More efficient packaging reduces cost

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%