One tiny change creates big cost savings

One tiny change creates big cost savings

‘Sometimes the simplest solution, like re-engineering the size of a label, can make a big impact on the efficiency of an operation. That’s why we keep close contact with our clients and continuously review the effectiveness of the labels and tags we provide.’

The Customer

Our customer is part of a fresh meat manufacturing group. They supply products to other processing sites within the group, direct to store as well as to third party processors. They operate two slaughter lines, accommodating beef and pork, and produce both bone-in and processed meat in bulk primal packs and retail packs.

Whilst their operations run smoothly and efficiently they, like Piroto, have a continuous improvement culture and so remain open to new ideas.

The Customer’s Challenge

Margins are all important in meat processing and so cost containment is always on the agenda. The efficiency of traceability systems is clearly of great importance too, and it is a constant balance between cost and quality.

Our Approach

At Piroto we regularly audit our own products and processes alongside our customers’ to ensure that we continue to provide the very best products and services for the job. During one such audit we noted that the customer was using our 148 x 210 label in the despatch area to identify pallets containing picked orders. The label contained printed information that only covered about 40% of its surface area.

Clearly a saving could be made for the customer by simply reengineering the size of label.

What we delivered

We reduced the size of the label; manufacturing using the same material to ensure that quality was maintained. As well as the obvious cost saving in materials, the reduced size also led to an increase in the number of labels on a roll, this, in turn, increased operational efficiency through less roll changes.

Operatives found the smaller labels easier to apply and, ironically, they were more prominent and therefore easier to identify than the bigger labels.

Having tested the new labels in one site, it is intended that the new labels will be rolled out across further sites shortly.

The impact on the customer’s business

Through working in partnership with Piroto the Despatch Manager and the Management Team were delighted with the cost saving and improved system. In summary, the customer has benefited in a number of areas:

  • a saving of £5 per thousand labels was achieved which, for one site alone, equated to £2,700 saving per annum. A further cost saving in the region of £4,500 per annum is anticipated as the labels are rolled out to two further sites in the group
  • fewer roll changes and label wastage at the start of each roll means operational time saving
  • consistently clear, unambiguous identification of items has improved the despatch process
  • improved environmental credentials through eliminating waste and unnecessary usage
  • the Despatch Manager reports that the Management Team were impressed with the improvements all round!