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Manufacturer reduces loss by $4 Million a year
There is a large manufacturing-based logistics company with fifty dock doors spread around their main building. The core business of this facility is the distribution of repaired, replacement and maintenance parts. This is a production environment. Things move fast. Product is shipped in returnable 2’ x 4’ x 3’ open top metal shipping totes, millions annually.
They ship direct to customer or to satellite warehouses. The receiving location holds empty totes in trailers, to be returned, with about 150,000 totes in circulation at any time. The loss or damage to totes is estimated at 25% per year. With new totes costing $125, repair and replacement runs in excess of $3 million per year. Missed shipments and charges due to shortages add another million.
This company needed to get these huge losses under control. They had to track which customers or warehouses were not returning totes.
With an RFID solution for only $800,000 this company was able to get their ROI in the blink of an eye!
Last edited by Monica : 07-20-2009 at 05:08 PM.
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