KNOWLEDGE CENTER

Stacking Up the Savings

Standardization Keys Sharp Drop in Repacking Costs

Challenge

A Fortune 100 automotive OEM was spending close to half a million dollars a year on customized cardboard containers to ship parts. The OEM’s third-party logistics (3PL) provider, which was performing sequencing and repack services, was using customized cardboard containers to repack 120 parts and paying a packaging vendor $480,000 annually to produce the containers. The parts include weather strips, hinges, nuts, and bolts.

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