HiLe optimizes packaging for an office ergonomics equipment maker, resulting in cost savings of USD 100K/p.a

Summary

The client was facing challenges related to packaging inefficiencies that were driving up costs. Through thorough analysis and CAD modeling, we were able to optimize container maximization, bring down overall costs, and reduce the client’s carbon footprint.

The context  

The client is an Australia-based company, established in 2011. They are global leaders in workplace technology, developing products that help enhance efficiency in workplaces across the world.

For over a decade now, they have remained committed to blending cutting-edge workstation performance with innovative design elements. Thus, their products require specialized packaging that accounts for complex form factors.

The challenge 

The client was struggling with several packaging inefficiencies that were driving up costs and time to market (up to 8 weeks). Suboptimal shipment configurations meant that container loading was not maximized. Additionally, their customer sourcing projected a price increase of over 10% for packaging raw materials, resulting in a direct material cost increase. A total of 6 SKUs were considered affected by this price hike.

High costs | Poor container maximization | High time to market

The HiLe solution

HiLe’s end-to-end approach to the client’s requirements included:

• A complete packaging effectiveness analysis, that helped identify an optimized height while shipping, avoiding the additional 300mm height from its original packaging
• Using CAD software to simulate the best possible scenario in terms of the size that can fit the maximum number of parts in a container

This entire process, from conceptualization to implementation approval and qualification, took less than two months.

The impact 

Our intervention resulted in significant cost savings for the client, along with improved packaging efficiency. We helped facilitate savings of over 8% per unit, with projected savings of over USD 100K per annum overall for the 6 SKUs. Direct material cost for a single model is USD 10K per annum.

We were also able to add another layer of units to each container – this maximization brought down transportation costs by 15% and reduced the client’s carbon footprint.

USD 100K saved/per annum | Reduced client footprint | Container maximization