Customer Case Study

Building Capacity for Pharmapacks' Explosive Growth

Challenge

Pharmapacks is a leading e-commerce technology company that empowers brands with a complete and cost-effective logistics, fulfillment, marketing, and sales solution. It offers a robust catalog of health, beauty, personal care, and household products sold across top online marketplaces as well as directly to consumers on pharmapacks.com. Pharmapacks has created e-commerce, logistics, and fulfillment software meant to be easily integrated into partners’ existing sales platforms including Amazon, Walmart, and eBay.

Pharmapacks’ catalog currently consists of 28,000 unique items. The company processes and ships more than 30,000 orders each day throughout the U.S. and Canada. Its biggest challenge? Keeping up with demand and efficiently packing thousands of SKUs.

 

 

Solution


We began working with Pharmapacks in their first year of operation — and we have continued to work with them as they grow and encounter new challenges. For example, as order volumes increased, so did freight fees, damage rates, and labor costs. As their packaging technology partner, we helped them add, customize, and adapt packaging processes and systems to unlock much needed labor efficiency, keep costs at bay, and make the most of every square foot of their overwhelmed warehouse.

It was clear Pharmapacks needed automation to keep up with demand. As they expanded into their second facility, at 27,000 square feet, they introduced a SEALED AIR® brand I-Pack automated cartoning system, along with a tray erector. But demand continued to grow exponentially and the Pharmapacks team realized they hadn’t gone big enough — they were going to need an even larger facility.

A year later, Pharmapacks moved to Long Island, NY, and into their current 141,000-square-foot factory. They purchased and installed an additional six automated cartoning systems and five tray erectors. This allowed them to evolve from 22,000 packs per day in two shifts to 31,000 packs per day in one shift, with the ability to add shifts as they continue to grow.

“This new design has given us the capacity to grow, take on more business, expand into different territories, give a better customer experience — and that’s all from the automation,” says Andrew Vagenas, CEO of Pharmapacks. “Sealed Air was huge in this. We worked a lot with their teams and their engineers. This is what we came up with and they were critical in taking this live.”

Results

  • Throughput increase of more than 400% in three years 
  • 30% savings in shipping costs
  • Less than 1% returns due to damaged products 
  • 100% Amazon customer satisfaction rating for packaging, products, and experience
  • Ability to add shifts without adding equipment as the company continues to grow 

Packaging Optimization

Product Integrity

Operational Efficiency

Brand Experience

Pharmapacks used to pick and pack everything manually, but Sealed Air’s automated solutions and packaging expertise has allowed the company to continue its rapid growth — and build in capacity for the future. That’s been key, says Vagenas. “What’s changed is the optimization, the logistics, the operations, that’s what changed. It’s brought a better cash flow into our company, which then allows us to grow even more.”

“Since Pharmapacks has partnered with Sealed Air, says James Mastronardi, CFO of Pharmapacks, “we’ve been able to change the game with e-commerce.”


“We were predominantly a company that took 24 to 48 hours to process an order and with the automation we’ve brought in from Sealed Air, it’s cut to less than 24-hour turnaround time.”

— Andrew Vagenas, CEO, Pharmapacks