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Electronics e-tailer adopts on-demand box making

Newegg adds two box-making machines to its e-commerce facility in Indianapolis to pack electronics in custom-fit boxes that optimize DIM weight costs.

An operator in the bulk area glues the side of a case blank.
An operator in the bulk area glues the side of a case blank.

When speaking about the relationship between e-commerce and packaging, the discussion usually centers on the physical pack. Often overlooked is the innovation taking place around packaging equipment to meet the specialized needs of this channel. While traditional distribution channels involve large volumes of similar-sized packages, e-commerce requires extreme flexibility, especially in terms of secondary or tertiary packaging. Shipping cases may be constructed of heavier material to help the package withstand the 30+ touches it may undergo during distribution; void fill or insulation may be required; and case or bag sizes may need to be changed on-the-fly, among other considerations.

At PACK EXPO Las Vegas 2017, a number of equipment suppliers showcased their new e-commerce solutions. For example, PAC Machinery exhibited its Rollbag R3200 fulfillment bagger, which can print-and-apply labels on two sides of the package, allowing for shipping information on one side and a packing slip on the other. The machine can also right-size the bag to fit the individual product. Edson Packaging, a brand of ProMach, demonstrated its SR 3600 flexible e-commerce case packer, an advanced robotic mixed-product case-packing system for e-commerce fulfillment and food packaging.

One category of machines that has sprung up in response to e-tailers’ need to optimize shipping-case sizes is on-demand box-making equipment, which can custom-manufacture boxes to fit each individual order size. Advantages of this technology include reduced warehouse space for premade boxes, lower shipping costs, reduced corrugated and void fill usage, and greater protection for products that fit snugly in their shipping case.

There are currently several manufacturers of this equipment. For Newegg Inc., a consumer electronics e-commerce company based in City of Industry, CA, the best solution was Packsize’s On Demand Packaging® system.

Established in 2001, Newegg offers close to 10 million consumer electronics products, with 50,000 stocked in its warehouses, and the rest offered through its market-based channels. According to Jeffrey Zeng, Senior Director of Corporate Engineering, Logistics Department for Newegg, since its launch, the company has differentiated itself through efficiency and customer service. With strategically located facilities throughout the country, Newegg can provide two-day shipping to more than 90% of the U.S. and Canada and offers will-call and various pick-up options. It also ships to more than 50 countries.

“We offer a lot of unique products with competitive pricing in the IT categories, because we are a destination for people who are either building a computer or are geeks or gamers. They want the latest and the greatest,” says Zeng. “Beyond that, we’re selling some of the same products at the same price as our competitors, so supply chain becomes the differentiator. Therefore, we focus a lot on supply chain efficiencies as well as on being very customer-centric.”

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