Maitland-Smith expecting long-term savings from new packaging program
Jeff Linville -- Furniture Today, August 4, 2003
High Point — Maitland-Smith has invested a significant amount of money and manpower in improved packaging, something they expect will bring long-term savings as the new packaging program gets under way.
President Seamus Bateson said the high-end importer took a year and a half developing the packaging, with much of that time spent trying various beefed-up padding, tape and carton materials. But those efforts weren't significantly improving product protection, he said, although they were adding weight and thus shipping costs.
"We came to realize, 'We're building a Sherman tank, and we're not succeeding'," he said.
The development team rethought its strategy. They decided that, rather than squeeze a cardboard container around the furniture, the piece should "float" inside a protective carton, Bateson said. The packaging also needed to be easy for warehouse workers to open and reseal for inspections.
Maitland-Smith ended up developing a box so strong that, if a retailer has a problem with a piece from another manufacturer, they can use Maitland-Smith's box to ship the item back, said Bob Froysell, supply chain vice president.
Bateson couldn't say exactly how much developing the packaging cost. Most of the expense was the man-hours of the development team. The company bought new equipment for making foam and templates for the cardboard boxes, with those expenses probably between $50,000 and $100,000, he said.
The savings are more than making up for the costs, he said, and the improved system also has allowed the company to cut a few warehouse jobs.
Maitland-Smith realized that better packaging wasn't the only way to reduce damages. Employees needed to understand they were handling delicate furniture, not big, brown boxes, Bateson said. To remind them daily, the company set up a "mini-gallery" of its furniture outside the warehouse break room. And at the end of each High Point market, the company has a family night where everyone comes together to see the latest items in the line — and have fun.
