|
For corrugated converters, current trends toward shorter runs, just-in-time (JIT) supply policies, and the growing focus on packaging as a point-of-purchase sales tool are providing a variety of printing and corrugating challenges. In addition, demand for quality corrugated packaging continues to increase, fueled by online sales that are estimated to require shipping of 1.6 billion consumer product parcels by 2004—a 400% increase from 1999.
Key in meeting these quality and quantity goals for corrugated packaging is the availability of containerboard substrate with excellent printability and strength characteristics. While independent converters and converters integrated with paper companies face many of the same challenges in dealing with substrate from a technical standpoint, independents are particularly vulnerable to the effects of poor quality product from a profitability standpoint. For them, shipments are measured in square footage rather than tons—a subtle difference that can translate into dollars. In addition, independents strive to provide a quality product in order to create customer loyalty and business stability.
In the U.S. and Canada, there are approximately 1,607 corrugated converters, 974 of which are independent. According to the Association of Independent Corrugated Converters (AICC), these independents consume an estimated 6.6 million tons of containerboard products each year.
So, with the projected growth of packaging, what are the concerns voiced by independent converters of containerboard relative to dealing with paper companies? Independent converters, technical associations, and printers seem to agree that better information is needed about the containerboard from the paper manufacturers. Overall, relationship building between converters and their paper suppliers appears key in ensuring a steady supply of quality substrate. In some cases, however, building such relationships and requesting information prove challenging, especially as smaller converters struggle for leverage within the ever-consolidating paper industry.
The flexographic corrugated press is well suited for shorter printing runs that are needed quickly and altered frequently.
TRENDS IN PACKAGING. In the corrugated converting industry, the majority of business is associated with brown boxes, which require stacking and burst strength. However, the growth of consumer packaging has boosted demand for a strong, yet lightweight, package capable of carrying multi-color print images with microflutes (beginning with E-flute at 1/16 in. at 88 to 100/linear ft and smaller). While there is somewhat of a tradeoff between strength and printability characteristics with this substrate, the packages are often strong enough to eliminate an inner carton, while smooth enough to hold detailed advertising graphics. Some project that such boxes will move into 10% to 15% of the current folding carton market.
Among printing techniques used in corrugated converting, the flexographic method is the most common in North America and continues to grow in popularity within emerging consumer markets worldwide (Figure 1). According to Bill Dowdell, president of the Flexographic Technical Association (FTA), the percentage used in North America for corrugated printing may be as high as 85%. Although offset is used for direct preprinting of paper for lamination onto corrugated board, this technique is more conducive to longer runs, while flexographic is well-suited to the shorter printing runs required by JIT and POP designs that alter frequently to attract more consumers.
Flexographic printing is a form of relief printing where an image is slightly raised, inked, and then transferred directly to the substrate using a flexible plate, made of soft rubber or plastic, and a quick drying ink. It provides high quality print for a wide variety of substrates, including acetate film, polyethylene, newsprint, and corrugated board. Currently, advances in digital imaging techniques for flexography—including computer to plate (CTP)—are allowing improvements in image definition so that finer typefaces are possible, placing even more demands for a high quality substrate.
FIGURE 1 : Flexographic printing is growing increasingly popular for printing on a variety of packaging substrates, including containerboard.
DO CONVERTERS RECEIVE ENOUGH DATA? According to Dowdell, one of the most crucial issues for converters is receiving roll data with paper specification information. This data might include such standard containerboard measurements as basis weight, smoothness, brightness, porosity, moisture, strength parameters, and caliper. Dowdell says that most converters would be unfamiliar with the proper tests and testing equipment, and that the data is necessary for creating a stable manufacturing process. In addition, since many converting facilities are ISO 9000 compliant, roll specification data is needed to allow quality tracking and to maintain certification.
“Our organization tries to impress on converters and printers that this is a scientific manufacturing process, such as making an automobile, and not a craft,” explains Dowdell. “Converters will often just run the substrate on the press, find out, for example, that they are not getting enough density of ink, and then have to make a time consuming adjustment. To avoid this, the first step is obtaining basic information on the substrate. Everyone understands that each tree is not identical, so it basically comes down to what paper manufacturers communicate about a particular roll and how the converter compensates for that.”
Dowdell further notes the effects this information could have on profitability and customer service.
“No one makes money putting substrate on the press three times in order to get things right,” he continues. “The answer lies in doing the preparatory work—understanding what our customer wants versus what the press can produce with the raw materials that are available.”
So, is it a question of paper companies not providing the information or converters not asking for it? Pat Cathcart, a printing plate sales representative at MacDermid Graphic Arts, finds that converters are not always familiar enough with the substrate. On the other hand, Cathcart, who worked in paper testing research for 20 years at major paper company, says that paper companies are not always familiar enough with the converting process.
