BOXPLUS CASE STUDY BoxPlus is a top producer of premium shipping boxes for International Paper. This box plant relies on paper produced at IP paper mills to create their boxes. Although the mill is able to ship hundreds of rolls of paper to the plant each month, the plant is limited by its ability to receive these rolls. The BoxPlus warehouse has 5 rail car docks and 8 truck docks. On average the plant receives 10 trucks a day. The railroad does one "switch" every weekday, where it brings in 5 full railcars and takes away 5 empty cars. At the time of the switch, if there are any full/partial railcars at the plant, the railroad removes the empties and charges a $200 demurrage fee per railcar left, per day. In the last 6 months, BoxPlus has had a total of $80,525 in demurrage fees. After recent contract renegotiations, the rail line has moved to double its demurrage fees. The plant manager is frustrated and needs to find a solution as soon as possible. Using the information provided, create a strategic plan of action for BoxPlus. BoxPlus Logistics Scorecard: 2016 Demurrage Month Fees Plant Rail Line July August September October November December BoxPlus Westline $5,760.00 $7,295.00 $12,890.00 $18,770.00 $25,160.00 $10,650.00 Services Number of unloaders: 2 Labor cost: $22/h Unload time per truck: 1 hour Number of rolls on a railcar: 20 Number of rolls on a truck: 8 Extra switch cost: $3200 per switch Extra rail dock capital investment: $200,000 Plant receiving hours: 7am - 6pm M-F (SAT. by appointments only) BOXPLUS CASE STUDY BoxPlus is a top producer of premium shipping boxes for International Paper. This box plant relies on paper produced at IP paper mills to create their boxes. Although the mill is able to ship hundreds of rolls of paper to the plant each month, the plant is limited by its ability to receive these rolls. The BoxPlus warehouse has 5 rail car docks and 8 truck docks. On average the plant receives 10 trucks a day. The railroad does one "switch" every weekday, where it brings in 5 full railcars and takes away 5 empty cars. At the time of the switch, if there are any full/partial railcars at the plant, the railroad removes the empties and charges a $200 demurrage fee per railcar left, per day. In the last 6 months, BoxPlus has had a total of $80,525 in demurrage fees. After recent contract renegotiations, the rail line has moved to double its demurrage fees. The plant manager is frustrated and needs to find a solution as soon as possible. Using the information provided, create a strategic plan of action for BoxPlus. BoxPlus Logistics Scorecard: 2016 Demurrage Month Fees Plant Rail Line July August September October November December BoxPlus Westline $5,760.00 $7,295.00 $12,890.00 $18,770.00 $25,160.00 $10,650.00 Services Number of unloaders: 2 Labor cost: $22/h Unload time per truck: 1 hour Number of rolls on a railcar: 20 Number of rolls on a truck: 8 Extra switch cost: $3200 per switch Extra rail dock capital investment: $200,000 Plant receiving hours: 7am - 6pm M-F (SAT. by appointments only)
