„Miles & More“: optimisation of shipping logistics via on-demand packaging

Installation of the Packsize EM7 at Loewe in Herford with cross conveyor belt (Image: Packsize GmbH) Installation of the Packsize EM7 at Loewe in Herford with cross conveyor belt (Image: Packsize GmbH)
The Packsize EM7-25 was installed centrally in the dispatch department at Loewe. It outputs the cut cardboard boxes onto a cross conveyor belt, which distributes them to the packing stations on the right and left of the machine. (Image: Packsize GmbH)

With On Demand Packaging, „Loewe Logistics & Care“ has optimised the shipping logistics for the „Lufthansa WorldShop“. Instead of keeping 25 different standard carton types in stock, as was previously the case, the Herford-based company now produces the required cartons just in time as needed. Loewe relies on an automatic carton cutting machine from Packsize.

Loewe Logistics & Care GmbH from Herford has been one of the most renowned service providers for distribution logistics for 15 years. Among other things, the owner-managed company handles the shipping of items from the „Lufthansa WorldShop“. Customers of the „Miles & More“ offer know the shop well.

Distribution logistics for „Miles & More“ is quite complex. The shipping volume fluctuates. For example, up to 1,000 „Miles & More“ parcels are packed at Loewe every day in the run-up to Christmas. At other times, there are significantly fewer goods waiting to be dispatched. Because the product range in the Lufthansa WorldShop also changes every six months, Loewe previously maintained a warehouse with 25 standard carton sizes, so that the employees at the packing stations always had the right cardboard boxes to hand.

Produce shipping cartons just in time

The competition on the Logistics market is huge, and there are always new challenges to overcome. Loewe therefore also considered optimising the shipping processes for „Miles & More“. At the top of the list of requirements was to replace the carton warehouse with a Just-in-time provision of cardboard packaging - also „On Demand Packaging“ - to replace it. Project manager Vanessa Peter has been working on this since the end of 2015. The fact that she quickly made contact with Packsize GmbH was, quite literally, an obvious choice. This is because the European headquarters of the international provider of on-demand packaging is also located in Herford.

Display

Loewe Logistics & Care dispatch warehouse in Herford
A view of the Loewe Logistics & Care dispatch warehouse in Herford. (Image: Packsize GmbH)

The economic and ecological advantages of on-demand packaging are obvious: the volume of shipping parcels is significantly reduced. This is of course accompanied by a Lower consumption of corrugated board. In most cases, no additional filling material is required. All in all, the parcels are not only smaller, but also lighter.

After initial discussions between Packsize and Loewe - and in close consultation with the customer - the decision was made: Loewe proposed switching the shipping logistics for the Lufthansa WorldShop to on-demand packaging. Shipping cartons were to be customised on demand and the warehouse for standard cartons was to be completely closed. The project went hand in hand with the comprehensive revision and Optimisation of the entire „pick & pack“ process.

Thoroughness took precedence over speed

Everyone involved prioritised thoroughness over speed during implementation. At Packsize, technical project manager Edwin Jonkman and sales manager Philipp Venjakob were in charge of the project. Together with Vanessa Peter, they decided to use the whole of 2016 for a test, analysis and planning phase. Process days were organised at the Loewe warehouse in Herford. In return, visits and workshops were organised at the Packsize test centre in Enger.

The intensive dialogue between Packsize and Loewe was important for the progress of the project and the quality of the subsequent results. „We got to know and appreciate the Loewe team and were able to clarify many details of the implementation in advance during the project phase,“ summarises Philipp Venjakob.

Size comparison: goods packed in standard cartons vs. packaging with packsize system
Size comparison: standard Lufthansa WorldShop shipping cartons on the left of the pallet, and the same goods packed with a Packsize system on the right. (Image: Packsize GmbH)

Once the design phase was complete, implementation began in 2017. Packsize and Loewe decided in favour of the use of a EM7-25 on-demand packaging system. This Packsize system is particularly suitable for the packaging of consumer goods and processes corrugated cardboard sheets up to 2,440 millimetres wide. It occupies a base area of 10.54 square metres.

The Packsize EM7-25 produces cartons in most FEFCO designs. It cuts and creases the appropriate cardboard packaging from continuous corrugated cardboard. Other Packsize systems, such as the X4 series models, are even capable of folding and gluing cartons.

Product data is transferred automatically

The Packsize EM7-25 receives the required information on the product dimensions from the Loewe-Warehouse management system. The weight and size of the products to be packaged are absolutely essential data. In a later expansion stage, it could also be possible to transmit whether fragile or high-value goods are involved. From the available data, the PackNet software The ideal carton size is then found by cubing.

„Everything went very smoothly, deadlines were met, contact persons were always available and informative, and the hotline always provided the answers we wanted.“
Loewe project manager Vanessa Peter praises the good cooperation with Packsize.

It proved favourable for the integration of the Packsize application that the LoeweQuality assurance had already assigned sizes to all goods in the warehouse management system and linked them to the article number. In this way, the geometric product data is transferred to the Packsize system without any further effort. Not all customers have such a database, reports Carsten Dickmann, Marketing Director Europe at Packsize. In these cases, scanners could be integrated into the system to determine the product dimensions for the appropriate packaging. Cardboard cutting determine.

The Packsize EM7-25 was set up at Loewe in such a way that the pre-cut boards are placed on a Cross conveyor belt be output. Depending on the requirements, it transports the blanks to the packing station to the right or left of the cross conveyor. There, the Loewe employees erect, fill and seal the cartons. By scanning an article barcode, they synchronise the packing process with the warehouse management system.

Following the switch to on-demand packaging, all Lufthansa WorldShop customers now receive customised and precisely fitting shipping cartons. Loewe's goals have been achieved. This applies above all to the Process optimisations. The previously elaborate Replenishment processes for standard cardboard boxes are a thing of the past. Employees receive all components for order processing directly at their workstation.

Packsize at FachPack 2018: Hall 1, Stand 119