A distribution centre of 20.000 m2
Read about this case.
We process more than 5.000.000 order lines annually so you can imagine how important packaging material is for us. We used to tender for packaging material and then choose the best supplier. Using that strategy, we would initially always get a good deal. However, over the span of the contract the prices would rise several times. After a while you start to lose track of how much this is costing you.
With the data WTP provides us can check the prices of several materials (kraftliner, fluting and testliner) and we can follow exactly how the prices of these materials fluctuate.
We awarded a new contract for 2 years. After a year the prices were up for review. So the warehouse manager asked the buying department if the supplier could be invited to discuss the contract for the second year. After a WTP simulation we discovered that the prices would likely rise for the second year, so we chose not to take the initiative to invite the supplier. To our surprise the supplier didn’t reach out either, so we kept the same price for the second year. Based on the cost prices this saved us €27.000. Information saves money, even if you don’t use it.
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