PRESENTED BY JOE JARUSZEWSKI

WEBINAR

HIDDEN COSTS OF CO-PACK

HOSTED BY

WEBINAR AGENDA

1 Where Are Your Hidden Costs?

2 Data-Driven Cost Control

3 Getting To Cost Control Utopia

Joe JaruszewskiEVP, Summit Container

SPEAKER

Daisy JiangMarketing, Nulogy

MODERATOR

1. WHERE ARE YOUR HIDDEN COSTS?

END OF A JOB & WONDERING WHY YOU LOST MONEY?

OLD ADAGE: YOU CAN’T FIX WHAT YOU CAN’T MEASURE

YOU CAN’T BE COMPETITIVE IF YOU’RE RUNNING AROUND BLIND TO YOUR COSTS

MEASURING ONLY THE “LABOR VS THROUGHPUT” COST POINT? IT’S A TRAP!

PRODUCTION FLOOR IS LESS THAN HALF OF YOUR TRUE COSTS TO RUN A PROJECT

YOUR PERIPHERAL COSTS ARE ROBBING YOU BLIND

TRUE PROJECT COSTS – EVERYTHING THAT HAS INCURRED FOR YOU TO BE IN BUSINESS

WHAT ARE ALL THE COSTS THAT WOULD BE ELIMINATED IF A PROJECT DIDN’T EXIST?

ACCOUNT MANAGEMENT TIME · CUSTOM REPORT DEVELOPMENT · RECEIPT & INSPECTION · MATERIAL HANDLING · WAREHOUSING ENVIRONMENT · SALES & MARKETING · ORDER FULFILLMENT · BOLS · SHIPPING OF LTL · QA RELEASE · TRASH & RECYCLE · FINISHED GOOD STORAGE · BANDING & STRETCH WRAPPING · TRAINING · VENDOR MANAGEMENT · BATCH RECORDS · COST OF CASH OUTLAY · PALLET PATTERNS

THERE ARE 50+ COST POINTS TO A PROJECT

MATERIAL REQUEST TO LINES · RUN SIZES · TRAINING · TRUE TIME & MOTION OF LINE · LINE SETUP & REPAIRS · ELECTRICITY & POWER SUPPLIES · TOOLING · GARBING · SHIPPING OF LTL · QA RELEASE · TRASH & RECYCLE · FINISHED GOOD STORAGE · FILL SPACE OF FINISHED GOODS · SHIPPING OF LTL · QA RELEASE · ORDER FULFILLMENT · BOLS· LOT SIZES & STOCK · BATCH RELEASES

HOW MANY DO YOU RECOGNIZE & TRACK?

MAKE DATA-DRIVEN DECISIONS FOR YOUR CO-PACK BUSINESS, NOT EMOTIONAL DECISIONS

2.DATA-DRIVEN COST CONTROL(and the 12 areas of co-pack cost control)

COST CONTROL STARTS WITH DATA. COLLECT IT. SORT IT. UNDERSTAND IT. ACT ON IT.

12 AREAS OF CO-PACK COST CONTROL

THOROUGHLY UNDERSTAND PROJECT & CUSTOMER’S EXPECTATIONS

#1

UNDERSTAND THE COSTS ASSOCIATED WITH PRODUCT

#2

UNDERSTAND THE COSTS ASSOCIATED WITH SHIPPING

#3

UNDERSTAND COSTS ASSOCIATED WITH CONSUMABLES

#4

OPPORTUNITY COST OF AVAILABLE EQUIPMENT AND MATERIALS

#5

WORK UPSTREAM EARLY TO ALLOW INPUT INTO DESIGN & PLANNING

#6

INTRODUCE 5S AND KAIZEN EVENTS

#7

CREATE FLOW IN YOUR SHOP FLOOR & WAREHOUSE DESIGN

#8

CONTROL INVENTORY & TRACE DAMAGES

#9

ALLOW QUALITY CONTROL TO BE PART OF PRODUCTION

#10

ENSURE PLANNERS ALIGN REQUIREMENTS WITH PRODUCTION & SHIPPING

#11

ENSURE YOU HAVE A PREVENTATIVE MAINTENANCE TOOL THAT PROVIDES VISIBILITY

#12

3. GETTING TO COST CONTROL UTOPIA

PRODUCTION COSTS WITH A

STANDARD DAILY

OVERHEAD RATE BROKEN

DOWN BY DAY/LINE/SITE

good or

bad?

BAD!

PRODUCTION COSTS WITH A

STANDARD DAILY

OVERHEAD RATE BROKEN

DOWN BY DAY/LINE/SITE

UTOPIA: UNDERSTANDING THE PROFITABILITY OF EACH LINE, JOB, AND CUSTOMER

4. UNDERSTAND THAT ALL COSTS DON’T CORRESPOND TO ALL CUSTOMERS – WORK TO ELIMINATE

1. UNDERSTAND WHERE EVERY MINUTE OF EACH EMPLOYEE IS SPENT AND FOR WHAT CUSTOMERS3. UNDERSTAND YOUR FACILITY USE AND ALLOCATE BACK TO CUSTOMER

2. UNDERSTAND YOUR EQUIPMENT AND ALLOCATE BACK TO CUSTOMER

A TAKEAWAY EXERCISE TO HELP YOU START DIVING DEEP INTO THE WORLD OF CO-PACK COST CONTROL

INVEST IN THE TOOLS THAT CAN GIVE YOU VISIBILITY INTO THE IMPACT OF EACH CUSTOMER & EACH JOB

QUESTIONS?

HOW TO CONTACT USTo learn more about Nulogy and stay plugged in with our content offerings, visit & follow us.

@nulogy

facebook.com/Nulogy

THANK YOU

events@nulogy.com

1-888-685-6491

www.nulogy.com