Single Plant Example:
We know your facility uses 7,200,000 square ft of corrugated each year,
divided by 12 months equals 600,000 sq ft per month. A truck carries 200,000 sq ft.
This means the buyer should schedule corrugated deliveries on 3 dates in any given month. By simply following the rule of scheduling all corrugated deliveries on only 3 dates the buyer is maintaining less than 7 days inventory and optimizing transportation and material handling efficiencies.
Multi Plant Logistics:
The geographic overlay graph to the right illustrates how we determine national leverage and considers supplier selection based on logistical economics.
We cannot stress enough that we DO NOT establish lower costs by increasing order quantities. Inventory levels most often decrease with our program. You will NOT carry more total square footage of corrugated inventory as a result of this program. |