Bonded Pac & Households CPG Partner for Long Term Success

The Client

A global industry leader in premium household surface finishing systems and cleaning products.

The Challenge

The Client had recently entered into a contract with Bonded to act as their distribution center for the United States. Now, they were seeking a packaging solution closer to their DC in order to reduce transportation costs for their domestic products. They required a contract packaging partner capable of providing packaging design, raw material procurement, and comprehensive piece-rate pricing. Flexibility was crucial, as the co-packer needed to accommodate fluctuating order volumes and special projects by adjusting labor and production space. With their business in a growth phase, the client desired a partner who could assist with the transition from solely commercial customers to a mix of commercial and retail clients. Additionally, the co-packer would need to collaborate effectively with other suppliers to streamline development and standardize quality requirements.

The Solutions

Initially, Bonded Pac allocated one production line at a multi-client warehouse, ensuring a seamless transition for the Client with minimal downtime. The facility’s strategic location in Charlotte, NC facilitated the acquisition of raw materials from the Port of Charleston and enabled sourcing from local suppliers. To manage production needs effectively, project trackers were implemented, particularly as the number of SKUs grew from 10 to over 200. Pac provided cost mitigation through guaranteed pricing based on a piece-rate model and brought in a third-party staffing firm to assist with fluctuations in order volume. Nulogy packaging software was adopted, enhancing production, shipment, and offering complete traceability and lot control capabilities for products. As the Client’s retail business expanded, Pac accommodated by increasing production space and investing in value-add equipment, eventually moving into a versatile 218,000 sq. ft. facility adjacent to the distribution center for streamlined production-to-distribution transfers. Bonded Pac actively participated in planning meetings from the beginning, comprehensively reviewing processes to understand the ever-changing challenges faced by the Client and their retail customers. Investments were made in bottle filling and steam shrink wrapping technology to further integrate the supply chain and improve the look and feel of retail products. A vendor managed inventory program was put in place to balance demand with efficient manufacturing. Pac designed, sourced, and tested retail packaging and POP displays to meet the Client’s award-winning design criteria. Analytical testing was implemented to ensure liquid formulations met the client’s high-quality standards. Pac instituted AQL testing protocol for all inbound containers to check performance of parts and took initiative to complete ISTA pallet testing to ensure product arrived at its destination free of damages.

The Results

By allowing the Client to focus on marketing and product development while Bonded Pac managed primary and secondary packaging efforts, a strong and enduring relationship was formed, spanning several decades. The business grew in tandem due to the mutual trust, absence of rigid contractual agreements, and shared commitment to win-win scenarios. Bonded Pac demonstrated a willingness to invest in equipment, manage raw material inventory, and alleviate the burden of inventory counts, resulting in cost savings. The relationship extended beyond comfort zones, with both companies continuously learning and supporting one another to meet evolving business needs. The collaboration is viewed as a true partnership, with both parties proactively addressing the evolving needs of the Client’s customers.

“Bonded Pac has a lot of talented individuals who are always ready to help us solve problems or get things done. They have an open mindset and never say no. I trust them completely.”

Manager, Supply Chain

By the Numbers

  • 200,000 kits per month
  • 120,000 square feet
  • 200 SKUs
  • 5 production lines
  • 80 employees

Apparel Wholesaler Relies on Bonded Pac for PDQ Displays

The Client

An industry-leading wholesaler, specializing in sports accessories and devices, who currently distributes 20 plus brands of products to retailers around the globe.

The Challenge

This apparel wholesaler produces a large allotment of PDQ displays for a big box retail customer. They are unable to house this project within their facility because of labor and space requirements without disrupting regular workflow. There is a tight 4-month window to receive, produce and ship all product out to nationwide. A convenient location for inbound and outbound freight, along with an efficient and cost-effective production process, is critical for success. They also need to have certain requirements met such as storage and direct ship for distribution.

The Solution

Bonded Pac was able to flex and find 138,916 square feet of temporary warehouse space in Charlotte, NC to house the entire project. This facility created a convenient location for products coming through the Port of Charleston and provided the ability to direct ship to the client’s customers. Production was quickly ramped up with up to three lines and 75 people producing displays. Pack Manager, an industry leading packaging software, allowed for complete traceability of production and shipments. It also allowed Pac to manage product flow and create reports for daily container receiving/daily production throughout the project. Detailed meetings also occurred weekly to ensure constant communication between the client and Bonded Pac.

