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What the Future Holds for Secondary Packaging

The packaging industry has been thriving in recent years. In fact, according to research from the Association for Packaging and Processing Technologies (PMMI), the global packaging market reached a value of over $36.8 billion in 2016. This steady growth is expected to continue up to 42.2 billion by 2021, a Compound Annual Growth Rate (CAGR) of 2.8%. This is particularly true in regions like the Americas, which is predicted to reach a value of $12.6 billion by 2021. In short, it’s a fantastic time to be involved in the secondary packaging industry!

At Douglas Machine, we’re proud to create some of the finest secondary packaging machines in the world. For over 50 years, we’ve been crafting innovative tray packers, case packer machines, and other secondary packaging solutions that position our customers for success. Today, we’ll be taking a look at how environmental changes, automation and other factors are shaping the future of secondary packaging specifically—and a few opportunities these changes create for your business.

How Environmental Change Is Impacting Secondary Packaging

It’s no secret that the world is growing more eco-friendly in response to growing environmental concern. In fact, the PMMI’s October report listed heightened sustainability concerns as a key reason for the growth in the packaging industry. Thanks to the many environmental benefits of cellulose-based packaging, more and more Consumer Packaged Goods (CPG) manufacturers are turning to corrugated board-based packaging. Along with its positive impact on the environment at large, corrugated packaging significantly reduces the workload for displaying products—generating positive results within evolving business environments, too.

How Automation Is Impacting Secondary Packaging

For CPG manufacturers across every industry, efficiency is one of the many keys to success. Automated packaging empowers these companies to reduce labor costs and redeploy staff to other operations in the business — boosting their bottom line in the process. Today’s secondary packaging machines minimize human error and maximize production speed, fostering faster and smoother business operations.

Take the Douglas Contour™ as an example. This advanced shrink wrap system can accommodate a huge range of pack patterns, lending unrivaled flexibility to any shrink wrapping application. Contour™ S-30/60 machines can process up to 30 or 60 cycles per minute (32” film width standard), acting as stand-alone or fully integrated systems. Thanks to secondary packaging solutions like the Contour™, more CPG manufacturers are making the transition from manual to automated processes—paving the way for more efficient and effective packaging operations worldwide.

How E-Commerce Is Impacting Secondary Packaging

While the increase in demand for packaging in brick-and-mortar stores is promising, it’s vastly overshadowed by growth of the e-commerce segment—with more consumers turning to online stores and delivered goods than ever before. According to Smithers Pira, the value of this channel was around $28 billion in 2017—and that number is expected to double by year 2023. This growth means increased demand for high-quality secondary packaging solutions.

As new packaging technologies and solutions arise, CPG manufacturers are honing in on the optimal delivery operations for their products. For example, manufacturers of fresh goods are trying to find a proper balance maintaining optimal temperatures without allowing costs to rise too high. According to Packaging Europe, in light of emerging food e-commerce operations, “a combined primary and secondary packaging operation is fundamental” to maintaining commercial validity. Expect more strict industry regulations regarding food freshness in coming years—as well as an increased utilization of combined primary and secondary packaging efforts among leading food brands.

The rise of e-commerce is already impacting the way that secondary packaging machines need to function. For example, many CPG enterprises are looking into new box designs with superior returnability and lighter weight flutings to mitigate the overall size of postal shipments. You can expect secondary packaging machines to adopt new features and functions to accommodate the need for these superior corrugated formats.

As more consumers transition from brick-and-mortar stores to online shops and deliveries, packaging has become even more important as a touch point for brand identity. As a result, more brands are investing in specific secondary packaging styles to create a more impactful unboxing experience for shoppers. From exterior graphics to unique case designs, secondary packaging is poised to play a huge role in the success of current and upcoming e-commerce brands alike.

Embrace the Future of Secondary Packaging

Ready to learn more about what the future holds for secondary packaging? Then be sure to call or message Douglas Machine. Our team can provide all of the information and support your need to navigate the ever-changing world of secondary packaging. Also, be sure to reach out to us for more information on our industry-leading tray packers, case packer machines, shrink wrap systems and other secondary packaging solutions. We can help you find or create the perfect machine for your unique packaging needs. We’re looking forward to hearing from you.

Douglas Machine Launches New Logo!

A company’s logo is so much more than a simple marketing tool; it’s a symbol representing the values, promises and aspirations of an entire team of people. A logo also acts as a unique form of visual shorthand—a way to convey a company’s purpose and personality. And because these pillars of a brand change and evolve over time, so too should the brand’s symbols. Which leads us into the topic of today’s blog: the reveal of Douglas Machine’s new logo!