“For many converters of corrugated and other paper products, it’s a lack of information and a lack of education as to the product they are working with,” she explains. “Converters need to understand the product enough to demand the proper characteristics from a substrate supplier so that they achieve their end goals. However, paper manufacturers need to understand their customer’s converting process so that they understand the parameters that are important to converters, and they need to be forthcoming with that information.”
IS RELEVANT PRODUCT DATA PROVIDED? With the positive impacts that containerboard test data can have for converters, it would seem that the industry would demand the kind of detailed roll information that advanced process control, information systems, and test laboratories at paper mills can provide. However, many independent converters do not feel that companies are always willing to provide this information.
In addition, converters, as well as paper companies, may not always be cognizant of the exact test results they need in order to achieve the right end results. According to Cathcart, the standard tests performed by paper companies, whether online or in quality laboratories, are not always those that are most indicative of end-product performance.
To Greg Arvanigian, president of Arvco Container Corp. in Kalamazoo, Mich., paper companies do not necessarily supply all relevant information about the product up front. Arvco Container is an independent converting company with one corrugator plant and three sheet plants.
“In our business, paper is bought on very few variables,” states Arvanigian. “These are generally mullen (burst strength), ring crush strength, and Sheffield smoothness. However, many other factors come into play.”
Arvanigian feels that many companies may test for other variables, but do not necessarily reveal them, especially if they have an inferior product. Important in both flexographic printing and converting containerboard is a z-directional tear test for internal bond strength. According to Arvanigian, this test is not really “sold” and only comes into play when “you start having problems.” Further, without adequate information, Arvanigian finds that it is hard to differentiate among products.
“In the corrugated converting world just seven or eight years ago, there was only kraft linerboard, recycled linerboard, semichemical medium, and recycled medium,” he states. “Each had its place, and there were very few qualitative differences between them. Now, although kraft liner is still kraft liner, there are two or three different levels in quality in terms of recycled liner—and there is no system for differentiating between the three. People are trying to sell oranges as apples.”
OBSOLETE TESTS? Although some paper companies may provide data on a per roll basis, Cathcart is unsure whether the standard tests used today are as useful as they should be for converters. She notes that many of them have been done for as much as 50 years, including Sheffield smoothness, a test she characterizes as a “random number generator.”
“When converters hear a Sheffield number of 175, they see that as exceptional, getting very near vellum,” Cathcart says. “But does that really relate to how it will perform on the press? Other tests, such as profilometry would better measure microfiber to fiber roughness versus the macro, which would be more indicative of formation.”
In addition, Cathcart comments on the presence of flocs in kraft paper and their implications for printing, especially as images become more detailed. She feels that producers of kraft papers should take note of formation improvements embraced by fine paper manufacturers.
“Those light and dark areas in kraft papers will receive ink very differently,” Cathcart explains. “The light areas will have less fibers that are going to bond, so as you apply the ink, they may relax and stretch on the press, changing the tensile strength of the paper, which causes a variety of problems as it is converted and printed in line.”
Like Arvanigian, Cathcart feels that paper companies create various test data that converters could benefit from. While this might be on a run rather than a roll basis, basic information about factors as far back in the papermaking process as chip refining can influence the printing process. For example, most paper companies or mills do not report freeness, which ultimately affects paper porosity and ink receptivity.
According to Cathcart, one crucial paper characteristic is often ignored and handled incorrectly by both paper suppliers and converters—moisture. Excess moisture can affect strength characteristics needed to maintain web tension during converting, as well as ink absorption. Although converters must be careful not to unwrap rolls until needed and keep them in climate controlled areas, Cathcart feels that tighter moisture specifications from paper companies are also key.
“If average moisture content for a roll is 5.2 with a variation of plus or minus 5 points, you may get a roll that is 4.7 or 5.6,” she explains. “That roll at 5.6 is going to pick up lots of ambient moisture, as well as moisture from the printing process, and the printing will appear much darker than a roll at 4.7.”
Arvanigian finds that specific mills tend to keep their parameters “pretty tight” and that his company actually has mills run to their specifications. However, he acknowledges that their specifications are “drawn from mill specifications, so there is not really much difference.”
So, where does the answer lie in respect to what tests are done and what data is provided? To Cathcart, it lies in building strong relationships between suppliers and frequent communication. While she recognizes that many products that are converted are viewed as a commodity, she thinks that a better understanding of the repercussions paper process changes--many of which are geared at product improvements--can have for converters is a good basis for making decisions.
“When mills get a charge to improve smoothness, for example, they either calender the paper or put on more starch, both of which affect the paper surface and, therefore, ink receptivity,” she explains. “A better understanding of product end-use might instead call for a change in headbox technology to improve formation.”
However, she recognizes that paper companies respond to volume and that the demands from a small converter might be difficult to respond to as paper companies strive to maintain their own profitability. To address this, she suggests that small converters bond together to make their concerns heard.
