Author: tdavis@insitepackaging.com

Procter & Gamble Earns Spot on the EPA’s 2018 Green Power Leaders List

Posted on by tdavis@insitepackaging.com

Just like every other player in the greater Consumer Packaged Goods (CPG) industry, when Procter & Gamble (P&G) does anything, we sit up and pay attention. In the beginning of October 2018, the United States Environmental Protection Agency (EPA) presented their 18th annual Green Power Leadership Awards at the Renewable Energy Markets Conference. Ten Green Power Partners were recognized across the country, including CPG giant P&G.

As a player within the secondary packaging automation portion of the CPG industry, we’re always keeping an eye on what’s happening with those around us. We take pride in staying well informed and acting as a trusted source of news and information for many. This week, we’re diving into the 2018 Green Power Leaders list and the EPA.

What is the Green Power Leaders List

For the past 18 years, the EPA has handed out yearly awards for excellence in three categories:

  • Excellence in Green Power Use
  • Green Power Partner of the Year
  • Direct Project Engagement

Typically, at the same event, the Center for Resource Solutions (CRS) jointly hands out a few awards of its own within the following categories:

  • Green Power Market Development
  • International Green Power Market Development
  • Leadership in Green Power Education
  • Green Power Leader of the Year

The Green Power Leaders List is a way of recognizing companies that are striving to advance the nation’s voluntary green power market. According to the EPA, the deeds that can gain a coveted spot on this prestigious list can range from using enough green power to meet 100 percent of electricity needs to signing long-term contracts that enable new green power project development.

At this year’s event, Procter & Gamble took home an award for Direct Project Engagement after procuring 743 million kilowatt-hours of green power annually utilizing supply options, including onsite biomass PPA, a financial wind PPA, wind REC contracts and on-site solar generation.

When asked about 2018’s winners, EPA Assistant Administrator for Air and Radiation Bill Wehrum had this to say about the victors, “The 2018 Green Power Leadership Award winners have proven real leadership, demonstrating to American businesses that through their investments they can together not only grow America’s renewable energy market, but also reduce air emissions and protect the environment.”

Greater Ramifications of Winning a Spot on the EPA’s 2018 Green Power Leaders List

Procter & Gamble won the 2017 Climate Leadership Award: Organizational Leader from the EPA as well due to their active leadership within the industry to address climate change and reduce greenhouse gas emissions. Winning an EPA award consecutive years comes as no surprise as P&G continues to buckle down on their existing eco-friendly initiatives and instigate new programs.

Gaining public favor through green initiatives has been a trend of the past few years and will surely continue into the foreseeable future. But what results are corporations seeing come of this globally conscious shift? For some; the answer has been increased revenue.

In a 2015 Nielsen report, it was found that overall, consumers were willing to pay extra for sustainability and peace of mind. Millennials, in particular, were shown to place a higher value on this factor than any other demographic while shopping. In fact, 73 percent of Millennials indicated that they were willing to pay more for sustainable goods.

A 2018 study conducted by The Shelton Group showed a staggering 90% of millennials indicated that they would buy from a brand whose social and environmental practices they trusted. Furthermore, 95% of respondents said that they would proceed to recommend these brands to a friend.

Considering that Millennials spend around $600 billion per year, the question is no longer if a company can afford to become eco-friendly. The question now is, can a company afford not to become more eco-friendly?

Stay up With all the Latest News from INSITE

The passion to share our insights about the greater CPG industry is in our name. If you’re ever searching for information about secondary packing automation or the CPG industry at large, know that you can always turn to INSITE for our well-informed insights. Pun intended. If you’d like to discuss ways to modify your current production configuration to better suit your company’s goals, don’t hesitate to give us a call today.

3 Predictions for the CPG Industry in 2019

Posted on by tdavis@insitepackaging.com

Over the past 12 months, as an industry, we have all learned and grown collectively. At INSITE, we’ve grown exponentially. 2018 was a big year for us. We added a new logo to our marketing portfolio and presented at a major trade show for the first time. In fact; we’re still recovering from that last one. Pack Expo 2018 was a whirlwind. We chose to use the event as an unveiling of sorts for us. We took the opportunity to fully display our products, technologies and business and interact with the greater consumer packaged goods (CPG) industry under the newly refreshed name of our somewhat young brand.

