of corrugated, foam, or other materials.

Pick, Pack, and ShipThe fulfillment process of selecting items from inventory (pick), placing them in shipping containers (pack), and sending them to customers (ship).

POP Display (Point of Purchase)Marketing displays placed at or near the checkout or purchase area in retail. Designed to capture impulse purchases. Includes counter displays, floor stands, endcaps, sidekicks, and pallet displays.

Prepaid vs. Collect FreightPrepaid freight is paid by the shipper and typically moves over the road. Collect freight is paid by the retailer, often via rail, and requires longer lead times. Walmart collect freight from the West Coast requires 21 days before MABD. Prepaid from the Midwest requires 6 to 7 days.

Premier PackagingA contract packaging and assembly company acquired by Bay Cities in Spring 2023. Brought 30 years of packout expertise into the Bay Cities operation.

RepackConverting bulk product (arriving in Gaylords or master cartons) into retailer-specific configurations such as 6-packs for Meijer, 24-packs for Walmart, or e-commerce ready units for Amazon.

Retail-Ready PackagingPackaging designed to go directly from the shipping carton onto retail shelves with minimal handling by store staff.

ReworkCorrecting defective or non-conforming products. Includes repackaging, quality fixes, and labeling corrections.

Royal BayBay Cities' 320,000 square foot Midwest packout and fulfillment facility in Chicago. TAPA certified. 70 dock doors. Primary hub for central US distribution.

Scope 1, 2, and 3 EmissionsGreenhouse gas emissions categories used in sustainability reporting. Scope 1 covers direct emissions, Scope 2 covers purchased energy, Scope 3 covers supply chain emissions. Bay Cities provides third-party verified Scope 1, 2, and 3 tracking for brands with ESG commitments.

SFI (Sustainable Forestry Initiative)A certification for responsible forest management. Bay Cities corrugate is SFI certified.

Shrink WrapPlastic film that shrinks under heat to conform tightly to products. Used for bundling, tamper evidence, and product protection.

SidekickA retail display that hangs on the side of a gondola (store shelving unit). Also called a clip strip or power wing.

SKU (Stock Keeping Unit)A unique identifier for a specific product variation, including size, color, and other attributes. Used for inventory tracking.

SQEP (Supplier Quality Excellence Program)Walmart's program measuring how correctly shipments arrive. Covers packaging accuracy, labeling compliance, barcode quality, pallet build standards, and load segregation. SQEP fines stack on top of OTIF fines.

Subscription BoxA recurring delivery service providing curated products on a set schedule. Requires specialized kitting, custom packaging, and scheduled fulfillment.

Switzerland ModelA multi-vendor pass-through arrangement where a neutral packout partner acts as the vendor of record for a program involving competing brands. The neutral partner buys the product, assembles the display, manages the financials, and ships to the retailer. Bay Cities runs this model at Walmart, Target, HEB, and Meyers.

TAPA (Transportation Asset Protection Association)A security certification for facilities handling high-value cargo. Demonstrates surveillance, access controls, and security protocols. Bay Cities' Royal Bay facility is TAPA certified.

Temperature ControlThe ability to maintain specific temperature ranges within a facility. Critical for chocolate, confections, pharmaceuticals, and other sensitive products. Bay Cities has dedicated climate-controlled areas.

TurnkeyA complete, ready-to-use solution. In contract packaging, turnkey means the packager handles the entire process from raw materials to finished, shipped product.

USDA OrganicCertification for facilities handling certified organic products. Bay Cities is USDA Organic certified.

Value-Added ServicesServices beyond basic storage and shipping that increase product value. Includes kitting, assembly, labeling, shrink wrapping, quality inspection, and rework.

Vendor of RecordThe single supplier listed on a retailer's purchase order, responsible for the shipment, compliance, and payment flow. Required for multi-vendor pallet programs. Bay Cities is a confirmed neutral vendor of record at Walmart, Target, HEB, and Meyers.

Vertical IntegrationOwning multiple stages of the production process rather than outsourcing them. Bay Cities is vertically integrated from paper mill to packout, including design, corrugate manufacturing, print, display fulfillment, kitting, and shipping under one roof.

VMI (Vendor Managed Inventory)An arrangement where the supplier or packager monitors and replenishes inventory on behalf of the customer.

WMS (Warehouse Management System)Software that controls receiving, put-away, inventory, picking, packing, and shipping operations inside a facility.

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