SOFTWARE SYSTEMS 'POP' BIG SAVINGS FOR WEAVER

Computer software helps Weaver Popcorn improve pallet patterns and downsize corrugated shippers. The result is savings of thousands in freight and material costs. 

Within 24 hours after first operating its new packaging analysis software system, Weaver Popcorn had revised its case packing and pallet stacking methods to the tune of $40,000 in annual savings.

"Before we purchased the software, we had used hand-drawn pallet stacking patterns and just loaded cases on the pallet until they fit properly," recalls John Little, Weaver's operations technical manager. "We also used pallet specifications provided by our corrugated suppliers.

"But in our cost-competitive environment, we wanted a program where we could analyse our cube efficiency," he continues, "We wanted answers to questions such as, if we decreased our primary package size, would it enable us to add an extra layer of cases on a pallet and save on shipping costs?"

Little had worked with a CAPE program at a previous job. He compared different software programs before again selecting CAPE. "It was the best program out there for us," he states. "And it didn't require bringing in experienced computer operators or additional computer hardware or packaging equipment."

The software includes five disks that Weaver installed and had running within 35 minutes. A day later, Weaver earned payback on its investment several times over. "We developed a program for export shipments, which represent about a quarter of our business. It allowed us to get at least 250 more shipping cases, each containing three packs of 3-ounce microwaveable popcorn, into an overseas shipping container," Little explains.

"We began by looking at the size of the three-pack's primary paperboard carton and we slightly changed it. We also reduced the height of our shipping case," he says. "Then we changed to loading cases five-high rather than four-high on a pallet. All together, this helped us reach our goal of adding 250 more shippers on each container.

"This yielded savings of $10,000 a year in materials and another $30,000 a year in freight charges. That's a $40,000 savings within 24 hours after we had the software program up and running."

Little anticipates the software will help Weaver save another $30,000 annually for domestic popcorn shipments. "We can't change cases for all our SKUs at once because it would be cost-prohibitive to have our corrugated suppliers change all those box dies. As we make changes to case graphics, however, we'll optimise our carton sizes. We expect that will save us another $30,000. That's a total savings of about $70,000 which is substantial for our business."

How it works
The software is used for more than 250 Weaver stockkeeping units, which range in size from a three-pack of 3-oz packages of microwaveable popcorn to bulk shipments of 2,500 Ib of popcorn packed in a woven polypropylene tote. Little estimates that the company sells more than 300 million Ib worldwide. It's packaged for the retail market, for on-premise concession sales and for packagers that add flavours and ultimately resell it at retail, where it occasionally competes against Weaver's own brands.

Eighty percent of Weaver's volume is packed at the company's Van Buren headquarters facility. The balance comes from a plant in Ulysses, KS, and a facility in Argentina, both of which sell corn in bulk quantities.

"Once we have a fixed case size," Herring explains, "we can determine a pallet pattern layout. We can determine specific factors such as if cases can overhang an inch or so beyond the sides of the pallet and allow us to add more cases on a pallet to improve our efficiencies. The software gives us a variety of pattern options that let us know if column stacking or interlocking cases will optimise and effectively protect our shipments. "

The software also permits Weaver to generate color printouts of case and pallet patterns for its sales staff. Sales personnel show these to potential customers to vividly illustrate case and pallet configurations. "Our sales people are amazed at how professional they look and how quickly they can get printouts of a variety of patterns," says Little. "It's quite an improvement from our previous hand drawings. We're 100-percent satisfied with the system."