The Results

Bonded Pac easily met the production and time requirements from the client, creating 160,000 PDQ displays from 6.7 million products. Not to mention, every shipping deadline to a big box retailer was achieved by the ability to direct ship from the facility in a condensed five-week window. The client has been so pleased with Pac’s capabilities that they have inquired about adding additional display projects throughout the year.

“Large seasonal projects are a headache for this type of client to deal with in-house. They don’t want to deal with the challenge of getting the extra space or bringing in temporary labor to run the project. It’s much easier to outsource it to someone like us who has the expertise and can get it done efficiently and cost effectively.”

“Large seasonal projects are a headache for this type of client to deal with in-house. They don’t want to deal with the challenge of getting the extra space or bringing in temporary labor to run the project. It’s much easier to outsource it to someone like us who has the expertise and can get it done efficiently and cost effectively.”

Matt Nelson

General Manager, Bonded Pac

By the Numbers

  • 72 containers unloaded
  • 6.7 million products
  • 160,000 PDQ displays
  • 15 PDQ display planograms
  • 90 product styles
  • 266 total shipments

Bonded Logistics Helps Global Manufacturer Grow US Distribution

The Client

This global company has become a leader in high-performance protections solutions across a broad range of industries.  Publicly traded, the company has been in business for over 100 years and has sales revenue close to a billion dollars.

The Challenges

The Client presented Bonded with the initial challenge in 1996 of helping them secure warehousing space for storage and distribution across the US after their acquisition of a medical supplies manufacturer.  As their business grew, they not only had a need for more space but also a robust warehouse management system (WMS) to support their enterprise software system and stay ahead of increased customer demands.

The Solutions

After gaining a thorough understanding of inventory and shipment patterns, Bonded developed an initial strategy that involved space in a 96,000 square foot public facility in Charlotte, NC.  This strategic location gave the company easy access to domestic markets, with the ability to reach a majority of the population within one day.  As the Client grew organically as well as through acquisitions, Bonded moved them into 150,000 sq. ft. in a public facility that they eventually took over (230K sq. ft.).  Today, the client operates out of 440K sq. ft. across three facilities (two dedicated, three public) to manage growth of a wide range of SKUs for two divisions of the company.

Early on, the Client requested that Bonded use their ERP system and train Bonded staff to manage the warehouse, picking at the pallet and case-pick levels, as well as tracking by lot in case of any recall, expiry, or production differentiation issues.  As the Client’s business increased and they upgraded their ERP, Bonded was asked to integrate their own WMS (Cadence, provided by Cadre Technologies) in an effort to streamline both operations and become more efficient.  This transition allowed the Client complete transparency throughout the distribution process, allowing them to see the movement of product, audit the warehousing process, and gain better visibility into customer’s buying habits.

The Results

Keeping the Client’s supply chain management staff focused on the entire supply chain and allowing Bonded to focus on distribution has resulted in a decades-long relationship that continues to grow each year.  Both companies view it as a partnership, working together to stay in front of customers’ needs in a growing economy. Bonded has participated in various lean sessions, reviewing processes from beginning to end to understand challenges from the Client as well as their customer.  Bonded has taken on more responsibility with value-add services such as retail tagging, returns processing, repackaging, and pick-n-pack for samples operation.  An in-warehouse testing center has even been built to speed up delivery of product to the customer. The Client utilizes Bonded’s data analytics, quarterly business reviews, operational transparency, and customizable web portal to streamline their business and make supply chain improvements.

“Bonded has been a longstanding partner of ours. We work well together, always figuring out how to adapt to changes and make sure we capitalize on them. They definitely take a partnership approach instead of just being a vendor. That’s allowed us to pass on more responsibility as our business continues to grow.”

“Bonded has been a longstanding parter of ours. We work well together, always figuring out how to adapt to changes and make sure we capitalize on them. They definitely take a partnership approach instead of just being a vendor. That’s allowed us to pass on more responsibility as our business continues to grow.”

Director

Distribution Services

By the Numbers

  • 440,000 sq. ft. of space
  • 5 facilities with inventory
  • 110 inbound loads per month
  • 75 dedicated employees
  • 46,500 cases shipped per week
  • .21 shipping error per 1,000 lines