Packaging Improvements: Reducing Costs and Improving Visuals
MagicLogic Optimization's BlackBox significantly improved cartonization for True Manufacturing. The solution determines the optimal size and fill material for each box, optimizing fulfillment.
Reliable, high-quality refrigeration is essential for the food and beverage industry, so when customers need parts, they want to place their order quickly and efficiently. While it might have been easy to place these orders, True Manufacturing knew that order fulfillment could run more smoothly and be more cost effective. True Manufacturing's Replacement/ Spare Parts operations wanted to review its packaging and reduce costs, improving the legacy process.
The current packaging selection comprised a few standard boxes purchased from a vendor. It was down to the warehouse person to select the most suitable sized carton, and they had to facilitate the process of producing the shipping boxes. The warehouse person would then decide on the best way to physically pack the products, including any bubble wrap or fill material necessary to ensure the customer received their order in perfect condition. When packing multiple parts, it was often tricky to identify the correct sized carton quickly so packaging expenses were often higher than necessary. Producing the shipping boxes, packing the items so any shipping rules were followed accurately all took time to complete.
After assessing logistics solutions available, True Manufacturing opted to work with MagicLogic Optimization Inc. using their BlackBox™ for Cartonization. Because BlackBox is customizable and scalable to accommodate business expansion it was the perfect choice to accommodate True's planned improvements.
MagicLogic Optimization's BlackBox significantly improved the process of cartonization. Initially, True purchased an automated packaging system. Items to be packed were scanned to give the length, width, and height. BlackBox uses this information to determine the optimal box size. The automated packaging system can then create the correct box based on BlackBox calculations. Introducing BlackBox into the mix improved the process by leaps and bounds.
BlackBox now serves as the calculator and communicator between the ERP system and the automated packaging system. BlackBox contains all the information pertaining to parts items and any specific packing rules that apply. Now, when an order is released to fulfillment, information about the item and quantity is sent to BlackBox. The software automatically determines the optimal size and fill material needed for the box, transmitting the information so the box is automatically created. The box is created with a unique reference number, ensuring it is matched with the correct sales order.
Personnel are no longer needed to facilitate the process of producing the shipping boxes, thanks to BlackBox positioning and functionality. During the first year of implementation, True Manufacturing reduced packaging expenses by $213,000. Additionally, the logistics software improved the visual of how the parts shipments are presented to the customer, all while ensuring loading rules were strictly adhered to and products continued to arrive in perfect condition. MagicLogic is continuing to offer custom BlackBox solutions to accommodate True as its business changes.
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