TNT Case Study

Deb Lill Jan 1, 2015 Case Studies

The Challenge

Having tendered their express overnight letter cardboard envelopes for five successive years, TNT were exhausting their options for ongoing cost reductions. Instead of TNT spending precious time researching unknown suppliers to invite to the next tender, Lil Packaging requested time to research new operational methods of producing their cardboard envelopes at lower cost.

The Problems

  • TNT’s purchasing department were under pressure to reduce costs. The 9.5% European fuel surcharge meant that TNT were paying £0.895 per Kilogram to transport the goods. The weight of the existing cardboard envelope was becoming a problem as client’s letters were often lighter than the cardboard envelope.
  • The marketing team at TNT wanted their clients to experience ‘environmental feelings’ towards TNT when handling the cardboard envelope which was considered the brand touching point, and no other material could provide the tactile experience other than cardboard.
  • An improvement in the resistance to moisture and damp was needed to further protect the contents of the package.

 

The Solution

Lil Packaging researched the sizes of other express overnight letter cardboard envelopes, and also researched the average size letter documents being mailed in their current cardboard envelopes sizes.

  • Lil Packaging recommended a change in the size of the two cardboard envelopes being used. This offered TNT a 25% and 33% reduction in unit cost alone for both types of envelope. The new lighter weight material suggested by Lil Packaging was stiffer yet reduced 104,000Kg of airfreight weight per year, providing a £93,080 fuel surcharge saving and postal cost reduction to TNT.
  • The Lil Packaging ‘green and lean’ kraft material provided the desired 100% recyclable earthy design, promoting their brand image of environmental friendliness.
  • The new material had a moisture resistant coating which was highly desirable as the cardboard envelopes were primarily used to transport paper documents and files.

 

The Outcome

As a result of researching slim fit sizes, Lil Packaging were able to help save TNT in excess of £200,000 per year and they’re still enjoying that saving now.  Along with moisture resistance, the Lil envelope’s easy-stack design and corner stiffness also cuts damage in transit.  We pride ourselves on our innovations at Lil Packaging, constantly developing our range to stay the best in the industry.  If your company brand commands cost effectiveness combined with eco friendliness then look no further.  At Lil Packaging we’re so green, we’re brown. Mail Happy!

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