How to Increase ROI with Returnables
0 likes381 views
The document, presented by Michael Chiado of Georg Utz Inc., focuses on improving ROI through the use of returnable packaging solutions. It outlines opportunities to enhance supply chain efficiency, reduce costs, and capitalize on the benefits of standardization in packaging. Various case studies illustrate successful automation and standardization strategies that generated significant savings and operational improvements.
How to Increase ROI with Returnables
- 1. How to Increase ROI with Returnables Presented by: Michael Chiado President of Americas Georg Utz Inc. Your Logo Goes Here!
- 2. Introduction • Presenter • Mike Chiado - President of Americas • Georg Utz, Inc • Booth #8607
- 3. Who is Georg Utz
- 4. Our Markets, Products & Customers
- 5. Purpose • Explore the potential opportunities to: • Improve ROI of returnable assets • Increase speed to market • Reduce development and annual packaging costs
- 6. When Does It Make Sense • Closed supply loops • High volume • High value products • Sensitive products / easily damaged • Producing families of similar products • Replace manual pick and place operations • Need for buffers between operations - repacking
- 7. Why Returnables? • To capitalize on the benefits of returnable packaging. • Reduce packaging cost over time • Reduce waste management costs – “Green” • Improve quality • Improve safety • Enable standardization • Vehicle to drive standardization
- 8. Returnable Working With Automation Customer Specific Industry Solutions
- 9. Typical Supply Loops Device/Product Manufacturer External Components Supplier Overseas Component Suppliers Buffer Inventory Storage Final Prep/Pack OEM/ Distribution Resale Internal Supplier or Local Repack/ Kitting Customer Standards Industry Standards
- 10. Vision • To do more than just pack and transport the product. We want to add value to the supply chain by tying the manufacturing processes together via a common transport unit.
- 11. Packaging Strategy Considerations • Speed to market, speed to sale or duplication • Scalability • Flexibility • Reduction in development time • Reduce administration costs • Sustainability • Reduce packaging costs increase ROI
- 12. How • Think Strategically – Drive Standardization at all levels • Families of products • Individual loops • Across facilities • Regions • Global
- 13. Standardization – Where to focus • Footprint • Outside frame • Pallet / Racking • Conveyance • Positioning / Locating features • Materials • Business Processes
- 14. The Power of Standardization on internal process
- 15. The Power of Standardization
- 16. The Power of Standardization
- 17. The Power of Standardization
- 19. Typical Production Processes Injection Molding Thermoforming
- 20. Process Comparison Thermoformed Trays Injection Molding • Lowest investment • High level for flexibility • Lower part density • Shortest lead time 4-6 wks. • Highest piece price • Highest level of investment • Flexibility but with cost • Highest part density • Tool build 12-18 wks. • Lowest piece price
- 21. Break Even Analysis $- $100,000.00 $200,000.00 $300,000.00 $400,000.00 $500,000.00 $600,000.00 0 5000 10000 15000 20000 25000 30000 TotalCost Total Units Thermoforming vs. Injection Molding Cost Comparison Thermoforming Injection Molding
- 22. Development Time 2 4 1 3 4 16 1 1 1 3 0 5 10 15 20 25 30 Thermoforming Injection Molding Weeks Timing Comparison Tray Design Tooling Design Tooling Manufacturing Sampling Tooling Modifications
- 23. Approaches to Shift the Break Even Point • Flexible tooling • Mother Mold - Inserts • Combination of processes Insert Frame Tool
- 24. Case Study – AS/RS – System Solution
- 25. Case Study – Optimize AS/RS
- 26. Case Study – Optimize AS/RS “It’s a very flexible, container design with cups that interlock nicely to the side of master container. You can quickly remove a cup to facilitate a process like order consolidation, such as where you would tip all the SKU items from one cup into another of the same SKU, and then lock the empty cup back into place. We like the cup design because it prevents items from intermixing.” –Curt Nelson, Engineering Manager Polaris
- 27. Case Study – Video Controller Internal Processes Final Prep/Pack Repack Overseas Overseas Component Suppliers Local Supplier
- 28. Designed for full automation 14 different Trays 3mm White ABS Trays are 31mm - 88mm Video Controller Part 545x365
- 29. Video Controller 600x400 5 different inserts Insert is 2mm White ABS Tray is 4mm Black ABS Trays are 51mm – 110 mm height
- 30. Current State • Small electric assemblies ship from China in thin wall expendable tray • Repack required to support need for automated part feed Utz Solution • Expendable tray loaded full on rigid TF tray – 2 up • Pack operation automate directly from expendable tray • Elimination of 3 Repack operators Expendable blister to Automation
- 31. Case Study – Video Controller • 19 unique components • 2 frame bases • 3.5 months development time • $1.2M savings from standardization Internal Processes Final Prep/Pack Repack Overseas Overseas Component Suppliers Local Supplier
- 32. Case Study – Video Controller https://www.youtube.com/watch?v=uCgnWqoP4MM
- 33. Lessons Learned & Things to Consider • Think strategically • Standardize both return • Start the business case early • Encourage direct communication between automation venders / System Engineers and returnable solution provider • Use discipline in the development process • Develop the returnable transport device on the front side of your project
- 34. For more information: Speaker email: Michael.Chiado@utzgroup.com Website: www.utzgroup.com Or visit MODEX Booth 8607