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Case Study – Recycled Packaging Program Savings


FCA's creation and management of a custom skid recycling program saves customer significant costs

  • FCA defined a returnable process for packaging product in the field
  • FCA saved this customer thousands of dollars annually in disposal costs
  • FCA significantly reduced customer's purchasing costs by using the FCA-designed engineered wood skid

Situation

Prior to engaging FCA, one customer utilized engine skids from a supplier that were disposed of after a single use. Costs for disposal of the skids were shared by this company and their customer. With no defined returnable loop in their packaging process, this customer looked to reduce expenses by reducing material waste.

Action

FCA was engaged to develop a solution that would limit waste while maintaining consistency and usability with the current packaging product. FCA designed a more durable engine skid using engineered wood and created a custom reverse logistics program to increase the product life of the skid in the field.

Results

FCA now manages the logistics, inspection and maintenance of the recycled engine skids and saves the customer thousands of dollars in disposal costs alone. As a result of using FCA’s more durable skid designed from engineered wood, the customer also achieved significant savings in purchasing costs due to the reusable nature of the skid.