Packaging-as-a-Service

Packaging-as-a-Service

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Packaging-as-a-Service (PaaS) is our unique, performance-based operating model anchored in industry-leading packaging solutions that drive positive impact across your total cost of supply chain.

Our services include comprehensive, agnostic packaging innovation combined with a team of best-in-class supply chain and logistics experts. We also utilize powerful data analytics tools through our PACKCHAIN technology, which provides key operational assessments, on-going solution management, and operational dashboards for performance tracking.

Our Packaging-as-a-Service model breaks down the biggest barriers to entry that all packaging distributors and/or supply chain consulting firms encounter by offering a unique solution model as a strictly performance-based service. By eliminating cost-prohibitive fees that have no guaranteed ROI, our performance-based fee model aligns our services with your key business goals, so you only pay for the positive impact our execution has on your key performance metrics.

TOTAL SUPPLY CHAIN VISIBILITY

While most firms take a narrow approach to reducing supply chain costs, we understand each component is inextricably linked by packaging. Our team addresses inefficiencies throughout 100% of your supply chain by thoroughly understanding, improving, and tracking operational costs in these key areas: materials, labor, transportation, and sustainability.

Features of Packaging-as-a-Service

MATERIALS

Supply chain optimization begins and ends with packaging – it is the single component that threads through your entire supply chain. While materials only account for about 9% of your total supply chain costs, packaging flaws have drastic negative impacts on labor, transportation, and sustainability costs. For that reason, packaging optimization is vital to lean operations and agile supply chains.

The PaaS model drives measurable and sustainable improvements for cost and service to support your overall purchasing and operational objectives.

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Key Services Provided

  • Continuous Packaging Design and Optimization
  • Strategic Sourcing Assistance
  • Materials Specification Optimization
  • Storage and Handling Improvement

LABOR

Labor makes up 20% of your total supply chain costs, proving it is a worthwhile target for cost reductions. We understand the problems faced by lack of employee engagement, high turnover, increasing wage and benefits costs, and an overall decline in labor availability.

Through our PaaS model, we typically find a 5-7% productivity improvement year-over-year by implementing new process design solutions, or much more by introducing packaging automation with ROI.

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Key Services Provided

  • Packaging Automation
  • MHE Solutions
  • Engineered Layout & Process Design
  • Ergonomics

TRANSPORTATION

Transportation is the largest logistical cost component of your operation, accounting for about 60% of total supply chain costs. This critical touchpoint significantly impacts your ability to meet customer expectations whether you ship small parcels, LTL, or TL.

By effectively right-sizing and optimizing your packaging for transportation, we attack non-productive cost factors such as dimensional weight, oversized packages, and other negative accessorial costs. Most importantly, ensuring your package remains undamaged during transit is paramount for quality customer experience.

We typically find 3-5% annual transportation savings, or more year-over-year, through intentional rightsizing of packages following our engagement with customers.

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Key Services Provided

  • Right-sizing and Cube Optimization
  • Transportation and Packaging Practice Assessment
  • Claims Reduction
  • Service Improvement

SUSTAINABILITY

Although damage and accompanying returns account for only 11% of your total supply chain cost, this is perhaps the most important area of focus for customer experience and retention, because it drives dollars straight to your top line. We are committed to introducing solutions that have positive impacts to your customers and the environment.

Our unique and agnostic approach to packaging solutions as well as our team of packaging, logistics and supply chain analysts can objectively measure these areas and make dramatic improvements.

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Key Services Provided

  • Damage Rate Improvement
  • Returns Rate Improvement
  • Material Usage
  • Customer Experience
graphic representation of PACKCHAIN software dashboard

PACKCHAIN

PACKCHAIN is the data analytics component that supports our Packaging-as-a-Service model, providing an objective analysis of key cost centers within your supply chain operation.

What Does PACKCHAIN Do?

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Key Operational Assessment

Comprehensive packaging and supply chain analysis.

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Ongoing Solution Management

Total packaging and supply chain solution roadmap with projected improvement deliverables and ROI.

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Real-time Metrics for Track and Trace

Execution of improvement initiatives and real-time performance dashboards for long range, continuous improvement.

A Sample of PACKCHAIN Metrics

MATERIALS

  • Material SKU optimization
  • Material inventory space utilization
  • Vendor performance
  • Total material spend management
Material cost savings per package 100%

TRANSPORTATION

  • Units per package shipped
  • Freight cost as a % of net sales or COGS
  • Claims as a % of Freight cost
  • Billed weight vs. dimensional weight
Freight savings per package shipped 100%

LABOR

  • Packages per hour shipped
  • Total packaging labor costs
  • Labor cost per package shipped
  • Labor retention rate
Labor savings per package shipped 100%

SUSTAINABILITY

  • Returns rate reduction
  • Damage rate reduction
  • Energy reduction
  • CO2 emission reduction
Damage cost savings per package 100%

PERFORMANCE-BASED MODEL

The performance-based fee aligns our services directly with your business goals, so you only pay for what our solutions achieve.