Mechanical systems manufacturer reduces product damage
A supply chain assessment and packaging redesign drives savings
A major residential and commercial mechanical systems manufacturer experienced a high volume of damage claims, resulting in retail markdowns and returns that impacted the bottom line. The company partnered with NTT DATA’s supply chain experts to find a solution that would transform packaging and alleviate mounting costs.
Business Needs
The manufacturer approached NTT DATA and its expert packaging engineers for a look at its supply chain, a packaging redesign and product handling strategies to reduce damage claims and reverse logistics costs. Together, the teams collaborated on a total supply chain assessment and packaging design to address the problem and set a new path to success.
Outcomes
- Sustains product quality throughout the supply chain
- Reduces damage and lowers warranty claims
- Alleviates strain between manufacturer and distributor
The total supply chain (TSC) assessment was the catalyst for improvements in a highly competitive market.
Solution
Documenting and assessing
NTT DATA conducted a supply chain assessment to document every node and the handling hazards each one presented. The assessment began with visits to all manufacturing sites. It followed the product from numerous distribution centres (DCs) to the point of sale. At each location, the team observed warehouse handling techniques, including freight loading and unloading. It documented post-transit appearance and stocking processes at the DCs and store locations. The assessment determined that most of the damage occurred in transit to distribution centres and within the store locations.
Replicating damage through testing
After the observation and reporting stages, the teams developed testing protocols to replicate the observed damage. In the test lab, the team implemented an environmental re-creation to pinpoint areas where the redesign would be most beneficial. NTT DATA also conducted a series of drop tests, vibration tests and clamp tests to address both the cosmetic issues and functional damage.
When the tests were complete, the teams examined the results and developed new packaging concepts to sustain product quality along the new supply chain. The solution helped reduce warranty claims and alleviated much of the strain between the manufacturer and its distributor.
The manufacturer will continue to reduce costs and damage issues by extending its NTT DATA partnership across additional product offerings.
About This Case Study
A mechanical systems manufacturer alleviates damage issues with a supply chain assessment and packaging redesign.