| 2012 New England Supply Chain Conference and Exhibition - Jack T. Ampuja
Presentation
Optimizing Global Supply Chains Through Packaging
Jack T. Ampuja, CTL, C.P.M., CCSP, President
& CEO, Supply Chain Optimizers
When we refer to Supply Chain Management, functions such as
Transportation, Forecasting, Inventory Management, Warehousing, Material
Handling etc. come to mind. Packaging is typically not included. Rather it is
considered a Marketing function in consumer product firms and an Engineering
function in industrial product companies.
What leading edge firms have realized is that when packaging is included as part
of Supply Chain Management, there is exceptional opportunity for cost reduction
and sustainability performance improvement.
The shipping container - either bag or corrugated box - is a supply chain
fundamental, because its shape, size and strength, impact handling, storage and
freight efficiency all impact logistics costs. Wal-Mart’s stated 2006 goal of
$10 billion in annual savings, from a 5% packaging reduction, has triggered
tremendous focus on packaging in many companies.
This presentation reviews several case studies of US firms using packaging
optimization, to drive major cost reduction programs, and improve sustainability
performance. Some of the related headlines include:
• Company A: $3 million in savings, by changing packaging on
25 items.
• Company B: Reduction of more than 1 million pounds of
outbound packaging.
• Company C: 40% reduction in LTL transportation expense, by
optimizing packaging.
• Company D: $2.5 million cost reduction + $15 million in new
revenue, from optimized packaging
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