One of the major metals service centres had been sourcing its packaging requirements from different vendors. This was primarily being done to have competitive pricing from the vendors, and choosing the best price option. Over the years, the customer started facing issues in their strapping operations, primarily due to:
- Maintenance of different sets of tools of different Make
- Skillset required to operate the tools having different mode of operation (Pneumatic/Manual/Battery) etc.
- Planning & arranging a variety of spares from different vendors
- Reduced uptime of tools impacting the packaging quality and productivity
- Higher cost for tools maintenance & lower life of tools
- Safety hazards & product damages due to Improper strapping
- Unclear accountability due to multiple vendors
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The customer and Signode worked together to capture the total cost of strapping operations, including strap, tools, spares, service & operations. Signode analysed the issue and proposed a comprehensive solution for their pan India service centres with 100% ownership. This involved investing in tools, maintaining the tools and ensuring smooth operations in lieu of Strap and Seals business for a specified period. The benefits of this solution to the customer were:
- Uniformity of tools across all locations with the supply of Signode tools
- Single point accountability of strapping operations with Signode
- A clearly defined Service Level Agreements with an agreed productivity of strapping operations
- Increased life & efficiency of tools because of use of usage of original and genuine spares, maintenance by professional and trained engineers and periodic preventive maintenance.
- Zero Inventory holding cost for the customer
- Improvement in packaging quality
This is a perfect example of how innovation in a business model turned out to be a win-win solution for the customer & Signode. |
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