The Packaging Challenge
A new customer came to New-Tech Packaging looking for solutions for its automated air pillow system. The current system was not able to handle its growth of 20% per year, projected for the next five years. Also, the machines were breaking down regularly and the manufacturer of those machines did not have regional service technicians, so the bulk of the repairs were placed on the company’s maintenance department.
The New-Tech Solution
New-Tech packaging experts began with a detailed analysis of the process and machines, uncovering inefficiencies and opportunity for savings. New-Tech then tested and negotiated pricing for an air pillow delivery system known as the fastest on the market. The system, manufactured by Pregis, was able to meet the customer’s growth and achieve optimal ROI.
The Customer Cost Savings and Benefits:
The increased efficiency of the new system saved the customer almost $250,000 in one year. And because New-Tech helped the customer lock in a supply agreement with pricing for two years, they saw an overall savings of $575,000!
Along with the cost savings, the customer also gained these wins:
- Pregis took over the responsibility of machine maintenance during the customer’s peak time. Technicians stopped by once a week to ensure no downtime, which allowed the customer’s maintenance department to work on other equipment during this rapid-growth period.
- Due to the slow speed of the former air pillow system, the company had to hang overhead bins so the air pillows could be produced constantly. These bins caused dimmer lighting for all employees and visitors. The speed of the new Pregis system allowed all overhead bins to be removed and provide a better work environment.
- The former system packaged each individual roll of air pillow film in a box. The new solution mapped out by New-Tech included bulk rolls on a pallet. That switch saved the company from cutting open and disposing of nearly 4,000 boxes. That’s a sustainability win!