Article: TRIO FINDS FULFILLING TUNE

Sealed Air and GRSI help cushion KOCH Entertainment's expansion into mail order music fulfillment.

In a business that, for the most part, is knee deep in its most challenging time, KOCH Entertainment continues to flourish as the market leader among independent music labels and distributors in both the U.S. and Canada (the world's largest and sixth largest music markets, respectively). Despite lackluster album sales for most of the recording industry due to rising competition from other mediums, KOCH's record labels continue to produce the largest number of Billboard charting albums among independent labels.

Having a packaging systems that integrates seamlessly with the Long Island, N.Y.-based music company's warehouse management system and gets individual shipments of CDs and DVDs out safely and on time is extremely important to Phil Wulff, senior vice president of logistics, and John Papazoros, senior director of distribution, for KOCH.

CLIMBING THE CHARTS
Beginning with the 2006 holiday season, KOCH began exploring the idea of expanding into mail order fulfillment. The nearly 20-year-old company viewed this part of its business as one with tremendous growth potential. Almost immediately, Wulff and Papazoros noticed these additional orders were causing backup at the bulk packaging station where they are packaged and shipped to customers.

"We needed to divide the packaging operation for individual mail orders and bulk orders so all of them could be packaged properly and shipped quickly," Papazoros says. "Sealed Air's PriorityPak systems provides an efficient method to package single unit orders for both domestic and international shipment."

JAZZING UP THE PACKAGING LINE
Wulff and Papazoros were introduced to the Dadbury, Conn.-based protective packaging manufacturer's PriorityPak automated packaging system be Glen Road Systems, Inc. (GRSI), a Conshohocken, Pa.-based company that specializes in integration services with automated packaging solutions. The PriorityPak system and and GRSI's FastTrak warehouse control system complemented each other quite well and created an ideal solution for KOCH.

"The key to the whole packaging process is integration," says Wulff. "We viewed a few other systems, but the PriorityPak system was the best solution to fit with the FastTrak software and our existing warehouse management system- which was an absolute must."

Measuring approximately 30 feet long, the total packaging solution consists of Sealed Air system and material handling automation components, which include auto feeders, scanners, a random barcode printer, an in-motion scale, a print-and-apply labeler and a sorter. Each of these machines interact and are controlled by the FastTrak system. The only customization needed to the PriorityPak system was a barcode inkjet printer and an extra scanner.

"The team from Sealed Air trained our staff on how to use the system and monitored the system to ensure it was running properly," says Papazoros. "But, honestly, there was not much training needed because the packaging system does all the work."

ROCKIN RESULTS
"The addition of the PriorityPak system allowed us to effectively take on a different side of the business," says Wulff. "There was consumer demand for something we could provide, but we didn't have the best packaging method for single-item shipments. Sealed Air and GRSI presented us with the perfect solution to our problem."

So perfect that the system cut order times in half and saved KOCH an estimated $90,000 in annual labor costs. "One thousand orders used to take two days from receipt of the order to it going out the door," explains Papazoros. "Now, every order placed ships the same day."

The company ships more than 3,000 mail order shipments per day and is able to package up to 1,200 individual packs per hour. The integrated system allows KOCH to package, weigh and label all individual mail orders in less than two hours. KOCH also receives improved customer satisfaction and minimal damage claims.

"The biggest complaint we hear is that the shipments arrive too fast," Wulff laughs. "Can you imagine that being a problem?"

HUMMING ALONG
KOCH uses a warehouse management system (WMS) to pick individual mail order shipments throughout the facility. For picking purposes, 100 individual orders are grouped into one batch. When those orders are ready to be packaged, the WMS separates each batch into single-order shipments.

"All we need to do is load a stack of CDs and DVDs onto the auto feeder and let the system do the rest-package, weigh and label," explains Wulff.

The smart-sensing technology on the PriorityPak system scans the item's dimensions and delivers the correct amount of the cold seal cohesive-coated PriorityWrap Rigid Board from the two supply rolls to the PriorityPak system. As the two sheets of Rigid Board are fed into the system, the product is captured between them, minimizing product shifting and provoding additional corner protection. The protective package locks and seals the product in place providing superior product protection from the rigors of shipping and handling.

The FastTrak system, which controls the other automated components, simultaneously scans the barcode on the item and assigns it to one of the printed random barcodes from the top web of the PriorityWrap Rigid Board. The packaged item then continues down the conveyor where it is scanned, weighed, labeled and sorted.

KOCH also uses Sealed Air Fill-Air Elite inflatable packaging systems for void-fill in packages with larger items that do not fit through the PriorityPak system, such as CD or DVD box-sets. The company ships approximately 2,500 packages a day using Fill-Air cushions and is very happy with the appearance and protection.

"The speed of the Fill-Air Elite system is faster than crumbled paper and protects the product from damage because it does not compress the way paper does," says Wulff. "Not to mention the presentation of the cushions looks nicer."

TUNING UP FOR THE FUTURE
As KOCH expands its business to take on new fulfillment opportunities, Wulff and Papazoros are expecting delivery of a second PriorityPak system to package larger items such as LP records and promotional materials, which are currently being outsourced.

"We are always looking into new ideas and trying to find the most cost-efficient solutions," concludes Wulff.

All mentions of PriorityPak, PriorityWrap, and Fill-Air are registered trademarks of Sealed Air Corporation.