The Covid-19 pandemic created an unprecedented supply chain crisis characterized by unpredictable shipping schedules and escalating costs. In response, WPS devised a comprehensive strategy to assist customers in securing materials on time and at predictable prices. This case study explores WPS' initiatives that successfully mitigated the supply chain crisis, solidifying our reputation as a reliable and resourceful partner.

WPS's Tailored Solutions for Strategic Success

WPS recognized the need for a bespoke approach to support its strategic customers. To ensure timely delivery and predictability, we implemented consignment stock solutions. By leveraging our in-depth understanding of customer requirements and past buying patterns, we earmarked materials exclusively for each customer. This approach guaranteed timely delivery to customers' clients, even amidst the uncertainties of the supply chain crisis.

Splitting Shipments and Leveraging Less than Container Load (LCL)

We responded to the limited availability of full containers by adopting a strategy of part container loads. Rather than waiting for complete orders, we began shipping materials as they reached a minimum readiness threshold, sometimes as low as 40%. This flexibility allowed us to utilize available containers by persuading shipping companies to consolidate shipments through the Less than Container Load (LCL) option. The reduced freight costs of LCL shipments and the elimination of reliance on scarce full containers enabled us to offer competitive pricing to customers.

Optimizing Cash Flow and Operational Efficiency

Embracing the role of a one-stop shop, we quickly adapted to offer multiple products within a single order and container. This departure from the conventional approach of individual container load orders streamlined procurement processes, accelerated delivery timelines, and empowered customers to optimize their cash flow more effectively. By consolidating different products in one shipment, we enhanced inventory management and minimized logistical complexities for us and our customers.

Driving Impressive Results

Our strategic initiatives yielded impressive outcomes for our customers:

1. Reliability: Through our commitment to timely delivery and predictable supplies, we established ourselves as a reliable partner, instilling customer confidence during the supply chain crisis.
2. Resourcefulness: WPS demonstrated our resourcefulness by implementing innovative strategies, such as consignment stock and leveraging LCL shipments, to navigate the complexities of the disrupted supply chain effectively.
3. Cost Savings: We significantly saved by adopting part container loads and reducing freight costs through LCL shipments. These savings were passed on to customers, enhancing their competitiveness.
4. Operational Efficiency: The transition to a one-stop shop and consolidated product orders improved operational efficiency for us and our customers, streamlining processes and increasing productivity.

End Note

Deploying proactive and tailored strategies, WPS showcased remarkable resilience in overcoming the supply chain crisis during the challenging times of the Covid-19 pandemic. The initiatives, including consignment stock, splitting shipments, and a one-stop shop model, ensured timely delivery and predictable supplies. Our commitment to customer satisfaction, adaptability, cost optimization, and operational efficiency solidified our position as a trusted partner in the packaging industry.

As we reflect on our journey, we remain dedicated to charting a path toward continuous improvement, innovation, and delivering exceptional value to our customers.

Need a better way to manage your input costs when thinking of customized solutions? Contact us: info@webpackagingsolutions.com

About Web Packaging Solutions (WPS)

Web Packing Solutions, LLC (WPS), is a hybrid packaging solution provider to the flexible packaging industry with more than 30 Plus years of experience. Our global presence, with offices in the United States, China, India, and Korea, allows us to deliver world-class flexible packaging products and services to customers in North America.