GLOBAL FOOD AND BEVERAGE BRAND
Our customer is a food and beverage brand manufacturing and marketing in 165 countries worldwide. It employs over 110,000 people across the globe and turned over $35 billion in 2012.
Their portfolio includes more than 52 brands, and generates annual revenues of more than $100 million. DHL has been supporting the customer since 2012 with a flexible packaging solution service in order to accommodate seasonal fluctuations in product demand, and help the customer to be cost effective.
- Accommodate regular seasonal peaks in stock levels
- Manage labor requirements in line with seasonal changes
- Reduce transportation costs
- Flexible labor and effective crisis management
- Bulk shipment of donor product in reusable containers
- Fully equipped facility including clean rooms and temperature controlled rooms
- Reduced transport costs
- Reduced packaging costs and waste
- Increased flexibility in cost and operations
Due to regular, and sharp, seasonal peaks in stock levels, the customer’s biggest challenge was finding a packaging services provider that could accommodate these fluctuations. With as little as 24 hours' notice the seasonal peaks in stock levels could result in the need for 21 workers per shift to increase to 150 workers per shift, and the number of shifts per day could increase from one to three.
The customer needed a packaging partner that could continue to meet high quality standards for its end users during these peaks and provide a reliable delivery service to re-stock its retailers in country.
With its portfolio of 52 brands, the customer has different requirements for different products. For example temperature controlled storage and even special handling for more fragile products. It needed a packaging services partner that could maintain excellence across this portfolio.
DHL Supply Chain Solution
DHL appointed an experienced packaging services team at a warehousing campus in Turkey. The campus includes several warehousing sites running different types of packaging operations including, a clean room, temperature control, label applicators, automated cellophane wrappers, inkjet coders, metal detectors, multi-head weighers, flow wrappers and shrink wrappers. We are therefore able to fulfill all of our customers packaging requirements at one location, and respond to peaks in product volumes by sharing resources across the sites.
DHL retains a work force on temporary contracts in order to access a talent pool at short notice. This allows us to flex to seasonal fluctuations in product demand, adding more workers to shifts as and when required. In addition, operational hours at the campus were changed to optimize productivity for deliveries.
Previously goods had been brought to the site in cardboard boxes which then had to be unloaded and broken down. In order to save time and cost DHL now has goods shipped in bulk and in reusable boxes. This negates the cost of the cardboard boxes altogether, and reduces the time and cost spend opening the boxes and disposing of the waste.
By moving our customers operations to the campus in Turkey, we have been able to fulfill all of their packaging services across their portfolio of products, using a variety of high end equipment.
Our customer benefits from an increased flexibility in cost and operations. A temporary labour management system can accommodate its season fluctuations in product demand at short notice.
They have also benefitted from reduced transport costs through the bulk shipment of donor products. They have experience a reduction in packaging costs and waste by utilizing reusable packaging for bulk shipment of the finished product.
The customer’s service to its end users was ensured with DHL achieving the weekly targets set for 97% production plan compliance, and 0.025% product waste.