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Slashing Freight Costs Through Intelligent Packaging

| Posted in Blog, Case Studies, Company News

Box with Money

When carriers introduced rate changes in 2015, based on a package size, New-Tech was ready to help by analyzing our customers’ cartons and shipping patterns to deliver significant freight savings. 

 

 

 

  • Small package ground shipments are now priced on their size or dimensional weight, just like air shipments.
  • Businesses are rewarded when using smaller, fuller boxes, making intelligent packaging a strategic cost-saver.

Challenge:  New-Tech was asked by one of Memphis largest medical device suppliers to uncover ways to reduce their shipping costs. Dimensional weight savings emerged as a significant cost driver.

Solution:  New-Tech evaluated all of the packages and respective dimensional weights, including returnable totes and suitcases, adjusting sizes or substituting with alternative designs.

Benefit:  Three broad project areas emerged with direct cost reductions of $300k, $700k and $100k – a total annual savings of $1.3 million in freight costs.

 

 

Canon Case Study

| Posted in Case Studies

Canon photo cards

Rather than exporting their printers from Japan into the U.S. already packaged in retail boxes, Canon shipped them in a bulk. Upon arrival in the U.S., these were packaged into retail boxes, customized for the respective retail electronic store chains. This resulted in:

 

  • Significant freight savings amounting to millions of dollars — enough to justify the entire decision
  • Rapid customization and deployment of new packaging styles
  • Significant reduction of obsolete inventory vs. traveling from the far East with long lead times
  • Use of materials with which U.S. consumers were familiar and accepted
  • U.S. marketing and package development in close collaboration with retail stores

New-Tech was selected as Canon’s Vendor of the Year for the work we did with them, packing printers, inks and papers.

Workstations Create 35% Productivity Boost

| Posted in Case Studies

workstations-create-35-productivity-boostNew-Tech’s packaging workstations increase productivity and workflow for a leading medical device manufacturer. The workstations are equipped with:

  • Overhead digital cameras to document that every shipment is complete
  • Adjustable lights and magnifiers to inspect and document tiny serial numbers
  • Corian® work surfaces built to last and withstand abuse from metal trays
  • Compact wiring troughs to keep the work surface clear
  • Surface mounted scales to eliminate lifting and moving orders

New-Tech believes that good design is an interactive process beginning with a discussion of the customer’s goals for productivity, workflow, and footprint. Based upon customers’ needs, New-Tech puts together a 3-D drawing of the proposed workstation and suggests the proper components to improve productivity and workflow. Our modular designs also make it easy to reconfigure workstations over time as business needs change.

The customer identified a significant increase in work flow (35%) as a direct result of organizing the work stations.

Do you need to evaluate workflow in your facility? Request help here.

Or to learn more about work flow improvement click here.

Automation Eliminates Facility Move

| Posted in Case Studies

FootSmart

An apparel distributor was on the verge of outgrowing its current facilities because their business was increasing. Our team spent 5 days evaluating their packaging process and was able to identify an automated bagging system designed for internet order fulfillment. We replaced the manual pack and ship process, supplying four Automated Packaging bagging machines integrated with new conveyor and package handling.

 

In adopting this automation, the company saved on materials, labor and freight.

  • Material savings came as the printed bag replaced a corrugated box, packing materials, tape and labels.
  • The number of packages shipped per hour grew by over 50% with the same labor force. The time to ship an order decreased from almost three minutes per order to 45 seconds! This allowed them to handle their growth without adding additional packaging stations.
  • Freight savings were substantial because the system tied into a software program that identified the lowest cost to route the package. Also, the bagged product cost less than their boxed orders had.

Total annual cost savings was $200,000, with anticipated higher returns in the future years after the equipment is fully amortized.

Are you considering automation in your facility? Request help here.

Or to learn more about our automation click here.

Brewer Saves $400,000+ Annually

| Posted in Case Studies

DSC00148A major U.S. beverage company packaged their cans in a tray over-wrapped with shrink film. Because of their incredible buying power, they were buying their 2.0 mil polyethylene film at a great price per pound. Still, these millions of pounds of film amounted to a significant annual expense, so the customer entertained our approach and proposal.

