Supplier of steel products didn’t know they had a problem, until they saw the solution.
Steel supplier was using Railroad ties to fill the void.
Customer was lifting, placing and shifting large railroad ties when they placed their product into the railroad car. Then at the end of the road they were repeating this process to get the product out, making the task extremely exhausting. The customer wanted a quote on a pneumatic strapping tool. IPS Packaging gave him the quote and they learned they could help him with his shipping needs as well. When asked how they ship their product, it was discovered that they were shipping large steel bars, via rail and flat bed trailer, and were using large railroad ties to secure their steel loads inside the rail car.
This method was taking employees an average of four hours per railroad car to place the wood ties in. Not to mention it is an expensive way of filling the void in the cars. It was suggested that the customer take a look into using Airbags instead. They were skeptical
that the bags could hold their loads, due to the immense weight. IPS provided supporting material to make sure they understood the airbags’ ability.
Then came the testing. IPS Packaging provided the customer with sample bags so they could see for themselves and make the best decision. After two test shipments they were convinced this was the best way to make sure their product was protected during transportation.
The switch to airbags has not only cut cost and saved labor hours, but it has also greatly increased the safety of employees.
As a result of switching from railroad ties to Airbags the customer was able to save $80,000 a year in packing costs. They also were able to cut shipping labor by 1,500 hours a year, due to the fact that using railroad ties was taking on average 4 hours per car, the airbags on the other hand take a total of 15 minutes start to finish. The most important result is that the Airbags are safer then the railroad ties.
They went from not knowing they had a problem to:
- Saving 50% on shipping
- Saving 1,500 hours in shipping labor
- Safety and effectively securing the load
- Decreasing chances of an accident
Total Packaging Cost Summary
- Space= Increase in work space, less space to store flat bags then wooden bulkhead
- Safety= Increased safety for assembly and disassembly then wooden bulkhead
- Labor= 160% (1500 hours) reduction in shipping labor
- Material= 50% Cost Savings