Flexibility key to Praxis’ relationships in food, pharma
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By Kym Reinstadler | MiBiz
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GRAND RAPIDS — After several years of rigorous and costly laboratory testing, Federal Food and Drug Administration approval to sell a new prescription drug could come at the end of the week. Drug company executives are hot to get trial-sized packages accompanied by patient education information in a variety of media into their sales representatives’ briefcases by Monday morning.
Speedy turn-around of promotional packages of foods and drugs that must remain pure is a specialty of Praxis Packaging Solutions, a contract packing company headquartered just off U.S. 131 at 76th Avenue in Grand Rapids.
“‘Rapid response management’ is what we call what we do,” Scott Hanmer, Praxis VP of sales, told MiBiz. “No two days are alike around here, and what we’re doing can change on a dime.”
A bird’s eye view of the process might look more like “controlled chaos” on some days, Hanmer acknowledged.
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Praxis Packaging Solutions specializes in working with food and pharmaceutical companies to quickly bring to market various products that require special promotional packaging. COURTESY PHOTO |
Products arrive at Praxis’s loading docks in bulk or in standard packaging from manufacturers. Praxis repackages them for time-release and retail promotions and sends them right back out for distribution.
Turn-around — even on large jobs that include hundreds of pallets — is rarely measured in weeks and seldom measured in days, Hanmer said. Often orders must be re-packaged in a matter of hours.
“The only problem with performing miracles is that people start expecting miracles every time,” Hanmer said, with a chuckle. “But our goal remains to exceed customer expectations. We strive to adapt and overcome whatever we have to so we can achieve that.”
To turn out big orders on tight deadlines, Praxis relies on temporary workers. The company employs 350 full-time workers, but the workforce can double and expand to multiple shifts with a large, time-sensitive order.
Praxis — a word defined as “translating an idea into action” — had 5,700 production runs in its packaging facility last year. It packaged consumer goods ranging from powdered baby milk and toddler treats to cosmetics and pharmaceuticals.
It’s largest customer is Allegan-based generic drug manufacturer Perrigo.
One month after being purchased by the Huizenga Group three years ago — a move that gave the 20-year-old company the financial wherewithal to expand — Praxis also opened a 30,000-square-foot facility in Columbus, Ohio. This puts Praxis in proximity to better serve its second biggest customer, the pharmaceutical company Boehringer Ingelheim.
Praxis has earned “Supplier of the Year” honors from Perrigo for two years running. It was Boehringer Ingelheim’s top supplier in 2010.
Outsourcing specialty packaging benefits manufacturers because it eliminates the need for capital investment and fixes labor costs for products that are just being launched, or have fickle or seasonal demand, Hanmer said.
Specialty packaging adds to the cost of getting a product to market, but the cost is negligible, especially in the case of pricy pharmaceuticals, he added.
“There are others, like sheltered workshops, that can offer customers a lower price point on packaging,” Hanmer said. “But they don’t meet the (cleanliness) requirements for FDA certification.”
And no one is as nimble, expanding and contracting their workforce and operations to the specific job at hand.
A carefully choreographed warehousing system allows Praxis to quickly pinpoint shipments anywhere in its 130,000-square-foot production facility by purchase order, lock code and expiration date.
Hanmer said he expects the contract packaging industry to grow alongside manufacturers of products for which quality assurance and speed are critical.
The company does blister card, clamshell and stretch-card packaging. It also hand-packs starter kits which may include several pieces, including literature and DVDs explaining how to use a product.
With printing and cardboard display design expertise from other West Michigan companies, Praxis also creates unique point-of-purchase pallet, aisle-end and countertop displays.
The company also does a lot shrink-wrap club packaging for Wal-Mart, Sam’s Club, Costco and other retail stores.
Although the product inside is the same, discount stores and dollar stores demand different packaging, and it’s not all cosmetic.
Wal-Mart, for example, is asking some contract packagers to bundle baby care products in smaller packages than are typically sold. These packages — which can be sold more cheaply — would be on the shelves only a few days before a community’s largest employer pays employees. Small packs help parents on tight budgets get by until payday.
Hanmer said Praxis considers itself a valued, but “unseen” partner in its customers’ success.
