Rock LaManna10.09.20
The Packaging Lab
www.thepkglab.com
The Packaging Lab started as a concept a few years ago. It launched in 2019 and is now building a head of steam in 2020.
Dan Niblo, CEO, and Jeff Searson, COO, founded the Brooklyn, MN flexible packaging company to address a gap they had seen while working for their previous employer: the difficulty in serving small to medium-sized companies. They saw how SMBs, cottage businesses and startups could not obtain custom-branded packaging in small quantities in a timely manner.
The two decided to exclusively serve this market with digitally-produced flexible packaging, in any quantity, with the goal of 24-hour turnaround times. Ordering would be done online, with assistance of an in-house design studio for brand support and packaging concepts.
As they discussed the idea with other printers and converters, they heard: “It’s not profitable to produce only short run, quick turn work,” and “you’re crazy.”
Yet they persisted. They believed there was a strong need for their niche, and that a focus on web-to-print and streamlined operations would be the key to speed and profitability.
Both Niblo and Searson have sales and operations backgrounds focused on packaging solutions and distribution at Veritiv Corporation and Unisource (which became part of Veritiv). Their primary customers at Veritiv were global brands and large business-to-business customers who dealt in truckloads of product combined with smaller companies. These jobs had a high cost of entry: design, dies, quantity requirements, commitments to future work, and the time and attention of the manufacturer, who controlled access and schedules.
Along with that were complexities of ordering, myriad packaging options, and a tendency to rely on insider lingo. Many providers also produced numerous other printing and packaging options, adding to the confusion. A newcomer would have difficulty understanding how to navigate the process, even if they could afford it.
Niblo’s experience as a regional vice president serving the food packaging segment gave him a bird’s eye view of the potential in short run custom packaging.
His close observation of trends confirmed the potential in their idea:
As they sought financing, they realized that banks were not excited to fork over millions of dollars for an untested concept, in spite of a solid business plan and the founders’ knowledge and credentials. They kept trying, though, and finally found a small banker in Minneapolis who excelled at working with entrepreneurs: Vision Bank.
With the initial funding figured out, Niblo and Searson resigned from Veritiv on April 1, 2019, with the goal of being in production on September 1.
“We got our first order in October,” he recalls. “Our second was in November. We gained three new customers in December. And in January, things took off.”
The rapid growth caught the attention of other converters and printers who could not turn their jobs as quickly. Seeing an advantage in The Packaging Lab’s timeline that they could use to their advantage, they approached The Packaging Lab about providing trade pricing and protecting accounts. Shortly after, Niblo and team adapted the online ordering to accommodate trade partners. It’s a relationship that requires the utmost confidentiality and trust.
“We weren’t expecting that part of the business to take off the way it has,” observed Niblo. “In our former jobs, we were so reliant on our supply chain and manufacturers. Our reputations rode on the success and abilities of others. It is refreshing to be the ones supporting others and keeping our promises.”
With the support and creativity of their equipment manufacturers, as well as input from customers and partners, they have refined their offerings to an attractive menu of package sizes, film stocks and substrates. They offer flat pouches and stand-up profiles, with zipper and no-zipper openings. Sizes are ideal for food/snacks, health/beauty, coffee/tea, granola/cereals, sports/fitness, organic/supplements, household/pets.
The Packaging Lab currently does not charge for tooling, and there’s no minimum order. They use straightforward language that any customer can understand. There are no roadblocks or surprises. From online estimates and ordering to downloadable dielines, the process is designed to be simple for a first-timer.
“We started with the idea that online ordering with extremely quick turnaround could be done,” explains Niblo, “and then we engineered our solutions around that.”
They have tested and refined a bulletproof workflow to achieve swift throughput. Their integrated print-laminate-slit-pouch process requires minimal changeovers. And they provide an aesthetic that is both pleasing in design and successful in execution.
Recently, with a steady flow of work, they invested in their website, making it even easier and intuitive. They focused on SEO to expand their geographic reach and drive traffic to the portal rather than building an outside sales team. With these improvements came the need for more square footage.
“Luckily our landlord is very flexible and supportive,” says Niblo. “He was willing to relinquish 7,000 additional square feet from his side of the building, taking us from 15,000 to 22,000.”
The families chipped in to help with production and modernizing the space. Former employees from Veritiv and 3M brought expertise in a part-time capacity. The Packaging Lab has a partnership with a school program to recruit and train interns. With a fluid team committed to efficiency and throughput, The Packaging Lab runs a split shift starting at 7 a.m. and ending with the arrival of the FedEx truck at 7:30 p.m.
Equipment is an HP Indigo 20000 press, two Karlville thermal laminators with gloss and matte film to minimize material changeovers, an inline slitter, and two Karlville pouch machines fed with two different webs and two different materials. The line is designed to achieve changeover in less than 10 minutes.
