This customer manufactures 'jacketed' copper coils in their facility. Internal plant reorganization within the customer saw their plant in England go from a manufacturing facility to a Distribution Centre. This opened up the doors for this facility to start supplying coiled copper to England, Korea and Japan.
A problem soon became apparent when they realized they could not make nailed crates in-house fast enough to meet shipping deadlines. Also the shipping and loading dock area was very small. The customer was interested in an outside CPS (Complete Packaging Solution) provider but had to justify the costs.
Nefab offered to pack
the 'coils' in their plant and look after all freight forwarding and inventory control. This would free up space dedicated to the making of crates, storing the crates, packing the coils and storage of full boxes at plant. This Nefab proposal solved their problem of meeting shipping deadlines when faced with a lack of manpower during peak demand times. Nefab performed a cost analysis of the current customer’s costs to build nailed crates in-house.
The results showed that the customer was spending roughly the same per box with including packing and handling vs. Nefab’s product, however the end result yielded a large savings due to the “soft costs.” These soft cost savings swayed the decision by the customer resulting in Nefab starting to pack the coils.
Customer Benefits from Nefab Packaging:
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Soft costs included:
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Superior protection of the ExPak container
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40% reduction in weight versus the nailed crate
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Yearly savings of USD 12,000 in air shipments and USD 1,500 in sea shipments.
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Compliance with current EU regulations for overseas shipments.
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Issues regarding storage space were addressed.