Now we’re looking to the future to see what the industry at large has in store for us. From now until the end of 2019, there will be any number of advancements or setbacks that end up affecting secondary packaging automation and the greater CPG industry. But nonetheless, here are our predictions for the CPG industry in 2019.

Online Ordering will Continue to Grow

The days of expecting consumers to venture to the store to purchase their favorite consumer packaged goods are dwindling. A recent Digital Readiness Assessment fielded by Nielsen and Food Marketing Institute (FMI) has brought some startling conclusions to light; those within the greater CPG industry need to be aware.

Back in 2016, it was predicted that online food retailing would reach its saturation point within the next 10 years. But 2017 showed this to not be the case any longer. With the digital boom of meal subscription and to-door delivery services, a new estimate has been crafted stating that market saturation will be a reality in as little as five years. Within those same five years, it has been forecasted that up to 70% of U.S. consumers will regularly purchase consumer packaged goods online.

With this influx of online ordering predicted to sweep the nation, secondary packaging manufactures, ourselves included, may see an increase in demand as more and more retailers and goods providers seek to match a growing order fulfillment demand.

Groceries Will Be one of the Largest, and Last, eCommerce Giants

As discussed above, online shopping is a trend that is here to stay. This shift in customer demand has been called the last great ecommerce wave by many industry experts. After Amazon acquired Whole Foods in 2017 for $13.7 billion dollars, the online retail giant’s grocery division became its strongest performer in 2018; followed by health, personal care and beauty, furniture and home furnishings, and apparel and accessories. The new division, Amazon Fresh, which brings fresh produce to consumers with the click of a mouse, is only predicted to see positive gains in the coming years.

Amazon is not alone in its pursuit of a digital-first grocery experience. Target, Walmart and Kroger have all rolled out grocery delivery services to try to claim a piece of the market’s current infatuation with online ordering for their fresh and shelf-stable goods.

Green Initiatives will Stay a Matter of Public Interest

10 years ago, if you had told the average consumer that a CPG manufacturer was now using a corrugated material composed of 20% recycled material, you would have received a blank look in return. In 2018 however, consumers put more pressure on the brands they love to embrace eco-friendly best practices. This is a trend that we see greatly impacting the 2019 marketplace.

We saw this trend reflected in Unilever’s recent acquisition of Equilibra as well as the unveiling or revamping of numerous green initiatives throughout the greater CPG industry. From Pepsico to Nestle, nearly every major player has made some kind of pledge to help reduce their footprint on our planet; and consumers are taking notice. When it became clear that plastic straws were drastically contributing to declining oceanic conditions, Starbucks was quick to adopt recyclable plastic lids for all of their cold beverages.

Many packing manufactures are now being forced to create machinery and processes that can handle the new, modern mediums needed to create more eco-friendly packaging. Secondary packaging manufacturers who think that the public’s reinvested interest in the state of our planet is a passing fad may soon find themselves in hot water as their clients demand machinery that is capable of handling a wider portfolio of materials.

Prepare for the Future with INSITE

Whether you’re planning for 2019 or 2091, at INSITE, we want to help. We’re passionate about helping our clients succeed through innovative secondary packaging automation solutions. Our machines are easy to use and ready to go right out of the box. Don’t get stuck wasting time trying to figure out a new floor full of overly complex machinery, give us a call today and get a jump on your future preparations.

The Future of AR in Manufacturing and Secondary Packaging Automation

Posted on by tdavis@insitepackaging.com

Recently, we wrote a piece exploring the topic of virtual reality (VR) in manufacturing and secondary packaging automation, wherein we discussed the exciting ways in which virtual reality is shaping the greater consumer packaged goods industry. Within the piece, we briefly talked about virtual reality’s cousin, augmented reality (AR), and promised an in-depth discussion of this topic in the future. Well, there’s no time like the present. And the future is now, so, today we’re diving into the world of augmented reality in manufacturing and secondary packaging automation.

Much like VR, AR is a term that you’ve undoubtedly been hearing in increasing regularity over the past couple of years. What first began as a technology that only existed in video games and movies is now a tool that is helping to shape the future of consumer packaged goods CPG) and secondary packaging automation.

