HiLe helps IT multinational achieve 50% cost savings via optimized shipping volumes

Summary

The client approached HiLe to improve the overall efficiency of its packaging process that was disjointed, complex, and expensive. HiLE employed CAD modeling, thorough analysis, and more to optimize the client’s packaging workflows, resulting in overall cost-savings, improved sustainability, and increased packaging effectiveness.

The context 

The client is a USA-based multinational IT company that develops and offers hardware products as well as software services to consumers, SMBs, and large enterprises. It boasts a rich legacy going back over 80 years, and in 2015, it split into two companies, representing its enterprise and personal-use product segments.

As a company that ships complex, fragile products across the world, the client was on the lookout for a packaging partner that would help optimize its packaging processes, and facilitate its migration to an efficient end-to-end shipment model.

The problem

The client faced several challenges with its overall packaging workflows. These included inefficient shipment configurations that did not allow optimal container loading, and non-stackable packaging. The entire process was also disjointed, involving bulk-packaging in the factory and subsequent transport to the distribution center. The packages were then repacked in the distribution center with the final packaging parts.

The client’s Bill of Material was complex and long, consisting of several materials that are unnecessary overheads. They required a seamless move to an end-to-end model.

Inefficient configurations | Disjointed processes | Use of non-sustainable materials

The HiLE solution

HiLE took a comprehensive approach to this challenge, that involved:

• Undertaking a complete packaging effectiveness analysis that thoroughly examined original packaging processes. This revealed several areas that were not volumetrically optimized
• Developing the most-optimized shipment configuration by simulating multiple scenarios for the given product specifications with the support of advanced Computer-Aided Design (CAD) software
• Listing of non-sustainable materials and introduction of alternatives.

Once concepts were approved, we shared detailed designs and releases for sampling. This process took approximately three weeks. We took an additional two weeks for samples and thorough packaging qualification. The entire process took less than two months.

Our approach covered crucial aspects including cost-savings, sustainability, and space optimization.

The impact

Our intervention resulted in an overall improvement in efficiency and cost-savings for the client. Notably, we facilitated a major reduction in direct material costs, and significantly optimized shipping volumes – doubling it from just 16 units per 40 ft container to 32 units.

This container maximization significantly reduced transportation costs as well. On the whole, we also helped the client reduce the carbon footprint of their entire packaging process.

25% cost reduction per packaged product |  50% transportation cost reduction | 2X improvement in container optimization