Jewelry Television - Protective Packaging from Sealed Air

Jewelry Television ® Adds Sparkle to Operations with Automated Packaging SystemKnoxville, Tennessee-based Jewelry Television ® sells more gemstones than any other companyworldwide. With jewelry and gemstone shipments exceeding 5.5 million orders per year, thisalso means JTV ® had to choose the right packaging partner.When significant business growth resulted in the opening of a new distribution center, JTV ® tookthe initiative to review facility operations and seek greater efficiency. A chief concern during thetransition to the new distribution center was implementing an automated packaging system thatwould meet the company’s needs to better handle the high order volume that came with suchsuccess. By enlisting the help of Sealed Air and implementing Sealed Air’s PriorityPak ®automated packaging system, JTV ® has increased efficiency while maintaining a superior levelof reliability that results in the successful and secure arrival of products to their customers’doorstep.An Evolution to Jewelry GiantJewelry Television ® evolved in a relatively short time from a small enterprise known in the early1990s as America's Collectibles Network into one of the leading retailers of fine jewelry in theUnited States. Broadcasting its first live show on October 15, 1993, JTV ® initially offered itemssuch as collectible coins, knives, quilts and skin care products. After a decade of successfulbroadcast and online sales, the company made the decision to focus on offering fine jewelry,gemstones and gemstone-related products at reasonable prices – becoming the first televisionshopping network to make this commitment.A Priority on PackagingThe importance of choosing the appropriate packaging system is underscored by JTV ® ’sbusiness model, which depends upon successful delivery of products directly to the customer.With purchases made via phone or internet, typically by those watching the company’stelevision channel, there is limited face-to-face customer interaction. As a result, a significantportion of the customer experience rests on JTV ® ’s ability to fulfill orders quickly, securely andaccurately.1

“It would be nearly impossible to overstate the importance to our company of a reliablepackaging solutions partner,” said Chris West, Vice President of Logistics, JTV ® . “We don’t havea brick-and-mortar presence, so every item we sell is shipped. Getting those items safely andsecurely from our warehouse to their final destinations in a timely manner is critical to thesuccess of our company.”With packaging serving such an important role in the JTV ® customer experience, the decision toimplement a new packaging format involved a deliberate process. Research and developmentanalyst Shannon Meade examined a number of options, narrowing the decision to a small groupof contenders he felt had the potential to serve the company’s needs.One of these was the Sealed Air PriorityPak ® packaging system which offers a fully automatedsolution ideal for businesses that experience a fluctuation in volume and variation in packagingrequirements – such as variably sized items. Combining high-speed product containment andprotective packaging with advanced sensor technology, the system creates a completecontainment package in just one step. With the product transported via belt drive into thesystem, two rollers compress two layers of cohesive corrugated or laminate material around theitem, suspending and protecting the item in the middle of the package. The proven Sealed AirCold Seal ® process seals the edges and locks items in place for a secure and tight fit. Productsemerge centered, protected and ready to ship.To evaluate the considered packaging formats, a series of tests were completed prior toMeade’s final recommendation to the company’s management team to make the switch. Thefirst test for the Sealed Air PriorityPak ® system was conducted in Sealed Air’s package designcenter in Ayer, Massachusetts. JTV ® provided a variety of products that the Sealed Air teampackaged on a PriorityPak ® system. Products were then shipped from Massachusetts to JTV ®in Knoxville, TN. Upon satisfactory review of the packages’ look and performance potential, thenext step was to utilize Sealed Air’s PriorityPak ® system for a trial run by packaging multipleshipments of product ordered by JTV ® customers.With the tests completed and items being processed, packaged and securely delivered tocustomers, the decision was made to install five Sealed Air PriorityPak ® systems in thecompany’s new fulfillment and distribution facility in May 2011.2

