HAVI helped a global technology developer to outsource packaging and supply chain management so they could remain focused on their core competencies and reduce costs while ensuring packaging had a consistent global image and visibility anywhere in the world.
CASE STUDY FOCUS: PACKAGE RESEARCH, DESIGN & DEVELOPMENT AND SUPPLY CHAIN MANAGEMENT
By outsourcing packaging and supply chain management, a global technology developer is able to remain focused on its core competencies and reduce costs while ensuring its packaging has a consistent global image, assured supply and visibility anywhere in the world.
A global technology developer for the world’s leading cable and satellite providers with technology design centers in the United Kingdom, France, the United States and India wanted to provide consistent designs, packaging and distribution to the OEMs and joint venture manufacturers in Asia, Latin America and Europe that make its designs into electronic products. The challenge was that the designs, paper and graphics were different in each country. Also differing by country were the look, performance and rates of speed to market of packaging. The developer needed help sourcing materials, identifying quality, consistent suppliers and managing the design and production process, and it lacked in-depth knowledge of the different countries where its manufacturers were located, including its newest manufacturing facility in Brazil, as well as time and resources to devote to these efforts.
The company enlisted the help of HAVI, a global leader in packaging, supply chain services, marketing and supply chain analytics, merchandising planning and promotions management, and waste, recycling and sustainability. HAVI had design expertise and experience working with the different papers and board grades used in more than 100 countries and would be able to simplify the process and mitigate the risk of working with suppliers and managing logistics across the globe.
HAVI leveraged its network to identify and qualify the best suppliers and manufacturers in the region. The packaging team also assessed potential materials and could account for differences in stock quality. For instance, Brazilian paper is a different quality than that used in China or the United States and HAVI had the experience to ensure that it performed well in extremely humid climate conditions and with a great deal of recycled content. The packaging team developed board grades that were rigorously tested – dropped, edge crushed, stacking strength and humid weather conditions – until the proper board combinations were determined. The key was ensuring the finished product looked the same as the client’s packaging in other parts of the world. Similarly, there were only a few manufacturers large enough, and within close proximity, that could handle the quantity and quality of boxes the global technology developer needed and HAVI was able to identify and connect with them.
HAVI also played a key role in the design process, designing boxes to contain the developer’s product that worked well with corrugated, the client’s preferred material due to its sustainability characteristics. The packaging team designed the boxes to be as small as possible, maximizing the number of boxes that would fit on shipping pallets while also withstanding rigorous performance testing. By designing smaller packages and working to better assemble them on pallets, HAVI made the most use of space and increased the number of boxes that could fit on pallets by 20 to 35 percent. This represented positive environmental impacts as well as cost savings for the client that could be passed on to customers.
Recognizing the challenge in managing relationships across time zones, cultures and vendors, HAVI consolidated the packaging process for the products manufactured in locations such as the Amazon free trade zone, Northern and Southern China and India, and managed this – from design to production to shipment – on the client’s behalf. The packaging team does all of this electronically with live updates so clients can view production stages, inventory and proofs quickly and easily at any time.
In addition to tracking the client’s production schedule and ensuring packaging supplies are delivered on time, the packaging team also keep an eye on environmental, global and regulatory variables such as humidity levels, the potential for flooding on local roads during rainy seasons and new shipping requirements that could affect the supply chain. Should an event occur, HAVI already has anticipated the risk and is prepared to implement a previously determined solution.