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Cutting-Edge Technology Company Selects Sealed Air Corporation´s Foam-in-Bag Packaging

Hypertherm, a worldwide leader in development, manufacturing and servicing of plasma arc cutting equipment, is committed to product innovation and holds more patents than anyone in its industry. Showing dynamic growth and dedication to its associates, Hypertherm recently received national recognition from Fortune magazine´s 2002 "Best Companies to Work For." From Hanover, N.H., Hypertherm serves customers through its subsidiaries, sales offices, distributors and OEMs in 60 countries throughout North America, Europe, Latin America and Asia Pacific.

"Hypertherm needed a packaging solution that would ensure the equipment and parts sent to our customers would arrive undamaged," said John Blair, a senior project manager at Hypertherm. "In addition, we wanted a versatile packaging system that could package different product configurations for Hypertherm´s customized orders."

After learning about the benefits of Sealed Air Corporation´s SpeedyPacker® foam-in-bag system, Blair purchased two floor model systems to use in the packaging of Hypertherm´s equipment. Within a year, the company saved $175,000 in material costs compared to the previously used polyethylene foam packaging.

The SpeedyPacker® foam-in-bag system dispenses a controlled amount of Instapak® foam into a sealed film bag that expands to conform to the shape of a shipping carton´s content creating a protective cushion. Within seconds, the foam cures (or sets), locking the products in place. Unlike traditional packaging products, the solid cushions prevent items from shifting during shipment, greatly reducing the risk of damage.

The immense savings convinced Blair that a foam-in-bag system also would be beneficial in packaging Hypertherm´s replacement and spare parts. As timing would have it, Sealed Air was testing a new system that is significantly more compact than the SpeedyPacker® system. This new system fit the packaging versatility needs of Hypertherm, who agreed to become a test site for Sealed Air´s newest foam-in-bag system, the Instapacker® Tabletop.

Heating Up the Savings

Since implementing the Instapacker® Tabletop system, Hypertherm sees significant savings on material and shipping costs, in addition to a reduction in the amount of warehouse space necessary to store packaging materials.

For example, Hypertherm previously packaged and shipped one of its spare part items using small, corrugated cartons with die-cut foam, and polystyrene loose fill. The cost of this package was $23, which included the shipping container, die-cut foam and loose fill. With the Instapacker® Tabletop foam-in-bag system, the cost of the entire package, which includes the shipping container and two Instapak® foam-filled cushions, was reduced to $2.50. Hypertherm experienced similar savings with the packaging of many other replacement and spare parts. Considering Hypertherm ships 300 to 500 cartons each day, the savings in material costs adds up quickly.

As well as reducing packaging material costs, Hypertherm also saves $27,000 per year on storage and floor space. Eliminating the need to store conventional packaging materials helped accomplish these savings. Instapak® foam can expand up to 280 times its liquid volume to create firm foam cushions. In fact, a set of Instapak® foam bulk tanks, requiring approximately 30 square feet of storage space is equivalent to having five tractor-trailer loads of packaging material on hand.

"Hypertherm also reduced shipping costs due to the lighter weight of Instapak® foam," Blair said. "Our packages weigh an average of 2.5 pounds less than before, which translates directly into freight savings."

Cutting Down the Packaging Process

When a Hypertherm customer places an order for replacement or spare parts, customer service sends the information electronically to the fulfillment department. Employees pull the ordered parts and place them into a "picking" container, which is then transported to the shipping area via conveyor.

In Hypertherm´s shipping area, the Instapacker® Tabletop foam-in-bag system is used to create foam-filled bags as cushioning for larger parts and as void fill for the shipment of replacement parts such as the tips for the cutting torches.

To use the Instapacker® Tabletop system, the packaging operator selects the percentage of foam needed to create a foam-in-bag cushion of a desired thickness. Once the perforated bag is filled with the pre-determined amount of Instapak® foam, the operator removes it from the system. For cushioning applications, the operator puts the expanding foam-filled bag on the bottom of the shipping container and then places the ordered products on top of the cushion. The operator places a second expanding foam-filled bag on top of the products and closes the shipping container. In a matter of seconds, both the top and bottom Instapak® foam-in-bag cushions expand around the products and against the sides of the shipping container to provide superior cushioning during the shipping cycle. The same packaging method is used for void-fill applications by placing the expanding foam-filled bags on top of and on the sides of the products within the shipping container.

Fanning the Flames of a Hot Partnership

As a worldwide leader in its industry, Hypertherm is dedicated to customer satisfaction, and the continuous development of new products and processes to stay on the "cutting edge."

"We needed a new packaging method in response to customer concerns regarding the environmental aspects of polystyrene loose fill and the general mess they create," Blair said. "The Instapacker® Tabletop system clearly resolved these concerns while providing a cost-effective increase in product protection during shipment."

"In addition to achieving our goal of increasing customer satisfaction, Hypertherm has saved more than $200,000 in packaging material and storage costs since switching to Sealed Air Corporation´s various Instapak® foam-in-bag packaging systems," Blair explained. "And, in the process, we formed a lasting trust and partnership with Sealed Air."

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