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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Packsize to Acquire Sparck Technologies

Packsize, supplier of sustainable, right-sized, on-demand packaging, has announced the company’s completed agreement to acquire Sparck Technologies, a European-based manufacturer of high-throughput, fit-to-size, automated packaging solutions.

The acquisition marks a significant milestone in Packsize’s growth strategy and strengthens its position in the automated packaging industry. By combining Packsize’s technology and service model with Sparck’s best-in-class box last and lid and tray solutions, the company will now provide the industry’s most comprehensive portfolio of solutions to meet evolving customer needs.

“Sparck has long been recognized for its innovation, reliability, and strong commitment to sustainability – values that align perfectly with our own,” said David Lockwood, CEO of Packsize. “Together, our complementary technologies create a more complete product offering for our customers. This acquisition brings us one step closer to realizing our mission of Smart Packaging for a Healthy Planet by accelerating our ability to deliver more sustainable, right-sized packaging solutions to customers around the world.”

“Bringing Sparck into the Packsize team is a strategic move that expands what we can offer our customers – especially in high-volume, high-efficiency environments,” said Brian Reinhart, Chief Revenue Officer at Packsize. “Sparck’s box last and lid and tray solutions allow us to solve a broader range of packaging challenges. This isn’t just about growth – it’s about delivering smarter, more sustainable automation at scale.”

Sparck Technologies, headquartered in Drachten, Netherlands, is best known for its advanced CVP Impack and CVP Everest systems – automated solutions that optimize throughput and reduce waste by creating fit-to-size boxes at scale. “This acquisition is a perfect match,” said Kees Oosting, CEO of Sparck. “It allows us to bring more value to our customers faster and at a greater scale than either company could achieve alone.”

Peak Ecommerce Performance

Standard Investment has worked closely with Sparck to execute a successful transformation of the activities in Drachten. Originally part of French-listed multinational Quadient, Standard Investment segmented Sparck to become a standalone company in 2021.

Herbert Schilperoord, Partner at Standard Investment, said: “We are very proud of what the Sparck team has achieved with the involvement of Standard Investment, pivoting the organization to a cutting-edge technology leader in the fit-to-size packaging area. We’re confident that together, Packsize and Sparck will continue a strong growth trajectory, delivering fit-to-size technology to global tier 1 customers.”

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Pack Smarter, No More Cheap Labour

The rise in Employer National Insurance in the UK is but one factor set to impact ecommerce packaging. What can be done to alleviate the pain? Jo Bradley (pictured below), Business Development Manager at Sparck Technologies suggests a hi-tech panacea.

If distribution and fulfilment operations ever did benefit from ‘cheap’ labour, a series of recent Government announcements has ensured that era is well and truly over. Controlling labour costs through automation is no longer optional – it’s a question of business survival.

In short order, the UK Government has first raised the minimum wage by significantly more than inflation to £12.21 an hour for workers over the age of 21, Employer National Insurance contributions are rising from 13.8% to 15%, and in a further twist, this will now apply to workers on annualised pay of as little as £5,000 rather than the previous £9,100.

That last provision in particular hits the many fulfilment operations that are heavily dependent on seasonal or casual employees to cope with peak in activity. This patten of employment is about to be even further challenged by the extension of a range of workers’ rights to ‘day one’ of employment. Details are as yet obscure, but they certainly aren’t going to reduce employment costs.

The response must lie with automation, but particularly in the current uncertain economic climate, few businesses can afford the investment or business disruption required to go ‘full Amazon’ across activities such as retrieval, order picking and internal transport. These tend to be heavily interdependent, and ‘step by step’ approaches can be problematic.

One area that for many fulfilment operations can be treated as a standalone project, with the prospect of significant reductions in labour requirement, and thus an attractively quick Return on Investment, is that of packing and labelling goods into cartons for transport. Ecommerce operations, in particular, can stand to reap big rewards in terms of savings in labour and material costs, as well as boosting productivity and performance at peak, if the right approach is taken. Our repeated customer experience is that using ‘fit to size’ automation to fold and build boxes around consignments – even of mixed and varied goods – followed by auto sealing, weighing and labelling, can see one or two operators replacing as many as twenty manual packing benches.