At INSITE, we’re always investigating the newest advancements to enter our field. We take pride in embracing change to benefit our team and our customers. Lately, our team has been hard at work diving into the intricacies of AR and all this technology has to offer the secondary packing automation industry. In our investigation of this fascinating topic, we found quite a few facts and data points that we believe will help others within our industry.

What is Augmented Reality?

In 2016 a funny game called Pokémon Go took the world by storm. Swarms of teens and young adults, maybe a few adults as well, took to the streets holding their phones in front of their faces as they threw invisible Poké Balls at fictional Pokémon.

The game was simple: walk around with your cell phone on while staring at your screen. When you were notified that you had reached an area with a Pokémon, lift your phone and try to “capture” the augmented Pokémon that was being projected into your reality via your phone screen with your available Poké Balls.

While most within the secondary packaging automation and consumer packaged goods industries most likely were not swept up in the Pokémon Go fever, you most likely knew someone that was. A daughter, sister, nephew or grandchild? Pokémon Go is a prime example of augmented reality and the technology’s potential to shape our future.

At its core, augmented reality is what results from superimposing data, such as sounds, images, and text, over the existing world. Technically, versions of augmented reality have been present in our culture for decades. In the 1990s, fighter aircrafts used heads-up displays to track attitude, direction and speed of their planes. In 2013 Google unveiled the Google Glass, their first crack at making wearable AR tech. They later pulled the devices in 2015.

But since that time, AR has come very far. No longer is the technology limited to military use or unique looking glasses. AR is making a very real difference in many lives and industries around the world every day. Including the CPG industry.

Augmented Reality Vs. Virtual Reality

You may be wondering what the differences are between augmented and virtual reality. To put it simply: virtual reality (VR) exists within its own world, while augmented reality (AR) lives within our world.

While both technologies have the capability to alter our perception of the world, VR takes us somewhere else while AR adds to our current world. With VR, you could wear a headset and be instantly transported to the top of Mount Rushmore. With AR, you could pull up your phone and point it at Mount Rushmore and get real-time stats such as measurements, temperature readings, or trail projections superimposed over what you’re seeing as you see it. One is a copy of the real thing, and the other is an enhancement of the real thing.

Why Industry Experts are Turning to AR Technology

While learning about Mount Rushmore and catching Pokémon can be entertaining, what use is AR in relation to secondary packaging automation?

At this year’s Rockwell Automation Fair, augmented reality was a hot topic. It was at this conference that Harpak-ULMA joined the Rockwell Automation PartnerNetwork program as an OEM Machine Builder. With the addition of the augmented reality capabilities of PTC, ULMA was able to demonstrate a proprietary AR app which guided employees through maintenance or production activities through 3D step-by-step work instructions using available tablets, smartphones or glasses.

Harpak-ULMA’s CEO, Kevin Roach had this to say about the potential of AR within the packaging sector, “IoT, AI, machine learning, big data, predictive maintenance, and augmented reality are just a few of the ways that connected machines promise to improve packaging operations and reduce total cost of ownership but realizing those benefits will require nothing short of rethinking packaging automation. By forging closer ties with Rockwell Automation and PTC, we can create innovative solutions and deliver them faster than any company can working independently.”

AR is now widely viewed as the ideal way to meet customer demand while keeping operating costs low. This is especially true when it comes to the rise in demand for fresh, sustainable, and convenience items, such as grocery delivery services or subscription box programs.

The Future of AR in Manufacturing and Secondary Packaging Automation

From training to order fulfillment, augmented reality is poised to make a major impact on the greater consumer packaged goods industry. Recently, a Global Market Insights report estimated the compound annual growth rate for AR between the present and 2024 at 65%. Experts believe that industrial applications will be the next wave of evolution for the growing AR sector, and we’re inclined to agree with them.

At INSITE, we pride ourselves on our dedication to staying on top of the latest trends and advancements within secondary packaging automation. We can’t wait to see how augmented reality may end up playing a part in the workings of our case erectors and sealers. Make sure to keep an eye on our blog for future updates on their exciting topic.

3 Factors That May Be Limiting Your Small Business Production Output

Posted on by tdavis@insitepackaging.com

As a small business, each and every decision you make has the potential to leave a lasting impression on your business. New labels can increase customer loyalty while a bad ecommerce website can drive away potential business. You don’t have lots of time or money to invest over and over again until you get things right; you want to know that when you do decide to go in on an update to your business, that change will have a lasting positive impact on your business.