“We’re pretty proud of that,” Niblo says. “For most companies, changeover is between three hours and an entire shift.”
In addition to their own efficiencies, The Packaging Lab has opted into HP SiteFlow to manage the production equipment. There are touch screen kiosks throughout the plant, and each station uses barcode technology.
“We get real-time job tracking along with other production insights,” says Niblo. “We expect to start making job status and shipment information available to customers. It’s something they ask about, and it fits with our desire to break new ground in the packaging industry.”
Being a pioneer in quick turn flexible packaging means The Packaging Lab also flows information to their vendors and strategic partners to help them realize what’s possible.
“We feel like we have a responsibility to improve the industry,” explains Niblo. “We’re doing things that have never been done in web-to-print. We’re using SiteFlow in ways it has not been used before. We’re managing jobs to our specifications instead of letting the equipment manage us.”
Managing the process means they focus on just a few products rather than trying to be everything to everybody. There are 20 standard sizes – 12 stand up and eight flat. Within those sizes are options for four primary materials, zipper or not, and hang hole or not.
“We did a lot of research on sizes,” explains Niblo. “Limiting our product line gives us efficiency, a repeatable process, quality control, and the ability to gang run certain elements. There is a set of templates hanging on every machine. Operators are expected to compare the job to the template and make sure the size and features of the job are correct.”
Color management on-press is tied to HP technology. Color is built in CMYK with an extended gamut, including white, orange, violet and green.
To push its limits, The Packaging Lab recently applied for and was a finalist for the MN Cup competition at University of Minnesota’s Carlson School of Management.
“We are honored to be chosen as the runner up in the food category,” says Niblo. “The MN Cup experience introduced us to likeminded peers and advisors who innovate by leading and doing.”
As far as the future, Niblo has some thoughts:
www.thepkglab.com
The Packaging Lab started as a concept a few years ago. It launched in 2019 and is now building a head of steam in 2020.
Dan Niblo, CEO, and Jeff Searson, COO, founded the Brooklyn, MN flexible packaging company to address a gap they had seen while working for their previous employer: the difficulty in serving small to medium-sized companies. They saw how SMBs, cottage businesses and startups could not obtain custom-branded packaging in small quantities in a timely manner.
The two decided to exclusively serve this market with digitally-produced flexible packaging, in any quantity, with the goal of 24-hour turnaround times. Ordering would be done online, with assistance of an in-house design studio for brand support and packaging concepts.
As they discussed the idea with other printers and converters, they heard: “It’s not profitable to produce only short run, quick turn work,” and “you’re crazy.”
Yet they persisted. They believed there was a strong need for their niche, and that a focus on web-to-print and streamlined operations would be the key to speed and profitability.
Both Niblo and Searson have sales and operations backgrounds focused on packaging solutions and distribution at Veritiv Corporation and Unisource (which became part of Veritiv). Their primary customers at Veritiv were global brands and large business-to-business customers who dealt in truckloads of product combined with smaller companies. These jobs had a high cost of entry: design, dies, quantity requirements, commitments to future work, and the time and attention of the manufacturer, who controlled access and schedules.
Along with that were complexities of ordering, myriad packaging options, and a tendency to rely on insider lingo. Many providers also produced numerous other printing and packaging options, adding to the confusion. A newcomer would have difficulty understanding how to navigate the process, even if they could afford it.
Niblo’s experience as a regional vice president serving the food packaging segment gave him a bird’s eye view of the potential in short run custom packaging.
His close observation of trends confirmed the potential in their idea:
- Growth of digital production in other narrow web sectors such as labels and photos.
- Steady improvements in ink, substrates, and print quality in the digital environment.
- More intuitive online ordering on the retail side, where B2B was still using clunky interfaces.
- The skyrocketing growth of Amazon, where consumers had become confident in ordering online.
- The expectation that retail items purchased online would be on their doorstep the next day.
As they sought financing, they realized that banks were not excited to fork over millions of dollars for an untested concept, in spite of a solid business plan and the founders’ knowledge and credentials. They kept trying, though, and finally found a small banker in Minneapolis who excelled at working with entrepreneurs: Vision Bank.
With the initial funding figured out, Niblo and Searson resigned from Veritiv on April 1, 2019, with the goal of being in production on September 1.
“We got our first order in October,” he recalls. “Our second was in November. We gained three new customers in December. And in January, things took off.”
The rapid growth caught the attention of other converters and printers who could not turn their jobs as quickly. Seeing an advantage in The Packaging Lab’s timeline that they could use to their advantage, they approached The Packaging Lab about providing trade pricing and protecting accounts. Shortly after, Niblo and team adapted the online ordering to accommodate trade partners. It’s a relationship that requires the utmost confidentiality and trust.
