Company XYZ currently has a product which is manufactured only six months out of the year. To support that product, they have dedicated warehouse space, a full-time manager, and use temporary or part-time help to produce it.
|Warehouse (10,000 sq ft)||$24,000/yr|
|Full-time manager with benefits||$35,000/yr|
|Part-time help for 6 months|
(15 people at $8/hr plus taxes and expenses)
|500,000 units produced at a variable cost||(variable)|
THE S&B SOLUTION
By freeing the customer’s warehouse and using S&B’s warehouse instead, we were able to eliminate the expense and need for the full-time manager. Our staff, used only on an as-needed basis, replaced the part-time help. We were able to provide a fixed cost per unit and reveal significant annual savings.
|Used S&B warehouse only as needed||(included)|
|Used S&B manager only as needed||(included)|
|Used S&B staff only as needed||(included)|
|500,000 units produced at a fixed cost||$.32/ea|