Case Study — Packaging

The Customer:

A retail marketing agency focused on in-store brand expression, this company develops and produces innovative designs that sell their customers' programs and deliver results. Founded in 1987, they have been working directly with the world’s largest retailer and national, worldwide brands for more than 20 years.

The Situation:

The customer came to us with a battery display project in addition to a seasonal display we'd been producing for them annually. The bid required acquiring additional warehouse space due to limits it would place on the current project space. Everything from space, dock doors, workforce, production line and lift truck equipment, office and IT needs, break room tables, microwaves, vending suppliers, additional vendors and security were assessed.

We developed a plan, and after a walk-through the agreement was complete. Over a three-month timeline we would build two sizes of pallet display – Half and Full – in the building we selected.

Things changed one month into the project. First, the retailer pushed the shipping window out two weeks, which promised to accumulate pallet displays. The second blow was supply vendors changing delivery windows to a drop-dead date that would dump nearly 3,400 pallets into the existing facility. Finished product couldn't be shipped to relieve the storage of outbound staging, creating a potential shutdown scenario.

With the changed outbound shipping window, two options were proposed.

Option 1: Utilize new space to store Half Pallet displays, then ship them to the retailer's distribution centers. Full Pallet displays would ship from original space to retailer's DCs. However, we had to ship to the same DC within a day of each other so both Half and Full Pallets could be received and shipped to stores at the same time.

Option 2: Establish a line in new warehouse space for Full Pallets only. However, until Half Pallets could be completed at the original space, we would have to double the number of crews. When the vendor's supply delivery window changed, it created an additional challenge and option.

Option 3: Receive all the batteries at the new space, shuttle them over to the original space and finished product back to new space. Thanks to timeline changes, the customer could have been subject to additional expenses:

  • An additional 90,000 square feet of space, anywhere from $36,000 to $70,000 per month, for a minimum of two months.
  • Possibly another $25,670 to shuttle finished and raw product between the two facilities.
  • Additional lift truck equipment rental of $3,660.

The Solution:

We were able to share the required additional space with another Wagner operation. Outbound loads were pulled and product was moved to increase to accommodate the Full Pallet project. Production and shipping schedules were reviewed and a plan was laid out to complete the Half Pallet in the original space and move the line building Full Pallet displays to the new space.

Results:

We redirected supply vendors to the new space to continue necessary services. Within four business days we were in full production, which left us with one month of the planned project. We completed the Full Pallet display build, shipping both displays from both locations and met all deadlines. Cost to our customer was zero.

With the planning and efficiency of moving the operation, working with our carriers for greater savings, we were able to keep costs to a minimum. The customer did not have to share any of the additional $170,000 in expenses created by the move. Instead, the total expense was a mere $6,700, and all Full and Half Pallets got to the retailer on time. 

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