Smartphones are our go-to device for everything: socializing, doing business, shopping, entertainment and even paying our taxes. For some, having the latest smartphone is a status symbol. This is why mobile phone makers come up with new models each year. This is good news for companies like our client, a producer of electronic parts for smartphones. In this case study, we will show how ESD KLT containers and PCB racks helped this company optimize their shipping operations and save money.
What We Found: Standard PCB Racks Not Fitting ESD Containers
When the Logistic Packaging experts started evaluating our client’s current situation, we found that they were losing money during shipping. Their electronic parts were packed on standard sized aluminum PCB racks.
These racks were not available in different lengths or widths. Thus, they did not fit neatly into the ESD containers used for sage storage and protecting the sensitive products from electrostatic discharges. This meant that the containers were never used to their full capacity.
Thus, the client needed more ESD containers per shipment than necessary – if they could have achieved ideal product density per container. In the context of the increased competition between phone makers to create better and more affordable products, there is a lot of pressure on 1st and 2nd tier suppliers to offer competitive costs.
The Electronics Parts Producer Was Constantly Urged to Maintain Competitive Prices
When they contacted Logistic Packaging, the electronics parts maker had tried everything to cut costs in order to maintain a competitive price. They had even agreed to reduce their margin of profitability. Still, they felt the pressure to keep their prices low or risk being replaced by a competitor.
As a last resort, they analyzed their shipping costs and processes and found that there was room for improvement (absolutely no pun intended here). After analyzing their problem, the Logistic Packaging consultants proposed a solution.
ESD KLT Containers and PCB Racks Designed for Maximum Product Density
We argued our choice to the client thus:
- Standard containers help maximize trailer space use
- They can form stable stacks, making the most of vertical space in storage areas
- PCB racks are made to fit the specific ESD KLT containers the client selected
- The racking system can be provided with standard 4 mm grooves or large 8 mm grooves to fit any model of printed circuit boards.
The client analyzed our proposal and decided to implement ESD KLT containers and PCB racks for shipping their products.
The First Results: Reduced Costs and Less Damaged Products
After just a few months after the change in packaging materials, the electronics parts manufacturer reported positive result. On the average, they noticed a 30% decrease in shipping costs.
Also, their clients reported a 15% decrease in products damaged during transit which had to be sent back and replaced with new ones at no extra cost.
The client analyzed the financial trends after implementing ESD KLT containers and PCB racks and determined that they will get a full ROI in just 2 years. They intend to explore more ways of optimizing their supply chain by working closely with the Logistic Packaging experts.
Every Company Can Benefit from Professional Packaging Solutions
This case study is just one of the many examples proving that returnable packaging solutions, despite having a higher purchase cost compared to other materials, help companies save money on the long term.
At Logistic Packaging, we are dedicated to helping companies stay profitable and competitive by making smart savings. We will work with you to identify weaknesses in your supply chain operations and solve them with reliable packaging materials.
Send us an email to start discussing with a packaging expert at Logistic Packaging. Together with you, we will identify the best solutions that fit your business needs!