On-demand packaging production technology is changing the rules of the game in the e-commerce industry
The ongoing e-commerce wave is transforming the packaging landscape, including a further push to resize into the spotlight. While brands have been working to resize their product packaging for decades, the on-demand side driven by new technologies offers a modern shift.
Normally, a resizing machine fitted with sensors detects the size of a product (or multi-product shipment) and runs that data through an algorithm to determine which carton is best suited to the item it contains. Some models are 2D systems that use partially constructed cartons, which are cut to a certain height and creased for folding. Others are 3D systems that run corrugated cardboard formed in multiple dimensions.https://www.risedongsheng.com/
"We measure all three dimensions: length, width, height," says Rod Galeway, chief executive of Packsize, a packaging and equipment supplier. "At one point we might build a 30x20 x30 carton, and the next carton coming out of that machine might be a 4x4x4."
Brian Boettner, global general manager of equipment automation at Ranpak, a packaging and equipment supplier, says automation can speed up fulfillment and reduce labour costs, especially in a tight market. They are an innovative solution and they do enable you to create a carton that is roughly the same size as the item that needs to be packed, and there is some hunger for this type of application. "
Product variability in e-commerce fulfillment (where multiple types of products often share the same secondary packaging line) has made the industry a prime candidate for on-demand scaling automation. Online retail giants Amazon and Walmart have both touted scaling initiatives this year, primarily to achieve sustainability and reduce waste. Walmart says it will make technology investments to enable this practice across about half of its delivery network.https://www.risedongsheng.com/
This year, Amazon detailed its primary focus on eliminating secondary packaging altogether, and then working to resize the outer packaging and shift from plastic to fiber-based substrates. These themes are evident at its fulfillment center in Euclid, Ohio, which this fall became the company's first center to shift to paper-only packaging. Achieving a paper-only focus will require the installation of new technologies, including a machine that makes cartons of the right size as needed.
"Overall, demand for it is increasing across all product lines... but ecommerce has been the biggest area of demand today," Mr. Garraway said. "Most of the adoption has been driven in the last five years, and especially in the last three."
Brent Lindbergh, founder of packaging design company Fuseneo, says that looking at sustainability, resizing on demand or variable packaging "actually makes a lot of sense" because "you can use less material", not just for the cartons themselves, but also for void fillers and padding. This practice can also reduce emissions, especially during transportation - increasing the carton density of a truck increases the amount of freight carried per vehicle, which in turn reduces the number of vehicles on the road.
"Today's mode of transportation is unsustainable without the right packaging," Mr. Garraway said. "We know that 100 percent of trucks have 40 percent air inside because the cardboard boxes are so big... We've shown over and over again that we can increase density by as much as 40 percent."
Scaling is also a cost and economic strategy from the point of view of transport density and material reduction. "Many brands have been constrained by space rationing and transport volumes over the past few years," says Mr. Lindbergh. "They want to get the most [product] out, free up the most space on trucks and move the most cargo they can."https://www.risedongsheng.com/
Brands and retailers are also starting to use the technology. Garraway says they see resizing as a way to give consumers what they want in areas such as sustainability and customization. He describes a previous experience seeking Packsize services while working at Staples. "What we're looking at is how we can improve the customer experience at Staples by unpacking, and everyone is trying to win over consumers. One of the ways to achieve that is to provide them with a great unpacking experience."
Scaling complements the growing trend of customization and personalization, he said, and enables businesses of all sizes to differentiate themselves from their competitors to reach consumers more effectively. Packsize's customers "are competing for the exact same consumers as Amazon and Walmart," Mr. Galloway said. "As long as there is personalization, there is an impact."
While cartons are currently getting the most attention when it comes to on-demand resizing, some businesses are also adopting technology designed for flexible media. "In flexible packaging, you have bags of variable length - whether it's paper or polyethylene. You only have a certain fixed width and the length can vary from product to product," Lindbergh said. "The investment in proprietary machines for variable size packaging is not cheap, and you can really only stick to a specific material format... We're seeing easier adoption on the non-rigid side."
Not only are they working on expanding their customer base, but they are also working on adding new system features, sources said. Areas of opportunity could be carton trim and other cloud-based or artificial intelligence features. This year Printpack added cloud computing capabilities. Adoption of new technologies tends to cool over time as market penetration rates improve, which could also happen with eventually variable packaging investments. "The market has experienced significant growth and I think it will start to stabilize at some point," Lindbergh said.
But in the short to medium term, adoption is expected to continue at its current rate or even accelerate to help drive the growing ecommerce industry. "There is a lot of interest in investing more in automation based on the benefits that are realised from goods to people. I have seen a shift towards end-of-line packaging automation," says Mr. Boettner.