Small Changes, Big Savings
How We Saved a Retailer Over £100,000 Per Annum
After carrying out a free-of-charge packaging review of a prospect’s entire packaging and logistics chain we highlighted several areas within the operation that the KWP team could advise and assist in order to make them substantial savings.
The soon-to-be customer was using 14 retail ready cases. Historical issues with these cases included poor performance in transit, resulting in product damage and deteriorated aesthetics when presented on supermarket shelves.
Our in-depth analysis resulted in re-sizing and re-design of 12 of the packs. Due to subtle product changes over time the packaging in many cases was no longer the correct fit.
Our experts re-sized 12 of the cases and in some instances also reconfigured how the goods were packed within the cases. Perforation profiles were also changed to further assist with stacking strength and on-shelf presentation.
The clients’ onward transportation to their customers was also part of the analysis, and was fully reviewed when redesigning the cases. As a result, new pallet builds were offered to the customer, providing more secure pallets to offer greater product protection.
Due to the fact that KWP incorporate the clients’ onward transport logistics, our re-sized cases provided far greater pallet cube fills, and the customer was now able to get more cases per pallet layer whilst also gaining another full layer on each pallet. These changes provided the client with a transport saving of £38,000 for not just the current year, but every year going forward.
The 12 cases that were improved, meant that product was fully protected and presented professionally on supermarket shelves, thus meaning no returns to customer and increased sales as a result.
Spend on cases was reduced by £65,000 on an annualised basis as over-packaging was eradicated by implementing our changes.
Household name Food Brand Makes Big Savings
Over £100,000 Better Off After Changes Were Implemented
A well known household Scottish food brand engaged with us to undergo our Free Packaging Review. We were asked to carry out an extensive examination of their packaging and logistics.
The review process involved; a boardroom presentation, Operations Director present at all times during the teams’ visit in packing and distribution areas. The challenge was stated clearly, that the incumbent supplier of over 20 years had assessed all cases and board products during the last 12 months and found products fit for purpose – over to team KWP.
KWP PACKAGING REVIEW OBSERVATIONS
Products fully reviewed totalled in excess of 80 variants. There were items used in the packaging called “layer pads” These are die-cut pieces of cardboard designed to fit inside a case which alleviates pressure on delicate products when they are packed into the case. These pads were to be placed in the middle of the cases thus assisting stacking strength.
Our on-site inspection found that on checking the products coming off the packing line, the layer pads were simply placed on the top of the product and were offering no benefit whatsoever to the pack. Discussions with packing managers revealed that they had operated this way for many years. Some cases were found to be of the incorrect length and breadth, resulting in possible damage to products in handling and transportation.
We suggested reducing the case heights and removing the pads altogether and having transit trials carried out across the 31 products where the pads were being used in this manner. The trials were a total success. Other cases were reduced on length and breadth as they had been wrongly sized by the incumbent.
The savings to the customer were massive for their business. Removing the Layer Pads saved £63,000 and the reduction in case heights due to the pads’ removal saved a further £21,000 per annum. The further amendments to the cases that were wrongly sized on length and breadth in the first instance saved £17,000 annually. There were additional transport savings for the customer as the pallet builds were hugely enhanced.
The brief Case Studies above demonstrate the potentially huge benefits that can be gained by clients embracing the unique KWP Free Packaging Review – a service of which we are proud.
Taking a Local Business to the Next Level
Finding the Right Packaging to Supply Supermarkets
Customer had potential opportunity to supply major retailer with their hand made food products. Until now this food manufacturer had successfully grown their business supplying their products within roughly a 30 mile radius of their production site. Now, however, if they could achieve the correct presentation and packaging of their goods, with an extended shelf-life, they could potentially double their current turnover in 6 months. Customer had very limited experience in sourcing the equipment, packaging and processes to facilitate this expansion and massive opportunity.
We reviewed the current operation and had several in-depth discussions with the client and their potential customer in order to fully appreciate their exact needs and expectations. We then went to work with our team of experts and put together the ideal solution for this business. This encompassed all aspects of their new operation from gas – flush machinery and automated packing lines, including the exact size of sealing head required, to all the packaging items; Plastic Trays and Tubs, Lidding Films, Fully Branded Shelf Ready Packaging & Lids and tertiary packaging. Our ability to offer the perfect holistic solution, meant that the customer had everything they required to achieve their goal of supplying this supermarket with the confidence that all aspects of the packaging process had been fully tested with excellent results.
Our customer, won the supermarket business and in the time since the launch, they have not only retained this business, but have grown substantially within many multiple outlets. We continue to advise on all aspects of NPD as their range develops and our partnership goes from strength to strength.
Protecting High-End, Expensive Products in Transit
Bespoke, Specialised Packaging Solutions
Prospective client packaged high end expensive products in single units for world leading brands. The delicate nature of the individual packs, meant that when in transit the outer surface of the packs were very easily scuffed and damaged; even the slightest mark on these inner packs, meant rejection by our prospect’s customers. Incumbent supplier and others had offered several solutions, however fail rates were still too high – our challenge was to provide a solution with zero fail rates and little or no cost impact.
It was not an option to change the inner packs, as these were iconic brands, therefore, we had to fully review and improve the packaging that contained these delicate / expensive items. Following our in-depth review and trials, we presented our recommendations to our prospective client. By re-configuring the inner packs and encompassing them in cell dividers that were made from a specialised material, and by incorporating the same material into the case liner we would all but eliminate any scuffing issues. We also changed the structure of the outer cases, thus ensuring that the products remained completely flat at all times. After strenuous transit trials the prospective client fully approved our bespoke cost effective solution.
Our new client greatly benefited from our recommendations and as a result, all of their packs of this nature are currently packaged using our bespoke, specialised solutions. They in turn have zero costly product rejections and also have very satisfied customers, they also use our specialised solutions to gain more business with new clients.