“We weren’t expecting that part of the business to take off the way it has,” observed Niblo. “In our former jobs, we were so reliant on our supply chain and manufacturers. Our reputations rode on the success and abilities of others. It is refreshing to be the ones supporting others and keeping our promises.”
With the support and creativity of their equipment manufacturers, as well as input from customers and partners, they have refined their offerings to an attractive menu of package sizes, film stocks and substrates. They offer flat pouches and stand-up profiles, with zipper and no-zipper openings. Sizes are ideal for food/snacks, health/beauty, coffee/tea, granola/cereals, sports/fitness, organic/supplements, household/pets.
The Packaging Lab currently does not charge for tooling, and there’s no minimum order. They use straightforward language that any customer can understand. There are no roadblocks or surprises. From online estimates and ordering to downloadable dielines, the process is designed to be simple for a first-timer.
“We started with the idea that online ordering with extremely quick turnaround could be done,” explains Niblo, “and then we engineered our solutions around that.”
They have tested and refined a bulletproof workflow to achieve swift throughput. Their integrated print-laminate-slit-pouch process requires minimal changeovers. And they provide an aesthetic that is both pleasing in design and successful in execution.
Recently, with a steady flow of work, they invested in their website, making it even easier and intuitive. They focused on SEO to expand their geographic reach and drive traffic to the portal rather than building an outside sales team. With these improvements came the need for more square footage.
“Luckily our landlord is very flexible and supportive,” says Niblo. “He was willing to relinquish 7,000 additional square feet from his side of the building, taking us from 15,000 to 22,000.”
The families chipped in to help with production and modernizing the space. Former employees from Veritiv and 3M brought expertise in a part-time capacity. The Packaging Lab has a partnership with a school program to recruit and train interns. With a fluid team committed to efficiency and throughput, The Packaging Lab runs a split shift starting at 7 a.m. and ending with the arrival of the FedEx truck at 7:30 p.m.
Equipment is an HP Indigo 20000 press, two Karlville thermal laminators with gloss and matte film to minimize material changeovers, an inline slitter, and two Karlville pouch machines fed with two different webs and two different materials. The line is designed to achieve changeover in less than 10 minutes.
“We’re pretty proud of that,” Niblo says. “For most companies, changeover is between three hours and an entire shift.”
In addition to their own efficiencies, The Packaging Lab has opted into HP SiteFlow to manage the production equipment. There are touch screen kiosks throughout the plant, and each station uses barcode technology.
“We get real-time job tracking along with other production insights,” says Niblo. “We expect to start making job status and shipment information available to customers. It’s something they ask about, and it fits with our desire to break new ground in the packaging industry.”
Being a pioneer in quick turn flexible packaging means The Packaging Lab also flows information to their vendors and strategic partners to help them realize what’s possible.
“We feel like we have a responsibility to improve the industry,” explains Niblo. “We’re doing things that have never been done in web-to-print. We’re using SiteFlow in ways it has not been used before. We’re managing jobs to our specifications instead of letting the equipment manage us.”
Managing the process means they focus on just a few products rather than trying to be everything to everybody. There are 20 standard sizes – 12 stand up and eight flat. Within those sizes are options for four primary materials, zipper or not, and hang hole or not.
“We did a lot of research on sizes,” explains Niblo. “Limiting our product line gives us efficiency, a repeatable process, quality control, and the ability to gang run certain elements. There is a set of templates hanging on every machine. Operators are expected to compare the job to the template and make sure the size and features of the job are correct.”
Color management on-press is tied to HP technology. Color is built in CMYK with an extended gamut, including white, orange, violet and green.
To push its limits, The Packaging Lab recently applied for and was a finalist for the MN Cup competition at University of Minnesota’s Carlson School of Management.
“We are honored to be chosen as the runner up in the food category,” says Niblo. “The MN Cup experience introduced us to likeminded peers and advisors who innovate by leading and doing.”
As far as the future, Niblo has some thoughts:
- Sustainable options will continue to be important to end users, as well as partners. The industry must work together, seeking advancements that improve the world, not detract from it.
- New products, such as cannabis, edibles and CBD, will open doors for small companies to use packaging for brand promotion, as well as product delivery.
- R&D does not exist in an operational silo. It is ingrained in a company’s day-to-day operations and should be viewed as a strength and an opportunity. The goal of reducing waste should be part of the R&D process.
- Innovation and quality are driven by the desire to serve customers to the fullest. Don’t shrink from asking them, “What more can we do for you?”
- Quality cannot be sacrificed in a quick turnaround environment. Every improvement in speed must be measured by its impact on quality.
- When in doubt, ask yourself: “What’s right for our customers?”
