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Customer MAG was purchasing a large percentage of items from a popular packaging catalog. MAG was surprised to discover the high cost of incoming freight they were paying. They asked M-Line to help reduce the often-overlooked cost of freight that was part of their annual packaging spend.
MAG’s freight bill on the packaging items varied from $600 per month to as high as $1,100 per month. After learning more about their business and production goals, M-Line presented solutions that helped MAG with substantial cost savings:
- Consolidation of packaging items to bimonthly orders, saving them the cost of processing multiple purchase orders.
- Reduction of freight charges to nearly zero by slightly increasing the lead time on packaging items from one-two days to three-five days, and taking advantage of M-Line’s fleet of trucks and local delivery schedule.
- Design of a custom packaging solution for MAG’s specialty items. This reduced the material and labor cost involved with excessive wrapping and bundling to fit standard-size boxes and protect their items.
The actual costs of the stock items were less through M-Line as well. In total, M-Line saved MAG approximately $10,000 on their annual packaging spend.