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Case Study - Alternative Materials Lead to Huge Cost Savings

Switching to alternative packaging materials leads to massive costs savings for a distributor.



A major steel distributor and leader in the industry was using standard packaging materials to ship their products, but a Rocket Industrial packaging specialist saw the opportunity to decrease cost while maintaining high packaging standards.




Challenges

Uncovering cost savings was important for this company to grow as an industry leader. Although their processes were working, Rocket Industrial was able to find solutions that would solve their current objectives.

1. Uncover cost savings

2. Optimize packaging materials

3. Increase banding ergonomics

Steel Distributor Case Study

Process

An on-site walk through was conducted by one of our packaging specialists to assess the current methods and materials the customer was using during their packaging process. Steel banding was being applied manually, which can result in frequent injuries. The benefits of poly banding, such as cost savings and increased safety, were communicated to the customer for consideration.


Additionally, Rocket Industrial’s test lab monitored the amount of materials that were being used for container dunnage and parts protection. This test revealed that 66 feet of 40 lb Kraft paper was needed to fill a 12” x 12” x 12” box, a high expense that needed to be cut.


Solution

By providing information on the benefits of switching from steel banding to poly banding, such as injury reduction and cost savings, the customer was eager to change their banding material. A battery-powered handheld bander was also recommended to update the manual process to a semi-automatic process, improving employee ergonomics.


In testing alternative materials, the test lab found that Opus Air pillow film required far less material than the 40lb Kraft paper. Only 15 feet of film was needed to stabilize the load and protect parts.


Results

By using poly banding instead of steel, material costs are reduced by $23,000 per year. On average, 2 steel banding injuries happen annually, costing $21,000 each. It is likely that poly banding will eliminate these 2 injuries, resulting in a $42,000 savings each year in injury costs.

Updating void fill from Kraft paper to air pillow film resulted in a cost savings of $70,000.

Overall, Rocket Industrial was able to implement changes that resulted in over $135,000 in cost savings annually for this steel distributor.


Packaging Materials Savings Chart


Uncover Material Cost Savings

Discover ways to reduce your material packaging costs by connecting with our sales reps for a video or phone call.



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