Safety Stock At A One-day Ship Point

Published on Aug 24, 2023

Quality customer service is just as essential as the quality of the packaging. As a packaging supply chain company, we troubleshoot quality issues to a level that a typical supplier will not. We recently assisted in solving three challenges for one of our newest customers.

The challenges:

  • Bag quality from their previous supplier was inconsistent. The current bags did not run well on their machines, costing them time, money, and stress as they attempted to figure out the problem themselves.
  • Deliveries were often delayed, causing abrupt changes to their production schedule, which was costly and resulted in more onsite inventory than needed to combat the problem. The added stress in the work environment also negatively impacted team morale.
  • Multiple suppliers were needed to provide packaging materials for the variety of SKUs required, which took more time and was more complicated than it had to be.

The solutions:

  • After observing the bags on the machine and running a few tests, we identified the problem with the bags. Poly bags have a +/- 10% gauge variance, and they received bags on the very low end of that scale. While the difference may seem small, it becomes a big issue when running at high speeds. We began to send them bags from our suppliers, and the issue disappeared.
  • We set up a safety stock program at our warehouse, creating a one-day ship point for our customers, which allowed them to run leaner. Excess inventory equals more cash tied up, and reducing overstock increases profitability. All deliveries are now scheduled with our designated freight coordinator familiar with the account and their needs.
  • Utilizing our team and inventory management system, they consolidated multiple suppliers, which led to them having a more efficient single point of contact for all their packaging needs.

The result: Our customer is thrilled to have consistent bag quality, a single point of contact to manage inventory, and safety stock on hand at a one-day shipping point!

A supplier who merely provides packaging materials is offering the bare minimum. There are many benefits to working with a packaging supplier who can efficiently problem-solve, understand the customer’s challenges, and tailor a solution that best fits their needs.

If these challenges resonate with you, we would be happy to learn more about your business and discuss how we can help you better serve your customers. Contact us to set up a conversation with one of our business development representatives.