Designed to reflect Douglas’ vision for innovation, service and growth, our new logo symbolizes forward thinking and exceptional results. And while this redesign represents a huge change for our company, our dedication to unwavering integrity and improvement remain the same. Our Employee Owned, Customer Driven culture remains a cornerstone of who we are. We officially unveiled our updated logo and branding to the world during Pack Expo in Chicago, IL on October 14-17th.

Progress & New Horizons for Douglas Machine

Douglas Machine has come a long way since our founding in 1964. We’ve spent almost 55 years redefining the world of secondary packaging machinery, crafting innovative products and solutions that maximize packaging efficiency. Today, Douglas Machine is an established leader in the field, which is why Consumer Packaged Goods (CPG) manufacturers spanning the globe use our machines to streamline and optimize their secondary packaging operations.

One core value the Douglas team holds is Continuous Innovation & Improvement. From our cutting-edge products to our thoughtful services, we challenge the status quo and strive for excellence in everything we do. And this value extends to our branding, too. Our fresh logo and branding herald a new era of growth for Douglas Machine and — more importantly — our customers.

Another value of Douglas Machine is Servant’s Heart. That means we have an unending desire to support the customers and communities we serve. Our mission is to elevate customers through products and services that positively impact the world at large—achieving success and significance through our work.

Perfect Your Secondary Packaging With Douglas

Ready to learn more about Douglas Machine and our range of secondary packaging solutions? Then be sure to call or message us today. We’d be happy to provide any resources you need to find the best machine for your unique customer and business needs. Also, be sure to reach out to us if you have general questions about secondary packaging and the impact the right machine can have on your enterprise. We’re always here to help.

Nurturing a Strong Supply Chain Organization

What is a world-class supply chain? What does it look like from the outside? The inside? Is it achievable or merely a lofty goal only attained in our dreams? At Douglas, we’ve researched this subject extensively and have come to a simple conclusion: The journey toward a world-class supply chain will never end. It’s the pursuit of excellence that brings the satisfaction of achievement and accomplishment. And as soon as a supply chain team believes they have achieved “world-class” status, their downfall is certain.

Nonetheless, I keep telling the team that when we are invisible to the organization we will have arrived. No one will know we exist when all parts with no defects are delivered (exactly when and where they’re needed) at a great value. We might move mountains and rearrange the stars in the sky to get a part delivered on time, and no one will even know. And that’s okay. It’s our job to provide what is required on time; receiving accolades is not the goal.

For the Douglas supply chain team, the mainstay of our journey towards world-class is a firm commitment of one of the Douglas Values, Continuous Innovation & Improvement, which says, “We challenge the status quo and strive for excellence in all our work.” With this value at the forefront, the supply chain team continuously pushes the limits of our skills, abilities and the tools available to us.

Strategy for Goal Achievement

Persistence and focus is reflected in our eyes; we will not let our guard down on the journey. To this end, Douglas Machine has a three-pronged strategy to keep our attention on the goal.

First, building and sustaining a strong team cannot be understated. A cohesive and well-functioning team makes everything happen. The telltale signs of such a team are full knowledge and understanding of its shared vision and goals, which carries through to individual goals (line of sight to corporate goals). In addition, the team is exceptionally trusting of each other—with strong collaboration between team members and colleagues across the company.

Second, during the journey we need to know if we are heading in the right direction; the sign posts are clear metrics. The old adage “you get what you measure” is absolutely true in the world of supply chain management. Without metrics for both internal performance and supplier performance, the environment would be chaotic and directionless. No one would know if we are doing well or poorly, if we are heading in the right direction or if we are going backwards. Solid metrics keep everyone focused on what is most important.

The third strategy is incrementally raising the bar on performance, never accepting the status quo. For high-performing teams, however, there comes a time when raising the bar on performance is like a tractor pull. The further down the track the sled is pulled as the weight moves upward and forward, the more difficult it becomes; every inch is a strain. Yet, we press on, pushing higher and higher, even if the improvements seem small. For Douglas, we are now measuring on time performance down to the hundredth of a percent. With each improvement, even a few hundredths, we celebrate and focus on the next hundredth. The last thing we want to see is a decline of any fraction of a percent. We have other key metrics as well, such as purchase price variance, cost of poor quality, supplier consolidation goals and more.

In addition, the value the supply base brings to Douglas Machine is outstanding. We have developed strong relationships with key suppliers ensuring the supply chain is strong and healthy, able to withstand headwinds and overcome obstacles. They are, essentially, an extension of Douglas Machine with the innumerable hours invested preserving all facets of the supply chain.

