Consumer demand for different sizes, shapes and flavors has completely changed the way consumer packaged goods (CPG) brand owners and manufacturers produce and package their goods. The Amazon Effect – the ongoing evolution and disruption of the retail market – has an unquestionable impact on how retailers go to market. However, the underlying movement of changing consumer demands and expectations goes far beyond brick or click shopping habits.
Manufacturers are equally pressured to produce and package high-mix and low volume products as demand for specialization and variety packs continues to increase rapidly.
Lost revenue from lengthy changeovers
Imagine there are a dozen products running through the same packaging line. A product may run for a few days, then the hours-long changeover process takes place, causing all work in progress to stop before the next product has its turn. This practice often means building up a month’s worth of inventory for each product because it could be that long before it gets time back on the line again.
Unfortunately, this scenario is too common in manufacturing plants around the world. Living with lengthy changeovers is something producers do, due to the given budget constraints and legacy systems. Through an army of delta robots, a variable pitch infeed and a couple of smart valves, most machines in operation today can expand pack sizes, from six to 12 to 24. It takes a while for the changeover, hurting productivity, but it is possible.
With the Amazon Effect however, you may need a variety of flavours in each of those six, 12 or 24 packs. From here, things get manual, really fast. Leading CPG companies and local producers alike are finding themselves literally unpacking single product packs and manually repacking into rainbow packs. Spare a thought for the packaging waste and lost revenues. The already critical challenge of finding workers is compounded by needing even more manual labor.
As OEMs you have an opportunity to solve these challenges for your customers using efficient, agile and intelligent automated packaging solutions.