Step 1 - Analysis

We begin with an analysis of total cost. We include purchase price as well as the cost of product loss and damage, inventory, factory space, labor and transactional costs. Our objective is to understand the cost drivers and find Pareto (80/20) relationships that can be leveraged.

Step 2 - Metrics

Second, we develop metrics. Even the most complex packaging requirements can be reduced to a few key measurements. Effectively managing a large spend requires aggregate measurements that are meaningful to the supply chain and that are practical to compute each month. Ideally, we integrate the metrics into the MRP and ERP systems so that reporting is on autopilot. Managing month-to-month with spreadsheets creates an annuity of activity so we help configure your master data to take advantage of your enterprise software. Seasoned supply chain professionals tell us that cumbersome reporting is often the root cause of failed cost savings implementations.

Step 3 - Design

Third, we develop strategies for reducing complexity. Above all else, complexity drives cost and complexity is the most difficult dimension of a packaging program to manage. The key is to create a packaging engineering platform and take high-level design responsibility away from the supplier. The supplier should always have clearly defined constraints when they design components. Industry practice is often the opposite. Conventional wisdom is that design constraints limit creativity. In reality, a clearly constrained design platform is a powerful tool for creating packaging “sameness” across the enterprise.

Step 4 - SC Strategy

Fourth, we align the packaging design platform with the supply chain strategy. Tactical procurement techniques such as reverse auctions typically net incremental savings. An over-arching supply chain and design strategy, developed with a comprehensive understanding of the packaging industry, can net dramatic results and will magnify the effectiveness of your tactical procurement techniques and create lasting, Best-in-Class supply partnerships.

Step 5 - Training

Last, we train the team. Supply chain professionals become more effective when they understand the inside workings of the packaging industry and the packaging value chain from their supplier’s perspective as well as from their own. We design training plans that put the supply chain team in control for the long-term. Well planned training creates project ownership at the operational level where it belongs.

The Rohleder Group Way

Creative thinking, carefully crafted strategies and a deep understanding of the commodity are important, but the skill we value most is the ability to work with a diverse group of people and present ideas in a positive, nonthreatening, collaborative way conducive to team building.

That’s the Rohleder Group way.