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Automated Baggins Systems:

AUTOMATED PACKAGING SYSTEMS (AUTOBAG)

IMPROVING GLOBAL EFFICIENCIES FOR SIGNIFICANT UK SAVINGS

 When responsibility for purchasing is split over multiple sites, it can be easy for communication to become disjointed and efficiencies to slide. When autonomous sites are located in different parts of the world, the problem is compounded and business owners often don’t even realise it’s happening.

That was exactly the case for Automated Packaging Systems (Autobag) with their multinational, multi-lingual operations and logistics. Thanks to Expense Reduction Analysts (ERA), a full review of packaging and logistics led to substantial savings, increased efficiencies across the globe and a more robust supply chain. All in a day’s work for Lorraine Gannon and her team (Simon Phippen – Packaging and Kevin Fryer – Logistics)!

Autobag has been a world leader in designing and manufacturing flexible packaging systems for over 50 years. A major supplier of packaging systems used to pack industrial components, they are the original inventor of Autobag® bagging machines and pre-opened bags-on-a-roll. They continue to innovate and grow their product lines and business globally to provide customers with complete packaging solutions for increasingly vast and unique product needs.

ERA Client Relationship Manager, Lorraine Gannon, specialises in managing relationships to a client’s best advantage and identifying projects for long-term benefits. She reached out to Autobag after identifying areas in which she felt she could make a significant impact; namely packaging and logistics. Peter Wylie, Autobag’s Managing Director, was sceptical that savings could be made but agreed to an initial project on packaging.

It emerged that Autobag had two suppliers, trading off one against the other in an effort to force discounts. This is often assumed by many companies to be best practice but is actually an inefficient method of procurement as there can be no planned production on the side of the supplier. ERA thoroughly reviewed both suppliers and presented a preferred option. This secured savings and an improved working relationship. With the ‘trade-off’ scenario eliminated, there was now scope for short notice orders and stock-holding.

Impressed with the results, Peter passed the much more complex logistics project over to Lorraine for review.

In a complicated exercise involving the global network, ERA trialled a third party European supplier offering excellent savings. The trial was a success and a bespoke solution was devised by Lorraine and her team in which the UK benefitted from an updated charging structure: resulting in significant savings and improved service levels. Autobag’s Belgium office moved to the new supplier and sites in Germany and France retained their incumbent supplier on enhanced terms.

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