“We were looking for an automated packaging system that could increase package throughputand operational efficiencies, however the package also had to offer proven protection and easeof opening for a wide variety of customers,” said West. “The PriorityPak ® system does all ofthose things.”A Perfect FitSince Jewelry Television ® installed its first PriorityPak ® system, Meade has seen Sealed Airprovide continuous improvement and support. He considers PriorityPak ® to be one of the mostcompact and easy-to-use automated systems in the industry.“The equipment’s compact footprint is an ideal fit for our Tennessee distribution center, and theperformance of both the system and the package has reinforced that we made the right decisionto partner with Sealed Air,” said Meade.The changeover to Sealed Air’s PriorityPak ® system added an increased level of automation toJTV ® ’s packaging operation, increasing efficiency and shortening cycle times significantly. Sinceimplementing the system the company has seen an increase of 15 percent in packagethroughput, without the use of overtime hours or increased labor.Before and AfterPrior to the switch, the JTV ® packaging and shipping process was less efficient. Orders werepicked by hand and sent to one of more than 60 individual shipping stations, each equipped withscales and multiple printers. Fulfillment depended on employees at shipping stations to scantickets and place items on the scale manually, then print labels, place the product and invoiceinto a pre-made envelope and apply the shipping label to the envelope. The process offeredlimited verification and required a great deal of space dedicated to picking, packaging, labelingand shipping.With the current system employees allocate incoming orders, picked via RF device, to a tote.The tote is then placed onto a conveyor belt and scanned. Once the scan occurs, an invoice isprinted and folded then inserted into the appropriate quadrant of the tote. Based on whichquadrant contains the invoice, the tote is routed to one of four lanes in the JTV ® shippingdepartment. At that time the invoice is scanned and all items are verified to ensure the correctitems are being shipped. An agent then transfers the items into a presentation box. Once these3

steps are complete, the agent places the totes on a line that routes to the PriorityPak ® system,where an operator removes the boxed item from the tote and places the item on thePriorityPak ® conveyor. The item emerges from the PriorityPak ® securely packaged, weighed,labeled and ready to ship.The Sealed Air PriorityPak ® system is also compatible with multiple material offerings, includingthe PriorityWrap ® Rigid Board material, which is a paper-based, corrugated material that closelyhugs products – forming a tighter, more secure custom package and reducing productmovement during shipping compared to most pre-made envelopes. Implementing the systemenabled JTV ® to switch from cases of pre-made envelopes to rolls of material formed to acustom fit. The material can also be recycled by the customer in standard recycling streams.Since system implementation, JTV ® has seen a significant cost savings and estimates anincrease in productivity of at least 15 percent. The company says it took less than 12 months tosee a full return on investment with the new PriorityPak ® system.Service After the SaleAs you would expect, a customer service oriented business such as JTV ® appreciates the samefrom their partners. Meade says Sealed Air’s service organization shares this focus on customerservice. Sealed Air consulted directly alongside JTV ® ’s team during the installation of a customsolution on the Sealed Air PriorityPak ® system that assists with small item transfer.“We couldn’t be happier with our relationship with Sealed Air,” he said. “They go the extra mile,and have done so from our initial conversations up to the current day. Modifications we’verequested are quickly and professionally designed and implemented. They are invested in oursuccess as a business, and that makes the ideal partner.”Final Test, The CustomerJTV ® customers are known for being loyal but discerning and highly vocal when it comes to thecompany’s products and services, particularly in the rare event their experiences leave themanything short of completely satisfied.4

“The ultimate test for any change, be it packaging or otherwise, is what customers say after thechange is implemented,” said West. “If customers were unsatisfied with the package, if itemsarrived in less than pristine condition and if they thought the package was hard to open, we’dhave known very quickly,” he said. “The packaging has exceeded our expectations and thecompact equipment footprint and increased package throughput works well for our facility. It’s abig win all the way around.”High-volume businesses such as JTV ® can see great automation-related efficiencies bydeveloping and implementing packaging systems solutions. However, each individual operationpresents its own unique challenges and considerations. Choosing a packaging partner thatoffers a total systems approach and superior customer service can mitigate these challengesand ensure companies select the system that meets current needs while anticipating futureopportunities.5