Home Furnishings Manufacturer Saves 20% Through Benchmarking Existing Packaging Products

Challenge

  • New imported product line with challenging packaging requirements
  • Restricted space in distribution center due to growth
  • No internal professional purchasing staff and little understanding of current market conditions and pricing competitiveness
  • Both long-term packaging suppliers categorized as passive order takers

Strategy

  • Visited facility with pre-approved packaging partner to conduct assessment, pick up samples and initiate design work
  • Conducted benchmark analysis to ensure savings on existing line
  • Proposed a complete packaging redesign on current line
  • Recommended cost effective solutions for the new product
  • Proposed a stocking program to eliminate in-house storage of packaging products

Value Summary Results

  • Saved 20% through benchmarking of existing packaging products
  • Recommended a new stretch wrap machine with a payback of less than three months
  • Delivered cost effective solutions in time for the new product line launch
  • Increased floor space with new racking system
  • Reduced packaging inventory by implementing a supplier stocking program
  • Further reduced costs through redesign of existing crating requirements