CASE STUDY
Tier 1 Supplier
INJECTION MOLDED PARTS
THE SITUATION
Our customer is a Tier 1 supplier, shipping injection-molded interior trim parts twice weekly in large, corrugated totes with partition insert sets.
They were receiving a 40 x 48 HSC corrugated tote, assembling the partition inserts on-site, adding a lid, and shipping to Canada. The pack out was 15 parts per pack, costing $22.56 for the entire pack (not including labor for setup). The annual volume was 30,000 parts (15,000 LH and RH) so the customer was shipping 2,000 packs per year or roughly 175 per month. At 78 totes per truck, this customer was shipping 2.5 TL per month or 30 TL per year.
These parts have a grained A side that can be scuffed or scratched fairly easily and a B side with various clips and jagged edges. Another difficulty with these parts, and many injection molded parts, is that they were “L” shaped and not easily nestable.
Their primary goal was to find a way to reduce the parts’ footprint on their floor and the cost of packaging per part.
OUR SOLUTION
ITB proposed a few changes that increased the pack density dramatically, reduced setup time, and eliminated 2 packaging SKUs. The solution we provided was our Interleaf partitions utilizing Nomar paper.
THE RESULTS
This enabled the customer to put two parts in each cell, and we also changed the footprint slightly to 45×48 in order to get an extra cell in the pack. Yes, we went from putting 15 parts in pack to 32! The cost per pack did rise slightly to $26.50 per pack, but the cost PER PART dropped from $1.50 to $0.83.
Also, their customer was working with them to find cost-downs and credited them with $20,000 because they reduced their TL shipments by 15 per year.
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