Recor NV’s Material Optimisation Delivers Customer Satisfaction When Recor NV cites a high degree of confidence in delivering quality furniture product from Hasselt, one area where the manufacturer’s longstanding focus on product quality and customer service is exemplified is through its packaging process. An early adopter of operational process improvement, several years ago Recor NV implemented the concept of a “one piece flow,” the practice of moving product from one workstation to the next, one piece at a time, without allowing inventory to build up in-between steps. To achieve this significant process change from a batch production environment, Recor NV reviewed its packaging practices and uncovered an ideal opportunity to improve its internal logistics and eliminate inventory bottlenecks through the installation of an On Demand Packaging® system from Packsize International. [http://www.de.packsize.com/] As a systems-based approach, On Demand Packaging gives manufacturers, suppliers, and distributors the ability to be more flexible, resourceresponsible, and sustainable by making the box at the pack stage of their packaging processes. Recor NV’s Operations Director Marc Wouters says of the process: “On Demand Packaging supports our one piece flow production environment by packaging what we need, when we need it.”
Effective Change with Packsize To efficiently distribute Recor NV’s versatile product offering in a manner consistent with its strong focus on detail, the manufacturer’s case-packing process needed to be addressed. At the time, Recor stocked a large supply of different sized boxes, with the box supplier managing the inventory. While box inventories are designed to buffer against spikes and lulls in demand, in reality, the reorder points and run sizes are driven by forecasting data that is easily flawed so stockouts and obsolete box inventory become unavoidable. “Planning for packaging needs was a difficult problem since our former process required a great deal of manufacturer/supplier co-ordination,” said Wouters. “The inventory of corrugated boxes also required us to maintain a significant amount of warehouse space.” In late-2007, Recor NV began using for its assembled furniture line the Packsize EM6-50, a multi-patented converting machine designed for large box production environments that creates custom cases from Packsize’s
proprietary z-Fold™ continuous corrugated stock. The recycled material can be creased, cut, and scored into an infinite number of case sizes and styles. The EM6 can produce boxes from a variety of corrugated cardboard widths ranging from 27 cm to 240 cm and thicknesses from 3 mm to 7 mm. Recognising the extensive operational benefits that On Demand Packaging brought its assembled furniture packaging operation, Recor NV installed the Packsize EM7-25 in 2011 to support its ready-to-assemble furniture lines as well. To create the custom-sized case(s) for Recor NV product, once the size and number of boxes needed is transferred, the Packsize machine automatically cuts the corrugated z-Fold to size, complete with score lines and glue tab. The flattened box is then delivered to an automatic closing line, the products are then moved on the box and closed automatically in the following machine. “We are no longer restricted by machine set-up times and internal logistics,” explains Wouters. “Today, we can produce 10 of one SKU, 40 of the next, and one of another at any given time, with packaging to match. As a result, storage for our finished goods inventory has decreased dramatically while realising a cross section of measurable improvements.” On Demand Packaging has increased the manufacturer’s flexibility and responsiveness. According to Wouters: “If we experience high demand for a particular product, we can respond immediately.” By recognising that implementing a one piece flow was critical to shortening delivery lead times for its business, Recor NV provides accurate, complete, and on-time shipments to fully satisfy customers. “With the switch from purchasing and storing finished boxes to building boxes on demand with Packsize, we enjoy several layers of operational improvement and cost reduction,” explains Wouters. “Packsize made it easy for us to adapt to change.” l
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