LAURA CASTRO
XYZ Specialist
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Driving Packaging Improvements and Cost Savings at a UK Automotive OEM
PROJECT AIM
HSSMI helped an automotive OEM obtain full packaging control, increase packaging quality, prove supply chain savings and reduce environmental impact.
HSSMI’s expertise in packaging design and engineering guided the OEM to completely reassess their suppliers’ packaging and integrate new packaging solutions, in addition to becoming more sustainable.
THE CHALLENGE
The OEM was a UK vehicle producer, receiving parts from all over the world. Some of the packaging suppliers’ designs were not optimised for the OEM’s product or the supply chain.
Around 75% of the packaging was expendable which led to excessive waste per vehicle produced and additional costs for the OEM throughout the entire supply chain. High amounts of packaging also meant poor utilization of container and truck space. The quality of the packaging was also inconsistent.
THE SOLUTION
Our technical team reviewed the customer’s packaging to identify opportunities for improvements and cost savings. Our recommendations included decreasing the number of carton packaging units, optimising packaging size, and simplifying over-engineered packaging.
New collapsible packaging designs were created with more suitable packaging materials, which we projected would result in packaging and overall supply chain optimisation.
As a result of our proposed changes to engine and battery packaging, the following savings and impacts were calculated:
1. Engine packaging
- Unit Cost Reduction – the cost of the unit was reduced by 22%.
- Freight Savings – 36% fewer ocean containers.
- Space reduction – 21,8% reduction in floor space.
- Environmental impact – 30 tonnes of CO2 reduction on sea freight due to more compact and lighter packaging.
- Total savings estimation of £190,000 in 2022.
2. Battery packaging
- Unit Cost Reduction – the cost of the unit was reduced by 35%
- Freight Savings – 7% fewer ocean containers.
- Space reduction – 18% reduction in floor space.
- Environmental impact – 11 tonnes of CO2 reduction on sea freight due to more compact and lighter packaging.
- Total savings estimation of £593,000 in 2022.
DOWNLOAD THE CASE STUDY
Find out more and download the PDF version of the case study here:
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Driving Packaging Improvements and Cost Savings at a UK Automotive OEM
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