JIT

JIT Solution

Problem:  Our customer was ramping from R& D to production. With the projections from sales, the customer realized they could not store and assemble their custom folding carton test kits with the short lead time and limited storage area at their facility. They wanted to save every square foot for production. A JIT delivery system using preassembled custom chipboard boxes and inserts was needed.

Solution:  We dedicated space at our facility to inventory all the custom chipboard boxes and inserts. A min/max system was established for the components and finished test kits. The chipboard boxes and inserts were assembled and preloaded into trays that fit into the customers shelving. On a weekly basis, the customer would email their requirements.  The trays loaded with the custom folding carton box and insert sets are loaded onto rolling carts and into our delivery truck. We roll the carts off our truck and into their production line. The customer was able to quickly open the custom designed kits and load their test kits. Back at our facility, we would assemble kits to maintain our min/max inventory levels.

Results: The customer benefited in many ways. The most important was the ability to use all their warehouse space for production and not aging inventory. By having the folding cartons pre assembled, they could quickly load the kits and keep up with orders. The end result was little to no inventory, increased cash flow and no bottlenecks to slow down throughout. Through their partnership with Peek Packaging and the flexibility we provided to their production and purchasing departments, this customer has seen their revenues grow from $75 million in 2005 to $573 million in 2008.

We have custom packaging solutions to fit any size customer.  Contact us today with your packaging needs.