Jewelry Television Adds Sparkle to Operations with Automated Packaging System

Transcription

1 Jewelry Television Adds Sparkle to Operations with Automated Packaging System Knoxville, Tennessee-based Jewelry Television sells more gemstones than any other company worldwide. With jewelry and gemstone shipments exceeding 5.5 million orders per year, this also means JTV had to choose the right packaging partner. When significant business growth resulted in the opening of a new distribution center, JTV took the initiative to review facility operations and seek greater efficiency. A chief concern during the transition to the new distribution center was implementing an automated packaging system that would meet the company s needs to better handle the high order volume that came with such success. By enlisting the help of Sealed Air and implementing Sealed Air s PriorityPak automated packaging system, JTV has increased efficiency while maintaining a superior level of reliability that results in the successful and secure arrival of products to their customers doorstep. An Evolution to Jewelry Giant Jewelry Television evolved in a relatively short time from a small enterprise known in the early 1990s as America's Collectibles Network into one of the leading retailers of fine jewelry in the United States. Broadcasting its first live show on October 15, 1993, JTV initially offered items such as collectible coins, knives, quilts and skin care products. After a decade of successful broadcast and online sales, the company made the decision to focus on offering fine jewelry, gemstones and gemstone-related products at reasonable prices becoming the first television shopping network to make this commitment. A Priority on Packaging The importance of choosing the appropriate packaging system is underscored by JTV s business model, which depends upon successful delivery of products directly to the customer. With purchases made via phone or internet, typically by those watching the company s television channel, there is limited face-to-face customer interaction. As a result, a significant portion of the customer experience rests on JTV s ability to fulfill orders quickly, securely and accurately. 1

2 It would be nearly impossible to overstate the importance to our company of a reliable packaging solutions partner, said Chris West, Vice President of Logistics, JTV. We don t have a brick-and-mortar presence, so every item we sell is shipped. Getting those items safely and securely from our warehouse to their final destinations in a timely manner is critical to the success of our company. With packaging serving such an important role in the JTV customer experience, the decision to implement a new packaging format involved a deliberate process. Research and development analyst Shannon Meade examined a number of options, narrowing the decision to a small group of contenders he felt had the potential to serve the company s needs. One of these was the Sealed Air PriorityPak packaging system which offers a fully automated solution ideal for businesses that experience a fluctuation in volume and variation in packaging requirements such as variably sized items. Combining high-speed product containment and protective packaging with advanced sensor technology, the system creates a complete containment package in just one step. With the product transported via belt drive into the system, two rollers compress two layers of cohesive corrugated or laminate material around the item, suspending and protecting the item in the middle of the package. The proven Sealed Air Cold Seal process seals the edges and locks items in place for a secure and tight fit. Products emerge centered, protected and ready to ship. To evaluate the considered packaging formats, a series of tests were completed prior to Meade s final recommendation to the company s management team to make the switch. The first test for the Sealed Air PriorityPak system was conducted in Sealed Air s package design center in Ayer, Massachusetts. JTV provided a variety of products that the Sealed Air team packaged on a PriorityPak system. Products were then shipped from Massachusetts to JTV in Knoxville, TN. Upon satisfactory review of the packages look and performance potential, the next step was to utilize Sealed Air s PriorityPak system for a trial run by packaging multiple shipments of product ordered by JTV customers. With the tests completed and items being processed, packaged and securely delivered to customers, the decision was made to install five Sealed Air PriorityPak systems in the company s new fulfillment and distribution facility in May

3 We were looking for an automated packaging system that could increase package throughput and operational efficiencies, however the package also had to offer proven protection and ease of opening for a wide variety of customers, said West. The PriorityPak system does all of those things. A Perfect Fit Since Jewelry Television installed its first PriorityPak system, Meade has seen Sealed Air provide continuous improvement and support. He considers PriorityPak to be one of the most compact and easy-to-use automated systems in the industry. The equipment s compact footprint is an ideal fit for our Tennessee distribution center, and the performance of both the system and the package has reinforced that we made the right decision to partner with Sealed Air, said Meade. The changeover to Sealed Air s PriorityPak system added an increased level of automation to JTV s packaging operation, increasing efficiency and shortening cycle times significantly. Since implementing the system the company has seen an increase of 15 percent in package throughput, without the use of overtime hours or increased labor. Before and After Prior to the switch, the JTV packaging and shipping process was less efficient. Orders were picked by hand and sent to one of more than 60 individual shipping stations, each equipped with scales and multiple printers. Fulfillment depended on employees at shipping stations to scan tickets and place items on the scale manually, then print labels, place the product and invoice into a pre-made envelope and apply the shipping label to the envelope. The process offered limited verification and required a great deal of space dedicated to picking, packaging, labeling and shipping. With the current system employees allocate incoming orders, picked via RF device, to a tote. The tote is then placed onto a conveyor belt and scanned. Once the scan occurs, an invoice is printed and folded then inserted into the appropriate quadrant of the tote. Based on which quadrant contains the invoice, the tote is routed to one of four lanes in the JTV shipping department. At that time the invoice is scanned and all items are verified to ensure the correct items are being shipped. An agent then transfers the items into a presentation box. Once these 3

4 steps are complete, the agent places the totes on a line that routes to the PriorityPak system, where an operator removes the boxed item from the tote and places the item on the PriorityPak conveyor. The item emerges from the PriorityPak securely packaged, weighed, labeled and ready to ship. The Sealed Air PriorityPak system is also compatible with multiple material offerings, including the PriorityWrap Rigid Board material, which is a paper-based, corrugated material that closely hugs products forming a tighter, more secure custom package and reducing product movement during shipping compared to most pre-made envelopes. Implementing the system enabled JTV to switch from cases of pre-made envelopes to rolls of material formed to a custom fit. The material can also be recycled by the customer in standard recycling streams. Since system implementation, JTV has seen a significant cost savings and estimates an increase in productivity of at least 15 percent. The company says it took less than 12 months to see a full return on investment with the new PriorityPak system. Service After the Sale As you would expect, a customer service oriented business such as JTV appreciates the same from their partners. Meade says Sealed Air s service organization shares this focus on customer service. Sealed Air consulted directly alongside JTV s team during the installation of a custom solution on the Sealed Air PriorityPak system that assists with small item transfer. We couldn t be happier with our relationship with Sealed Air, he said. They go the extra mile, and have done so from our initial conversations up to the current day. Modifications we ve requested are quickly and professionally designed and implemented. They are invested in our success as a business, and that makes the ideal partner. Final Test, The Customer JTV customers are known for being loyal but discerning and highly vocal when it comes to the company s products and services, particularly in the rare event their experiences leave them anything short of completely satisfied. 4

5 The ultimate test for any change, be it packaging or otherwise, is what customers say after the change is implemented, said West. If customers were unsatisfied with the package, if items arrived in less than pristine condition and if they thought the package was hard to open, we d have known very quickly, he said. The packaging has exceeded our expectations and the compact equipment footprint and increased package throughput works well for our facility. It s a big win all the way around. High-volume businesses such as JTV can see great automation-related efficiencies by developing and implementing packaging systems solutions. However, each individual operation presents its own unique challenges and considerations. Choosing a packaging partner that offers a total systems approach and superior customer service can mitigate these challenges and ensure companies select the system that meets current needs while anticipating future opportunities. 5