CASE STUDY No. 9712
KEY WORDS REUSABLE CONTAINERS, INTER-FACTORY SHIPMENT; DUST
Cook, Inc.
P.O. Box 277
Ellettsville, IN 47429-0277
Contact: Larry Price, Safety Director. Tel: 812-876-7790. Fax: 812-876-3790.
Summary
A supplier to the health industry replaces single-use corrugated cardboard shipping containers with reusable, multipurpose plastic tubs for three-point movement of materials, reducing annual costs by $6,500.
Action
Cook, Inc., manufactures standard and special-order medical instruments for a world market. Some instruments contain electrical components requiring assembly of wires, connectors, and guides. This work is performed by a local nonprofit organization, Stonebelt, Inc., an employer of persons with physical and mental handicaps.
Cook's logistical system begins with the shipment of raw materials--wire, connectors, holders, plastic parts--from a vendor in Illinois and from Sabin, Inc., a Cook subsidiary, to the main Cook plant, where parts required for assembly at Stonebelt are reloaded for transhipment to the assembly contractor. After assembly, the medical instruments are returned to the Cook plant for warehousing and order fulfillment.
Originally, parts and products all moved from point to point in corrugated cardboard cartons that were used once and discarded. That container system was replaced by the use of plastic tubs, which circulate continuously between parts suppliers, assembler, and Cook warehouse. It was found that an inventory of 30 reusable tubs was sufficient to replace an average monthly consumption of 153 single-use corrugated cartons.
Payback
Cook is able to use one size tub for all transfers of parts and products. Each tub costs slightly more than $100. Thus, a $3,000 one-time investment in reusable tubs (30 x $100) compares to an annual expense of $6,500 for expendable cardboard cartons. The company recovered its investment in no more than 6 months.
Additional benefits
