-1.73SCA Top Tool reducing supply chain costs
A major producer of retail products experienced great problems with their packaging. They needed a better solution and turned to SCA Packaging in Denmark in search for advice.
The packaging at that time measured 204 x 201 x 274 mm and it was possible to fit 120 cartons per pallet. With these dimensions the customer experienced overhang on the pallet in the width direction, which caused transportation damages. On the other hand there was unused space on the pallet in the length direction.
The new packaging was shortened by 5 mm in both directions and got the dimension of 199 x 196 x 274. By this it was possible to fit 144 pieces per pallet without overhang and with no additional space. This change not only minimised the required number of pallets, it also reduced the risk for transportation damages.
The company yearly exports 925.080 boxes. This means 6426 pallets compared to 7709 pallets with the old type of packaging. The SCA Top (Total Optimization Process) Tool calculated the reduced cost in each link of the value chain and was able to document savings worth 82,848 €/year, only by replacing the old packaging with the new one.
Reduced cost in the value chain
| Type of cost |
Old Packaging |
New Packaging |
Reduced Cost |
| Packaging Process |
51,675 € |
43,075 € |
8,600 € |
| Transport Vejle |
36,644 € |
30,545 € |
6,099 € |
| Transport abroad |
225,104 € |
187,647 € |
37,457 € |
| Stock Vejle |
33,387 € |
27,830 € |
5,557 € |
| Stock abroad |
57,876 € |
48,244 € |
9,632 € |
| Transportation damages |
15,503 € |
0 € |
15,503 € |
|
Total |
420,189 € |
337,341 € |
82,848 € |
The advantage for the customer was obvious: immense saving in transportation cost, saving in the packaging process, as well as in handling and storage costs. In addition there was a large reduction on transportation damages. Furthermore, SCA helped the customer to reduce the CO2 emissions coming from transportation.
This successful project gave SCA Packagning in Denmark a very satisfied customer and the performance has gained positive publicity. The SCA TOP Tool has proven its worth and the concept has been very well received. SCA Packaging is regarded as a supplier with many tools and assets. The crucial point is that small changes in packaging design can make great impact on the business.
For more information please contact:
Jens Sørensen, Key Account Manager - SCA Packaging Denmark
+45 72 14 91 09