But in selecting automated packaging technology businesses shouldn’t focus on labour costs alone. There are other cost pressures looming, and other benefits to be reaped. On costs, the revised Extended Producer Responsibility regulations are about to come into effect. These are complex, involving fees and credit notes and a significant administrative burden, but at heart they involve a levy on the use of packaging materials. Precise rates are yet to be fixed but the Government’s current mid-point estimates are around £190 per tonne for paper and card, and a deliberatively punitive £425 per tonne on plastic packaging materials.

Jo Bradley

This is intended to encourage firms to reduce the use of packaging materials. Fortunately for ecommerce businesses the right form of packaging automation can also provide a highly effective solution to this issue too. Sparck’s ‘fit-to-size’ automated packaging systems not only minimise the use of card used, by tailor-making a box for each individual order, but can also eliminate the need for void fillers which are often plastic based.

Those savings can go straight to the bottom line. But there are other less easily quantifiable but nonetheless real benefits. Well-fitting boxes reduce the incidence of shock or crush damage in transit. They economise on the use of transport space, which can also yield cost savings, on fuel obviously, but also in warehouse labour as there may be fewer roll cages to push around. And right-sizing removes what research consistently shows to be one of consumers’ biggest gripes about e-commerce and home delivery – oversized boxes!

These factors together make a robust case for automation. But as employment costs bite, the labour-saving arithmetic of fit-to-size automation alone will undoubtedly present a fast and sure Return on Investment for many businesses.

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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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Smoothing the Curve for Peak Ecommerce Performance

Ecommerce fulfilment is prone to frequent and often dramatic spikes in demand, and this causes retailers significant challenges in the packing area. How can businesses smooth the curve and cope with these peaks when labour resources are so scarce? Jo Bradley (pictured below), Business Development Manager, Sparck Technologies, comments.

Peak periods stress-test the whole fulfilment and delivery process and nowhere is this more acutely felt than in the packing area. Constructing boxes, packing, weighing, sealing and labelling manually is a slow process, and few shippers have either the space or the available labour to create additional packing stations for what may be only a few days’ work. And as everyone knows finding flexible labour, available at short notice, is a major headache. So, how can online retailers respond to these spikes in demand?

The case for greater use of automation in the packing area is compelling. However, simple size-constrained machines using only one-size of box does not cater for the wide variety of products and order sizes experienced by most online retailers. The results are often very wasteful.

Waste not…

It is understood that 60% of ecommerce deliveries are by volume at least a quarter composed of void-fill or just fresh air. The consequences are poor, with higher material wastage, greater chances of product damage and a negative impact on brand image – resulting in higher levels of returns.

Jo Bradley

What can be done?

High-speed fit-to-size ‘auto-boxing’ systems, developed by Sparck Technologies and used by major brands globally, are capable of tailor-making over 1,100 ecommerce packages per hour.
The system scans and measures the item or group of items to be packed and calculates the ‘best fit’ box shape and size. Material for the box and lid is cut and creased to size, erected around the item(s) and the lid glue-sealed – which is faster and more recyclable than using tape. Parcels are weighed, labelled and away.

This approach addresses the waste problem – cardboard usage typically cut by 30%, and a tight fit eliminates the need for void fill. Total package volumes can be reduced by 50%, maximising the use of the truck or trailer cube and reducing shipping costs and environmental impacts.

More cogently for the hard-pressed fulfilment centre manager, at packing rates in excess of 1,100 per hour the latest CVP Everest machine can potentially replace up to 20 manual packing stations. And for businesses with mid-market volumes a similar machine, the CVP Impack, produces up to 500 boxes per hour and offers just about all the benefits of the CVP Everest.

The business case is impressive. Even operating ‘off-peak’ at well below capacity there is a rapid ROI in the form of material savings, lower shipping costs and labour economies – labour that could be redeployed to other tasks, such as picking. But it is at peak times that the CVP Everest and CVP Impack systems really come into their own, ramping up throughput without any corresponding increase in labour, and minimising the burden on despatch and delivery operations.

By choosing an automated solution to ‘right-size’ ecommerce deliveries, retailers can meet their fulfilment promises, even in the busiest peaks, while respecting the environment, reducing transit damage, and saving money.

