Trade Resources Company News APG Often Found in The Pet or Housewares Aisle of Big Box Stores

APG Often Found in The Pet or Housewares Aisle of Big Box Stores

When Buddeez/American Plastics Group (APG) opened its doors, it was hard for the staff to imagine that less than 20 years later they would begin to outgrow their warehouses. However, the space crunch quickly turned around when APG found a way to capitalize on unused vertical space in the facility by implementing the Maximizer™ Collapsible Container System from Buckhorn Inc.

APG, based in Union, MO, is a manufacturer of dry storage containers often found in the pet or housewares aisle of big box stores like Wal-Mart, Sam's Club, Pet Smart, and Target. In order to fulfill customer orders in a timely manner, the company builds and stores a large number of WIP components for future assembly.

"We were busting at the seams," said Scott Metz, COO at APG. "I'm not complaining. It was a good problem to have. We were experiencing significant growth, and fortunately that growth has continued. Our space is being utilized faster than ever before, and this has forced us to think differently about our warehouse space."

Maximizing Warehouse Space with Collapsible Containers

In the past, APG employees used 40 x 48 in. corrugated boxes on wooden pallets to stack and store their products in the plant. They used the corrugated boxes for lightweight storage with approximately 250 to 400 lb of contents per box.

Testing a New Approach

But APG experienced a few problems with the corrugated boxes that caused them to consider other products. One, the boxes weren't very user friendly -- because they didn't have doors, it was difficult for employees to gain full access. Also, the corrugate would periodically break down in the humid environment. Many times employees weren't even aware of a problem until a box disintegrated and its content spilled out, resulting in dirty or damaged products. Finally, the company wasn't able to stack as high as desired, because the boxes would lean and were less sturdy or unsafe. This caused the plant's horizontal space to fill up quickly.

"I called our Buckhorn sales representative and he was very thorough when discussing our application," commented Metz. "Based on our needs, he recommended that we test Maximizer."

Maximizer is a new class of pallet-sized, collapsible containers with an integrated pallet and lid system. The container has a 48 x 40 x 41 in. footprint and holds up to 1,000 lb. It weighs approximately 30% less than traditional plastic bulk boxes, and its unique design is an ideal solution for shipping and storing light-duty dry goods. Maximizer is easily assembled by one person and can be reused hundreds of times. It has two full-width access side doors as well as 4-way forklift pallet entry. When left unused, Maximizer can fold flat and fit within its own footprint.

Maximizing Warehouse Space with Collapsible Containers_1

APG looked into traditional knock-down bins, but the standard 48 x 45 in. footprint didn't work for their application.

"We couldn't justify the cost," said Metz. "We're not using anything extremely heavy – just small plastic manufacturing components. From a price point and ease-of-use standpoint, Maximizer seemed like it would fit nicely into our operation compared to other bulk boxes."

Buckhorn provided 20 Maximizer samples, and APG conducted a 45-day trial with the containers.

"We knew it's either going to work or it's not," said Metz. "And it worked. We increased our warehouse space 25-30%."

They also used the time to conduct pack-out studies. APG discovered that they could buy fewer Maximizer containers than corrugate.

Increased Efficiency, Safer Employees

"Not only were we able to better protect our products, but we found that our pack-out increased by 10%," said Metz. Ergonomics was another added efficiency. They realized that one operator could handle the product, regardless of gender or body type. "Frankly, the dropdown doors were a tremendous advantage for some of our shorter employees," stated Metz.

The decision was easy. APG purchased 350 Maximizer containers, and the company plans on buying another truckload over the next 9 months.

"The more we grow, the more we'll need the containers," said Metz. He also commented that they wanted to remove all cardboard from their operations. "While sustainability is important, the bottom line is that it was an employee buying decision. Maximizer is safer for our employees and it makes our operations more efficient. The operators are appreciative of the ease of use."

APG plans on turning the Buckhorn Maximizer containers about 12 times a year, so they expect the life cycle of the containers to be about 8-10 years. More importantly, they estimate the payback period to be less than two years.

"Our goal is to be the most cost-effective plastics container supplier to our customers," stated Metz. "This is a tremendous opportunity. Maximizer has really given us a leg up in becoming a more efficient and cost-effective manufacturer."

Source: http://www.ien.com/article/maximizing-warehouse-space/177512
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Maximizing Warehouse Space with Collapsible Containers