The Packaging Challenge

Due to rate changes pushing freight costs higher, New-Tech Packaging was asked by one of Memphis’ largest medical device suppliers to audit their packaging and uncover ways to reduce shipping costs.

The supplier turned to New-Tech as we are known as a leader in packaging for the medical industry, and we understand the industry’s regulatory environment.

 

The New-Tech Solution

For this medical device supplier, we started by analyzing cartons and shipping patterns. Industry changes that could become opportunities included:

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

We evaluated all of the packages and respective dimensional weights, including returnable totes and suitcases. Dimensional weight emerged as a significant cost driver.

The New-Tech team found that adjusting sizes and substituting specific packaging with alternative designs would lower costs significantly.

 

The Customer Cost Savings:

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.