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How Cordstrap slashed costs and boosted efficiency for a major chemical company

Cordstrap were approached by a major chemical company who were using a glue backed adhesive system for container shipping. They estimated they were getting damage claims for 1.5% of shipments and as a result, were seeing an 8% increase in cost per container due to damages and re-work.

Cordstrap chemical cargo protection experts visited the customer to investigate. The team carried out an audit of current procedures and the results showed the combination of cargo type, packaging, modality and route meant the container cargo protection application needed to be much stronger.

The team recommended Cordstrap’s CornerLash container solution. The results were an 80% reduction in damages claims delivering $55K saving per year. The customer also had a 50% reduction in time to load a container – delivering a further $40K labor saving per year or the potential to increase output of an extra 300 containers.

These results led to a second stage of the program.

Issue

The customer was shipping 3600 containers annually – 20% hazardous, 80% non hazardous. Load types were steel drums and IBC in 20ft and 40ft containers, shipped via rail from 17 locations with both direct and 3PL handling.

The company was using a glue backed adhesive system and was seeing a 28% increase in costs on haz. shipments and 31% on non-haz., due to damages and re-work. This resulted in additional costs of $500K per year.

Solution

Cordstrap carried out an end-to-end review with the customer, with a view to stripping complexity out of the supply chain and optimizing their processes. The customer was using two different securing systems for haz. and non-haz.

Following a full review and onsite diagnostic session, CornerLash was introduced as a single ‘out of the box’ solution that could provide enhanced securing for both haz. and non-haz.

Results

Savings: The customer will save $13.5K per month in labor costs per container.

Efficiency: A 75% reduction in FTE hours and an 80% increase in output of containers.

 

We have helped thousands more customers save time, money and protect their brand reputations. We can help you too. Contact Cordstrap today.

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