Right-sizing for Growth

Online power-tool retailer, UK Planet Tools, has invested early in ‘right-size’ packing automation to remove constraints on growth and build-in flexible capacity for peak. Starting out in 2010 as a local retailer of high-quality tools and fixings, serving customers in and around Milton Keynes, UK Planet Tools has grown rapidly to become one of the largest online suppliers to the building trade for power-tools and related products. Thousands of orders a day are shipped to customers across the UK.

As with most ecommerce businesses the speed and efficiency of the pick, pack and dispatch operation is vital, making all the difference to customer satisfaction levels and potential sales – particularly, at peak. For the managing director of UK Planet Tools, Bohdan Hrystayenko, this was an aspect of the business where he could see automation bringing significant cost savings combined with an uplift to productivity and it was the packing operation that held the greatest potential for a fast return on investment (ROI).

Labour savings

Having spoken with Sparck Technologies, Hrystayenko was aware of the major benefits, in the form of labour and materials savings, that could come from using automated ‘right-size’ boxing technology. Sparck Technologies’ CVP Impack auto-boxing system has the capability to tailor-make up to 500 boxes per hour, for multiple or single item orders, using advanced 3D scanning technology to optimally size, create and label each parcel in one seamless process – reducing package volumes by up to 50%, cutting cardboard usage by 30% and eliminating the need for void fill.

The technology was perfect for UK Planet Tool’s varied product profiles and mixed order quantities. The CVP Impack was highly flexible, capable of scanning and making boxes to the exact size needed for single item orders or multiple items, time and time again.

Why wait?

“This machine was exactly what we wanted,” says Hrystayenko. “Even though our daily throughput was only about half the capacity capable of the CVP Impack we knew we could reap enormous benefits from installing the machine now, rather than waiting. We were confident that with this machine in place we would have the operational flexibility and extra capacity to grow, without any fears over hitting peak volumes or trying to find additional labour. It was the right thing to do.”

An order for a CVP Impack was placed at the beginning of November 2024 and installed on 17th December, with ‘right-size’ packages rolling off the machine just two days later. “Space in the warehouse was tight but with some creative thinking from ourselves and Sparck we made it work. It was an incredible feat, supplying and installing the whole system in just eight weeks,” he says.

Big benefits

“The benefits for our business have been enormous,” says Hrystayenko. “With each box now custom-made to fit the exact dimensions of every order, we’ve eliminated the waste of shipping empty space. This alone has saved us 40% on consumables and material costs. Our reliance on manual labour has dropped significantly, transforming what was once a labour-intensive packing process. Like many ecommerce businesses, Mondays are our busiest days. Previously, we had to start early to clear the weekend backlog, but now we don’t begin until 8am. Thanks to the CVP Impack, just two operators can manage 250–300 packages per hour, removing the need for overtime and extra staffing.”

But for Hrystayenko, the most significant benefit from purchasing the Sparck’s CVP Impack has been the uplift in customer service, enabling a 5pm cut-off for a next-day delivery – a reliable fulfilment capability that builds customer confidence and wins new business. “The Trustpilot reviews have been glowing green ever since,” says Hrystayenko. “In fact, I calculate that had we installed the CVP Impack before the autumn peak we could have done 1.5x the business we did. This machine has given us the opportunity to grow the business. There’s no stopping us now.”

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Right to Repair needs Right-size Approach

‘Right to Repair’ legislation is having an impact on consumer goods manufacturers and spare parts stockists in at least four States in the US, and those waves are being felt too, by OEMs in Europe and the UK, writes Jo Bradley, Business Development Manager at Sparck Technologies.

Perhaps not before time, the backlash against the ‘disposable society’ is in full swing. This is great news for the environment – not so great for the many companies who will face some serious packaging problems.

For many decades, ‘spares and repairs’ has been an industrial orphan – across a wide range of consumer goods, and indeed commercial equipment, it has been cheaper to send a broken item to landfill and buy a replacement rather than to have it repaired. In many cases the design and manufacture renders even simple repairs not just economically prohibitive but physically impossible. But under pressure from both consumers and regulators, this is changing.

