You might be asking yourself how is it possible to save money by spending more money? It is always important to consider the BIG picture. Spending a little extra money in one area might create cost savings across the board.
We have the perfect case study to demonstrate this claim.
This customer's original crate design was creating problems within the distribution environment.
The loss of potential space and the increase in crate and product damage was costing this customer a lot of money. Money that could be saved by adding a little more to their packaging.
The Nelson Technical Center approached this project with three goals:
The new crate design incorporated additional building material. Although the additional material added to the overall material costs, it allowed us to create a stronger product. A stronger product meant the crate now had the ability to double stack and reduced damage in shipping. Not only did the new design solve the two major issues within the customer's distribution environment, we were also able to create a space-saving feature. The crate is delivered to the customer knocked down and is designed to be easily assembled.
The individual crate costs were slightly higher, yet the more efficient design allowed for significant overall costs savings as well as a better customer experience. By spending slightly more on the crate, the costs savings were realized in other parts of the distribution environment.
Can your packaging benefit from a holistic approach to cost savings? Let us know by commenting below.
Post by: Kent Longardner, Technical Sales Manager
3/30/2016 11:53:09 am
Sounds like a good idea.
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Headquartered in Baltimore since 1918 Nelson Company is a trusted source for pallets & packaging materials.
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