RGG’s auto-boxing solution reduces labor requirements

Through an acquisition, Rue Gilt Groupe (RGG) became a premier, high-end, flash-sale, e-commerce portfolio company that’s comprised of Rue La La and Gilt. The acquisition was so beneficial that it increased the company’s volume by 60%, while total business rose by nearly $1 billion. However, the acquisition also brought challenges.

RGG encountered increased throughput, along with high labor, transportation and procurement costs, as it also needed to provide multiple branded corrugate and customer experience options from one warehouse. With this in mind, RGG began a search for an automated packaging solution to streamline order fulfillment.

After visits to various suppliers, RGG implemented an auto-boxing solution, known as CVP Impack. The solution measures, constructs, tapes, weighs and labels each single- or multi-item order in a custom-fit parcel, while eliminating or reducing the need for void-fill material.

The machine can auto-box up to 500 parcels per hour using one operator, greatly reducing the amount of labor required. The packaging technology also has the ability to use up to 3 mills—each with different branded corrugates to consolidate multiple brands into one packing process. And, the machine offers RGG a reduction in procurement, as the large supply of multiple box sizes is no longer necessary.

The installation of the auto-boxer was completed without affecting the retailer’s operations or its ability to service millions of e-commerce customers. And, the auto-boxing technology’s results have provided RGG savings in transportation, labor and materials. Transportation savings have been significantly greater than planned, thanks to the custom-fit boxes.

The machine right-fits parcels to eliminate void fill and excess air from each carton, reducing DIM weight and material costs. RGG’s throughput has increased by more than 50%, due to the finished box, when compared to manual packaging. Additionally, machine has had an impact on customers’ experiences, as there aren’t any signs of measurable reports of damaged goods, and RGG’s marketing team can now create unique seasonal, customized packaging to promote each brand—leading to only positive NPS scores from customers that receive their orders in boxes made by the auto-boxer.

As a result of the fit-to-size boxes, RGG is averaging a 25-cent savings on each parcel. Overall, the ROI from the project is anticipated to be realized within (or before) the 18 months that RGG originally planned, as it expects savings of more than $500,000 during its first full year of operation.

Packaging by Quadient
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