The wholesale food industry is highly competitive. Fast delivery of freshly packaged products is essential to ensure high quality for the end-customer.
Midway Container was able assist a co-packer in the food industry improve on-time delivery, save money on freight expenses, and improve their business thanks to creative packaging and warehousing solutions.
The company is a co-packer in the food industry. They receive materials from companies and package them into many sizes of tubs and containers ranging from single-serve 4 ounce tubs to large 48-ounce party tubs. Salads account for much of their food products.
The company used nineteen different tubs and lids, and demand fluctuated seasonally. Their usage forecast doubled in the spring and summer months when customer demand for fresh salads increased. They were purchasing directly from the manufacturer with specific distribution requirements. The manufacturer, however, could not meet their needs, so the company was forced to purchase large shipments of custom-printed tubs and warehouse them until they were needed. This increased their expenses year-round.
A second problem was that the manufacturer they were using could not deliver small quantities with multiple SKUs printed on the stock decorated tubs. This created out of stock situations during the busy season, essentially cutting into business and preventing orders from being fulfilled in a timely fashion.
Midway Container worked with the manufacturer and had all nineteen tubs and lids shipped to the Midway Container warehouse. This opened valuable production space for the customer, who no longer had to warehouse the containers.
Because of Midway Container’s extensive supply network, we were able to find all sizes of packages the customer needed, and were able to provide them on an as-needed business. This solved their out-of-stock problem and enabled them to deliver all sizes of salads to the end customer without delay, even during their busy season.
Reducing freight costs and having Midway Container manage inventories has been a benefit to the customer. Since partnering with Midway Container, they have increased their business through the U.S.A. and are seeing revenue increases. Fixing their packaging, warehousing and freight problems has improved their ability to serve their customers and resulted in larger orders and profits for the company.