Business model and strategy

Going for Growth

Our plans were launched in 2017 as part of the five-year strategic plan to develop the business through organic growth in our target markets of Pharmaceutical, Healthcare and Food and Beverage. To enable this, we created a global sales approach under our single entity model, One Mpac, offering innovative packaging machinery solutions from our extensive portfolio of engineered modules.

The sale of the Instrumentation and Tobacco Machinery division in 2017 provided the Group with additional liquidity to finance the delivery of our technology and innovation roadmap which will accelerate progress in achieving our strategic aims with the entire focus of the continuing business being the growth markets of Pharmaceutical, Healthcare and Food and Beverage.

The order book, order intake and revenues were all increased in 2018, continuing the growth profile. The commercial excellence programme deployment continues with new members of our sales team and further development of strategic selling to key accounts was delivered during 2018. Our global reach supported by the new branding and focused business approach enabled us to acquire a significant number of new customer relationships in our target markets.

We will continue our commercial excellence programme with further training modules aimed at increasing our win ratio and expanding our customer base through our geographic reach.

Cross selling of the existing product and service offering to new and existing customers is a clear target, ensuring we better understand their evolving needs and extend our customer proposition with a broader solution approach.

Innovation is key to long term sustainable growth and during the year we launched several new products at the major industry exhibition in Chicago, where we also showcased the new Mpac branding. These new innovations were a significant success factor in developing new business, with customers appreciating the improved performance together with the Industry 4.0 enabled technology.

Make Service a Business

The new Service business operational leadership team was formed during the year, establishing the necessary skills and mindset to generate a best in class service offering to our customers. The on-boarding of the new team and structure was completed during the second half of 2018.

Our customers have an extensive globally installed base which they expect to run continuously at high levels of overall equipment effectiveness. The trends towards Industry 4.0 and its enabling technological platforms support our strategy to work with our customers to ensure they maximise their return on investment throughout the life-cycle of the equipment. We can offer comprehensive service programmes to maximise uptime and minimise cost of production through our global service business.

The focus for the coming year will be to ensure that the newly formed Service business  team work closely with every customer to understand their needs and to tailor contracted service programme agreements aimed at customer productivity improvements.

Excellence in Service will also be an initiative focused on quick response and high spare part availability for our global  customers.

The focus for the coming year will be to ensure that the newly formed Service business team work closely with every customer to understand their needs and to tailor service programme agreements aimed at productivity improvements.

Excellence in Service will also be an initiative focused on quick response and high spare part availability for our global customers.

Service business growth will be supported by new product launches during the year enabling customers to optimise their production processes and improve product quality through greater equipment connectivity, data extraction and interpretation.

Operational Efficiency

Our stated aim continues to be a customer focused, responsive and flexible Group achieved through organisational excellence, underpinned by a global supply chain and supported by a single business model, One Mpac.

The Mississauga based business successfully moved to a new facility at the start of the year and has now established an impressive customer orientated facility to showcase new innovations whilst customers participate in new project discussions and packaging machinery acceptance testing.

A key focus during 2018 was to establish the global supply chain partnerships with key organisations that support our global manufacturing footprint. Significant progress has been made to migrate our global engineering teams onto common systems and solutions to further enhance our operational flexibility and efficiency. A common project management platform has also been implemented which enables more effective management of our portfolio of projects.

The final part of this solution is the implementation of common business systems (ERP), with the project launch in early 2019.

Mission

› To be a global leader of high speed packaging solutions focused on attractive growth markets enhanced by a world class service offer programme to ensure maximum return on customer investments;

› Customer focused, responsive and flexible through operational excellence underpinned by a global competitive supply chain and internal activities optimised to maximise efficiency;

› Address our customers’ unmet needs by leveraging market leading technology, innovation and application know-how.

Business model

The One Mpac business model was introduced in 2018 aimed at ensuring we deliver consistent high quality services to our customers globally and wherever they choose to locate a manufacturing site.

The Group offers its customers a packaging solution customised to their requirements using a portfolio of proven modules augmented with a customer specific product package handling solution.

The implementation of our One Mpac business model is well progressed covering contract engineering and project management. During 2019 we will focus on procurement and manufacturing, through to assembly, test and then site delivery and customer acceptance. Common processes are all monitored and controlled by effective project management. Service support is then provided through the life of the product at the customers’ sites.

The capital equipment market is cyclical by its nature with a high need for responsiveness and flexibility to adapt to customer demands and lead time needs, seizing the opportunities as they arise.

The group is now able to exploit synergies, utilising best practice across the sites and a shared services resource in order to improve the operational efficiencies.

This creates a model whereby we can increase utilisation with the ability to expand capacity with increased demand and reduce capacity in periods of lower demand.

2018 progress

» Innovation and new product launches
» New customer acquisition
» Brand marketing development
» Pipeline management
» Management team on-boarding
» Expansion of field service footprint
» Promote contractual agreements
» Focussed operational excellence
» Recruitment, training of key resources
» Global supply chain and outsourced standard model build
» Progress on shared engineering systems
» Common project management processes and systems
» Cross business project collaboration

Future plans

» New customer acquisition
» Sales coaching and performance management
» New product development
» Full and cross solution selling
» Upgrade programmes
» Promote contractual agreements
» Life-cycle ROI proposition
» Develop rental revenue stream
» Leverage installed base
» Flexible project engineering resourcing
» Phased ERP launch
» Supply chain management efficiency
» KPIs to support strategy

Key Opportunities

The market and customer demands are evolving, with a clear need for full solutions to their packaging requirements supported by a comprehensive services proposition to ensure maximised return on their investments. Demand for data capture and traceability throughout the product life-cycle is also an increasing trend.

By utilising the impressive array of innovative engineering solutions throughout the Mpac sites, supported by a focused product development roadmap targeted on the attractive growth markets, we will be well positioned to deliver growth beyond industry forecasts.

The Group offers first-of-a-kind innovative solutions, working with the customers’ product development engineers and marketing functions on the next generation of innovative products. By partnering with these key global customers, Mpac will be well positioned to support the customer from prototype to series production.

This capability should be leveraged across our global sales team and into our global key accounts and prospects.

In particular, Service represents a key opportunity based on a substantial installed base. A detailed review of the customers has been undertaken to assess the potential additional revenue opportunities and a customer focused approach to transition to contractual agreements aimed at improved equipment utilisation and therefore customer return on investment.

Product innovation and development is key to sustained growth in the large and attractive markets we operate in. Our current product development roadmap is under continued review to ensure it is realigned to effectively support customer trends in the identified growth markets.

Innovations to the current product range were launched successfully during 2018 with further launches planned to address short term needs as well as regional nuances, supported by a longer term roadmap to ensure we supplement the full solution objective in our target markets and address emerging customer demand for increased data capture to support maximised utilisation and product conformity.

One Mpac business model with a regionally focused, single business entity model has been implemented. New sales and service regions have been created for the Americas, EMEA and Asia Pacific.

This is supported by a global service business, operations and shared services function.

Customer responsiveness and reduced lead times are key competitive advantages and as such we need to continuously improve. By working on a global basis, operations and shared services will be better able to increase operational efficiencies, whilst simultaneously creating a flexible and responsive manufacturing base and supply chain to quickly adapt to changes in customer demand and investment cycles.