A fast-growing packaged food company, suffering from service disruptions in its packaging operations that were costing the company in materials, labor and delivery delays, needed a long-term fix. Shorr brought the solution. As a multiyear partner, Shorr has helped the company implement efficient packaging practices for increasing productivity and output, and continually keeping customers happy by keeping costs in line.
23.6% first-year packaging cost reduction
See why Shorr is the ideal partner for food packaging solutions.
We began the partnership with a detailed audit, which included:
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- A comprehensive review of the food company’s packaging process
- An in-depth analysis to identify and manage packaging costs
- A road map to achieve improvement in just a few weeks
Shorr’s packaging automation team helped transform the food company’s operations with:
- System designs
- Project management
- Equipment specialists
- Local service technicians
- A parts department
- Deep industry relationships with equipment manufacturers
Our specially trained team collaborated with the food company to manage:
- Packaging automation
- Inventory management
- Material handling
- Packaging materials
Shorr resources went beyond a simple distribution model to include:
- Design and management expertise across nine company locations
- Added freight, space, inventory, and materials resources
Shorr’s resources produced a larger return than any simple unit price comparison could offer
Five years of excellent results and counting!
- As a result of our multiyear partnership, Shorr has helped our client generate substantial and recurrent savings in space, inventory, freight, and labor.
- In the first year, ROI was largest due to a one-time drop in cost of inventory — savings remained strong through the five-year milestone.
- The annual space and inventory savings were achieved from efficiencies in inventory, capital, and storage space.
Return On Investment (in %)
Year 1
0
Year 3
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Year 5
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| Space & Inventory Savings | Year 1 | Year 3 | Year 5 |
|---|---|---|---|
| Cost of Inventory ($.MM) | $1.6 | $1.6 | $1.6 |
| Cost of Capital @14% ($.MM) | $0.2 | $0.7 | $0.0 |
| Cost of Storage Space ($.MM) | $0.8 | $2.5 | $4.2 |
| Total Savings | $2.6 | $4.7 | $6.8 |