Driving down costs
A large industrial manufacturing company was seeking improvements in its picking, packing, and shipping processes, while also increasing customer satisfaction and reducing total overall spending across the company’s multiple distribution facilities.
The company had previously standardized some of its packaging processes, however, each distribution center independently sourced its own corrugated cartons and interior carton packaging. The core interior packaging materials were sheet paper torn from rolls inserted in the packaging line before cartons were sealed and labeled. This operator-driven system made it difficult for the company to standardize the pre-carton paper usage.
Additionally, feedback from some of the company’s customers revealed that the paper interior packaging materials were excessive, requiring extra labor and costs to dispose or recycle it.
Overall, the company needed a solution that improved overall packaging processes and customer satisfaction while reducing costs.
- The new business model had to take into account all aspects of distribution and transportation in the U.S., and Canada
- Regional business conversions had to be completed in a tight timeframe
- Four new Network distribution centers needed to support the new business model
Solution Development
Network and its local distributors reviewed the company’s current processes and process redesign goals with the Distribution Group Senior Management staff.
Network then engaged with industry-leading packaging manufacturer, Sealed Air, to work with Network and their customer to evaluate solution options.
A series of site surveys and time studies were conducted, including photos of the facility and measurements of packaging materials and corrugate cartons used.
A new air-fill system was created for the company that custom fills corrugated boxes of different sized with a range of air packaging options. And carton sealing capabilities built right in.
Results
After an extensive beta test in one distribution center, the solution was implemented across the company’s remaining distribution centers over an 18-month period. The company has realized a number of benefits:
- Increased customer satisfaction
- Distribution center labor savings
- Overall operational improvements
