2008: Taking Care of the Pennies (Part 7)
NEW PRODUCT DESIGN – STEPPED AEROSOL CAP
Executive on Demand Position:
President, Chief Operating Officer, Vice President Logistics, Vice President Procurement, Vice President Sales and Marketing
Project Outline
:
When working in a global procurement market it is important to work with the suppliers to find innovative ways of reducing costs. A major contributor to the landed cost of a product is the cost associated for physically shipping the product by cargo ship to a factory. Depending on the product size or weight, the shipping cost can have a significant impact on the decision related to sourcing offshore. The project focused on reducing shipping costs and by re-designing an aerosol cap with a stepped shape.
Project Outcome:
The supplier’s successful design and production of the stepped cap program in both the 65mm and 52mm diameter sizes provided the capability to put an additional 40% more caps into a shipping container. Accomplishing this further reduced the landed cost of the aerosol cap therefore maintaining a supply relationship with the overseas supplier. An additional benefit from the new cap design is that it provided a new look to a finished aerosol packaged product providing further service differentiation in the supplier market.