The fitness market was new and growing, but Lululemon's packaging systems were old and growing unfit - PAC ...

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The fitness market was new and growing, but Lululemon's packaging systems were old and growing unfit - PAC ...
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

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   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.
                                                                                                                                                   ”
The fitness market was new and growing, but Lululemon's packaging systems were old and growing unfit - PAC ...
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    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
The fitness market was new and growing, but Lululemon's packaging systems were old and growing unfit - PAC ...
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    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.
The fitness market was new and growing, but Lululemon's packaging systems were old and growing unfit - PAC ... The fitness market was new and growing, but Lululemon's packaging systems were old and growing unfit - PAC ... The fitness market was new and growing, but Lululemon's packaging systems were old and growing unfit - PAC ...
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