"Hypertherm needed a packaging solution that would ensure the equipment and parts sent to our customers would arrive undamaged," says John Blair, a senior project manager at the company. "In addition, we wanted a versatile packaging system that could package different product configurations for Hypertherm's customized orders." Based in Hanover, NH, Hypertherm is a leader in the development, manufacturing, and servicing of plasma arc cutting equipment.
The company found just what it was looking for in Sealed Air Corporation's SpeedyPacker™ foam-in-bag system. Blair purchased two floor model systems to use in packaging Hypertherm's equipment and within a year, the company had saved $175,000 in material costs, compared to the previously used polyethylene foam packaging.
The SpeedyPacker™ foam-in-bag system dispenses a controlled amount of Instapak® foam into a sealed film bag that expands to conform to the shape of a shipping carton's contents, creating a protective cushion. Within seconds, the foam cures (or sets), locking the products in place. Unlike traditional packaging products, the solid cushions prevent items from shifting during shipment, greatly reducing the risk of damage.
The savings convinced Blair that a foam-in-bag system would also be beneficial in packaging Hypertherm's replacement and spare parts. As timing would have it, Sealed Air was testing a new system that is significantly more compact than the SpeedyPacker™ system. Hypertherm agreed to become a test site for Sealed Air's newest foam-in-bag system, the Instapacker™ Tabletop.
Cutting Down the Packaging Process
When a Hypertherm customer places an order for replacement or spare parts, customer service sends the information electronically to the fulfillment department. Employees pull the ordered parts and place them into a "picking" container, which is then transported to the shipping area via conveyor.
In Hypertherm's shipping area, the Instapacker™ Tabletop foam-in-bag system is used to create foam-filled bags as cushioning for larger parts and as void fill for the shipment of replacement parts such as tips for cutting torches.
To use the Instapacker™ Tabletop system, the packaging operator selects the percentage of foam needed to create a foam-in-bag cushion of a desired thickness. Once the perforated bag is filled with the predetermined amount of Instapak® foam, the operator removes it from the system. For cushioning applications, the operator puts the expanding foam-filled bag on the bottom of the shipping container, places the ordered products on top of the cushion, then places a second expanding foam-filled bag on top of the products and closes the shipping container. In a matter of seconds, both cushions expand around the products and against the sides of the shipping container to provide superior cushioning during the shipping cycle. The same packaging method is used for void-fill applications by placing the expanding foam-filled bags on top of and on the sides of the products within the shipping container.
Heating Up the Savings
Since implementing the Instapacker™ Tabletop system, Hypertherm sees significant savings on material and shipping costs, in addition to a reduction in the amount of warehouse space necessary to store packaging materials.
For example, Hypertherm previously packaged and shipped a spare part item in small, corrugated cartons with die-cut foam and polystyrene loose fill. Total cost for the shipping container, die-cut foam, and loose fill was $23. With the Instapacker™ Tabletop foam-in-bag system, the cost of the shipping container plus two Instapak® foam-filled cushions was reduced to $2.50. Hypertherm experienced similar savings with the packaging of many other replacement and spare parts. Considering that Hypertherm ships 300 to 500 cartons each day, the savings in material costs added up quickly.
In addition, Hypertherm saves $27,000 per year on storage and floor space by eliminating the need to store conventional packaging materials. Instapak® foam can expand up to 280 times its liquid volume to create firm foam cushions. In fact, a set of Instapak® foam bulk tanks, requiring approximately 30 sq ft of storage space, is equivalent to having five tractor-trailer loads of packaging material on hand.
"Hypertherm also reduced shipping costs due to the lighter weight of Instapak® foam," Blair says. "Our packages weigh an average of 2.5 pounds less than before, which translates directly into freight savings."
Fanning the Flames of a Hot Partnership
Hypertherm is dedicated to customer satisfaction, and to the continuous development of new products and processes to stay on the "cutting edge."
"We needed a new packaging method in response to customer concerns regarding the environmental aspects of polystyrene loose fill and the general mess they create," Blair says. "The Instapacker™ Tabletop system clearly resolved these concerns while providing a cost-effective increase in product protection during shipment.
"In addition to achieving our goal of increasing customer satisfaction, Hypertherm has saved more than $200,000 in packaging material and storage costs since switching to Sealed Air Corporation's various Instapak® foam-in-bag packaging systems," Blair continues. "And, in the process, we formed a lasting trust and partnership with Sealed Air."
