Complex Supply Chain Streamlined to Reduce Costs | Manufacturing
Manufacturer achieves cost savings and brand consistency through single-source supplier
A manufacturer of equipment and Original Electronics Manufacturers (OEM) parts for the forestry, lawn and garden equipment market embarked on a project to update its branding and packaging with the aim of revitalizing and increasing its profile.
With a complex global manufacturing supply chain incorporating five manufacturing sites in four countries on three continents, the company relied on over 40 suppliers for the production of six packaging commodities, comprising in excess of 1,500 part numbers and 70 million units — all of which needed to be integrated and streamlined.
Additional challenges-turned-goals included:
- Manage quality and brand consistency globally
- Develop new innovative packaging designs
- Embed anti-counterfeiting measures in their packaging
- Gain control of the art and die-line content
- Address warehouse space constraints
- Manage inventory and high scrap levels
The manufacturer required a single-source supplier with a global presence that could manage the entire packaging redesign and supply chain implementation while ensuring brand consistency and total cost savings.
For this rebranding effort, this manufacturer chose RRD, whose global footprint leverages a centralized and integrated approach for account management, design, systems, and supply chain management. Through such expertise and experience, the provided the client with:
- Analytics on their packaging spend to identify cost saving opportunities
- Centralized supply chain management and consolidated supplier base
- Structural design and engineering services
- Color management and global control of specifications, versions and files
- Tolerances to help drive consistency and efficiency across all sites
RRD’s innovative supply chain management systems and processes provided control of all production, inventory and just-in-time (JIT) deliveries globally for the new branding. The client was kept up-to-date with the project’s implementation every step of the way. (On-going performance management keeps the supply chain running efficiently.)
Even with the brand requiring more sophisticated packaging specifications, the product costs were reduced by 18% in the first year while the quality and brand consistency were improved in all regions. The volume rebate provided further savings at year end and overall working capital costs were reduced with RRD’s vendor managed inventory (VMI) program.
RRD brought the advantages of a single-source solution, the power of a large global footprint, and a culture of continuous quality, process and cost improvements to deliver a refreshed brand ready for renewed attention.