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Part 1: Cost reduction in "Small Pack" DHL

Tuesday 15 November 2016

In 2015 a project was raised by ARCO to improve the DHL ‘Small Pack’ operation within the European Distribution Center in Beringe, the Netherlands, with the main goal to reduce costs. In the first part of this client case, the development process of this project is described. Within this project 4 main focus areas of cost reduction where defined:

  • Footprint in square meters (m2),
  • Maintenance and Repair costs of current packing line,
  • Consumables used within the packaging process,
  • Transport savings by increasing the fill rate of the carton.

Continue to part 2 → or part 3 →

Automation and design

Engineers of ARCO developed the complete packing line custom made to the requirements of DHL. After multiple studies on feasibility of several process and solution design, in March 2016 a final solution design was chosen. After several months of preparation, the new packing line will be installed in November and December 2016. As of 2017 the packing line is planned to GO LIVE. The new packing line contains a lot of automation like an automatic box erector to setup the boxes, two spiral conveyors to transport the boxes to the mezzanine and back, camera scanning, an automatic in-line weighing scale, an automatic box closer to close and tape the boxes and a label applicator to automatically apply the transport label.

Take a look at the 3D picture, to get an idea how the new packing line will look like.

Performance dialog

Unique to this project is the performance dialog with DHL employees. By use of yellow boards, detailed project information is made available to all employees. Next, everyone can share their ideas, questions and concerns by writing it on a yellow post-it. Every week, these post-its will be answered by an orange post-it and explained in a Performance Dialog. This allows DHL and ARCO to look over the “Small Pack” operation from different perspectives and to make adjustments if necessary.

More information about this project or ARCO? Please feel free to contact us.

Continue to part 2 → or part 3 →