Inventory Problems Hiding In Plain Sight

Published on Oct 20, 2023

Have you ever noticed a problem, but no one else seemed to think it was an issue?

Perspective is everything.

Sometimes, we can get so used to how things are that we don’t even realize that our current way of doing things is no longer serving us.

Take this bakery, for example:

Every six months, a midsized gluten-free bakery in Chicagoland used to receive a massive delivery of cardstock cake boxes directly from the manufacturer. The purchase order minimum was very high, and it was necessary to order a truckload of packages to benefit from the lower price point.

Her team referred to the day the boxes came as D-Day… the dreaded Delivery Day. According to the owner, it was a nightmare… from the front counter to the kitchen, all hands were on deck to unload the truck and move the boxes to their upstairs storage unit. It took a dozen people almost the entire day to carry stack after stack of boxes to the storage unit, and once that was full, every other corner in the bakery. It was exhausting, and for a month afterward, her team would be tripping over the boxes stashed here and there around the bakery.

This was the problem in plain sight. She considered it a necessary nightmare, for what else could she do? She needed to purchase the boxes at the lowest price point to be profitable; therefore, she needed to order an overwhelming quantity and figure out how to make it work.

ForeFront Packaging and its unique business model offered another option. We told her we could provide the same boxes in the same price bracket, except we would hold them offsite in our warehouse and deliver the exact quantities she needed weekly or monthly, whatever worked better for her bakery. Most significantly, she only needed to pay for the amounts as they were delivered, freeing up her cash flow. (This option also freed up space and her team’s time, and that “delivery day dread” disappeared.) Compared to the manufacturer, the price difference was pennies per box… the owner was sold.

ForeFront Packaging designs and implements packaging and supply chain solutions that free up time, reduce stress, and save money. We would be happy to discuss a more tailored packaging supply chain model that might serve your business better. Contact us to set up a conversation with one of our business development representatives.