BUILDING SUPPLIER RELATIONSHIPS. To avoid converting problems caused by lack of information from paper suppliers, as well as achieving a consistent supply of product, many converters do form strong relationships with their suppliers. These relationships are built, according to Arvanigian, by cooperation between both parties.
For Arvanigian, choosing the right suppliers means finding the companies that do the best job “through thick and thin” in supplying products for his company. Overall, he says that paper companies generally provide “pretty much what they want to for independent converters,” and that his company must decide whether or not to deal with particular suppliers. Ultimately, he finds that relationships with converters often hinge on a paper company’s level of integration.
“The companies that are 50% or 60% integrated are the ones that need our business,” states Arvanigian. “Those that are 90% integrated can do without us when things get tight, so you really have to selectively pick your partners.”
On a regular basis, Arvco works with six paper companies and a total of 12 mills. Since his company is ISO 9000 certified, it is prohibited from receiving containerboard products from brokers. To provide a consistent end product, Arvanigian notes that his company pays strict attention to what product is purchased from what mill and what company.
“There are a number of adjustments that we make both in the printing process and the corrugating process, and the key really to doing a good job is having consistency from roll to roll,” state Arvanigian. “For most mills, paper is fairly consistent from one run to the next. So, for example, we will we buy all our 42-lb supply from one specific mill, our 33-lb supply from another mill, and so forth. We tend to get much more consistency in our end product because of that.”
To Arvanigian, the larger paper companies have done a good job at supplying uniform product as opposed to some smaller companies, especially in the area of recycled linerboard. He reports that many of the inferior recycled products come from smaller companies and attributes the discrepancy to large companies being able to purchase quality recycle furnish and state-of-the-art cleaning equipment.
In many situations, being a good customer can make the difference in forging relationships with the right suppliers. Arvanigian admits that not all in his industry work to build such partnerships.
“There are those in my industry that constantly buy from brokers and are always looking for the least expensive product they can find. But when supplies tighten, they can’t get paper,” he describes. “Then, there are other converters, like us, who are very consistent with our order patterns and pay in ten to 15 days. We are the kind of customer the mills like, so there is generally quite a bit of interest on the part of the mills to do business with us.”
CHALLENGES FOR INDEPENDENT CONVERTERS. Technical and supply issues are not the only challenges independent converters have in dealing with paper companies. Chief among current concerns is the consolidation occurring in the paper industry.
Also, independents are tasked with being profitable on every roll that comes into their plants, and customer service pressures are great as they strive to maintain stable cash flow. In addition, buying groups made up of several small converters have not been well received by paper companies.
For the past seven years, Arvanigian has served as containerboard committee chairman for the Association of Independent Corrugated Converters (AICC), an organization that focuses on various issues affecting independents. The organization was originally formed in 1975 to help ensure that independents maintained a steady supply of paper, but has branched into training, cost-saving, safety, and technical programs. Arvanigian says that current paper company consolidation “greatly concerns” independent converters.
“There is a lot of market power in the hands of very few companies now” he states. “For example, I never thought that I would see a price increase successfully go through with 3.2 million tons of inventory floating around in a market that would typically be a down one. While there may not be any organized action among the big paper companies, they at least have a common understanding that prices must rise.”
Instead of measuring by tons of production, independents measure by square feet of finished board. According to Arvanigian, this subtle difference is one separation point between the independent and the integrated converter that has major consequences on profitability.
“Integrated companies measure how many tons per hour they get off the corrugator, while we look at how many square feet of finished board we produce” he explains. “If they make $100/ton at the mill and lose $20 at the box plant, they still made $80/ton. Since we don’t have that paper mill income to offset losing money at our plant, we need to make money off each roll that comes in.”
In addition, Arvanigian says that if paper prices remain at a high level for an extended period of time, plastic becomes a viable alternative to customers in some applications. And, once a customer has made changes necessary to package differently, it is very difficult to go back to corrugated.
Paper prices and quality also factor in the independent converter’s focus on customer service. Arvanigian says that the independents “are much more on the side of our customer than integrated producers.” He notes that the close interaction of independents with their customers is necessary for return business and overall company stability.
Are buying groups made up of small converters a good way to work with paper companies, who respond more readily to high volume customers? Arvanigian thinks so, because “the bigger the buyer you are, the more clout you have.” However, he says that paper companies have not been very willing to do business with such groups in the past.
Although Arvanigian participates in what he describes as “the only successful buying group in North America,” he says that most companies will not entertain proposals from small converter groups. He notes that his particular situation has been a “win-win” one for both parties, but cautions that any proposal must be a worthwhile one for the company, advising that “if, together, you can’t purchase at least 3,000 to 4,000 tons per month, it is not worth their consideration.”
|
