Case Study - Homewares Pty Ltd
Stretch Wrap Usage Reduced by 77.6%
Annual Cost Saving
Stretch Film Reduction
Client:
Operating for over 25 years, Homewares is an industry leading wholesaler of outdoor furnishings and hardware. Their head office and warehouse is based in Melbourne and national distribution is arranged from this location.
With a commitment to ‘Innovation, Service and Value’, it is important everything they do is the most efficient and effective method. That’s why they needed the ‘Perfect Pallet Wrapping Solution’
The Problem:
Homewares was using 630 grams of film to wrap each pallet. This is equivalent to over 6000kg of stretch wrap per year. Being a significant operational cost which was continuing to rise, procurement managers spend a lot of time trying to source cheaper stretch wrap to save money were ever possible.
Key Problems:
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630 grams of film used to wrap each pallet
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6000kg of stretch wrap used per year
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Stretch film would break on sharp edges
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Wrapping costs were high and increasing
The Challenge:
Homewares were severely over wrapping their pallets. When Omni approached them, significant stretch wrap savings were obvious. The challenge was to achieve maximum savings, they needed a new pallet wrapping machine. With pallet wrapping expenses already too high, this extra capital expenditure wasn’t allowed for.
In developing a solution for Homewares, it was important to ensure that while reducing their film usage, optimum load containment was achieved. The pallets Homewares wrap are ‘C’ type loads with very sharp protrusions causing film breakages and wrapping downtime. While reducing the wrap thickness and increasing stretch yield, it was important that film breakages didn’t occur.
Previous Pallet Wrapping Method
Stretch Wrap Usage = 6,048kg (Per Year)
The Solution:
The 15um Euro Stretch Film on an Omni Base Pallet Wrapper can stretch to over 350%. This means 2000m roll of stretch film can be increased to over 9000m in length. The grams of stretch film required to effectively secure the pallet load was reduced by 77.6%; from 630 grams to just 141 grams.
Solution Summary
Stretch Wrap Usage = 34,440kg (Per Year)
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Omni Base Pallet Wrapper with Power Pre-stretch and Auto cut-off
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Award winning Euro Stretch Wrap
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Stretch film usage reduced 77.6% - from 630gm to 141gm
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Stretch film cost reduced by $13660/year
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Pallet Wrapping paid for itself in 1 year through film cost reduction
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Puncture force of stretch film increased 55%
The Results:
The implementation on the Omni Pallet Wrapping Solution provides astounding financial and environment benefits for Homeware Pty Ltd. A 77.6% stretch film reduction is equivalent to over 4,694 kg of film per year. This volume of stretch film would fill 24 skip bins every year. By increasing their stretch film efficiency Homewares save over $13,660 per year. Through this saving in stretch film usage, the pallet wrapper Homewares purchased paid for itself within the first year.
Not only did they significantly reduce pallet wrapping costs and carbon foot print, they increased their warehouse efficiency. One roll of Omni Stretch Wrap wraps 97.9 pallets compared to the previous stretch film which wrapped 17.5 pallets per roll. Less roll changes and stretch film breakages means less pallet wrapping downtime.
“Omni Group’s philosophy is to exceed our clients’ expectations and to do more than they ask or think. Giving you what you want is our priority but exceeding what you even thought is our goal.”
Total Savings Per Year
$13,660
Cost Saving on Stretch Wrap
4694kg = 77.6%
Stretch Wrap Usage Reduction
Stretch Wrap Usage Reduction=
24 Skip Bins
Pallet Wrapper paid for itself within
1 Year