Thursday, 19 November 2009

Cost and waste reductions for furniture manufacturer and retail company

Project Scope: Waste Reduction
Project Target: Cost Reduction
Results: Saving of €320,000 (55%) p.a. on European Pallet procurement and disposal
Saving of €30,000 (100%) p.a. on Waste Disposal
Reduction of landfill volumes by 90% (100% available with further changes)
Reduction of HGV carbon emissions by 30%

The client was struggling with two issues - firstly, the goods arrive in the UK on nonstandard wooden pallets, from which they are unloaded, stored in the warehouse and distributed. Because they aren’t a standard size there was no market for the pallet, and they were paying to have them removed from site.

Furthermore, old and returned bedding products were being sent to landfill – an increasingly costly option, and a large environmental headache.

The solution to the pallets was not a cheaper method of disposal, but eradicating the problem at
source. An alternative method was proposed that cost far less to procure, needed less warehouse space, and one product could be purchased instead of 14 different sizes of pallet. The product also had a recycling value to the client. This was met with such great interest in the UK that the parent company looked at the solution as a global fix to this problem.

The solution for bedding materials meant the products were converted for other use and completely removed the need for any waste disposal associated with these products.

If you feel that there is scope to improve quality, service, management, and visibility of your
processes don’t hesitate to call Phil Edwards at Weald Business Solutions on 01825 761890 and ask for advice.

Sue Edwards
Virtual Assistant Sussex
(01825) 761890

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