Our man Kevin recovers packaging costs!
One of the best packaging experts in the country, Kevin H., has worked with companies from $500 million to $100 billion across industries including high tech, appliance manufacturers, and some of the world’s largest retailers and shippers. In addition to his domestic experience, Kevin has significant international expertise dramatically reducing packaging costs for companies across Asia, Europe and India.
In addition to his domestic cost cutting proficiencies, Kevin has significant international experience, dramatically reducing packaging costs for companies across Asia, Europe and India.
Michael: How do you cut packaging costs by six and seven figures?
KEVIN: One must think beyond the actual package material or geometry to find the opportunities. I observe trucks arriving at the factory and assess how packing materials, including boxes, pre-made cans, and blow-molded containers, create unnecessary in-bound costs when the trailers aren’t fully utilized. This is all a part of “designing from the outside in.”
Michael: Describe, “Designing from the outside in.”
KEVIN: Helping suppliers take better advantage of pallet space and overall truck dimensions is “designing from the outside in.” Start with your supply chain’s fixed dimensions for trucks, ocean containers, upper or lower bays of planes, pallets in different parts of world, and then work backwards to production and materials inbounding so the size of final products, packaging, and components have the lowest landed cost.
Michael: How much is saved through cost-efficient truck loading?
KEVIN: I had a product that increased pallet footprint density from 32 units to 75 units via a change in packaging. This drives high savings, especially for high volume products. Conversely, food and beverage products are often heavy/dense and may only fill half of a trailer before the weight limits are reached. One solution is to replace heavy wood pallets with robust, light-weight, slip sheets.
If the company is double stacking pallet loads into a trailer, then there are probably close to 100 lbs of wood for each footprint space. A 53’ trailer has space for thirty-three “48 x 40” pallet footprints, so this would represent a 7% increase in shipping efficiency, order fulfillment, labor costs, and storage space. For one client, the analysis discovered “under loading” had unnecessarily increased costs by an extra 10%.
Michael: Why can’t companies do this themselves?
KEVIN: There are fewer than a thousand people in the world with both BS and MS degrees in Packaging. Of that number, very few have focused on Distribution Packaging and Testing. CEOs should not rely on their product designers and engineers, who are experts in DFM (Design for Manufacturing) to know cost drivers in DFD (Design for Distribution). Find out how you can optimize your shipping and save big money. Visit rareintro.com