Dairy Co-Op Saves $316,000 & Increases Output by 50% with Packaging Machine

Executive Summary

FlexPAC worked with a large dairy cooperative to find a solution that would eliminate glue and corrugated pads from their packaging process, increase safety in the facility, and speed up their production line. After documenting the packaging process, FlexPAC suggested purchasing a Polypack Clearprint 24L machine.

By switching their packaging style from using corrugated pads and glue to a polyethylene film and new machines, the co-op was able to save over $316,000 per year. Their production was also able to be ramped up by 50% to run 40 bundles of 12 bottles per minute (28,800 bottles/ hour) up to 60 bundles of 12 bottles per minute (43,200 bottles/ hour).

Previous Challenges

Before FlexPAC’s solution, the current packaging process experienced an excessive amount of challenges. When looking at the expense of using corrugated pads and glue to hold dairy bottle cases together, the company was spending over $315,000 per year. These expensive materials drastically cut into the customer’s bottom line. In addition to the high materials cost, the machines were old and frequently shut down, which led to extensive downtime. In addition to having to perform frequent maintenance to the aged machine, the co-op was also concerned with employee safety because the electrical parts of the machine were not fully enclosed, causing an electrocution hazard. Lastly, changing out rolls of film was a safety hazard due to the sheer weight of them.

FlexPAC’s Process & Results

FlexPAC carefully assessed and documented the packaging process to properly understand the co-op’s challenges. Ultimately, the co-op wanted a solution that would solve the safety issues, speed up their production line, and eliminate unnecessary costs.

With these unique requests and challenges, FlexPAC proposed that the co-op purchase one Polypack Clearprint 24L machine. This machine would allow the co-op to move from corrugated and glue to a film wrap. With the easy, belt-driven film delivery system the machine offers, this solved the co-op’s safety challenges by making changeovers quick and easy to perform. With the newfound speed of the machine, the number of bundles produced per hour went from 40 to 60 – a 50% increase in output, which will add more revenue. By moving to a film solution, the co-op completely eliminated the use of corrugated pads and glue, resulting in a savings of over $316,000 per year.