Surgere Signs Multi-Million Dollar Reusable Packaging as a Service Deal with Whirlpool

Ohio-based Surgere, Inc., a six year old logistics and supply chain management firm, officially signed a multi-year, multi-million dollar contract with the Whirlpool Corporation at a recent press conference. Congressman John Boccieri of Ohio’s 16th Congressional District participated at the signing to highlight the significance of bringing new jobs to Northeast Ohio.

Surgere’s work for Whirlpool will entail a complete re-engineering of the ways that the company uses packaging, both internally and externally. Analysts, engineers and implementation specialists will be assisted by crews of hourly employees charged with operating new systems at the highest possible levels of efficiency.

“Something as basic and seemingly simple as packaging would appear to be not that big a deal,” according to Surgere president William Wappler. “In reality we are able to uncover and then implement numerous cost-saving tactics that cumulatively add up to millions of dollars of annual savings for our clients. Not only something as basic as the boxes a consumer would encounter at the retail level, but also the ways that components travel between and within factories,” continued Wappler.

Nowhere is this savings more evident than in the reuseable containers which Surgere custom designs to exact sizes for increased utility in the manufacturing process and dramatic energy reductions through their continual reuse. Known as PaaS™, for “Packaging as a Service,” this program became possible as a result of conversations between Key Bank’s Key Equipment Finance division, Surgere and Whirlpool.

“Key developed an innovative financing program that enables Surgere clients to utilize the PaaS packaging resources as a service rather than as an asset, reported Key Equipment Finance Senior Vice President and National Sales Manager, Peter Bullen. “In this case, the benefit to both Surgere and Whirlpool is improved cash flow andbalance sheet management. Key sincerely appreciates having the opportunity to grow our relationships with two existing clients through the use of innovative Key products and services,” continued Bullen. “We are pleased to be supporting our clients in new ways, with new products, and we applaud Surgere and Whirlpool for leading the way with energy saving and increased efficiency programs like this one.”

In his remarks Congressman Boccieri lauded the new venture’s creation of approximately 42 new jobs by year end, of which 60% are high-paying, high-technology jobs. The addition of more positions is expected in coming years as Surgere continues to grow. “In Surgere we have the tremendous success story of a local company which is helping our nation as a whole by making American companies more efficient and especially more competitive,” stated the Congressman. “In addition to Whirlpool, in its first six years Surgere has helped Alcoa, Best Buy, Ford, Home Depot, Magna and one of our own largest local employers, Timken. They are truly a valuable asset for Ohio and for our nation.”

Harry Chase, Director of Strategic Materials for Whirpool was introduced by Surgere’s William Wappler. Together they held a brief discussion of how the redesign of the packaging supply chain has resulted in reduced inventories, a more rapid flow of materials through the manufacturing process, the better utilization of transportation assets, better use of investment capital and an overall savings of energy for the company. Chase commented, “We are strongly encouraged by the progress we’ve made in just the first couple of months of this engagement. The progress we’ve made so far using Surgere’s re-engineering and on-going management of our packaging supply chain is proving this to be an excellent decision.”

In 2009 Surgere developed a program for providing reusable containers without the need for clients to own them.

By effectively removing reusables from the balance sheet Surgere has greatly increased the ability of major corporations to deploy them effectively, efficiently and affordably.

The Surgere service is called SPARCS — Sustainable Packaging And Reusable Container Solutions — and was initially developed for a client, Whirlpool. The SPARCS Program is very similar to the concept of the logistics 3PL programs that are in-place around the world. With SPARCS the responsibility for designing, deploying, financing, and managing transportation and logistics assets is assumed by Surgere. Its clients are able to use containers as a service rather than a hard asset.

Source: www.boccieri.house.gov and www.surgere.com.

Comments

  1. Vineet Verma says:

    Hi
    I am Manager in Packaging department of Mahindra and Mahindra limited, an Indian automobile company . We got your refence from Automotive logistic magzine

    We would like to have more discussion with your team for your concept of Resusuable PAAS Packaging and other concepts which you can share with us.Looking for favorable reply.

    Regards
    Vineet Verma
    Handphone no. +91 7738142211

Speak Your Mind

*