More Efficient Packaging Reduces Cost
DSC Laboratories in partnership with CVS and Quad
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.