Douglas Machine: Your Partner for Innovative Packaging Solutions

So, what is the current status of Douglas Machine’s purchasing team? Have we arrived at world-class? No. Are we on the right path? Emphatically, YES! It’s a journey, one that will never end. There will always be one more step, one more process improvement, one more emerging technology to utilize, one more idea to try. Perhaps one day there will be a time when the entire organization ceases to believe there is a purchasing team making the dream a reality.

At Douglas, we owe a considerable portion of our success to our strong supply chain. As a global leader in automated secondary packaging solutions for paperboard, corrugated and shrink film, Douglas works hard to ensure you receive a customer-driven experience when selecting the right secondary packaging solution for your particular needs. In all areas of the industry, case & tray packers, shrink wrap systems, cartoners, sleevers, multipackers and palletizers, Douglas is ready to partner with you. Our employee owners will provide you with friendly, responsive service and uncompromising customer support from the start of your experience through the life of your machine. Contact us today to learn more about Douglas Machine and how we can position your organization for success.

Douglas Variety Packs: Paperboard & Corrugated

Today’s manufacturers are turning to variety packs to increase the value and flexibility offered to customers. Despite their advantages from a consumer perspective, creating variety packs can be challenging for producers, particularly when they want to swap between multiple variety pack sizes and types. Variety packs are becoming more prevalent in the food and beverage industries to provide several products of different flavors in a single point-of-purchase package.

Customers are looking to variety packs as a method to serve many tastes and desires while also providing a cost-effective way to “sample” several products without investing in a large-quantity single-flavor purchase (for example, a 24-pack of craft brew with multiple flavors).

Douglas has been committed to creating versatile secondary packaging solutions for Consumer Packaged Goods (CPG) manufacturers for over 54 years. The expansion of our cartoning product line capabilities provides an ideal solution for variety pack applications.

How Are Variety Packs Made?

Unfortunately for most CPG manufacturers, the work that goes into packaging multiple products is difficult. Their production facilities and distribution centers are focused on producing, storing and picking single SKU packaging for their retail customers. Facility space is often at a premium, and because this type of work is done as a secondary step after products are in inventory, it’s hard to justify the cost of equipment or the hassle of finding the labor it takes to complete these projects. Generally, variety packs are currently assembled by hand which requires a large labor effort and cost. One company recently evaluated that it added approximately $4 (~15%) to the cost of their package to produce a variety pack offering.

Various levels of automation are available, depending on the manufacturer’s product. Each step requires differing levels of automation and cost. Below is a step-by-step example of automating a variety pack for beer cans:

  1. Automatic Storage & Retrieval (ASR) pallet retrieval
  2. Robotic removal of trays from pallet
  3. Robotic removal of cans from trays
  4. Collation of different flavors of cans in preparation for cartons
  5. Loading and closing of cartons
  6. Reloading trays that were emptied in step 3
  7. Re-palletize filled trays

The volume of the variety pack business determines if automation can be justified. Automation can also be built incrementally by starting with the most difficult steps to achieve by hand (steps 4 & 5 in the example above). As volume and labor costs dictate, the natural progression would be to then look at steps 3 and/or 6 due to ease of automation. Step 7 would be the next logical step with 1 & 2 being more costly and difficult to implement.

Key Advantages of Variety Packs

Consumer Benefits

Variety packs offer better value for consumers by allowing them to experiment with different flavors to find the ones they like most while only investing in one product. Variety packs also take away indecision about the product and allow consumers to feel more comfortable purchasing the variety pack as opposed to just one product type.

Producer Benefits

Variety packs bring versatility and growth generation opportunities to producers by giving consumers multiple price points and incentivizing larger purchases via quantity discounts. They also help mitigate packing and shipping expenses on inexpensive items, boosting the profitability of lower-priced items.

Douglas Variety Pack Solutions

Douglas Machine offers variety pack automation solutions and provides a number of the automation steps listed in the examples above. Contact us to discuss your application and we will help determine the cost and labor justification of each automation step.

Douglas’ innovative Vantra™ IM is a compact, economical intermittent motion cartoner with the flexibility to set up, load and close cartons and trays at speeds up to 55 per minute within a single platform. The Vantra IM cartoner can be integrated with various infeed options to gently handle cans, bottles, cartons, bags, flat-flow wrapped product and more, including applications requiring multiple manipulations.

