As the third part to our blog series focusing on customer case studies, we will be providing insight into a project we completed for a customer looking to save money on their packaging. The customer reached out to their current packaging supplier to determine if there was opportunity to reduce the material strength and was told there was not. For this reason, they reached out to BoldtSmith Packaging for an unbiased opinion. Continue reading to find out how much money we saved our customer!
The project goal was to determine the optimized master carton strength and implement across their 6 domestic packing facilities. The customer had an extremely aggressive goal of cost savings which we were able to exceed in the 8-week timeline that we were given.
Project Deliverables
- Create a custom testing protocol that matches the customer’s supply chain
- This would be achieved by visiting all stopping points in the supply chain
- Create optimized packaging design solutions
- Create packaging specifications
- Create packaging samples
- Test the samples to the custom transit testing protocol
- Run line trials at all 6 manufacturing facilities with the optimized packaging
- Complete ship tests with the optimized packaging and review packaging upon receiving
- Send specifications for pricing
- Create financial analysis including packaging, labor and freight costs
- Create a presentation outlining the design, pricing and testing results
Packaging Design
Upon kicking off the project, we discovered that the box shipping the product was in a 32 ECT master carton. Based on the supply chain, handling methods and product weight, we believed there was an opportunity to decrease the material strength.
We met with the current packaging suppliers to learn about what material options they offer. Based on the information provided, we explored three materials options for the master carton.
1) 29 ECT
2) 26 ECT
3) 23 ECT
Testing Results
A test is worth a thousand expert opinions is a phrase we often use at BoldtSmith Packaging. We felt confident that the 23 ECT material would have issues on the manufacturing lines and during shipping. However, we discovered that the 23 ECT performed great in the line trials, lab testing, and ship tests.
Cost Savings
Since BoldtSmith Packaging designed the specifications, the pricing was able to be sent out to not only the current packaging supplier but also competitors to ensure we received competitive quotes. After completing the financial analysis and compiling the cost savings for all facilities, we were pleased to discover that changing the master carton from 32ECT to 23 ECT resulted in just over $6,000,000 in annual cost savings.
We were told by the current packaging suppliers that there was no opportunity to reduce the material strength. Through our transit testing, line trials and ships tests, we were able to provide the data to prove that a significant cost savings opportunity did exist.
What packaging cost savings exist within your company that your current packaging suppliers are not uncovering for you? Reach out to BoldtSmith Packaging and we will uncover and execute optimized packaging solutions!
Below are links to the previous two case study blogs!
