Wired For The Future

Packaging companies reap the benefits from software designed to better manage their business/production processes from start to finish.

MOST OF TODAY'S successful packaging converters and printers have one thing in common: a modern business/production software solution. These software applications support companies with one plant or several, making it easy to manage current business and production processes from quotes through shipping, all the while increasing efficiency and adding dollars to the bottomline.

To get a better understanding of what today's business/production software can do for packaging companies, packagePRINTING recently spoke to several converters and printers about their success with some of the most popular systems on the market.

A need to centralize operations

Mebane Packaging, a division of Westvaco Corp., specializes in manufacturing folding cartons for the pharmaceutical industry. When Mebane began exploring its options for business/production management software, all seven of the company's plants were operating as separate entities.

However, with the implementation of Radius Solutions' PECAS Vision and the PECAS InterVision—both specifically designed for the commercial printing and packaging industries—Mebane was able to connect business between plants and also centralize operations, all with fewer resources.

The first step of Mebane's implementation process was to install the estimating, order handling, and financial accounts modules. The estimating module allows the company to compare the advantages of different layouts, materials, and routings to find the most cost-effective solution, which then becomes the final quote. The order handling module administers the order from initial order processing to final shipment, using bar code labels and scanners, with billing performed automatically. The financial module entails a general ledger, accounts payable, and accounts receivable, improving on Mebane's previous situation where each plant was using the same finance software with differences in internal operations.

The second step of implementation included the PECAS Vision materials module, which produces an electronic material requisition for each job, allowing expert buyers to make informed purchases. Future installments included the scheduling module, which takes information from the estimating module and creates the routing plan for an order; and the e-business component called PECAS InterVision. This Internet feature allows customers to search the status of current orders, check on the stock of finished items, and place an on-line shipment release.

Efficacy on the plant floor

Phoenix, Ariz.-based Inter Pack Industries Inc. is a modern folding carton printing plant that was founded in 1990. Inter Pack has been experiencing tremendous growth the past few years. To help manage its growth and production, Inter Pack turned to Advanced Software and its Advantzware, box software developed specifically for the packaging industries. The software has enabled Inter Pack to automate a mix of box industry requirements for a variety of industries.

"Advantzware is a comprehensive suite of software that automates our entire company from the customer's office via the Internet to our office and throughout the plant," said Ray Schwartz, CFO.

Inter Pack installed several modules of Advantzware, including contact marketing, request for quotes, cost estimating, quote processing, order entry, billing, bill of lading, finished goods, raw materials, purchasing, touch-screen plant data collection, job costing, CAD/CAM integration, scheduling, sales history, accounting, bar coding, and e-business customer service.

Each module enhances the company's ability to manage its production from start to finish. E-business customer service provides Inter Pack customers around-the-clock customer service to check order statuses, view account balances, create new orders, release inventory, and request quotes.

"We have utilized their e-advantzware e-business software to link our customers to our box business applications," Schwartz said. "We have also added links to our CAD/CAM vendor to print die drawings and box graphics directly to our factory job card, and purchase orders are transmitted to our board supplier to streamline order processing."

Another feature of Advantzware is the plant floor data collection touch screen interface. Setup, production run time, downtime, and cleanup are processed with the press of a finger. "[This feature] speeds plant data collection and improves employee time keeping and machine time, while updating the job cost system. Plant personnel can view the job ticket, view graphics, check the machine schedule, verify die images, and update inventory with the press of a button," Schwartz said.

The system improves the company's overall bottomline and efficiency. "If we need support or we need custom programming, Advanced Software is readily available by phone or on-line over the Internet. Requests for custom programs or new reports are done quickly and at a reasonable cost. New features and new modules are added each year to improve the productivity of all Inter Pack's personnel in both the office, plant, outside sales representatives, as well as customers via the Internet. Now, management has the information to run the business," Schwartz said.

A system to support growth

MPI Label Systems—a producer of pressure-sensitive, flexographic labels and labeling systems—has seven plants across the United States with more than 65 presses. Last spring, the Sebring, Ohio-based company turned to DiMS!® organizing print, wanting to streamline its operations and to support its on-going expansion, and chose to implement DiMS!' Web-based enterprise management software.

"In search for an MIS [management information system] for our multi-plant environment, we were looking for a product to satisfy our needs both today and in the future," said Randy Kocher, president of MPI. "Not only will DiMS! fulfill the requirement of a centralized database to integrate all our existing plants, but it will also be an invaluable tool as we grow and continue to expand our offerings. The flexibility of the system will better position us to serve our customers now—and five years from now."

The DiMS! system is an end-to-end software package for the printing and packaging industry. DiMS! is a completely integrated system, consisting of sales, estimating, planning, scheduling, pre-press, production, shipping, invoicing, and accounting modules.

Web-enablement was a critical factor in MPI's selection process, said Jeff Holbrook, MPI IT manager. "Providing our sales team with the ability to log on to the system remotely and obtain real-time information about their accounts was of paramount importance. With DiMS!, we will be able to coordinate and strengthen our sales efforts, in addition to increasing service levels to current customers," Holbrook said.

A multi-plant solution

Repacorp Label Products® is a Tipp City, Ohio-based label printer, specializing in flexo. Repacorp first purchased Tailored Solutions Inc.'s Label Traxx, a job management software designed specifically for narrow-web flexo printers, in 1995. However, after a few years, Repacorp expanded and decided to look for a new software system designed for multi-plant use.

Repacorp invested in another system, which after almost three years and about $150,000, the company was still trying to implement it. "That's when we looked back at Label Traxx," said said Tony Heinl, Repacorp's vice president.

