Employ a Contract Packager for Seasonal Flex Demands
“OEM manufacturers and accessory parts suppliers can drastically reduce internal
labor and equipment cost during high-demand seasonal periods by partnering with
a full service contract packaging firm such as Fapco,” states President and Founder
of Fapco, Larry Gardiner.
Many OEMs and their major parts suppliers handle parts fulfillment just fine during the
steady parts flow periods but fail to meet the demands of seasonal flex periods. Fapco is
ready to assist in seasonal, high-volume parts and accessory contract packaging needs for
manufacturers’ seasonal products. From snowmobile, wood stove, snowplow and snow
blower, to boating, RV and outdoor recreational products in the summer months, the fall
and spring are high volume packaging and fulfillment months for many of these OEMs.
As the legions of consumers prep the snowmobile for winter runs or tune up the mower
for the season, parts requirements increase. In a tough economy, consumers may also be
holding onto older equipment longer, thus increasing the need for maintenance parts.
Scott Sloniker, Operations Manager for Fapco, explains why companies need the services
of a contract packager during these peak periods.
“There are a lot of OEMs that are very seasonal. They don’t want to add to their own
workforce in-house, or invest in higher volume packaging equipment, so they come to us
for a wide variety of contract packaging needs to handle these peak periods. Agricultural
equipment is a perfect example of seasonal demand for parts. Spring and fall are busy
periods as farmers repair and maintain equipment. We often work with our ag OEMs to
create maintenance kits that include parts that are commonly replaced each season,” he
says.
Sloniker states that planning ahead is key.
“Typically the lead time for this type of fulfillment starts three to five months ahead of
the peak season. For example, if you are talking about supporting spring planting for the
ag business, January and February are the months to prepare for the March, April and
May increase in parts demand. In the boat business on the other hand, companies prepare
for winter maintenance in the late summer and early fall.”
When bringing on a new customer for flex packaging, the Fapco team provides close
support as the program ramps up. “We provide software and systems integration to the
exacting demands of each customer,” elaborates Sloniker. “Do they want us on their
system? What kind of firewall do they want? We are capable of doing whatever the
customer needs in these areas and have worked with some of the most sophisticated
logistics software on the planet with major automotive makers.”
“Once the system is up and running, we have to stay on top of the program to get it
running true. We typically meet with the customer once a week and have numerous
conference calls. We dedicate specific plant managers and customer service teams to
each customer to make sure the process is under continuous improvement. It’s important
to us that we exceed each new customers’ expectations,” Sloniker concludes.
Begin the Process of Partnering with a Contract Packager for Seasonal Flex
Demand
1. Make a thorough review of your supplier base—Simply put, is your supply base
ready to help you meet your flex parts fulfillment needs? This involves gauging how
much inventory is out there, how much inventory you want in the network coming
through the fulfillment house and how much product is in the pipeline to replenish the
contract packager to support the campaign.
2. Assess your current parts packaging/distribution/warehouse system. Do you
currently have a parts distribution warehouse system? If not, where can you build in
efficiencies using the full range of services from your contract packaging and fulfillment
supplier? You may want to consolidate all your suppliers to ship, warehouse and fulfill
through your full service contract packager during these peak periods.
3. Are there procurement opportunities with your contract packaging partner that
can expedite the supply chain? Well-established, full service contract packagers such as
Fapco can actually procure the parts directly from your supply base during peak demand
periods. This can expedite the supply chain dramatically. In this scenario, parts are
ordered and purchased by the contract packager. Once received parts are packaged and
shipped or warehoused based on historical peak demands.
4. Work with the full-service contract packager to streamline and customize your
packaging needs. How does this flex demand packaging usually ship and is there a better
way? Is it in bulk boxes, point of purchase or point of sale materials—from clamshells to
blister packs for rack hanging? The team at Fapco will work closely with your flex
demand campaign managers to make sure the packaging is right to save you time and
lower your costs. Whatever your packaging and display guidelines and specifications,
Fapco works to make them better and less costly.
5. How is the product coming in and what is the plan to fulfill? Is the product coming
in raw in an overseas container? Will Fapco be purchasing some components directly?
Once this is determined what will the flex program actually be? Many manufacturers ship
specific numbers of seasonal parts to distribution centers or dealerships based on previous
years’ demand. Others support the launch of new products, equipment or vehicles with
estimated seasonal bundles. Fapco has the experience with a wide variety of OEMs to
help your company work through this seasonal program in the most efficient manner.
Sloniker sums up the OEM contract packaging partnership process for new seasonal
demand customers.
“As we ramp up a new flex demand customer, we ask, ‘Can your parts suppliers get the
product to us? How do you want them packaged? Where do you want them shipped?
How quickly do you want the parts distributed?’ That’s basically what we find out very
quickly on the front end and then proceed with the seasonal flex program,” he concludes.
From working with your marketing department to bundle and kit parts and design the
right packaging for seasonal point-of-purchase displays, to taking the hassles away from
your purchasing department with direct supplier procurement, followed by parts
packaging, warehousing and strategic fulfillment, Fapco is your full-service, seasonal
flex-demand contract packaging partner.