This rapidly growing manufacturer of distinctive home furnishings faced multiple challenges in keeping its packaging costs manageable. The company had no internal professional purchasing staff and little understanding of current market conditions and pricing competitiveness. Both of the company’s long-term packaging suppliers could be categorized as passive order takers, offering no creative solutions to help the company optimize its packaging or reduce its spend. Adding a new imported product line with challenging packaging requirements and restricted distribution center space, the company was looking for a partner that could deliver an innovative, cost-saving solution.
Our packaging team visited the company’s corporate facility with the its existing packaging partner. While there, we conducted a thorough benchmark analysis to ensure savings on the client’s existing line of packaging products.
After review, Transportation Insight proposed a complete packaging redesign on the current product line, and recommended a cost-effective solution for the new products. The proposal also included a plan to implement a stocking program to virtually eliminate in-house storage of packaging products.
Through the benchmarking of its existing packaging products, the furniture manufacturer was able to reduce costs by 20%. As part of the program to support the new product line, we recommended a new stretch wrap machine that would realize a payback within three months. The team delivered cost-effective solutions in time for the new product launch, increasing floor space with a new racking system and reducing packaging inventory by implementing a supplier stocking program. Our packaging team further reduced costs for the client by helping them redesign existing crating requirements. As the relationship continues forward, our experts continue to examine ways to help the furniture manufacturer stay ahead in an increasingly competitive marketplace.