Optimizing packaging stock

17 February 2021

Tconsult is specialized in returnable/reusable packaging and provides various services for this. Our consultants take an independent look at the various parts of the supply chain that have to do with reusable packaging. We offer workshops, risk assessments, audits, optimizing packaging stocks and more.

In mid-2020, we started a consultancy process at a company in the FMCG industry. Here we tackled, among other things, stock management and packaging stock. During the first meetings with the company, all current processes were examined.

Current situation

At the start of the process, an inventory is always made of the current packaging situation. The customer in question has various rental contracts for reusable crates and the packaging changes are tracked in the ERP package. In addition, an employee is responsible for the administration of the reusable packaging.

At first glance, the process surrounding reusable packaging appears to be well under control. However, the consultants delved further into the packaging flows and processes, and one of the noteworthy aspects was the stock of reusable packaging within the company.

Packaging stock

Tconsult always makes a calculation of the company’s packaging stock. The packaging stock indicates how much packaging is in stock. This is compared with the number of packaging materials required to be able to deliver all products. At the start of the consultancy process, this company had 2.25 times the number of crates in stock.

After making calculations, our consultants set out to work on optimizing the packaging process. Tconsult looked at where packaging is needed and where packaging is stored. In addition, the speed at which the RTIs can be collected is examined. Finally, we looked at what the minimum stock of packaging should be in order not to disrupt the production process.

Stock optimization

The consultants have made a number of adjustments to the packaging process. In addition, new agreements have been made with the pooling partner who supplies the crates. As a result, the stock of packaging has been reduced evenly. The packaging process has now been optimized and there is only 1.25 times the number of crates in stock.

This results in various cost savings within the company, leaving more profit. Specifically, three major cost savings have emerged:

  • A smaller lease agreement has been made with the pooling partner. As a result, the fixed costs on packaging have decreased.
  • More efficient use is made of the production space and storage.
  • More efficient design made it possible to open a new production line.

These improvements indicate that a lot of profit can still be made with the optimization of the stock. Our consultants are specialized in packaging processes and the optimization of these processes. We are happy to tell you more about these processes and their optimization.

Will we be getting in touch (digitally) soon as well?