CHALLENGES INVOVLED IN MANAGING LARGE AMOUNT OF CORRUGATED SHIPPING CONTAINERS

CHALLENGES INVOVLED IN MANAGING LARGE AMOUNT OF CORRUGATED SHIPPING CONTAINERS

Finding space

A recent survey conducted by Videojet Technologies Inc. found that 72 percent of North American companies have pre-printed information on their secondary packaging. One reason for choosing pre-printed corrugated boxes is the economics of the situation manufacturers of those containers traditionally have been flexible on both pricing and delivery, to maintain volume and, by extension, their customer base.

But when touring an average product manufacturing or contract packaging facility today, it's usually common to find a floor-to-ceiling rack, or even a separate warehouse, full of pre-printed boxes, all of which have to be organized for fast and seamless acquisition when needed. Managing such a large amount of material can be challenging based on the number of brands, products and SKUs a facility handles basically, the more there are, the more space is necessary, and the more challenging the logistics of ordering and working-capital consequences of stocking become.

For example, if a flour manufacturer is making only three SKUs of product each day perhaps 5- and 10-pound bags and larger bags for food service stocking three types of pre-printed corrugated boxes for those products isn't difficult. But a contract packager may be responsible for multiple manufacturers, each with multiple brands and dozens of SKUs under each brand. Suddenly, the facility has to account for 30 types of corrugated boxes. Ordering and stocking so many types of packaging can become complex, more time-consuming and space-intensive, as adequate amounts of each different package must be available for yet-to-be-scheduled production.

It's important to note that the consolidation of multiple companies or divisions into single manufacturing facilities creates issues similar to the aforementioned contract packaging example. With consolidation comes complicated secondary packaging issues more SKUs under one roof, all of which have to be shipped. Renting warehouse space for pre-printed boxes isn't cost-effective in the long run. Videojet Technologies Inc. is a world-leading manufacturer of coding, printing and laser marking products, fluids, and accessories for the product identification industry. As experts in continuous ink jet (CIJ), case coding, thermal transfer overprinting (TTO), array, and laser technologies, Videojet has over 275,000 units installed worldwide. Sales, service, training, administrative and application support is provided by direct operations worldwide, including Austria, Brazil, Canada, Chile, China, France, Germany, India, Ireland, Japan, Korea, the Netherlands, Poland, Portugal, Russia, Singapore, Spain, Switzerland, Turkey and the United Kingdom, with more than 250 direct sales and service personnel in the United States alone. Videojet's distribution network includes over 175 distributors and OEMs, serving 135 countries.

Statements in this release that are not strictly historical may be "forward-looking" statements, which involve risk and uncertainties. These include economic and currency conditions, market demand, pricing and competitive and technology factors, among others, as set forth in Danaher Company's SEC filings.

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