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Sparck Celebrates 100 years of Innovation

This year on June 20th Sparck Technologies, the automated ‘right-size’ boxing specialist, celebrates a century of world-class engineering and innovation. The business has come a long way in a hundred years, from its origins developing the mechanised production of wooden shoes, to a global leader in the design and fabrication of advanced, fit-to-size automated packaging systems for ecommerce applications.

Sparck Technologies’ power to innovate has been a constant throughout its surprising history. Established in The Netherlands as HaDeWe in 1924, the small engineering business displayed its ingenuity early on by moving from repairing windmills to developing and building machines that would revolutionise the production of wooden clogs. And by the 1950’s it had reinvented itself again, boosting the productivity of office workers around the world with its cutting-edge mailroom solutions capable of folding and filling thousands of envelopes per hour.

Its success in developing novel concepts – rethinking mailroom products for desk-top use – went global, setting the pace for future innovation. As part of Quadient for over 30 years, the business continued to tap into its creative DNA, and deep engineering know-how, to push the limits of what’s possible in mailroom and despatch operations, culminating in 2013 with the multiple award-winning development of ‘right-size’ auto-boxing technology. Ecommerce fulfilment would never be the same again.

Using advanced 3D scanning technology to optimally size, create and label each box in one seamless process, Sparck’s CVP Impack can produce 500 boxes per hour, typically replacing up to 20 packing desks, and enabling businesses to grow and flex at peak, even when labour resources are tight. Package volumes are reduced by up to 50%, cutting cardboard usage by 30% and eliminating the need for void fill.

The machine heralded a revolution in ecommerce packaging, with a torrent of international sales that has seen Sparck’s CVP systems supplied, installed and supported in over 15 countries across the globe.

Technological advances have continued apace and in 2019 the CVP-Everest was launched to world-wide acclaim. The machine offered businesses throughput rates of up to 1,100 boxes per hour, with dual input stations and up to three cardboard stock feeds.

Now as an independent company for the last three years, Sparck Technologies continues to innovate, leading the field with advances that deliver huge competitive advantage, including: a high-speed print-on-box facility, the capability to produce ultra-low profile boxes of just 28mm – enabling businesses to benefit from boxes that are letter rate compliant in the USA and most European countries – and most recently auto-induction, which removes the need for an operator, allowing a seamless transit of orders from picking station to packing and despatch.

One hundred years on Sparck Technologies continues to push the boundaries of what’s possible in automated postal-related packaging. To date over 220 million ‘right-size’ boxes have been produced on Sparck’s revolutionary fit-to-size packaging machines worldwide.

Today, Sparck Technologies is based in Drachten, a site it has occupied since 1947. From here the business serves a fast-growing international market for highly automated, sustainable packaging solutions suited to the ecommerce sector – packaging automation that can, almost instantaneously, tailor make individual compact, right-size boxes for over 1,100 ecommerce orders an hour. No wastage of materials, no shipped air and only minimal dependency on labour.

What will the next 100 years bring?

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Right-size Auto Packaging

Leading sports fashion retailer, JD, has embarked upon a programme of investment into Sparck Technologies’ advanced right-size auto-boxing systems. After the initial installation of one of Sparck’s CVP Impack systems at the retailer’s Rochdale DC in 2021, the company has now taken delivery of a top of the range CVP Everest, as part of JD’s fully-automated ecommerce DC in Derby.

The CVP Impack at JD’s Rochdale facility has been successfully packing online orders at a rate of up to 500 boxes per hour – automatically creating made-to-measure boxes precisely to the optimum dimensions required for each and every order.

Confidence in the efficiency of Sparck’s right-size boxing technology, gained at the Rochdale DC, led the retailer to upgrade to a high-speed CVP Everest machine ¬– capable of creating and boxing 1100 single or multiple-item orders per hour – at its new Derby fulfilment centre. The latest investment by JD is part of an on-going partnership with Sparck Technologies, with exciting ‘market-leading’ innovations to come.

