Corner Board Consolidation Cuts Costs & Reduces Packaging Damage
Situation
A global chemical company faced supply chain inefficiencies due to managing multiple suppliers for secondary and tertiary packaging materials, particularly corner board. This fragmentation led to increased administrative costs, procurement challenges, and inconsistent packaging quality, which contributed to packaging damage during transit. The company sought a solution to consolidate suppliers, reduce costs, and enhance packaging protection.
Action
Group O conducted a comprehensive supplier analysis and identified opportunities to streamline sourcing for corner board and other protective packaging materials. By consolidating all sourcing to a single supplier, Group O:
- Reduced supplier management overhead
- Standardized packaging materials to minimize packaging damage
- Simplified procurement processes
- Enhanced the company’s diversity spend initiatives
Results
Through this optimization, the chemical company achieved:
A reduction of four suppliers, simplifying procurement
Improved packaging consistency, leading to fewer product damages
Increased efficiency in supplier management
Enhanced compliance with diversity spend goals
Significant cost savings:
Annual spend reduced by $464,298.64
Nearly 40% decrease in annual costs
By leveraging Group O’s expertise in supply chain and packaging optimization, the client improved operational efficiency, reduced costs, and ensured better protection for its packaged products.
