Packing Operations Strategy

SITUATION
A large confectionary company was expanding one of its factories to add more manufacturing lines which impacts the space for packing the products.

PROBLEM
In order to make space for additional manufacturing lines, the client was considering to re-purpose two buildings that were used to pack the products on automated and manual lines. The client asked to define a packing operations strategy and to make recommendations whether to keep the packing operations inhouse, outsource all of the packing operations or outsource either the manual or automated packing operations. The recommendations were to include potential locations for the outsourced packing operations.

SOLUTION
Analyzed the different packing operations and requirements that were performed in the two buildings and defined recommendations for each of the services.

Defined pros and cons for outsourcing the packing operations vs. keeping it in-house with related costs and overall impact on the manufacturing and logistics network of the client.

Evaluated optimal locations to perform the outsourced packing operations, based on customer demand geography and available capacity and capabilities in the existing logistics network.

BENEFITS
Based on the packing operations strategy and recommendations, the client was able to make a decision  what and when to outsource the various packing operations and to which locations.

For more information, contact Rene Jacquat at 902-300-4988 or [email protected].