At INSITE, we work with companies large and small to optimize their packaging processes through case erectors and sealers. With machines that are ready to go straight off the shelf and out of the box, you won’t need to spend endless time assembling or finessing our machinery. We take pride in making packaging solutions that just work; period.

Some small businesses don’t even know that industrial packing solutions exist, or even if one is right for their business. This mindset is not uncommon; nor are any of the other factors that we frequently find limiting the production output of our customers listed below.

Limited Space

Sometimes the sentimental value of a location can cloud our mind when it comes to the practicalities of running a business. And while it’s easy to say that you should simply move when you run out of space at your current location, there are many factors that may trip you up. The first is emotional. Don’t discredit this point, because when you approach the idea of moving out of the warehouse your parents bought years ago or the one you bought when you first opened your business, even the most calculating individuals may find themselves hesitant.  

Even if you can leave emotion out of the decision, moving is a huge undertaking no matter how you slice it. From rerouting your supplies to physically changing location, moving your production center can seem like more trouble than it’s worth. But trust us; it’s not. A lack of space is one of the most common traits that hold back small businesses when everything else is going right. You’ve paid your dues and now there’s more demand than ever for your products or services, but if you don’t have the physical space to keep up with these new demands, stock your supplies, and house your employees then all the sales in the world won’t matter.

An Understaffed Production Setup

You’ve been working hard and have brought your company up from nothing. Orders are pouring in, you’ve recently converted some old offices to expand your manufacturing floor, yet production fails to increase. Why? It could be as simple as being understaffed.

We understand the frustrations that come with a transient workforce; it can be expensive and time-consuming to train them when you know that you’ll only be able to cash in on that training for a very limited amount of time. But the solution shouldn’t be to limit your dependability on additional help. There are smart ways to optimize your workforce while still keeping everyone safe and well trained, more on which we’ll go into later.

The key when working with outsourced, internal, full-time, part-time, or seasonal help is to work smarter–not harder. That’s why we make our machines easy to use and learn. Minimal training is needed to work our erectors and sealers, making them a popular choice for businesses with a high employee turnover rate.

If you’re looking for staffing help Business.com has some great tips for determining how many employees your small business really needs and Forbes offers some helpful insights when it comes to small business employee training.

Failure to Automate Systems

As a small business, you’re most likely familiar with doing things yourself. Whether you make candles or eco-friendly cleaning supplies, you created your first product with insight, ingenuity, creativity, and most likely by hand. If you’re reading this article then you’ve done something right and demand for your products has risen.

One of the most common issues we see when interacting with small businesses is a lack of automation. From machinery to digital processes, some believe that automation lessens the value or care that goes into making a product, but nothing could be further from the truth.

By utilizing automated systems you give yourself and your team the opportunity to focus primarily on the product itself as opposed to all the little things that can get in your way. Some prime examples would be a digital tracking tool to let you know when supplies are getting low and automatically place orders for you. If you have a team member whose only job has become erecting boxes, sealing them, and then loading them onto a pallet, there’s a lot of room for improvement in his or her daily duties, and that improvement could be a case erector or sealer.

Small businesses who work in consumer packaged goods often overlook the “small things” when trying to optimize their production output. But erecting the boxes that transport your packaged goods to their final destination is by no means a “small thing.” Automating your end of line production process can save you time and money. Our E20G and E20T erectors can process 130 cases in under seven minutes, while our E30G and E30T configurations can handle 190.

Keep Your Small Business on Track with INSITE

If you’re looking for ways to increase your production output in your small business, INSITE can help. With easy to use case erectors and sealers, we can help you to automate your end of line process. If you’d like to learn more about how INSITE can help your business to succeed give us a call today.

The Impact of Next-Day Delivery on the CPG and Corrugated Cardboard Industries

Posted on by tdavis@insitepackaging.com

Consumer expectations have changed drastically in the past few years, especially when it comes to delivery services. First, USPS, and then private companies like UPS and FedEx, provided reliable home delivery for CPG and purchased items. After Amazon’s formidable rise to e-commerce power by late 1997, home deliveries increased both in speed and frequency. To outshine the competition and meet evolving consumer needs, Amazon debuted its next-day delivery service, Amazon Prime, in 2005. Thanks in part to that unique offer, Amazon now controls over 50 percent of all e-commerce trade—and that number is expected to keep rising. 

