Water Activated Tape is used widely across operational logistics and fulfilment, whether that is for e-commerce, 3PL, or manufacturers. The benefits are clear. It secures the packaged item safely, provides a tamper-resistant seal, is simple to use, and can be applied rapidly if using the right tape dispensing unit.
The challenge our customer was facing was the ever-increasing cost of the tape. Southgate audited their precise tape requirements and discovered that they had been purchasing from a supplier that had steadily increased its prices to reflect what they referred to as “raw material inflation” and increased global shipping costs.
The solution
Southgate, in fact, had anticipated this problem some time prior to it becoming a customer concern. Using our global sourcing knowledge and experience and our broad manufacturing base, we sourced a product that met our customers’ specifications from one of our partners. The only difference in the product was the cost. The new supplier could deliver for under half the price of our customer’s current provider.
The result
Changing supplier would save our customer over £272k over 12 months, while still securing a product of the same quality that met the same specifications.
“We really value the expertise of the Southgate team. The £272k cost savings we’re getting are really making a difference and the product quality is exactly the same as previously. We were all very impressed and are now getting them to compare our current prices on a whole range of other products they can source.”
Contact us to find out how Southgate could reduce your costs.
