Re-Package Product Case Study

Ancos is a leading polymer toller.  We regularly help customers with long term commercial engagements as well as short or one time needs.  We have a full collection of polymer enhancement and material handling services that support resin producers, compounders, distributors, rotational molders, injection molders and many other customers.

One type of short term or sometimes ongoing need that customers regularly come to Ancos for is to re-package product.  Ancos is able to handle all types of polymer packaging, including Gaylord boxes, supersacks, tanker trucks, rail cars, drums, bags, sea bulk containers and other packaging types.

Types of situations you might face:

• You need overflow or specialized packaging capacity
  • Customer requires unique or specialized packaging that you are not set up to do efficiently
  • Excess demand for packing out product that exceeds internal capacity

Solution:

• Ancos has deep expertise in packaging solutions, and is able to scale packaging operations in a way that is often lower cost than you can do internally
• Ancos offers a comprehensive set of receiving and packaging options
  • Receive materials by: truck, rail, tanker, sea bulk
  • Packages: bags, drums, super sacks (bulk bags), lever packs and bulk

Value Creation:

• Value creation per pound of product could be anywhere from 3-10x greater than the investment in marginal incremental tolling fees
  • Prevent lost orders due to specific customer requests
  • Prevent lost orders due to internal turnaround time or inefficiencies
  • More efficient and lower cost packaging than internal operations
• Additional benefits
  • Enhanced customer service and ability to offer comprehensive package options to customers
  • Ability to manage working capital and inventory

Example Ancos Customer:

• Large advanced materials company has a customer with specific pkg needs
• Highly inefficient and costly for materials company to run small batches in their internal packaging operations
• Customer does not have comprehensive pkg options (e.g. bags, boxes, rail)
• Customer sends product to Ancos and Ancos re-packages
• Without Ancos, customer would lose business or face high internal

Value creation for this customer through additional packaging capabilities:

• Cost avoided = >$500k
• Tolling investment >$150k
• Return on investment > 3x

Value creation for this customer with unique packaging capabilities:

• Incremental margin saved = ~$45k
• Tolling investment ~$1.5k
• Return on investment > 20x