Experience the joy of improvement
Billerud helped a global footwear producer to substantially reduce its transport costs by redesigning their complete packaging portfolio covering multiple brands. In the process, Billerud standardised the materials used and the new design resulted in better utilisation of container space. As a result, fewer transports were necessary and our customer made a significant contribution to the environment.
Substantial transport savings with new high quality packaging portfolio
Challenge
Over the years, our customer had optimised its packaging portfolio several times. Billerud’s challenge was to prove that there were still potential cost savings that could be achieved. Our customer is a fast-growing and innovative sport equipment and shoe producer, world-leading in many of its market segments. The products are manufactured in four different countries across Asia, with the main outlets being the American and European markets. This places high demands on consistent packaging quality in all manufacturing countries.
Solution
Our technical team reviewed the existing box sizes, making sure that they fitted each shoe size. We also standardised material usage and reduced complexity, which led to unified technical packaging specifications in all countries and for all the customer’s brands.
Result
The customer benefited from exceptional operational savings; TCO cost reduction alone yielded an impressive $1.2 million in savings just in the first year. Additionally, reduced complexity and stringent technical specification resulted in higher box quality and improved quality consistency of the packaging.
Highlights
| Direct savings | Indirect savings |
|---|---|
| Reduced transport spend first year: $1.2 millio | Simplicity for OEMs with one point of contact |
| Decreased number of shipped containers by 12% | Improved quality consistency throughout sourcing countries |