Today, more big brands are releasing their own take on same or next-day delivery services. Designed both to compete with Amazon and to capture the booming business of e-commerce shoppers, next-day delivery is prompting a significant shift in the CPG and corrugated cardboard industries. Will these changes have staying power? And if so, what do they mean for the future of packaging?

Emerging Delivery Services

As high as 90 percent of online retailers now offer next-day delivery. Among the increasing number of national brands jumping on the speedy delivery service bandwagon are household names like Walmart, Sam’s Club, Whole Foods, and Target. Requiring either a specific order minimum or a subscription, these companies are beginning to offer home delivery as quickly as within one hour after purchase. Although most companies aren’t yet offering nationwide delivery, beta-testing locations exist in many metropolitan areas throughout the United States. 

By shortening their delivery timeline to beat Amazon’s two-day Prime service, these brands hope to stay ahead of heightened consumer expectations. Offering swift delivery options or curbside pickup also provides supporting income for brick-and-mortar stores by doubling those locations as shipping hubs for e-commerce purchases. 

Utilizing next day delivery does offer some advantages over the strictly-online Amazon. Walmart, for example, has over 4,700 stores throughout the U.S. Shipping e-commerce purchases from those locations—rather than from Amazon’s regional hubs—helps to keep both shipping costs and delivery time to a minimum. 

The Impact of Next-Day Delivery

As consumers rely more heavily on the direct delivery of products, brands are becoming more efficient at meeting these expectations. However, the increasing use of next-day or faster delivery options brings its own set of complications—for both manufacturers and consumers. Understanding these challenges and how CPG and corrugated cardboard providers should adapt as a result, is crucial to success.

New Consumer Expectations

Thanks to the ease provided by Amazon Prime, many consumers expect all e-commerce products—even those ordered through alternate providers—to ship promptly, track effectively, and deliver quickly. Although most customers are willing to wait a few extra days for the right product or particular order, independent brands and small businesses can struggle to keep up with the high demands. 

If expected shipping timelines can’t be met, consumers are more likely to return to sources like Amazon for their purchases. To combat this, CPG brands should rethink their product delivery funnels to prioritize consumer convenience. If you can’t offer next-day shipping, what other unique value can you bring?

Higher Environmental Impact

While online shopping is both convenient and fast, its impact on the environment leaves much to be desired. Research shows that retail and e-commerce transportation is the current leading contributor to carbon emissions. Fast shipping of an increased product range also compromises sustainability efforts. While traditional shopping allows multiple items to be packed in the same box or bag, the ease of online shopping encourages consumers to buy things in smaller quantities, and individual purchases require their own boxes. To adapt, CPG brands should continuously monitor their consumer base and its purchasing habits to see where consolidation and conservation efforts can be maximized.

Increased Demand for Corrugate

Shipping products requires corrugated boxes and filler materials. As online shopping and next-day deliveries increase, more cartons are needed to transport these orders. As the corrugated market continues to see increased demand, CPG brands must be prepared. Make sure your product packaging and transportation processes are streamlined to help keep costs low. This allows you to funnel more resources to other parts of your budget, like increasing inventory to meet more orders, or creating better shipping services to cut down on transit time.

Get More, Waste Less With INSITE

Next-day delivery continues to raise consumer expectations, create a more damaging environmental footprint, and demand more from CPG manufacturers and product marketers. To combat these increases—and still see a return on your investment—it’s vital to work smarter. Part of this strategy involves partnering with the right packaging automation partner. 

INSITE’s thoughtfully-designed case erectors and case sealers are designed to provide exceptional standardized packaging equipment while minimizing waste and operator risk. If you aren’t sure that your current packaging partner is prepared to help you capitalize on the opportunities next-day delivery provides, contact us today.

Hello. (And 3 Reasons to Visit us Again)

Posted on by tdavis@insitepackaging.com

 

Welcome to INSITE’s blog. We like packaging equipment. And we really like packaging equipment when we can figure out ways to infuse it with fresh thinking and new technologies so your job becomes easier than it was before. Note the emphasis on the words ‘your job.’

