“Simplicity in a complex packaging world”
Cost savings, standardisation, quality, uniformity and simplicity for packaging
within our global supply chain!
Philips Healthcare focuses on the development, delivery and maintenance of very technologically advanced equipment and solutions. They help doctors diagnose and treat most common diseases. In doing this, Philips Healthcare
always keeps the most important goal in mind, namely the importance of guaranteed and high quality patient care.
It is therefore very aware that the setting up and keeping all the equipment in operation is vital! Philips Healthcare is
responsible for the global supply chain of tens of thousands of parts that are required for timely service and maintenance of all equipment in operation. With PackAssist FPC has achieved that the packaging policy of Philips Healthcare
is applied in the same way in all areas of the supply chain.
PackAssist:
“A powerful tool specifically designed
for packaging management”
Eric Ermstrang,
Director Global Transportation & Packaging, Philips Healthcare
Philips Healthcare had a growing
problem of DOAs (Defect On Arrival).
There was also a poor brand image
due to proliferation of packaging,
faulty or incorrect packaging or no required packaging at all. A critical analysis showed that approximately one
third of the DOAs were packaging related. “This led to increased inventory
levels and emergency transport, with
greatly increased unforeseen costs as
a result”, according to Eric Ermstrang.
Secured packaging policy with
PackAssist
“With PackAssist FPC has achieved
that the packaging policy of Philips
Healthcare is applied in the same way
in all areas of the supply chain”. That
means that the same packaging and
associated packing instructions are
now always available, worldwide, for
each specific spare part at the place
where it is essential, namely with the
packer! Ermstrang calls it a very large
advantage that the suppliers and logistics partners are also connected
to the web-based application. This
makes the entire process secure. Finally, PackAssist provides for the requirement to fully comply with FDA
guidelines when it comes to the traceability of data.
Language independent instructions
“Because of the global operation of
Philips Healthcare, language independence was an important condition.”
PackAssist is arranged in such a way
that the correct packaging is paired
with each spare part. The packing
instructions are available as animations or images, so the packer has no
uncertainties. Textual instructions are
limited to a minimum. After all, a
picture says more than a thousand
words!
Visible and measurable results
Due to better instructions, visible
results were achieved within a
short period! The number of DOAs
decreased
significantly.
During
the implementation the variety of
packaging was also drastically
reduced by harmonizing the available
packaging. Now only authorized persons can approve new packaging. In
addition, serious profit was achieved
due to the improved packaging
choice with the reduction of empty
space and therefore of freight costs.
The packaging of many spare parts
was found to be unnecessarily large,
causing the transport costs to be too
high. Now that the correct dimensions
are used, great savings are made on the
packaging and freight costs!
Nice incidentals
“But it it did not just remain at the
intended results,” says Eric Ermstrang.
The implementation accelerates
integration when new warehouses in
other parts of the world are acquired.
With the reduced transport volumes
Philips Healthcare also improved its
carbon footprint. It also now appears
that new employees are in a position,
after only a few hours, to pack a wide
range of spare parts independently
and fully complying with all guidelines.
FPC Cooperation
Philips Healthcare took on the challenge to streamline an extensive,
worldwide operation together with
PackAssist. “Their professionalism
and ability to enter our thought processes was vital!” We cooperated
in a very pleasant and open way. “It
was important that they understood
and felt what the right choices were
within this complex field of packaging
management”.
FPC | Hamelendijk 2 Reusel, The Netherlands | T +31 (0)88-0234800 | F +31 (0)88-0234801 | www.fpc-beyondpackaging.com