Though an international giant for products and services, our customer had limited focus on managing empty containers. Packaging engineers were spending valuable time chasing existing packaging to support production. Packaging was dispersed in a variety of off-site warehouses which created much downtime because of limited visibility. They had trouble maximizing full shift production due to not having the right packaging available when needed.
It was critical that our customer have the empty containers at the right place and at the right time. Additionally, they required limited expendable packaging back-up because the small fibers from the boxes created a risk of contamination to our customer’s product.
packIQ opened a 60,000 square foot facility within two miles of our customer’s manufacturing plant and implemented packIQ’s pioneering technology platform. We automated the returnable replenishment process helping shave an hour off of cycle time resulting in additional floor space at our customer’s manufacturing site.
Our automated returnable packaging assembly includes: identification, warehousing, kitting, just in time (JIT) delivery to the production line (via milk-runs), proactive alerting, receiving, cleaning, refurbishment and end of life recycling (expendables and returnables).
packIQ helped our customer realize a washing opportunity savings of $187,000 in one year due to eliminating expedited freight going to an off-site washing facility plus saved 50% in overall washing costs by providing a much more efficient and higher quality cleaning operation.
Overall, packIQ saved money on washing costs, virtually eliminated lost production time due to insufficient packaging with visibility through our web-based technology platform, and provided the packaging engineers and planners with instant access and complete visibility to available packaging through a tool they love to use.
“By converting to returnables and deploying an efficient management process around them, we’ve achieved tremendous savings around ‘unplanned costs’ such as expedited freight, and have streamlined the planning and cycle time of one of our most valuable assets in the plant – space. Our planners are also more productive because they can better manage their assets and reduce the associated costs across the packaging lifecycle. The technology is phenomenal.”