We’re starting this business around a couple of radically re-conceived case erectors and a case sealer, but our products won’t be the focus. Yes, since we sell them they might come up from time to time, but we’re not going to dwell on them. We know this industry, so we recognize that our equipment represents just a sliver of the larger ‘packaged goods’ world you work in. At the end of the day, that’s really our only promise for this tiny corner of the web; we’ll use this space to riff on whatever moves us, so long as we think it will also move you (or your packaged products).

But we do think there are a few good reasons to come back later and check us out…

#1. We’ll Be Fresh

There are plenty of places on our site to go on and on about our case erectors and case sealers—and to wax poetic about INSITE’s role as a premier packaging equipment supplier. So we won’t do that here. If that’s all we did there wouldn’t be much point to this blog because, aside from Google’s algorithm, no one would read it. So we’re going to look for other fun stuff to dwell on and write about. Things we think will interest you. Lucky for us, and you, we happen to design and build packaging machines for one of the biggest and most exciting industries in the world.

The consumer packaged goods (CPG) industry impacts over 10% of the world’s $75+ trillion “gross world product,” which is a global version of the more familiar “gross domestic product.” That’s around $8 trillion in global value generated each year by CPG. By 2025, that number will approach $14 trillion. So it’s safe to say that our favorite industry has some serious global impact.

Here in the United States, that impact is tangible for all of us. Each year, over two million jobs and 30,000 communities are directly impacted by CPG manufacturing. Another nine million jobs become relevant when you consider the indirect influences on farmers and workers throughout the supply chain. And most tangible of all? Every one of us, to one degree or another, is a consumer of CPG products.

While selling packaging machines or case erectors is a relatively small segment by itself, it’s a part of something that’s big and important for all of us. Guess we won’t have to look too hard for important and fresh things to write about, will we?

And don’t worry, we’ll still find ways to sprinkle in a few references to automated packaging equipment, case sealers and case erectors. After all, we’re in the business of designing and producing the best and most reliable packaging machines—it would be foolish not to bring it up at all, wouldn’t it?

#2. We’ll Be Consistent

Our fearless search engine gurus tell us that consistency is key. Consistently publish four times per month, to be exact. Okay, fine. But pleasing the search engines is one thing. Pleasing our customers—our readers—is another. Search traffic isn’t effective if you’re duped into visiting a site that ultimately disappoints.

So we’re going to do our own thing. We’re going to post four times per month, but not because the SEO folks tell us to—because we want to. We’re committed to four entries per month because we want to be there for you, every time you visit, with content that’s as fresh and exciting as our case erecting equipment. (That, and even though we don’t need to please the search engines, we don’t need to irritate them, either.)

#3. We’ll Be About You

You visit sites that interest you. We know that. We respect that. And we’ll honor that here by trying to cover topics that we think you’ll find interesting, or refreshing, or both. As promised above, our topics will range far and wide, beyond our little corner of erectors, sealers and other standardized packaging equipment. After all, given its breadth, there are few places the CPG industry can’t take us. But rather than subject you to an unfiltered spray of topics, we’ll constantly try to look at this massive industry through your lens.

If you’re a buyer responsible for large capital expenditure projects involving packaging machinery, we’ll try to speak to you about that process, how we might help, and–if justifiable–how our automated packaging equipment might benefit you.

If you’re an engineer looking for a better and more reliable way to use packaging automation to move your product from one end of the packaging line to the other, we’ll try to speak to you, too. Sure, that could be our machines. But it could also be techniques, best practices, or methods. Maybe even some “don’t dos” to round out the offering.

And if you’re a buyer or an owner that just wants the best case erector value your money can buy, you can bet we’ll have some posts for you.

Grow Your Knowledge With INSITE

Whatever your role, if you’re in the CPG industry and working with automated packaging equipment on a regular basis, we’re dedicated to posting content that you find interesting, informative, and fun. And if, by some strange twist of fate, you decide that one of INSITE’s case formers or case sealers belongs on your factory floor… well, it would be irresponsible of us not to help.

 

1.McKinsey & Company, Three Myths About Growth in Consumer Packaged Goods, June 2015
2.Grocery Manufacturers Association, Economic Impact of Consumer Packaged Goods (CPG) Industry, www.gmaonline.org