The Power of Auditing: How Merchant Boxes Saves Clients over $1M Annually
The Power of Auditing: How Merchant Boxes Saves Clients over $1M Annually
In today's competitive business landscape, cutting costs without compromising quality is a constant pursuit. When Canndescent, a renowned cannabis brand, looked for assistance, they were seeking innovative ways to reduce expenses associated with their 1/8th box. Despite their current vendor's best efforts, they seemed to have reached a cost plateau. That's when we embarked on an in-depth auditing journey, examining every aspect of the packaging and sourcing process to uncover hidden opportunities for improvement. That is exactly what we were able to do.
In this article, we will explore:
Packaging Requirements
Packaging Design
Packaging Printing
Packaging Assembly
Cost Savings
Audit Outcomes
1. Packaging Requirements
Diving into the intricate details of Canndescent's packaging requirements, Merchant Boxes left no stone unturned. They meticulously scrutinized components, structure, stock, print, embellishments, stickering, and assembly, among other factors. The goal was clear: identify game-changing savings that would reshape Canndescent's packaging landscape.
2. Packaging Design
One of the breakthroughs came from reimagining the box's layout. The existing design limited each print form to accommodate only one unit, significantly impacting efficiency and cost. However, Merchant Boxes had an ingenious idea—to redesign the box's folding mechanism, allowing for two units on a single print form. Recognizing the potential for even greater optimization, the structural designer refined the concept further, achieving the remarkable feat of fitting three units on a print form. This revolutionary structural innovation not only reduced costs but also streamlined production.
3. Packaging Printing
The previous packaging solution utilized seven spot colors and branding stickers that were foil stamped, embossed, and printed with distinct PMS colors for each of Canndescent's five SKUs. While stickers had been a viable choice for lower quantities, at the scale Canndescent required, they became an exorbitant expense and a bottleneck in the production process. Merchant Boxes eliminated the need for stickers altogether, incorporating the essential branding information directly onto the box. This not only resulted in substantial cost savings but also eliminated a labor-intensive process, enhancing overall efficiency.
4. Packaging Assembly
To tackle the challenge of box assembly, Merchant Boxes devised a strategic solution. Instead of delivering fully assembled boxes, which incurred significant labor costs and consumed valuable time, they partnered with a vendor in Mexico. The flat boxes were shipped to the vendor, who held an inventory and assembled them on demand. This outsourcing of assembly not only reduced labor expenses but also eliminated a critical bottleneck in production.
5. Cost Savings
The collective impact of Merchant Boxes' comprehensive audit and strategic optimizations was nothing short of astounding. The final result was a box of the same impeccable quality as the original but at a remarkable one-third of the cost. Canndescent achieved an unprecedented annual savings of over $1.3 million, catapulting their profitability to new heights.
6. Audit Outcomes
Canndescent's success story serves as a powerful testament to the transformative potential of auditing packaging and sourcing processes. By partnering with a dedicated team like Merchant Boxes, businesses can unlock hidden cost-saving opportunities, optimize efficiencies, and elevate their bottom line. Embracing a risk-free audit is a strategic investment, enabling organizations to thrive in an increasingly competitive marketplace.
In the pursuit of operational excellence, businesses cannot afford to overlook the profound impact that auditing and optimization can have. As Canndescent's remarkable journey demonstrates, a meticulous evaluation of packaging and sourcing practices can pave the way for revolutionary cost reductions and heightened profitability. With Merchant Boxes as your trusted partner, your business can unlock the hidden potential within your packaging strategy, transforming challenges into opportunities for growth and success.
Let us help you find savings with a free audit.
Unleash the potential of your packaging supply chain with our unrivaled sourcing expertise. Our dedicated team understands the challenges businesses face in finding reliable and cost-effective packaging materials. That's why we offer a FREE audit of your current sourcing practices, where our experts meticulously analyze your supply chain to identify potential inefficiencies and cost-saving opportunities. Imagine the impact of saving millions per year while maintaining top-notch quality. With Merchant Boxes, you can transform your sourcing strategy and optimize your packaging costs, making a significant impact on your bottom line. Don't miss out on this game-changing opportunity – claim your FREE audit today!