In the US, at least four States have brought in versions of ‘Right to Repair’ legislation. In the European Union, the European Parliament early last year adopted a Directive extending existing laws to require manufacturers, initially of common household goods from washing machines to smartphones, either to repair damaged items, or to make spare parts, tools and instructions available to consumers and third party repair shops ‘at reasonable prices’. In the UK, major retailers including Currys (electricals/electronics) and the department store John Lewis are making a big thing of their repair services. This is in addition to the usual service of ‘consumable’ spares such as replacement filters.

But this will mean a big increase in the number of packages moving through different lanes. OEMs, or their parts stockists, will have to supply individual items, or ‘kits’ of parts and tools, both to repair specialists and direct to consumers, while the repair shops have to pack and despatch renovated products back to their owners. In the industrial and commercial sectors, suppliers to MRO (Maintenance, Repairs, Operations) activities – not just spare parts but also tools and consumables such as drill bits – already face similar challenges.

The range of items involved is intimidating. A washing machine repair might involve a new drum, or just a new microswitch. Under some of the new laws products have to be supported for many years so the number of different parts is vast. In automotive, where of course ‘spares and repairs’ never went away, we know a US client with 1.3 million part numbers in their catalogue – and that is just to support their niche market of imported German cars! Clearly, packing everything into the same narrow range of ‘standard’ boxes or cartons is a non-starter.

And many or perhaps, given the advance of electronics, most spare parts are small both in size and in value. Small items generally require proportionately more packaging material – coupled with labour costs it is no surprise that packing can cost more than the value of the goods. In many cases, supporting repairs is inherently uneconomic; the more so if spares are required to be supplied ‘at reasonable prices’. And shipping costs too can be disproportionate for small boxes, especially if the box is larger than it needs to be.

So OEMs, stockists and repair shops need to bear down heavily on the costs of pick, pack and dispatch. Smart automation of these operations will be critical, and luckily, ‘right-sizing’ boxes for dispatch can now be a fast, automatic process that can produce over 1000 boxes an hour.

Sparck Technologies’ automated boxing systems not only replace most of the labour required in manual operations – one or two operators on a machine can achieve the same throughput as up to 20 manual stations – but for individual items or ‘kits of parts’ can create boxes that are ‘fitted to size’ for each order. The item or assemblage is 3D scanned, the optimum size and shape of box calculated, board is cut, creased, erected, sealed, weighed and labelled. If required, the machine can keep producing ‘standard’ (not necessarily the carton industry’s standard) boxes until a ‘special’ is needed. There is also the option to split operations so that a ‘tray’ is produced into which items can be picked, and which is then united with its ‘lid’ elsewhere. Sparck’s CVP machines can handle weights of up to 30kg, and at the other end of the scale create boxes as shallow as 28mm.

The CVP Impack range can pack at up to 500 orders an hour, or one every seven seconds, while the CVP Everest range achieves an impressive 1,100 per hour – one box every three seconds, and unlike with manual packing, this performance doesn’t tail off towards the end of the shift.

Besides these labour savings and productivity gains, there are many other benefits. Savings in the use of board of typically 30% are commonplace, while void fill – typically non-recyclable – can be greatly reduced or even eliminated. Right-size boxes economise on postage or courier rates, particularly when these are based on ‘volumetric weight’, and make more efficient use of transport. Creating boxes at the point of use means that there is no need to store large numbers of pre-forms or erected boxes. With one machine you’ve got more than 40 million box sizes at your disposal. And packaging that fits the items snugly reduces the risk of transit damage. This all saves money, pleases the customer and is good for the planet.

Retailers and manufacturers are getting to grips with the Returns cycle – now they have to contemplate Repairs as well. But with ‘right-size’ auto-boxing technology, at least the pack and despatch side is more manageable.

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