NeoPharm Cuts Product Loss, Boosts Reputation with Protective Paper System

NeoPharm turned to Ranpak because of their reputation as a leader in paper packaging systems. After close consultation, NeoPharm opted to replace their existing plastic airbag packaging line with PadPak LC (Light Cushioning) converters.

While Ranpak’s Geami was originally considered, NeoPharm preferred the look of PadPak for their in-the-box cushioning needs. Geami still holds potential for other applications at NeoPharm since it’s suited for packaging smaller, high-value items in retail settings either within a warehouse or at a cash-wrap station.

The PadPak LC systems use kraft paper, fan-folding it into light pads that are well suited to cushioning, blocking-and-bracing, and void filling. Offering visually pleasing aesthetics and high levels of in-the-box protection, the pads are created using a patented folding and stitching process, with paper specific to Ranpak machines. Both batches and individual pads can be made via five different modes of operation. The PadPak LC systems use kraft paper, fan-folding it into light pads that are well suited to cushioning, blocking-and-bracing, and void filling.

Two LC machines were installed at the end of NeoPharm’s product packaging line. The machines comfortably handle the requirements of the facility while maintaining a low physical profile in the packing area. “The PadPak works on a razor-razorblade model. NeoPharm does not own, but rather leases the machines while paying instead for their required packaging materials,” Yoo explains.

The packing process is performed manually, with picked items being placed into the box along with precut pads manually placed by employee packers before being moved to labeling operations. By using precut pads, the packing line can move very quickly—the precise number of required pads are produced on demand to be available during packing. The packing configuration places items within the box at an angle so that they are both cushioned and blocked in place by the paper pads.

Ranpak’s team was on-site to help install and offer hands-on training to employees on the new systems, facilitating a quick learning process. NeoPharm experienced a productivity boost thanks to bins where workers could access the pre-cut paper pads, replacing the multiple storage areas that had formerly held plastic air bubbles.

Improved look, protection, and worker reception

Implementing the PadPak system helped NeoPharm with a variety of challenges. Switching to plastic-free packaging is in line with their ESG commitment to use 100%-recyclable packaging material. It’s also had the benefit of improving customer experience and boosting brand reputation with curbside-recyclable packaging. By using paper packaging, the company notes it is also better placed to comply with forthcoming changes in regulations.

Fewer packages are now damaged in transit thanks to the PadPak cushioning pad, which is designed to offer improved shock absorption. The company reports that no more than one or two packages out of every 100 are now damaged, thanks to the protective pads formed directly around the products. Logistics and stockroom requirements are simpler because one material (kraft paper) now meets all transport packaging requirements, replacing the previous two types of pre-made airbags

Logistics and stockroom requirements are simpler because one material (kraft paper) now meets all transport packaging requirements, replacing the previous two types of pre-made airbags. Their original plastic air bubble solutions took up considerable space, with the inflated materials being bulky and requiring large amounts of storage area. Since switching to Ranpak paper, now a centralized bin system is used to store paper pads which are formed on-demand, saving both time and valuable space within the packing area. The system also eliminated the step of tearing plastic from the machine while producing air bubbles thanks to the integrated cutting blades within the PadPak solution, saving a step in the process and improving packaging efficiency. 

Though packers had initially been hesitant to learn a new packaging process as their former system had become familiar to them, they quickly came to appreciate the new system and its increased efficiency. With the legacy air pillows, workers who were using large amounts of plastic packaging daily reported feeling guilty about the impact of these materials on the environment. They were impressed by how paper’s strength compared to the previous plastic bubbles, while being a renewable material and easily recycled. “The reception on the part of packers went from initially skeptical about new paper solutions to enthusiastic thanks to the sustainability improvements and the increased productivity and room within the packing area,” shares Yoo, who was also frequently on site during the transition.

Says Yangsu Kim, CEO of NeoPharm, “Ranpak’s eco-friendly packaging was ideal for our ESG and social responsibility commitments. Their consultation was very helpful, and our packaging is now more protective and cost-efficient. It’s good to have a partner who helps with solutions that meet both our environmental and business needs.”