Packaging
Berlin Packaging Eliminates Customer Stockouts with 99% On Time Delivery – First Vendor To Measure Shipping Performance
Friday 08. August 2008 - Berlin Packaging announced that its 99% on-time delivery record of over 13,000 shipments per month of warehoused containers and closures reached over 4 years (or 50 consecutive months), ensuring that customers do not run out of critical packaging items.
Berlin Packagings on-time delivery percentage is better than Federal Express published 2007 figure on delivery! Release of the figures makes Berlin Packaging the first supplier of rigid packaging to measure and report its on-time shipping performance, publicly. Berlin Packagings near-perfect shipping record is particularly significant in light of rising demand for packaging materials as the economy continues to recover. Sophisticated logistics capabilities are required to continually adjust inventory to anticipate and accommodate fluctuations in any customers packaging needs, guaranteeing an adequate supply of items that are warehoused on behalf of each customer even in the face of changing conditions. “A warehousing program is only as good as the inventory management capabilities of the packaging distributor. If the supplier runs out of stock, then there is no advantage to the customer,” noted Berlin Packagings Chief Operating Officer, Larry Rydzewski. “Just-in-time delivery is an ideal that is easier said than done, and 80 or 85% compliance with customers requested shipping schedules is not enough.”
Berlin Packaging began analyzing its delivery performance in mid-2003 as a means of evaluating its customer service. The company discovered a strong 95% on-time shipping record and then implemented new procedures to improve performance even further, first breaking the 99% barrier in mid-2004 and holding at that level or higher since then. This performance enables customers to avoid the costs of packaging stockouts, including machine downtime, low employee productivity and inability to fulfill orders, as well as to reduce their investment in safety stock. These benefits are in addition to the other advantages of an inventory stocking program, including the ability to eliminate carrying costs, as well as, reduce in-house storage requirements and eliminate shrinkage.