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More efficient packaging reduces cost

DSC Laboratories in partnership with CVS and Quad

Quad cvs dsc case study hero

CVS Health Corporation is an American drug retailing company.
DSC Laboratories is a leading provider of turn-key formulation, manufacturing and packaging solutions.

Challenge

CVS saw its sustained growth in private brands increase sharply, necessitating the addition of another supplier. DSC Laboratories, a growing, privately owned company that manufactures creams, ointments and suppositories was well-suited but would need to ensure a packaging solution that met cost and design objectives.

Solution

Re-engineering for all aspects of packaging:

  • Coordination with CVS brand management entity
  • Analysis of machinery DSC uses for filling
  • Assessment for common range of SKUs for efficiency

Improving packaging performance for all processes:

  • Design for maximum speed and run efficiency in manufacturing
  • Direct coordination with brand agency for most recent logo files
  • In-house graphical location manipulation for fast approvals and changes

Adding value to both DSC and CVS:

  • Creative ways to cut costs with manufacturing improvements
  • Expertise to see opportunities for and to implement best-practices
  • Integrated solutions that pair design with production
  • Relationships with both brand agency and DSC to bridge gaps

Impact

The new packaging is a success for all stakeholders:

  • Engineered sturdier packaging with greater efficiency that yielded up to 50% in cost savings for DSC
  • Label costs lowered by up to 35%
  • DSC’s cost savings translated to an average of 3.63% in cost savings per SKU for CVS
  • Made folding cartons for DSC products consistent with CVS brand
  • Placed all necessary branding and text on packages that are completely compatible with DSC fulfilment equipment
  • Additional benefits: Labels costs to DSC lowered by up to 35%

We were able to keep costs low by collaborating with Quad to ensure that the structural design of the packaging was optimized from printing through filling.

Logan Dykgraaf
President & CEO, DSC Laboratories
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