The Vantra IM’s Rainbow/Variety Pack capability grants producers the flexibility to mix packed end products through one or two machine infeeds, giving consumers the chance to experience a wider spectrum of product from one carton.

Find the Perfect Packaging Solution With Douglas Machine

Douglas offers the resources and support needed to find the optimal cartoner solution for your variety pack application. Contact Douglas Machine with your variety pack application questions today!

The Importance of Networking in the Packaging Industry

According to the Merriam-Webster dictionary, the definition of networking is: the exchange of information or services among individuals, groups, or institutions; specifically the cultivation of productive relationships for employment or business.

At Douglas Machine, we’re strong advocates of networking across every field of business. Professional networking provides a way to make valuable connections with other people in any industry or profession. It’s a tool for building relationships relevant to our career and, in the process, expanding our knowledge and discovering new opportunities.

But not all networking is created equal. Sites like LinkedIn, online forums and email groups, Facebook and other social media channels may well have us reclining in our office chairs, tapping away on our keyboards or swiping through screens on our mobile devices and feeling quite satisfied with our networking prowess.

When you communicate electronically through voice or text, you’re only conveying and receiving a fraction of the story. When you speak with someone face to face, your words are colored (and sometimes overruled) by your tone, body language, pacing, facial expressions and general demeanor. It’s the difference between flipping through the CliffsNotes and actually reading the novel.

Consider the following exchange:

Phil: “How was your day?”

Edna: “Great.”

Pretty cut and dried, right? Phil inquires about Edna’s day, and it appears it was great. But maybe Edna’s verbal response was accompanied by a defeated shrug of the shoulders and a sad, wry half-smile. That would imply that Edna’s day was, in fact, not great, but she’s resigned to that fact and coping just fine, thank you. When you look at the full picture, that one-word response conveys a lot of information—providing important details you could never glean from simply skimming text on a screen. Insights like these are why face-to-face and word-of-mouth marketing are some of the most effective ways to spread the word about your brand and find new business opportunities.

Networking Events for Packaging Professionals

Packaging-specific networking events host thousands of professionals across the packaging industry. Coming up October 14-17 in Chicago is Pack Expo 2018. This event is a perfect opportunity to network face to face with others from across the packaging industry. Pack Expo International 2018 is  the biggest meet and greet in the world for our industry. Between co-located Pack Expo International and the Healthcare Packaging Expo, 50,000 attendees will have the chance to get together in over 1.2 million square feet of exhibit space to explore innovations and opportunities with 2,500 exhibitors.

The website for Pack Expo International 2018 answers the question of, “Why attend?” with four key points, all of which relate directly back to the advantages of face-to-face, physically present communication:

  1. Vision: Observe equipment in action and in person. You may arrive at the show with abstract goals in mind, but you’ll leave with a clear vision of what can be done to make those goals a reality.
  2. Trend Awareness: Simply walking the show floor gives you broader perspective on all current and emerging technologies, on what your competitors are doing and where trends are headed.
  3. Inspiration: Past attendees describe how unexpected encounters with technology at Pack Expo have led to their biggest “Aha!” moments. You never know what you’ll discover.
  4. Connections: Nothing beats a face-to-face connection. Touch base with vendors, meet potential new suppliers and have conversations with potential customers. These connections are key to your success.

If you’re worried about getting lost in the crowd, Pack Expo’s got you covered. Besides providing searchable floor plans that detail where each vendor is located, you can plan your treks through the exhibit halls using the free My Show Planner tool on the show’s website. Be sure to add Douglas, Booth S-2820, to your planner!

Lounges and meeting areas specific to different facets of the industry are scattered throughout Pack Expo’s expanse as well, providing a manageable space to relax and meet others.

  • The Candy Bar Lounge (S-2583) is a networking destination for confectionery industry experts and their customers. The lounge is hosted by The National Confectioners Association (NCA) and sponsored by Robert Bosch Confectionery
  • The Beverage Cooler Lounge (N-4575) is set aside as a networking space for beverage industry professionals and International Society of Beverage Technologists (ISBT) subject matter experts. The ISBT is hosting this lounge, sponsored by Bevcorp.
  • The Snack Break Lounge (N-4565), hosted by Snacking, Nutrition and Convenience (SNAC) International and co-sponsored by Dorner Manufacturing Corporation, JLS Automation and Soft Robotics, Inc. is a gathering place for snack industry professionals.

Expand Your Packaging Network With Douglas Machine

We’d love to meet you face to face! Stop by our booth (S-2820) in the South Building for more information on our innovative secondary packaging solutions and see what’s new with Douglas!