In a recent project, Chainalytics’ packaging experts alleviated damage issues for a leading mechanical systems manufacturer.
Regardless of where you are and what you do, we can all agree that having reliable mechanical systems regularly available is a quintessential aspect to our daily lives that we often take for granted. Households and organizations across North America utilize these systems in various capacities multiple times a day, and to find those services affected can be frustrating and costly.
Recently, a major residential and commercial mechanical systems manufacturing corporation experienced a high volume of product damage claims resulting in retail markdowns, returns, and a negative impact upon their bottom line. The product was affected in a variety of ways. Their main buyer and distributor suggested they partner with Chainalytics to find a solution that would alleviate the mounting costs.
Heeding their advice, the company approached Chainalytics and their expert team of packaging engineers for help with a supply chain assessment, a new packaging design, and product handling strategies to reduce damage claims and reverse logistic costs. Well versed in damage control and supply chain operations, Chainalytics’ engineers immediately put a plan into action.
The evaluation determined that the majority of damage was occurring in transit to distribution centers as well as within the store locations.
The first step included a detailed evaluation of the entire supply chain in order to document every node and handling hazards each one presented. The assessment began with site visits to all manufacturing sites, following the product to numerous distributions centers, and finally to the point of sale. At each location, the team observed the warehouse handling techniques including freight loading and unloading, documented post-transit appearance, and stocking processes at the DCs and store locations. The evaluation determined that the majority of damage was occurring in transit to distribution centers as well as within the store locations.
After the observation and reporting stage, Chainalytics developed test protocols to replicate the damage. Once in the test lab, the team implemented an environmental re-creation to pinpoint areas where the redesign would be most beneficial. Furthermore, Chainalytics conducted a series of experiments that included drop tests, vibration tests, clamp tests and more to address both the cosmetic issue as well as the functional damage occurring. The test protocol was ultimately designed to be in line with the new supply chain operational standards with the new packaging designs rapidly moving through various interactions across a multitude of locations.
Upon test completion, Chainalytics assessed the results and developed new packaging concepts to sustain product quality when traveling through the new supply chain. The damage issues have been alleviated creating a reduction in warranty claims and the sustained partnership with the primary buyer and distributor. The defined project goals involved the implementation of customized protocols as well as a package design that has provided immediate improvements.
“We are on track for the distributor to take in the new designs needed on the Total Supply Chain (TSC) assessment Chainalytics synthesized. We’ve also added some new staff to help drive the cost of the design down; therefore, as we move forward there are plans to integrate Chainalytics’ team along with such. I think the overall mechanics of defining the TSC was the true catalyst for improvements in a highly competitive commodity type market,” the client stated.
Through a successful evaluation of the problem and a collaborative partnership, Chainalytics implemented a solution and alleviated much of the strain developing between the manufacturer and distributor. Furthermore, the manufacturer has extended their Chainalytics partnership to additional product offerings to provide further value in cost and damage reductions.
The Packaging Optimization team at Chainalytics brings an unmatched passion level to the engineering process as they continue to help organizations across the globe add value and sustainability to their supply chain. Our engineers specialize in innovative packaging design and development, break-through value engineering, impactful damage and waste reduction, and strategic packaging transformation. Our goal of ensuring all products reach the consumer as they were designed remains at the forefront of everything we do.
Contact Chainalytics to find out how we can help your organization create additional value throughout your supply chain at packaging@chainalytics.com.