Working with a resin chemist, we identified a high-modulus 1.25 mil shrink film to over-wrap the product – a film that functioned with equivalent strength and performance.

Material Savings: A substantial 37.5% of the cost was eliminated by reducing the amount of the film used on each package (sold by weight).

Increased Output: The stiffness of the new film allowed the line speed to increase from 65 cases per minute to 72 cases per minute — a 10% throughput increase on a sold-out line. This allowed 2.5 million cases of additional product to be run annually, an even greater financial impact than the material savings.

Environmental Impact: Hundreds of TONS of film were eliminated annually from the waste stream.

Labor Savings and Uptime: Because the film was thinner the footage on each roll could be increased. This meant fewer roll changes per shift and $65,000 of labor and line additional savings annually.

Our team can conduct a Packaging Analysis in your facility! Contact us to learn more.

To learn more about our Packaging Analysis click here.

New Suitcase Saves Over $800,000 Annually

| Posted in Case Studies

Suitcase with Foam InsertIn a recent project, New Tech worked with a customer to evaluate their product’s container and uncover freight savings.

They had been using a medium-sized tote system to ship their product. Through creative design we introduced a smaller, waterproof suitcase system lined with foam to protect the product. This resulted in a significant dimensional weight savings of over $800,000 in freight!

Do you want to re-evaluate the design of your product’s packaging? Click here to request help.

Or to learn more about our design work click here.

Cross-Link Foam Prevents Equipment Damage

| Posted in Case Studies

IMG_1093The healthcare providers at WellChild spend their days visiting schools, offering medical exams, giving various health screenings, and more. Transporting valuable equipment often leads to damaged equipment, costing not only money but time in replacing these items that offer much-need preventative health care evaluations.

In their search for solutions, a WellChild representative made contact with one of New-Tech’s customers, who then referred them directly to us.

A Packaging Solutions Representative at New-Tech, consulted with our vendor, who then used waterjet design cut into cross-linked foam to create a perfect solution. This was fitted inside a durable and well-known Pelican™ case.

Since their first order in the Fall of 2011, they have no equipment damage!

Click here to learn more about the protective power of foam packaging.

Premier Nutrition and Weight Management Company Saves on Void Fill

| Posted in Case Studies

HerbalifeVoid Fill is a major topic of interest for most distribution centers in Memphis. Our customers want to know what will protect their product, won’t increase freight costs, and has an attractive, competitive price point.

One of our clients was interested in finding ways to cut void fill costs. After testing products from various manufacturers, the decision was made to go with the Recycled Air Pillows that withstood the weight test of 120lbs. If the air pillows could withstand 120 lbs, the client was confident that their product would be protected.

These Recycled Air Pillows are 100% recycled and green in color, immediately relaying to the consumer that this company is proactive in their role to protect our environment, not to mention the immediate cost savings. After a few days of using the new product and machinery, it was determined that the employees quickly adapted to the operation of the new equipment and there was no “down time”.  In fact, the employees liked working with the pillows better than their previous void fill; they felt they loaded into their boxes easier and quicker.

Our customers appreciate the modernistic approach to helping their customers reduce cost through the combination of savings in labor, materials, and freight.

Mail Order Giant Adds Second Wave of Machinery

| Posted in Case Studies

In 2010 a major Internet fulfillment company (name withheld) installed four high speed bagging systems to help fulfill their Internet orders. The machines reduced the average order fulfillment time from over three minutes per order to less than 45 seconds per order!

Their growth has inspired the addition of two more machines. These will be online in December.

 

 

 

 

 

Kaizen Event Saves Over $1 Million

| Posted in Case Studies

New-Tech’s team participated with one of our large customers in a Kaizen event focused on eliminating waste in the supply chain.

Over a three month period, our two companies discovered and eliminated:

  • two layers of temporary packaging, which were being thrown away.
  • one complete round trip, where packages were loaded and unloaded (at each facility).

Besides the waste that was eliminated, we increased the throughput time and shortened lead times, making our customer more responsive to the retail market.

These efforts saved the customer 13.4%, representing over one million dollars worth of savings, annually.