Corrugate Box – Stock and Ship Program

by camblog on August 28, 2012

in Supplies

Is your business looking for ways to:

  • Order fewer cartons or sheet stock?
  • Free up storage or operational space?
  • Improve cash flow?
  • Reduce vendors?
  • Reduce inventory holding costs?
  • Improve efficiency?

Through our “Stock and Ship” program, cam|industrial supply can help address all of these needs.

How does it work?

Through discussions and site visits we review your corrugate consumption patterns and inventory levels to identify opportunities where onsite inventories can be reduced. All costs are considered when determining appropriate inventory levels including; item cost, acquisition cost, holding costs, and any other relevant costs.

We then develop a program specific to your company that includes:

  • Inventory Quantities, (our facility and your facility)
    • Minimums
    • Reorder points
    • Reorder quantities
    • Seasonality concerns
  • Ordering
    • Frequency
    • Method, (phone, on-line, fax, email)
    • Cross reference numbers (your item numbers)
    • Purchase order requirements
  • Delivery
    • Expectations, i.e. same day, next day
    • Locations
    • Contacts
    • Documentation
  • Invoicing
    • Frequency
    • Purchase order format
    • Method (electronic, fax, mail)
    • Proof of Delivery requirements
  • Reporting
    • Frequency
    • People
    • Types, (usage, inventory, performance, etc)
    • Format, (online, email, printed)
  • Pricing
    • Contract
    • Volume discounts

Why does it work?

Our manufacturing partners offer a substantial discount based on our annual volumes from consolidating hundreds of individual corrugate users. Further discounts are provided to compensate for the value added services and financial risks we undertake on their behalf. These discounts allow us to be competitively priced versus purchasing directly from manufactures.

We have strong expertise in designing corrugate containers with a focus on problem solving and adding value. During our analysis, we are often able to identify design changes that reduce costs or solve existing packaging problems.

Customers are able to conserve space, cash flow, time, and energy on corrugate and utilize those resources on better opportunities.

The program is designed to be simple, easy to use, and to eliminate errors, allowing new people or occasional users to take over when need be.

Inventories are closely managed and always available from inventory when needed, eliminating costly stock out situations.

Benefits

  • You only pay for what stock you receive
    • This is very beneficial for your businesses cash flow
  • Space saving
    • Saving money for pallet positions and floor space
  • Space can be used for other company needs
    • That space can be transformed from costing money to creating money
    • New product lines, increase their inventories, item control
  • Cost of down time
    • We never run out of your boxes so you virtually will never have down time because of insufficient box stock

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A toothpaste factory had a problem: they sometimes shipped empty boxes, without the tubes inside. This was due to the way the production line was set up, and people with experience in designing production lines will tell you how difficult it is to have everything happen with timing so precise that every single unit coming out of it is perfect 100% of the time. Small variations in the environment (which can’t be controlled in a cost-effective fashion) mean you must have quality assurance checks smartly distributed across the line so that customers all the way down to the supermarket don’t get ticked-off and buy another product instead.

Understanding how important that was, the CEO of the toothpaste factory got the top people in the company together and they decided to start a new project, in which they would hire an external engineering company to solve their empty boxes problem, as their engineering department was already too stretched to take on any extra effort.

The project followed the usual process: budget and project sponsor allocated, RFP (Request for Proposal), third-parties selected, and six months and $8 million later they had a fantastic solution — on time, on budget, high quality and everyone in the project had a great time. They solved the problem by using high-tech precision scales that would sound a bell and flash lights whenever a toothpaste box would weigh less than it should. The line would stop, and someone had to walk over and yank the defective box out of it, pressing another button when done to re-start the line.

A while later, the CEO decides to have a look at the ROI (Return on Investment) of the project: amazing results! No empty boxes ever shipped out of the factory after the scales were put in place. There were very few customer complaints, and they were gaining market share. “That’s some money well spent!”, he says, before looking closely at the other statistics in the report.

It turns out, the number of defects picked up by the scales was 0, after three weeks of production use. It should’ve been picking up at least a dozen a day, so maybe there was something wrong with the report. He launched an investigation, and after some work, the engineers come back saying the report was actually correct. The scales really weren’t picking up any defects, because all boxes that got to that point in the conveyor belt were good.

Puzzled, the CEO traveled down to the factory, and walked up to the line where the precision scales were installed. A few feet before the scale, there was a $20 desk fan, blowing any empty boxes off the belt and into a bin.

“Oh, that,” says one of the workers … “one of the guys put it there ’cause he was tired of walking over every time the bell rang.”

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