Best Practices For Implementing On-Line Packaging Systems

By Jeff Gardner,
Vice President of Marketing, Sealed Air Corporation

Need a space-efficient, cost-effective, Just-in-Time packaging solution? More and more companies are centralizing their packaging operations and increasing workflow efficiency by replacing multiple work cells with an on-line packaging approach.

Businesses with high-volume production or distribution schedules are reaping the benefits of increased speed, flexibility, cost and labor savings by installing on-line packaging systems as part of their pick and pack or manufacturing process. Instead of being packed at individual work cells, orders are placed directly into a carton which is then fed to a centralized on-line packaging system. This on-line system creates Just-in-Time protective packaging, such as inflatable cushions, foam-filled bags or Bubble Wrap® cushioning, that is placed within the carton before shipping (See Diagram below).

High-volume shippers are able to fulfill orders faster and prevent packaging delays with on-line systems. In some situations, they eliminate the need for numerous packaging work stations that can be costly, time-consuming, and inefficient.

When To Go "On-Line"

Generally, companies that ship more than 500 packages a day are good candidates for an on-line packaging approach. But determining when and how to switch to an on-line system also means thoroughly analyzing your packaging process and identifying opportunities for improvement.

Indicators that your current system may need an overhaul can include:

• A shortage of space for warehousing packaging materials.
• Too much space required for the actual packaging operation.
• Over-use of packaging materials for void fill.
• A vast selection of carton sizes and packaging materials.
• Unnecessary shipping delays caused by excessive time spent on clean-up, labor, managing inventory or a labor-intensive packaging process.
• Large quantities of packaging inventory.
• A high ratio of packers to pickers in an attempt to keep up with challenging production levels.

If one or more of the above signs is present, it's time to start looking into an on-line packaging system.

Why On-Line Makes Sense

Space: On-line packaging systems require minimal floor space and produce Just-in-Time protective packaging that is created on demand and used immediately. As a result, typical materials that occupy valuable storage space such as peanuts, newsprint or bogus paper are not needed.

Time: There are a variety of on-line systems capable of producing packaging material on a Just-in-Time basis. Most of these systems can also deliver a controlled amount of packaging for a wide range of product applications. This greatly reduces material handling time in moving packaging supplies from storage to packaging stations and eliminates the need for multiple carton sizes and excessive clean-up. Since there is usually one designated operator per on-line system, per-shift, the packaging process also becomes faster and more efficient. Numerous workflow studies have proven that an individual with one task to perform will perform that task quicker, more efficiently, and safer than an individual responsible for multiple tasks.

Money: The Just-in-Time on-line packaging process can actually decrease the time between receiving an order and sending it to the customer because it is a faster and more efficient packaging method than individual work cell operations. This means less money is tied up in inventory, and order delivery is speedier. The end result: greater customer loyalty.

How To Switch

Switching to an on-line packaging system makes more and more sense as businesses grow and expand their product lines. Packaging decisions need to constantly be re-evaluated as product designs and packaging options rapidly evolve. However, in order to be feasible, an on-line packaging system must be reliable because any down time due to repairs or mechanical failure can create a bottle-neck in the entire process. (See Diagram below).

Companies considering a move to an on-line package design can take positive steps by following these best practices:

• Identify a packaging manufacturer who thoroughly analyzes the materials and methods of your current packaging operation before offering an alternative packaging solution
• Choose a company that will support you with hands-on training, installation, and reliable follow-up technical assistance.
• Invest in packaging people by offering them opportunities for continued training and input on the packaging process, since that segment of the business is increasing in importance.
• Ensure that the final proposed package is fully approved by key decision-makers
• Develop benchmarks such as material handling, shipping costs, and storage requirements that facilitate comparing the new packaging with the old and demonstrate the benefits of the on-line packaging system.
• Allow time for a realistic transition period (one week to one month) before measuring final results
• Fine-tune the new process as needed.
• Alert customers to the change in packaging materials and obtain feedback regarding their satisfaction with the new packaging or with order turnaround time through surveys and response cards.

Ideally, high-volume shippers need the assistance of a protective packaging company that can provide a turnkey, customer-friendly solution backed by proven system development and engineering support. Packaging specialists should help companies choose the most cost-effective on-line system and provide installation, training and service worldwide.

Coordinating packaging efforts allows businesses to meet the needs of rapidly changing distribution schedules and marketplace demands. An effective system will increase productivity on the packaging line, improve on-time shipments of orders and increase customer satisfaction. Clearly, with a wide variety of on-line system designs to choose from, going on-line makes good business sense.