Corrugated Boxes

///Corrugated Boxes
Corrugated Boxes2019-08-11T04:03:02+00:00

Project Description

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Background

All the companies in this case spent millions in corrugated boxes annually.  In two of the cases the boxes had been competitively bid within the prior 1-2 years, but pricing post-bid was volatile with ties and not well understood as the primary raw materials (linerboard and medium) fluctuated.

Client Expectations

  • Garner a greater understanding of the cost elements that pertained to their specific box configurations and service requirements with the incumbent and potential suppliers

  • Understand the corrugate market, and their company’s value to suppliers as a customer, to ensure the most competitive market price

  • Create a mechanism to eliminate the mystery behind price fluctuations (up and down) with material component price changes

Project Planning 98%
Graphic Design 92%
Branding 96%
Multimedia 98%

Project Scope

Application: 5 different Company success stories
Category:Shipping Boxes & Pizza Boxes
Scope: Combined $140 million in Spend

 

Process

  • Analyze the client company’s existing contracts, box specifications, service requirements and spend history<

  • Configure the corrugate should cost model developed by S&A to the client-specific products and requirements

  • Competitively bid the business with capable suppliers capturing additional data (or on one occasion engage in direct negotiations without a tender)

  • Utilize information garnered from the RFP to enhance the should cost model and negotiate for final results

Results

  • In all instances clients saved significantly over historic pricing levels (in many instances 10% or more)

  • The model allows the client company to effectively manage pricing over time (increases and decreases) fairly

  • Though alternative suppliers were seriously considered for the business, in all of the above instances the incumbent supplier was awarded the business even if their pricing was slightly higher as to not to interrupt operations

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Thought Leaders

Sower & Associates has experience assisting clients in businesses as diverse as: oil & gas, retail, food service, injection molding, industrial coatings, plywood manufacturing, hospitals, county government, package delivery, insurance, industrial machinery, and universities. These case studies demonstrate how we adapt our unique blend of skill sets to so many different industries.

Wide Range of Services

Our consulting services are wide reaching and include: cost management model creation, cost model training, strategic sourcing project execution and training, logistical design, statistical process control training and implementation, training in approaches to problem solving, training and assistance in continuous quality improvement and total quality management programs, evaluation of customer satisfaction, innovation management, change management, and curriculum design.