Project Description

Holisol offered returnable packaging & transportation solution  for the  axles to a leading  tractor manufacturing company in India.  The objective of the solution was to help customer in reducing the wastage in the form of disposal of packaging material at the destination.

The customer: World renowned tractor manufacturer

Challenge

The present one way wooden packaging was expensive and inefficient. It also raised environmental concerns.

Solution

Holisol designed steel racks that could be returned to the origin. This reduced the  wastage and improved the efficiency in the operation.

1. Background

1.1 Customer Background

The customer is focused on agricultural mechanization, and manufacture a world-class tractor in India for domestic and international market. Their deep understanding through a long-term involvement in the industry has led to the development, manufacturing and marketing of quality products that the world admires.

1.2 Their  Challenge

With the view to provide components and subassemblies to their subsidiaries and dealers worldwide, the client had set up an Axle plant with an investment of Inr 300 crores to manufacture front and back axles. These axles were exported to their manufacturing plants in countries like USA, Italy and Brazil. The packaging solution used by the client was traditional in the sense that it was one-way packaging. The packaging was wooden i.e. expensive. It also had disposal and environmental concerns attached to it.

2. Engagement

2.1 Our Engagement

The customer required a service provider who can provide reliable, efficient and cost-effective solutions for the export of axles. The solution had to be around the current cost. We designed a solution with returnable steel racks that customer  liked and we continue to manage this business till today.

2.2 Why the Holisol solution?

Holisol provided a solution that was not overpriced. It increased the amount of cargo loaded into each container. The solution also helped in decreasing the transit damages. The scrap value of the solution was also better since this packaging was returnable.

There were no costs at the port of import for the disposal of packaging and the returnable packaging provided a green solution to the customer.

3. Solution

We closely worked with the customer to design and implement a cost-effective & tailor-made returnable packaging solution. This was done using specially designed steel racks. The empty rack were dismantled and transported back to India for re-circulation. The packaging cost was brought down significantly by this method.

The steel racks with 3 axles each are being shipped in 1+1 high configuration ensuring optimum utilization of the container capacity. A ratchet based lashing system was used to properly secure and restrain the load to avoid any movement /damage in transit.

Holisol closely liaison with the customs authorities and assisted customer with the thorough documentation process to ensure duty free imports of the steel racks at both ends.

Holisol came up with a complete VCI (Vapor Corrosion Inhibitors) solution using a combination of surface treatment with VCI oil and covering all machines components with VCI paper & film. The whole Axle assembly is then being sealed into a VCI bag to ensure corrosion free transit.

4. Results

The new racks also helped in increasing the stuffing of number of in a container, from 45 to 54 axles.

Before Holisol solution, the customer used wooden packaging and there would be, on an average, 2 to 3 complaints per month about the damaged parts. Holisol’s solution has brought that number down to 0.

The racks were designed for at least 5 cycles and have shown to last 6 to 9 cycles, thus further bringing efficiency in costs and increasing their profitability.

Cost Savings: 40 % cheaper than standard one-way wooden packaging

Corrosion Free: Effective VCI system

Seamless multimodal transportation loop management