Many consumer goods companies ship product from the warehouse to outside packaging providers only to have the product return to the same warehouse. This increases freight costs and loses visibility to the product during packaging. KANE helps its consumer goods customers maintain visibility, reduce costs and speed cycle time by performing final product configuration and contract packaging services in the warehouse.
Furthermore, contract packaging services should not stop at simple execution of final packaging. 3PLs that have evolved their businesses to meet this emerging market demand will enable CPG companies to pursue a total outsourced model for contract packaging services, including display design and testing; sourcing and ownership of packaging materials; and equipment specification and purchasing.
Read our white paper on integrating packaging with distribution operations.
The KANE-run DC is one of our flagship sites and we appreciate the staff’s focus on safety and flawless execution.
- Director of Distribution, Kimberly-Clark Corporation
As part of its “Network of the Future” strategy, Kimberly-Clark Corp (K-C) consolidated packaging and distribution in ten mega-distribution centers (DCs) around the U.S. and Canada. KANE runs one of KC’s largest DCs and provides packaging, warehousing and distribution services within. The idea is to move packaging operations closer to the customer, thereby postponing order fulfillment as long as possible and improving forecast accuracy by finalizing packaging closer to the ship date.
The “Network of the Future” strategy has yielded the following improvements:
When Procter & Gamble integrated contract packaging services into its distribution operation, the company cut costs by 10% at its Northeast paper DC. Formerly, a contract packager operated a separate packaging operation within P&G’s DC. But the company turned the packaging function over to KANE, which ran its DC and transportation operation at the time.
By sharing resources across functions, KANE was able to perform both packaging and distribution with improved quality, while using less labor and realizing substantial savings.
KANE provides the full breadth of packaging services, from design to completion. Here, you see how KANE merges logistics and packaging disciplines into one integrated solution - in a single facility - to customize and distribute products to retail customers.