CASE STUDY:
DC CARGO
Delivering undamaged, small parcels was creating customer dissatisfaction and higher costs. S2O delivered a solution.
S2O designed superior new packaging that was modular across product lines for unparalleled efficiency!
CASE STUDY:
How Contract Manufacturing Solved the Challenges of a Logistics Company
MANUFACTURER’S CHALLENGES
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.
S2O SOLUTIONS
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!
RESULTS
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!
More Case Studies…
Freedom Electric Marine
Surging sales for a rotomolded, personal fishing boat left a manufacturer out of their element. S2O created automated systems and fabricated flexible assembly strategies to create unparalleled efficiency!
Solar Energy RSD Enclosures
A green energy company needed a turnkey supplier and skilled workforce to gain efficiency for key components. S2O delivered once again with 50% cost savings and a 4x higher throughput rate.
Haworth
With long lead times and thin margins, an office furniture manufacturer was facing growing customer dissatisfaction. Until S2O stepped in stocked their production line in just 6 days!
Thomas Golf
Explosive growth was negatively impacting customer satisfaction and overhead costs. S2O turned that around fast with advanced production and fulfillment technology that dramatically increased profitability.
