Solution Generates Cost Savings
When an industrial manufacturer needed to reduce supply chain costs, they teamed up with Crane Worldwide Logistics for an innovative solution.
Crane Worldwide Logistics' client is a large global industrial manufacturer and they are under constant pressure to reduce supply chain costs. Due in large part to recent legislation in the transportation industry, there has been a significant shortage in the supply of drivers, drastically increasing the cost of transportation for our client.
Specifically, our client was shipping high volumes of powertrain components from North America to Germany via the ocean. The supplier packaging did not go "wall to wall" so each unit load had to be blocked and braced. On average, the impact of this package was a 60% (cubic average) underutilization rate for each ocean container.
Working with the client, Crane Worldwide Logistics® completely redesigned the supplier pack with several goals in mind:
- Utilize the entire dimensions of the ocean container.
- Design the internal dunnage to protect the components.
- Maximize the number of parts per package.
The results were striking. Not only were we able to accomplish all of our goals on the packaging side, we also exceeded our cost saving expectation for the client.
- Increased parts per box by 100%.
- Reduced containers used annually by 50%.
- Reduced bracing per container 60%.
- Create wall to wall bracing while decreasing total box cost.
- Created a seven-figure cost saving for the client.
We find this to be a great area of opportunity with manufacturing clients. The packaging manufacturers use for shipments tend to have a number of design issues that make them less than ideal for shipping and transportation. We find if we are able to look at a specific application, and design something for the specific purpose, we are able to generate big cost savings. In this case, the review and new design generated big results because our client allowed us to be creative and challenge their internal procedures.
At Crane Worldwide Logistics® we believe in innovation and solutions; not limitations!
To learn more about Crane Worldwide Logistics'® solutions, visit www.trycraneww.com.