As packaging manager, Faes will optimize all packaging flows at the innovative Brainport Industries Campus. Director Johan Faes explains why this 4PP approach will greatly benefit the companies on the campus:
To begin, let me further explain the term 4PP. 4th Party Packaging is a logical addition to 4th Party Logistics, 4PL. This supply chain director manages all logistics flows in the supply chain and is the point of contact for all logistics activities. However, packaging is not part of 4PL’s scope. Not surprisingly, because packaging solutions are a speciality, as we at Faes know better than anyone.
This is why we are introducing 4PP, a directorial role that is right up our alley as packaging experts. We direct all packaging flows and optimize the total range of packaging and carriers on campus. The ultimate result is an assortment that is as compact as possible and provides optimum protection for every product. Because the right packaging makes it so much easier to optimize the entire logistics process.
We do this as a partner in a consortium; the ICT is in the hands of IJssel Technologies and the role of 4PL lies with Rubix (after BT Brammer the new name of Biesheuvel Techniek). As far as I am concerned, there is no better place to put the 4PP approach into practice than the Factory of the Future, as the Campus is also called. After all, everything there is about collaboration and innovation. The companies in the high-tech manufacturing industry join forces on innovative projects and supply each other with parts for further processing or transformation.
These companies also share facilities such as clean rooms, flexible production areas, warehouses and other advanced facilities. A joint packaging manager is almost a prerequisite if you want to achieve economies of scale together, optimize customer satisfaction and streamline the entire logistics process. Moreover, 4PP fits perfectly into the trend of servitization, or unburdening. Increasingly, you see non-core activities moving up the chain from the customer to the supplier. Packaging is a typical non-core activity, so why not outsource that care to a specialized party?
On the campus we have a complete picture of all information flows in the chain, so we can ensure the right packaging or carrier at the right place at the right time. Of course it’s a complex puzzle, but we don’t shy away from that with our ICT solution PackAssist. We are building a uniform packaging range with as few different packages and carriers as possible for the entire supply chain. But with packaging that matches the formats of the product as closely as possible. And that fit perfectly on the various carriers (from AGVs to pallets, boxes, crates and roll containers) for optimal logistics handling. The synergy and purchasing advantages we achieve in this way are something companies never achieve on their own.
All products produced, processed, handled and transported on campus are linked to the best possible internal and/or external packaging in our PackAssist database. Size, packaging requirements, reusable or disposable, all details are known. We have insight into all the companies’ order flows. If a product is ordered, we know before the customer which packaging should be in stock for it. And we make sure of that, so that the customer does not miss out on packaging further on in the order process. All packaging is delivered just-in-time, which also reduces inventory costs. We can also ensure that parts purchased anywhere in the world arrive in the correct packaging.
Do you know that there are companies where 350 men are working daily to repack incoming packages? Because they are packed per 10 as standard but the company prefers to pack them by the piece? That’s unbelievable, isn’t it? So we don’t let that happen on campus.
One of the biggest benefits to the supply chain is to be gained in customer satisfaction. Nothing is more devastating to customer satisfaction than a product that arrives at its destination defective; Defect on Arrival (DOA) is the recipient’s biggest annoyance. The customer wants convenience and has high expectations. The supplier should relieve the customer and get ahead of problems. That’s where 4PP and PackAssist come in. With the right packaging, products arrive first time right. In addition to satisfied customers, this also results in immediate cost savings. Because the activity-based costing associated with DOA is huge.
At Faes, we have been convinced for years: 4PP has nothing but advantages to offer the supply chain. The right packaging assortment combined with the right control ensures satisfied customers, saves costs and makes the logistics process truly optimal. We are proud that the frontrunners at the Brainport Industries Campus share this vision with us and confidently outsource their packaging management to us.
Read more about the latest developments at the Brainport Industries Campus here.
Curious? Everyone is welcome to come and get inspired at the Brainport Industrie Campus! Do you have another question? Leave it in the form below and one of our packaging experts will contact you soon. Of course, you can also call or email us directly.
