Chicago-based consultancy Catena Solutions helps its clients build more resilient supply chains.
The company provided a perfect example of this in its recently released report, “Supply Chain Trends & Insights: Innovation,” in which packaging considerations figure prominently.
The Challenge: A global snack food company had been outsourcing their repack operations to a co-packer, which was costly and inefficient. As part of their supply chain transformation, the company invested in new automation equipment and needed a resource to project manage the installation.
The Solution: Catena Solutions led the company through their repacking transformation by:
- Identifying a new automation line vendor that processed more bars per minute, didn’t require a proof-of-concept investment, and had an overall significantly lower cost.
- Identifying a solution to bring a significant volume (110 million snack bars annually) from outside vendors to in-network distribution centers.
- Recommending a new scrap vendor to install a baler at no upfront cost, helping the company maximize investment.
- Increasing plant electrical system capacity by making recommendations to rewire and retool the system to support new equipment.
- Advising that adding a second automated line could eliminate the need for a second shift.
The Result:
- Transitioning to the new automation line vendor will save the company nearly $1 million.
- Bringing repacking operations in-house for the specific product line will boost efficiency and reduce costs.
- Using the new corrugated scrap vendor will create a future revenue stream for the company and optimize their scrap management.
- The recommendations the consultant made for the plant’s electrical system will increase capacity by 35%.
- By installing a second automated manufacturing line, the organization will save $700,000 in overhead costs.
Catena Solutions' report on supply chain innovation also touches on trends in packaging.
“Unsurprisingly, not only are products shifting towards sustainability, but packaging is also trending in the green direction,” the report notes. “Factors shaping sustainable packaging include consumer preferences, market trends, impending regulation, and materials shortages.”
Specific packaging innovation that Catena Solutions’ clients are focusing on include waste reduction, alternatives for nonbiodegradable plastic, packaging that can be repurposed, compostable packaging, and packaging that reduces emissions in transit.
Additionally, the report notes, consumers are relying on packaging to vet companies’ sustainability claims: A recent survey shows that among U.S. consumers who shop for more sustainable products, 72% use labels or third-party certifications to confirm a company or product’s sustainability credentials.