Repacorp explored its options with Tailored Solutions and found—with updates—Label Traxx could support its 140 employees working at three locations. The most exciting benefit about a return to Label Traxx was its simplicity, Heinl said. "Label Traxx is so easy to use. Basically, you load the software, populate the fields with basic information and it's up and running almost immediately," he said.

Repacorp invested in six modules available with Label Traxx, including: estimating, order processing, invoicing/accounts receivable, accounts payable, general ledger, job costing, and stock products. In the near future, the company will be adding E-Traxx, an on-line extension that allows customers to access information over the Internet. Customers can place and track their orders, and request a quote.

Perks of Label Traxx are many. Heinl said, "We haven't had to hire more people for customer service even though business has grown." But most importantly, he added, "It let us get down to the nitty-gritty to find out the true cost, to find out where we're making money and where we're not making money and why not. We can extract tons of information from the program. It allows us to be more efficient and more competitive."

Total business benefit

With two facilities and over 500 employees, Zumbiel—a Cincinnati, Ohio folding carton manufacturer—is one of the largest independent packaging companies in the United States. Zumbiel executives attribute much of the company's success to adhering to a single management philosophy that centers on their customers' needs.

In 1994, after using a homegrown business management software system for decades, Zumbiel set out to find the most suitable modern system and chose CRC Information Systems Inc.'s THE System.

"We chose CRC because … [it] offered company-wide software solutions, a willingness to provide customization, ability to use Crystal Report Writer for use in-house, supported Web-enabled software for our customer connective projects, and a positive experience with the CRC support staff," said Vicky Schneider, vice president of information technology.

THE System contains over 100 modules, including 16 industry-specific estimating modules. THE System's modules handle such areas as job costing, shop floor data collection, financial accounting, and sales and marketing. Customers may also choose from a wide variety of Web-enabled, real-time modules designed to handle everything from on-line job tracking to on-line ordering of finished goods over the Internet.

In the 10 years since Zumbiel implemented THE System, the company has seen a 25 percent increase in sales. Furthermore, Zumbiel has realized a 15 percent reduction in inventory costs "by establishing better inventory control of the reorder point," Schneider said. "Before CRC, we were constantly creating inventory we did not need and other times did not have enough inventory on hand."

Another plus THE System has afforded Zumbiel the ability to reduce its spoilage. Schneider said, "We had no way of measuring our spoilage. After implementing THE System we were able to determine our spoilage percent and hold specific departments accountable for reducing their spoilage levels."

Accounts receivable have also been reduced with THE System. Jobs are invoiced faster and money is collected easier than before thanks to the speed at which data flows through the entire system, Schneider said.

A company enabler

Exopack is a new name for a company that has been in the flexible packaging printing business for many years. A company of over 2,100 employees, Exopack offers both paper and plastic packaging for a variety of industries.

When the time came to evaluate enterprise resource planning (ERP) products, Exopack executives felt TECTURA's (formerly Concord Business Systems) Packaging Solution best suited the business and its processes. "We estimated that we could implement the Packaging Solution in much less time than the other ERP products," said Paul Brunson, Exopack CIO. "We also thought that we would have much better product when the implementation was complete.

"The other major plus for choosing the [TECTURA] product is that these guys could speak our language," Brunson said. "No communication barrier to deal with."

According to Brunson, a list of just some of the capabilities TECTURA's solution provides includes specifications for flexible packaging, multiple sizes for an item, calculations for material usage based upon layflat dimensions, master planning/sequencer for scheduling, automatic assignment of production standards, and shop-floor application.

The Packaging Solution also supports Exopack's time-to-market objectives. What used to take many "man-months" to modify the company's systems to support a new product, now takes just days, Brunson said.

"We will have the capability to fully analyze our products and determine the true profitability. With this information, we can determine which segments we want to expand, contract, or even exit," Brunson said. "It will also allow us to run 'what if' scenarios to determine if we can be profitable in new segments. As with any system, we must realize that TECTURA's system is not going to be a 'cure all,' but it is an enabler. I have extremely high expectations of this product. Now it's up to us to fully utilize the product and realize the benefits."

Critical customization for future growth

Merced, Calif.-based Label Technology has been producing award-winning labels for almost 20 years. Its quality capabilities have attracted more and more customers over time, with sales increasing from $5 million in 1993 to $20 million today.

However, with this success came the need for a capable software provider and system that could help Label Technology manage its growth. "We chose Primac because of their full range of modules that would enhance our future growth—plus they allowed for customer modifications," explained Vinton Thengvall, Label Technology vice president. "The base system provided excellent control of inventory, both raw material and finished goods; job costing with daily margin reporting; and order processing. We needed the ability to handle multiple copies per job in a streamlined process with no re-keying through the shipping and invoicing cycle. Primac was able to handle this."

The ability for Primac to customize the system to the customer was another key factor in Label Technology's choice, Thengvall said. "It was important that we could have the vendor customize the software for us, or hire our own programming staff," he said. "For two of the last five years, we had a programmer for the more intensive work, but now we are relying on Primac programming staff."

The Primac system allows Label Technology management to monitor its times and materials efficiently. In addition, management has been able to maintain its workforce at the same level with the increased sales growth of 15 percent per year.

"The Primac System has allowed us to double our sales and still maintain control of our systems," Thengvall said. "Our original desire was to find a package that would facilitate growth, rather than hinder it, and allow us to customize to our needs. We have found both in Primac."

by Kate Sharon

Associate Editor