Challenge: The client wanted to cut all packaging related loss with 75% for the citrus supply chain.
Identification of losses
By identifying the main sources of the losses and how significant they are we can target the right area. This means that we are able to put the focus where improvements have most effect on the clients contribution margin. In this case, this analysis resulted in the following chart:
Box improvements
Our analysis of the transport conditions revealed interesting facts about the climate in the supply chain, which affects the box performance. By using our Box Lab, we were able to construct a box with several improvements
• Structural design changes à improved strength
• Change of material à 15% lighter box
• Improved appearance à better brand promotion
Process improvements
Some of the improvements we made included
• At packing station
» Additional ventilation holes reduced pre-cooling time
» Improved box erecting process enhanced the strength
» Improved palletising process
• At box converter
» Decreased warp (bend) to improve strength (+8%)
» Eliminated waxing process by using stronger paper
» Decreased use of glue in the production process
Cost reductions and improved margin
Fresh Services succeeded to eliminate all packaging related waste by working closely with all parties along the supply chain. In addition to making the box stronger we made the box 15% lighter, thus reducing the amount of damaged and downgraded products. This translates to cost reductions and improved margin for our client.
Reduced environmental impact
Each damaged fruit is a loss, not only in money, but also in resources spent on producing and transporting it. By eliminating the waste in the supply chain, we make sure that these resources are not spent in vain. Moreover, by making each box lighter, we reduce the CO2 emissions from each transport in the supply chain.
