Conventional wisdom might say that reducing the number of boxes and the number of types of boxes that we can sell to a specific client is not a terribly smart way to build a business. We beg to differ. “Cutting” our own business with Swedish based Nolata enabled us to increase our business with the company ten-fold and bring them a heap of savings along the way.

Background:

Nolato is a publicly listed Swedish group with operations in Europe, Asia and North America. The company develops and manufactures products in polymer materials such as plastic, silicone and TPE in three different areas, Industry, Telecom, and Medical. Nolato’s customer offering comprises everything from concept development, product design and process optimization to high-volume production, post-processing, assembly and logistics.

Originally, we were asked to handle packaging and logistics from only one of Nolato’s 10 production units.

What aPak Did:

Once we got into the job at hand, however, we began to see a much larger problem. There were similar packaging concepts being developed in parallel in the group’s different companies. Our analysis of their packaging and logistics operations showed that there was a great deal of synergy that could be created between their various production facilities. By showing the customer how different plants, for instance, used a wide range of packaging materials, many of them remarkably similar in size and function, to ship their various products, allowed us to work with Nolatos to reduce the number of variants and increase the volume on the remaining types of packages..

Based on our experiences at the one facility and our overview of the others, we came up with a proposal that reduced both the number of boxes and the number of types of boxes the company used to package its products from all ten factories. This gave us the opportunity to offer both an optimized packaging solution as well as competitive pricing and good service.

After putting our plan to the test and succeeding with the first facility, Nolato decided to give us the business for the other nine facilities as well. All in all, we cut down their packaging product list to 76 articles for all plants and managed to save them 10% of their total transport costs. This in turn streamlined their delivery process, and we were able to use one delivery truck to service all ten locations, delivering in a circuitous route, cutting time, money, and environmental impact.

As a result, we now handle all of Nolato’swarehousing and logistics – enabling even further savings, with no capital outlay, no delivery delays or problems, and a more fluid and dependable process. Which naturally strengthens our business as well!

Why This is Important to You:

Basically, we did what we always do: we used our experience and expertise to identify an area where there was room for improvement and developed a solution to provide that improvement. By putting the customer’s goals first and focusing on their business needs, in this case improved synergy and communication, we manage to bring about huge savings. This in turn brings us more business. Simple, yes?