Digital Transformation Outside – And Inside – The Box

Emma Reeve

A product’s packaging can be as important as the merchandise inside it. Effective packaging reflects the product’s quality and promotes the brand’s identity. Who hasn’t taken notice of an attractive, well-designed package and thought more highly of the brand behind it?

That crucial role of product packaging has a growing number of brands turning to packaging expert Marvinpac for the best packaging solutions. That’s good news for the company, which in the past few years has tripled its customer count.

But with growth comes challenges, as Jan Vrátil, CEO of Marvinpac CZ, is the first to acknowledge. “We are working with big international companies, and it’s always a challenge, because they are usually the leaders in the market … and they expect the same from their partners,” Vrátil says. “[So] you need [to] continuously innovate your service.”

To achieve that goal, Marvinpac turned to an in-memory computing platform for greater speed and accuracy, end-to-end supply chain traceability, and the flexibility and scalability to respond to customer needs.

Packaged fast, packaged right

Founded in 1999, Marnivpac is a leading provider of “contract packing” for the food, cosmetics, chemicals, and other industries. Its 500 employees in Switzerland and the Czech Republic pack 40 million products a year.

When Marvinpac opened its Czech facility in 2010, it was still a small company with 25 workers. But as customers pushed for more sophisticated services, the company saw opportunities for rapid growth. To respond, it knew it needed to replace manual, time-consuming, and error-prone activities with digitized, automated, and accurate processes built on a reliable and scalable IT platform.

“The company is growing more or less 50% each year,” Vrátil notes. “So for me, one of the challenges is to keep the company stable and make the process stable.”

By leveraging the platform, Marvinpac was able to standardize and simplify production processes. As a result, it could actually accommodate more complexity. “At the beginning, we had dedicated lines for dedicated customers,” Vrátil explains. But as the company gained clients, production became more complex. “We started to share the lines among customers and among products. And the technology enabled us to make this happen.”

Today, production is up an astounding 600%. Yet delivery accuracy is an enviable 99%. The secret was simplification through digitization. “We now have the key element to absorb more complexity,” Vrátil says.

Digitized from cradle to grave

In fact, digitization is no longer an option. As Marvinpac’s customers digitized, they demanded the same from Marvinpac so they could benefit from real-time connectivity and end-to-end transparency.

This traceability became an imperative as Marvinpac entered the food and cosmetics industries. Customers had high standards for quality assurance, and they needed accurate, fast visibility up and down the supply chain.

“Nothing ruins the relationship more with the customer than the wrong data,” Vrátil points out. “If you have wrong data, you cannot develop the business. [So] the main idea was to have all the processes under one environment, to have quick access to data, and to be able to provide the relevant information to the customers.”

That’s what Marvinpac is now delivering. “Today we are talking about full traceability everywhere,” Vrátil says.

Growing with the customer

Marvinpac’s customers often come calling when they need to get a product to market quickly. So the company needs the flexibility and scalability to get new production up and running fast. It might then need to scale back if the customer takes production in house, or to maintain that volume if the customer continues to outsource.

Vrátil reports that the in-memory computing platform is supporting such agility. It’s also enabling a more flexible supply chain as the company sources more materials from lower-cost markets in Asia. At the same time, the software has allowed Marvinpac to slash lead times by half and achieve 98% availability of raw materials.

For Vrátil, the solution has enabled him to focus on strategic decisions rather than operational tasks. Staff are empowered to solve day-to-day problems themselves so Vrátil and other leadership can plan for the future.

“We hope to grow around the world,” Vrátil says. With the implementation, he believes it will be simple to replicate systems in new markets and then rapidly expand to meet new demand. “If you have data you can trust and you have tools where you can analyze them,” he concludes, “you can continuously innovate your services.”

Learn more about how Marvinpac’s Jan Vrátil and other leaders are using SAP solutions to help their businesses run live. Watch our exclusive “Leaders Are Live” videos.

Emma Reeve

About Emma Reeve

Emma Reeve has 20 years of experience creating world-class marketing initiatives that focus on customer and audience experience for technology, finance and pharmaceutical industries. She is currently the Global VP of Storytelling for SAP driving customer experience through storytelling. Prior to SAP, she has led strategic audience engagement on both the corporate and agency side from interactive storytelling; brand communications; digital creative and gaming; advertising; sponsorships and partnerships; branded events; interactive media; e-commerce; and social media strategy. While integrating storytelling as a key tenant professionally, Reeve has also used it as a tool is raising awareness philanthropically. She tells personal stories of women in Rwanda and their path towards hope through skills training, education and community support, while inciting a movement that encourages people to get involved in being part of the change in the world. Reeve communicates strongly her passion that storytelling can engage anyone to empathize, take action, make decisions and more - but at its core it is at the center of making change.