HiLe helps IT multinational ship more for less, bringing shipping costs down by 15%

Summary

The client approached HiLe to improve the overall efficiency of its packaging and shipping processes. They struggled with high costs and poor utilization of container space, among other challenges. HiLe conducted a thorough analysis of the client’s current packaging, and undertook CAD modeling, to improve container optimization, reduce carbon footprint, and minimize costs.

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 large volumes of complex, fragile products across the world, the client was looking for a partner that would help improve its shipment configurations and container optimization.

The challenge

The client faced certain challenges with regard to streamlined shipping of its product and systematic usage of space. Container loading was not maximized, leading to inefficient shipment configurations. Existing materials being used for packaging were not sustainable, and excess thickness limited its overall height.

Inefficient shipment configuration | Unsustainable packaging materials | Poor container maximization

The HiLe solution

HiLe’s approach involved comprehensive steps that ensured the root causes behind these challenges were addressed. These included:

• A complete packaging effectiveness analysis of the original packaging, which revealed several areas that were not volumetrically useful
• The use of CAD software to simulate the best possible scenario in terms of the optimal size that can accommodate maximum parts in a container
• Listing of parts that could be replaced with sustainable material, additionally increasing container loading numbers.

From concepts to implementation, this entire process took just over a month.

The impact 

Our intervention led to an overall reduction in costs, as well as increased packaging efficiency. More specifically, helped bring down direct material costs by 3%, and transportation costs by 15%. We were able to reduce the height of the outer boxes, and as a result, the client can now ship an additional layer of containers in the same space. This container maximization reduced costs as well as the client’s carbon footprint.

Transportation cost reduction of 15% | Direct material cost reduction of 3% | Improved container maximization