A fumigation company changes plastic sheeting to meet USDA standards.
The fumigation company that provides services for the USDA on shipping containers called IPS Packaging and asked for the best pricing for plastic films. While speaking with an IPS packaging specialist, the customer was asked numerous questions about his company’s specific needs. During this process, the customer made known his belief that the plastic sheets that they had been purchasing were not of very good quality. The IPS Packaging specialist asked the customer what kinds of issues they were experiencing with their previous product.
The customer relayed the fact that the plastic sheets they had previously bought were of such poor quality that they were extremely thin and breakable, oftentimes releasing a chemical that needs to be trapped inside in order to meet USDA specifications. When the sheeting would break, the company would then have to repeat the entire process of fumigating-at their own expense.
- Poor quality sheeting
- Thin, breakable sheeting
- Losing vast amounts of money because of lack of quality
- Higher quality plastic
- Saved the company expensive breakage costs
- Increased quality for a small price increase
When asked how often a sheeting failure occurred, the company replied, “anywhere from at least one roll per pallet to as many as three rolls per pallet and sometimes more than that.” The IPS Packaging specialist realized the problem: the company was asking for the best possible price. He asserted that to give the best price, no one can be as competitive and give the fumigation company a quality product. The IPS Packaging specialist also pointed out that saving a few dollars on each roll of sheeting was actually costing the company between $14,400 and $86,400 a year. IPS Packaging solved the company’s problem- but not at the lowest price.
IPS Packaging sent the fumigation company a sample of sheeting and a similar quality sample of a poly bag. After the fumigation company received the samples, they called IPS Packaging and said that it was the best plastic they had seen in a long time. IPS managed to make the sale at only an 8% price increase. The company has been using the material for about a month now, and has experienced no leaks or quality issues.
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Total Packaging Cost Summary:
- INCREASED QUALITY PLASTIC
- DECREASE IN BREAKAGE COSTS