Being a global supplier with a capacity to identify savings, Nefab was approached to analyse the cost take-out possibilities. Several similar packaging solutions have been successfully implemented, both for themselves and their customers. A team of representatives from both Nefab and the customers packaging group were put together for a short-term action plan. After a pre-audit, it was decided that the Nefab ExPak S with 6mm plywood would be the best solution. Wooden pallets were replaced with Oriented Strand Board (OSB) pallets for all worldwide destinations so that Phytosanitary regulations could be met. To reduce costs even further, Nefab provides “first tier supplier” services by providing VCI foam pads, foil and foam fitting sticks as inner packaging. Stretch film and corner damping are still used in the majority of domestic and European shipments.
The Benefits for the customer:
A total cost reduction of 20-28% in packaging and logistics on global basis could be spotted immediately after the implementation. Since the manufacturing process is lean and labour reducing, the customer is very pleased with the solution and would like Nefab to look for other cost saving opportunities where “Complete Packaging Solutions” (CPS) could be implemented..
Reusable System for Radio Base Station Filters
The presenting transportation challenge was to ship RBS filters from a first tier supplier to the OEM. The requirement was to ship 150,000 filters annually in 11 cycles. The existing packaging consisted of a tri-wall corrugated carton and polystyrene internal fittings. Due to the increased monetary/waste costs for cardboard, product damages, and cumbersome packing operations, the OEM decided to look for a new improved solution.
An in-depth analysis of the first tier supplier’s product flow was carried out to determine the best solution for the OEM. Key parameters included space utilisation, incorporation into the OEM`s internal system and reusability. Frequent supply loops within the product transfer were identified and a reusable system based on Nefab RePak containers was developed.
The Customer Benefits
Thanks to the implementation of Nefab's reusable packaging system it was possible to realise a cost saving of approx. $3,500,000 with a payback of the investment in 2 months. Apart from the direct cost savings, other benefits include; less time spent in packing, product damages are now virtually zero as well as environmental/waste costs.
Summary of benefits:
- Reduction of total costs
- Flexibility to meet internal/external requirements
- Ergonomic design
- Strength