The fitness market was new and growing, but Lululemon's packaging systems were old and growing unfit - PAC ...
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25 Tiburon St. San Rafael, CA 94901 • (415) 454-4868 • www.pacmachinery.com The PAC Machinery companies: Packaging Aids • Vertrod • Clamco • Rollbag Systems • Converting Technology ... ... ...... ... ...CU Cu STO stom e r s SspSePak MER EAK The fitness market was new and growing, but Lululemon’s packaging systems were old and growing unfit. Founded in 1998, Vancouver, Canada-based Lululemon was initially known for its fashionable line of women’s yoga apparel and activewear. By 2019, the company had grown significantly due to adjusting its product line and marketing strategies and exe- cuting on plans to increase brand awareness among men. Key to the company’s success was how they leverage social media marketing, which is designed to make customers feel that they are part of a larger community by wearing the brand. The company’s initial public offering was completed in July 2007, and they raised $327.6 million through the sale of more than 18 million shares. In June 2020, Lululemon announced a $500 million deal to purchase a home fitness product named Mirror. The deal would capitalize on a RollbagTM R3200 Fulfillment growing trend of people conducting virtual workouts at home instead of going to a gym due Automatic Bagger to the COVID-19 pandemic. The success of the brand was growing steadily, – especially in The Rollbag R3200 Fulfillment is the the “activewear” sector. ultimate automatic poly mailer bag- Fast forward to mid-summer 2020. Two things were happening simultaneously ging system. This versatile bagging at Lululemon: 1) their existing automatic baggers were experiencing growing periods of machine can operate at a rate of over 500 packs/hr when using poly crippling downtime, and the OEM was not very responsive to their needs. And 2) business mailers. It features a compact design was booming, and the company needed to gear up for an anticipated holiday onslaught and is assembled with high quality of orders. It was time to purchase new automatic baggers for several distribution locations. off-the-shelf components. Or, perhaps the appropriate time to do so was three months earlier. Lululemon turned to their packaging materials distributor for a recommendation on a batch of new automatic baggers – but they needed them fast. Real fast. They needed the machines purchased, delivered, and up and running for the pre-holiday shopping phenomenon called “Black Friday,” which is the day after Thanksgiving. “machines Having worked with PAC Machinery for several years, Lululemon’s packaging materials distributor Lululemon needed the came to Greg Berguig, VP Sales and Marketing at PAC, with the challenge. And what a purchased, challenge it was. Berguig needed to recommend and configure the right machine model, delivered, and up and build the baggers, test them, deliver them, and have them operational in approximately running for the pre-holiday six weeks. Standard delivery was twice that long, under ideal circumstances. And with shopping phenomenon supply chains interrupted as a result of COVID-19, the conditions for a smooth process were far from perfect. called Black Friday. ”
... ... ...... ... ...CUCus tom STO e r s SspSePak MER EAK - co ntinued Identifying the need The first step was to debrief the folks at Lululemon and ascertain what they required. With so many PAC automatic baggers in use around the globe, Greg Berguig had the experience to make the right call; he knew right away which bagger would meet his customer’s needs now, as well as into the future. His recommendation was the Rollbag R3200 Automatic Bagger. The versatile Rollbag R3200 is the ultimate automatic poly bagger for reliable, high-speed performance. It can cycle at a rate of over 500 packs/hr in a poly mailer shipping application. At that speed, the bagger could outpace the operator filling the bag - meaning packaging speed would not be limited by The Rollbag R3200 bagger can be the bagger. With the ability to run bags as large as equipped with a range of options, printers, and feeding devices to 16” x 32”, the standard R3200 bagger offered the maximize and automate virtually any extra flexibility and multi-shift dependability Lulu- packaging process. lemon required (PAC also offers the larger R3200XL for bags up to 22″x 36″). The bag printer was also a consideration. “requirements The existing machines were set up to print directly At Lululemon they believe that some- on the bag – and the results created lots of down- We discussed Lululemon’s times, basics are best. This is why they time. Greg suggested that Lululemon order the new very carefully... offer naturally breathable activewear machines with label printer applicators. The results but I was quite sure from that is fashionable from workout to would be far better, as long-term, the system would the start that I knew the hang out. With the looming 2020 holi- be more robust and more dependable. Using the machines they needed - ” day shopping season on the horizon, label printer applicators, Lululemon could maintain now and into the future. the company sought packaging solutions as advanced as their products. the same materials supplier with whom they had been doing business for some time. Additionally, the Greg Berguig Vice President, Sales & Marketing printer on the R3200 would interface easily with the Lululemon warehouse management PAC Machinery software. Greg reduced anxiety by explaining that the printing and label application process would deliver plug and play simplicity. Another plus for the Rollbag R3200 was the user interface. The HMI was very intuitive; operators could be up and running in a very short Watch the Rollbag R3200 Automatic Bagger in action >> time with minimal retraining, and new hires for the holiday rush could learn to run the machines quickly. Any delays during the peak shopping season would be a big problem https://www.pacmachinery.com/ that Lululemon needed to avoid at all costs. clamcopackaging/product/roll- Start the clock bag-r3200-fulfillment-bagger-ap- Lululemon decided to place the multi-machine order with PAC, and the delicate plicator ballet between engineering, supply chain performance, and manufacturing began with no time to waste. Greg Berguig could imagine the entire process unfolding on time, providing everything worked out as planned and without undue delay. The PAC team met to discuss the project, including the challenges, the timeframe, and the high stakes for Lululemon. If
... ... ...... ... ...CUCus tom STO e r s SspSePak MER EAK - co ntinued the machines arrived even two weeks late, the value of the effort would be significantly reduced. Everyone understood, and everyone jumped into the project with great enthusiasm. Across the finish line Sometimes the stars align in such a way that miracles can happen. Sometimes a design and manufacturing team works in such flawless accord that the results seem nearly miraculous. Such was the case with the Lululemon machine order. The Rollbag R3200 automatic baggers were built, tested and delivered in time for the holiday crush. Operators benefited from on-site training by skilled PAC Machinery instructors. The machines were set up, plugged in and within just a few hours, operators were bagging the soft and stretchy gear that so many fitness seekers enjoy. In the final analysis, the packaging operations at several Lululemon distribution centers are running smoother, With the ability to run bags as small and with new efficiencies. It’s not a stretch to say the return on investment was a goal as 2” x 3” to as large as 16” x 32”, that was easy to achieve.v the standard R3200 bagger offers the extreme flexibility Lululemon sought. Looking to the future, the larger R3200XL can make bags up to 22″x 36″. Equipped with the optional bag maker assembly, the Rollbag R3200 bagger can utilize poly tubing, and make the bag to the desired length.
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