CASE STUDY:
Products were often getting damaged in their final transit to the customer. Damage commonly occurred while the product was in transit when shipped via small parcel. The damaged product resulted in increased customer dissatisfaction and an expensive replacement process.
Dissatisfied customers often repeated a simple question, “If a cargo supply company can’t deliver undamaged products, how would well would their products perform?” It was an issue they needed to solve quickly and ensure that it was one for long-term reliability and sustainability.
Supply Source Options leveraged many of their competitive advantages. An ingenious solution is developed, leveraging S2O’s creative problem-solving leadership, proprietary software systems, and the ability to fabricate custom packaging machines.
The new packaging design marginally increased material costs but dramatically decreased customer frustration due to damaged shipments. Best yet, the packaging design was modular and allowed for current and future product lines to reuse many of the same packing components creating symmetry across all offerings.
All aspects of the problem and solution were apparent. S2O got to work designing the custom packaging and machinery to efficiently wrap, bundle and box the components for each product, kit, and subassembly. After testing and refining the system, S2O built a packaging system that exceeded its initial requirements.
With access to our proprietary inventory software systems, the manufacturer can see exact inventory levels for components, the number of products in the warehouse, and when they will be shipped.
And because of our “all-in pricing” model, their costs are simple and always predictable!
The number of products arriving undamaged, unscratched, and ready to use improved instantly. The total modified packaging costs and kitting services were marginally more than their old system. However, the increased costs were easily offset by reducing customer complaints and reshipments, improving bottom-line profit.
Sales and production of these products continue to increase, and the S2O solution for packaging grows right along with it. Because of the efficiencies gained, the manufacturer can scale up quickly, produce more products, focus on product innovation, and leave the packaging and fulfillment to S2O.
The manufacturer is in the process of launching multiple new product lines and has also contracted S2O to take care of the packaging!
Freedom Electric Marine
