2009: Taking Care of the Pennies (Part 8)
MANUFACTURER COLLABORATION – PAIL and BUNG
Executive on Demand Position:
TBA
Project Outline:
TBA
Project Outcome:
A popular package for service liquids (i.e. floor cleaner, brake cleaner, etc…) is the 5 U.S. Gallon/20 Liter metal or plastic pail. A client had me source a more competitive source for the closed top barrel style 5 Gallon/20 Liter pail. I suggested that during the search for a pail manufacturer, we should also try to find a bung supplier to provide a lower total cost for the package. Through the establishment of a collaborative vendor relationship we could once again optimize the space utilization of the container.
Efficiency:
China based manufacturers were found for the two components. A collaborative effort was initiated between the two companies to provide in the same container both the pail and bung without compromising on the shipping quantities of the bulkiest component: the metal 5 Gallon/20 Liter pail. The solution that provided the container shipping efficiency was to have the bung manufacturer make the bung ahead of the production schedule for the pails. The bung manufacturer shipped the bungs to the pail manufacturer, and the pail maker then inserted the bung into the hole and taped it into position so that it would not be lost during transit or storage.
Productivity:
The effort provided an additional benefit; that is the client gained space and production productivity. Space productivity was achieved by eliminating from inventory the part number, location and inventory associated with the bung. Then whenever production using pails was scheduled the inventory personnel worked from a simplified bill of materials as they only needed to recover one part number to supply the pail filling line