Packaging as a Service
Packaging optimization is the most powerful tool for impacting the total cost of supply chain. Packaging as a Service is a comprehensive approach to managing these most critical operational cost centers: packaging material, labor, and transportation. IQpack deploys a seasoned solutions team with packaging, operations and transportation experts who design an end-to-end solution to reduce overall cost, improve efficiency, and increase customer satisfaction.
Organizational Change Management
An unspoken rule in disciplined organizations is that focused managers stay in their own lanes. Maintaining lane discipline while working cross functionally requires enterprise visibility to key metrics by operational group. IQpack uses a unique software technology called PackChain that allows senior managers to agree to metrics across the operation pulled into a dashboard on a regular cadence. In addition to standard period-versus-period comparisons, PackChain dashboards give insight into competitive performance via a unique industry baseline metric called the IQscore. The IQscore allows the operation to level up to industry standards, raising the bar on performance.
How much air did you ship this week? How does the box spend compare to the index price of paper? Is your labor efficiency acceptable or is it time to consider automation? If so, what is the best automation solution for your application?
Is your parcel carrier overcharging you for dimensional weight? (We’re betting they are). How are box sizes affecting transportation cost?
Working with your team, IQpack solutions experts provide analytics to determine your current performance, provide prescriptive solutions, and cement changes via the unique PackChain software technology that gives real-time analytics going forward.
IQpack has a wide network of partnerships with packaging material suppliers and packaging automation manufacturers, allowing for a neutral and impartial approach to selecting the ideal combination of packaging and technology for one-size-fits-one solutions. An important part of the IQpack Packaging as a Service model is our unique PackChain technology that gives key partners a view into inventories, supply chain performance, and machine statistics. Collaborative visibility allows partners to help maintain adequate safety stocks and send preventative maintenance alerts at intervals recommended by the manufacturer. Additionally, the IQpack software platform facilitates remote diagnostics and break/fix capabilities.
System Design and Integration
IQpack engineers design manual and automated packaging systems that integrate with upstream technology. Our design services include capacity planning, flow and operations strategy, machinery and substrate selection and controls engineering.
IQpack turnkey solutions include project management, system design, system engineering, mechanical and electrical installation, commissioning, training and go-live support.
IQpack collaborative partnerships guarantee that the right expert is on the job. Our unbiased and objective approach to recommending technology solutions allows us to evaluate any technology or OEM partners that are of interest to our clients.
Technology is not the optimal solution to every problem. IQpack can design and implement manual systems as well as hybrid solutions.
Features of Packaging-as-a-Service
Supply chain optimization begins and ends with packaging – it is the single component that threads through your entire supply chain. However, on average materials account for about 9% of total supply chain costs. Packaging has a drastic impact on labor, transportation and sustainability costs. For that reason, packaging optimization is vital to lean operations and agile supply chains.
The Packaging as a Service model drives measurable and sustainable improvements for cost and service to support your overall purchasing and operational objectives.
Labor availability and turnover are ongoing challenges. On average labor is 20% of total supply chain costs. IQpack works with your team to design manual and automated solutions. The approach is neutral and impartial as to levels of automation and specific OEMs.
On average, transportation is the largest logistical cost component, accounting for about 60% of total supply chain costs.
By effectively right-sizing and optimizing packaging for transportation, we attack non-productive costs such as dimensional weight, oversized packages, and accessorial charges. Most importantly, ensuring your package remains undamaged during transit is paramount for a quality customer experience.
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.
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?
Key Operational Assessment
Comprehensive packaging and supply chain analysis.
Ongoing Solution Management
Total packaging and supply chain solution roadmap with projected improvement deliverables and ROI.
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
- Material SKU optimization
- Material inventory space utilization
- Vendor performance
- Total material spend management
- Units per package shipped
- Freight cost as a % of net sales or COGS
- Claims as a % of Freight cost
- Billed weight vs. dimensional weight
- Packages per hour shipped
- Total packaging labor costs
- Labor cost per package shipped
- Labor retention rate
- Returns rate reduction
- Damage rate reduction
- Energy reduction
- CO2 emission reduction