We participated in a lean exercise with one of our IT clients, and together we identified a potential saving related to power cords insertion.
In one of the products being shipped from China, each unit arrived with a Euro power cord in the box. Based on performed analysis JUSDA was able to identify that more than 50% of final products were going to non-European countries and a second power cord was being added.
JUSDA utilised one of its most valuable assets, human capital, represented by skilled and experienced employees who created a team focusing on the most suitable solution for the challenge at hand.
We calculated the cost of the power cords that were being disregarded. We then calculated the cost to complete 100% fulfilment for correct power cord insertion into this product range. Consequently, we were able to prove that fulfilment costs were less than the value of the wasted power cords.
Based on performed analysis and discussion with customer, we suggested to have the products shipped from China with no power cord inside.
Jakub Válek, Graeme Strachan
Logistics experts at JUSDA
Completing the powecord fullfillment in Czech allowed our customer to save $1M per year and in parallel reduce the waste created.