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A leading advertising specialty company was supplying an international adult beverage producer with novelty Point of Purchase (POP) displays.
The POP displays were sold to a number of adult beverage distributors and retail outlets throughout the country.
Shipping on-time was critical since the POP displays coincided with seasonal sports promotions.
The current supplier in charge of the final assembly was two months behind and unable to meet the large volume assembly requirements. The supplier was also having difficulty coordinating all the supplies needed for the complex assembly.
Excessive shipment costs were incurred due to poor part design.
Poor assembly design was also responsible for a number of damaged shipments.
The advertising specialty company risked missing the seasonal window for the promotion and losing their customers’ confidence.
Solution:
Elrae’s sales engineering response team quickly reviewed the project in an attempt to save the promotion.
Our sales engineering team suggested design changes to improve product and package stability. The customer approved the changes and Elrae quickly coordinated with suppliers and labor force to implement the improvements.
Within 72 hours Elrae was in production with fixtures built and assembly work cells in full production.
Results:
Increased Throughput: Elrae increased production output by five-fold.
Quality Design: The improved product integrity assured that the complex assembly arrived at the final shipping point intact, avoiding costly customer returns.
Reduced Costs: The new design reduced shipping costs by 50%.
Rapid Response: Elrae’s ability to rapidly produce and distribute POP assemblies to market saved the promotion’s viability.
Stronger Partnership: Because of the success of the first project, Elrae was awarded assembly of an additional POP display. Using similar redesign concepts on the new display, this time Elrae was able to reduce shipping costs by 70%!
