Home » Product Assembly at Warehouse Cuts Costs by $500,000
Product Assembly at Warehouse Cuts Costs by $500,000
September 4, 2012
Solution: Products are made of two primary parts - soft-sided collapsible cooler bags produced in China and rigid liners made in California. The liners are what give the product its size and bulk, so to reduce freight and storage costs final assembly is done at the warehouse. Trained Weber associates insert liners into the bags. To further reduce inventory costs, liners are stored at the manufacturer's nearby plant and shipped, just in time, to Weber.
Results: According to cooler maker's director of operations, logistics & distribution, "By doing assembly at the warehouse, we have saved more than $500,000 annually in freight and storage costs and can better respond to changing market demand."
About the Solution Provider: Founded in 1924, Weber Logistics provides west region warehousing, transportation, and import logistics solutions. With 17 distribution centers and freight terminal throughout the Western U.S., Weber gives growing companies flexible, scalable distribution solutions for their west region customers.
