Amazon Box on Demand is experimenting, carton costs can be reduced by 40%
2019-6-26 20:49:31
In order to solve the problem of “over-packaging” in the user
experience, a new carton maker introduced by Amazon can not only set the
minimum size of the carton according to the size of the goods, but also
open its own production line for manufacturing. Although this project
is temporarily in the experimental stage, it can save the company 40% of
the cost. This means that if the pilot project goes smoothly, then the
supply chain of the original carton market will have a huge impact.
A carton making machine: cut the cardboard into a suitable size, and the employee makes a carton according to the fold line.
In February last year, Amazon's North American business manager, Mike
Roth, introduced a new carton manufacturing machine to visitors at the
distribution center in Patterson, Canada. This new carton maker can
produce matching cartons directly on the production line, just to
accommodate the goods inside, and Amazon employees call it ‘Box on
Demand’. Introduced by Panocec, this carton maker Box on Demand can cut
and bend cardboard into several semi-finished cartons and then manually
put it on the merchandise. In Amazon's distribution center, Box on
Demand simply cuts the board into the right size, and the line staff
needs to further make the carton according to the fold line above.
▲Amazon goods transport belt
40% reduction in cost during the pilot phase, 20 units deployed in the US
As
of now, the carton manufacturing project is still in the experimental
stage, but the deployment work has begun. In August 2015, Amazon has
deployed 20 such carton manufacturing machines in the United States, in
the UK and Germany. More than 4 machines. And it is planned to promote
the system in Europe in the next year. It is expected that it will take
20 months to see the actual effect. However, Amazon's investment has
paid off. According to Amazon's estimates, this new machine can help
them reduce their costs by 40% and can already cover the previous
investment costs.
Carton market dependence is reduced, causing three rounds of impact on carton factories
Amazon's
test results are expected to be 20 months. If you start testing in
Canada from February last year, and later in the United States, the
United Kingdom, Germany, and Europe, the end of the trial should be 16
years. The end of the year is completely over. If the test is
successful, it will enter the stage of production. So China is the
second largest operating network outside the United States. Introducing
this system is only a matter of time. This move will cause the following
three rounds of impact on the carton companies that cooperate with
Amazon.
First round of shocks: market orders will be reduced
Amazon
has its own carton production line, and the right amount of production
for the carton market will continue to decline, so it will form a first
round of impact on the enterprises that provide carton packaging, then
its market orders will be reduced. .
Second round of shock: waste problem
Secondly,
because the imported equipment is Box on Demand, the second pressure
for the carton enterprises lies in the resource saving, because it is
tailored according to its own, to achieve the minimum packaging strategy
of the product, the resources of its resources The utilization rate is
increased, and the waste problem caused by the production of the package
itself is minimized.
The third round of shock: the upstream and downstream relationship becomes a competitive relationship
Amazon's
market share is very large, so it will seek cooperation with upstream
paper companies, from the original indirect relationship to a direct
relationship, and papermaking enterprises, so under this premise, for
paper and paper mills, It is an opportunity in itself, but in this case
it will further squeeze the share of the carton factory, and the small
manufacturers that provide carton packaging will be affected, and large
manufacturers will also be affected.
If
Amazon's machine carton maker performs flawlessly during the
experimental phase, and after the self-installation of Amazon, the
transfer and sale of equipment to other carton factories will become the
following two in the Chinese carton enterprises. Very obvious effect.
First of all, it saves the cost of the enterprise, and the cost of the
enterprise is greatly reduced. By taking the results of the experimental
phase of Amazon, it saves 40% of the cost. But we must be cautious
about this data, because the market time is not the same, so the amount
of cost savings is not the same. The second is to reduce the waste of
resources, but also to cushion the pressure on environmental issues,
because it is tailored to minimize the packaging strategy, so the
production according to the packaging object will be more than the mass
production. The resulting waste is less, and it is also buffered on
environmental issues.