Total Cost of Ownership (TCO) for end of the line packaging operations is a single window approach to bring all the aspects of a packaging under one umbrella using the latest technology and globally acclaimed solutions.

TCO services from Signode combines the total cost of operating and maintaining the systems in addition to the cost of consumables required for the packaging and drives down the overall cost of packaging. Signode helps businesses compare the costs of their current operations and systems under consideration, and choose the one most likely to be least costly over time without compromising on the Quality, Safety and Productivity. The approach is to thoroughly review and redesign the processes to provide sustainable manufacturing and sustainable packaging operations with the required automation.

Signode expertise provides users with the holistic information required to choose the right and optimum solutions that are both financially and environmentally rewarding. Under TCO Services Signode will focus on using the right technology to provide efficient and integrated automation that will meet the stringent statutory requirements like GMP, etc. The integrated automation can link up the packaging lines seamlessly with automated handling, palletisations, inbuilt with track and trace capabilities up to automated storage and retrieval system (ASRS).

The Packaging design from our field engineering team will focus on using the right materials which are sustainable to ensure the pack performance till it reaches the end consumer. Experienced team of engineers utilises field and laboratory equipment to measure and for products experience during the shipping and handling process. Finally the expert engineers will evaluate shortcomings in the current packaging and issues affecting its performance. Using this information a new solution will be designed to reduce costs and improve the arrival condition of products.

It is important to consider how to minimise the operational and maintenance costs and logistics cost under TCO services. After the system is put into service, maintenance can add up significant cost of ownership over the life of the system. This is often underestimated and ignored resulting in drop of line efficiencies and increase in production costs. Understanding machine and implementing the right O&M SOPs and complying with them will result in lower O&M costs. The selection of right packaging materials for the operation and managing them through Vendor managed Inventory is part of TCO services. This also helps to reduce the organisations sourcing and acquiring cost as Signode will provide all the required materials, services and bill all that as single invoice for a particular period.

TCO may lead to significant cost reductions as most of the cost reductions come from reducing operational costs in several ways:

• Automating the certain processes and reducing the manpower, streamlining operations 
• Reducing the consumption of materials and energy 
• Reducing the material waste by selecting efficient that are long-lasting, more durable and sustainable 
• Reducing the cost of acquiring and sourcing
• Improving the pack performance and reduce repacking costs, rejections and product damages.

The author is working with Signode India Limited, a multinational company. Signode India Limited is a Company of Signode Industrial Group, USA, a global leader in the industrial bulk packaging industry with a heritage that goes back more than 100 years.

It produces strap, stretch and protec-tive packaging and also manufactures packaging tools and equipment that are used to apply the bulk packaging materials. These packaging products are used to contain, unitise, protect and secure goods during warehousing and shipment. The company is a pioneer in the industrial packaging sector with a long history of customer-focused innovations in materials, processes and automation technology that have revolutionised the sector.

By P N Varma

For further information, please write to varmapn@signodeindia.com