What's the value?

“What’s the value we are giving to our customer?” This was a phrase repeated several times by Andrew Allsop, General Manager – Industrial at Integrated Packaging, when the company opened its doors to a group from Australian Institute of Packaging in the Melbourne suburb of Reservoir.

Just two pages on from the word “integrated” in the dictionary is the word “interesting”. The visit was most interesting. We toured Integrated Packaging’s Reservoir manufacturing facility and were shown the blown extrusion process and film converting processes.

In addition to Integrated Packaging, which specialises in the manufacture and conversion and supply of polyethylene film products, the group also includes Integrated Machinery, which builds, assembles and supplies wrapping machines, and Integrated Recycling, which manufactures timber replacement products based on recycled plastic.

The company is Australian based, with plants at Reservoir in Victoria, Chester Hill and Kirrawee in NSW and Kewdale in WA. Integrated Packaging also has one plant in New Zealand and distribution arrangements in North America. Complementary products, particularly for their agricultural and industrial clients, are sourced from Asia and Europe.

The company was formed in 1982 and has arrived at its current position by targeting strategically attractive markets and by the acquisition of complementary businesses. Acquisitions commenced in 2009 with the purchase of Amcor Flexibles Kewdale and continued more recently in 2013 with the takeover of three sites previously owned by Aperio Group.

It is clear that a determined focus on customer service underpins the growth and development of new products.

The company has embraced automation but remains reliant on over 400 people to manufacture its products and service its extensive customer base. It was explained that 50 staff are customer service and sales personnel working in the marketplace here and in New Zealand. This commitment to customer focus sees Integrated Packaging continuing to grow its sales base.

In addition to its industrial customer base, Integrated Packaging has a large and growing agricultural customer base. The biggest product in Integrated Packaging’s agricultural product portfolio is silage wrap, which is sold under the Silawrap brand. Silawrap is used to conserve fodder and dairy farmers are big end users of the product.

The vagaries of agriculture were highlighted as the process of manufacturing silage wrap was explained. Reminiscent of Dorothea Mackellar’s poem, droughts and flooding rain clearly impact on production planning. The short season in which silage is produced requires a significant pre-building of inventory.

The demand for Silawrap is dependent on seasonal conditions. Film is produced and then stored until customers’ orders are received. Integrated Packaging runs warehouses in rural centres as well as in all capital cities to ensure customers have access to inventory just when they need it. Integrated Packaging works closely with customers on forecasting demand so that the right inventory is in the right place at the right time to maximise service while minimising cost.

Observing Integrated Packaging’s process was very interesting. Resin is imported in containers, delivered to site for storage in silos and then extruded into film.

One unique development is the range of Maxi hand-wrapping rolls. The film is wound into a soft roll. The Maxi stretch film overcomes some of the loss of product and production time when harder film is damaged, particularly around the edges. Maxi film is particularly popular in cold stores and distribution centres.

We also visited the Integrated Machinery factory where stretch wrap machines are manufactured. Integrated Machinery has a range of machines, starting with friction brake semiautomatic through to semiautomatic lines with a full range of features such as remote control activation and sealed tails. Integrated Machinery can also design, build and install fully automatic stretch wrapping lines, including inbound and outbound conveyors.

Integrated Machinery has a demonstration area where the machines are programmed and customers test the machines before the unit is installed and put to work. The company has recently developed a machine to stretch wrap pallets to comply with what is called the ‘Woolworths Model’. Nothing remains exposed around the base of the pallet that can cause a non-compliance and rejection of the packed pallet.

At Integrated Machinery, general manager Samantha Saunders demonstrated the latest inline stretch wrapping machines.

On the site we saw obvious proof that the company not only talks the talk but walks the walk. Everywhere we walked we were guided by bollards and fencing made of recycled plastic and supplied by Integrated Recycling. Some pallet loads ready for dispatch had recycled boards used to hold the unit load secure and it was advised that this material stands up to the journey better than timber boards.

An adjournment was called and a sandwich lunch was provided. They had been kept fresh by the application of a stretch PVC film. This was a further opportunity for visitors to talk with management and staff of Integrated Packaging. At the conclusion, Dr Carole Lawrence FAIP thanked our hosts and made a small presentation of appreciation.

As we drove off to our next appointment, stretch film packaging remained uppermost in our minds, particularly developments that are happening right now in the food and beverage sector, and we continued to consider the question “What’s the value we are giving our customer?”

It is not just film or price but exceptional personal service.

Image credit: ©Mediagram/Dollar Photo Club