Commenting on the decision to invest in high-speed fit-to-size packaging technology, Paul Stokes, Head of Automation and Engineering at JD, says: “Having experienced the speed, reliability and performance of Sparck Technologies’ CVP Impack machine at our Rochdale DC, we are confident that right-size boxing technology is a key capability for the future – offering major benefits in fulfilling ecommerce orders in a cost-efficient and sustainable way. We believe this is the start of an exciting partnership with Sparck.”

The CVP packaging systems are highly flexible, capable of producing tailor-made packages at speed, whilst being able to cater for single or multi-item orders with differing product profiles.

Jo Bradley, Business Development Manager for Sparck Technologies in the UK, says: “We are delighted to be partnering with one of Europe’s largest retail brands and we look forward to working with them on fulfilling their growth objectives for the future.”

With the capability to tailor-make up to 1,100 boxes per hour, for multiple or single item orders, the CVP Everest and CVP Impack packaging systems offer automated solutions for ecommerce operations challenged by increasing order volumes and growing demands for sustainable packaging solutions. With installations across Europe, the US and Canada, the CVP Automated Packaging Solutions effortlessly create, fill, fold 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.

Smyths Toys Adopts right-size Auto-Packaging

Leading toy retailer, Smyths Toys, has implemented Sparck Technologies’ advanced right-size auto-boxing packaging systems to boost throughput for its ecommerce business, installing three Sparck CVP machines at its distribution centre in Corby, Northamptonshire.

Sparck Technologies has provided Smyths Toys with three of its market-leading ‘fit-to-size’ CVP packaging systems – two CVP Impack machines, each capable of forming and sealing up to 500 tailor-made cardboard boxes per hour, along with its latest high-capacity model, the CVP Everest, which can create up to 1100 right-sized boxes every hour.

Smyths Toys has over 100 stores in the UK and a busy website offering an extensive range of toys for all ages, from baby and preschool products to outdoor items and gaming.

The introduction of Sparck Technologies’ CVP auto-boxing machines is part of a major investment into state-of-the-art warehouse automation at the toy retailer’s Corby fulfilment centre, aimed at increasing capacity and improving sustainability. The move will see over 70% of orders packed automatically by Sparck’s CVP machines,

Commenting on the decision to invest in high-speed fit-to-size packaging technology, Stephen Kearney, Warehouse Manager at Smyths Toys, says: “We believe in automation and have invested in advanced technologies where we can see it will bring significant results. We needed to increase throughput for our fast-growing online business and the most obvious means of achieving the performance required, particularly for peak, was to leverage the speed and efficiency of right-size packaging technology.

“Importantly, these packaging systems are highly flexible, capable of producing tailor-made packages at speed, whilst being able to cater for single or multi-item orders with differing product profiles,” he says. “We could also see how fit-to-size packaging would help us further improve our position on sustainability through optimising package size and removing the need for void fill. Sparck’s CVP technology offered us the flexible solution that we were looking for.”

To optimise throughput and minimise waste all three CVP machines supplied to Smyths Toys have dual induct stations and double corrugate feeders for 600 mm and 800 mm card. Advancing environmental performance, paper tape is used for sealing packages, aiding the recycling of cardboard. Installation of the three machines took place in October 2022 in readiness for peak season.

Jo Bradley, Business Development Manager for Sparck Technologies in the UK, says: “We are delighted to be working with one of Europe’s most respected toy retailers and we look forward to developing a close partnership with Smyths Toys, supporting its growth objectives for the future.”

With the capability to tailor-make up to 1,100 boxes per hour, for multiple or single item orders, the CVP Everest and CVP Impack packaging systems offer automated solutions for ecommerce operations challenged by increasing order volumes and growing demands for sustainable packaging solutions. With installations across Europe, the US and Canada, the CVP Automated Packaging Solutions effortlessly create, fill, fold 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.

Sparck Technologies is a global leader in the design and fabrication of advanced, fit-to-size automated packaging systems for high-volume ecommerce applications – award-winning sustainable packaging solutions that eliminate excessive packaging. We aim to make every parcel our clients send out a brand ambassador for their business. Based in Drachten, The Netherlands, Sparck Technologies supplies some of the world’s largest retail and industrial brands, supporting their ecommerce channels in multiple geographies with market-leading engineering know-how that combines innovation, reliability and unbeatable performance.

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