Shifting Production and Kitting Overseas Fuels Growth in European Market | Manufacturing

10/28/2024

RRD’s European production footprint provides leading collectibles company with regional pack-out solution, cost savings

CHALLENGE

Desiring to service and expand in the European market, a leading trading card collectibles company sought an in-region solution for kitting and print and packaging production. The company had previously relied upon multiple kitting partners in the United States, which required them to ship the completed product to European distributors. 

By moving production and kitting overseas, the company wanted to reduce related logistics costs and, as a result, lessen their carbon footprint. Dealing with multiple partners brought about challenges in managing transactions, tracking inventories, adhering to production schedules, and more. They also sought a partner who would be able to manage multiple languages, as the company sells their products throughout Europe. 

Security was also a key requirement. Utilizing multiple packout suppliers presented a number of IP (intellectual property) and physical security concerns. The company desired a provider with well-established security experience — one that could ensure the safety and integrity of their brand and products in addition to providing end-to-end support in the European market.

SOLUTION

Because RRD has more than 30 years of experience supporting high-value products across a range of markets and industries, the company quickly saw the value in forging a partnership. Plus, the client was reassured by RRD’s extensive security measures that were already in place. RRD worked closely with the company to develop an in-region solution. 

With the project on a fast track, the plan was to have specialized equipment and new production lines — including thermoforming options — installed in RRD’s Brno, Czech Republic facility by July and production initiated in September. This timeline was successfully met. Print, packaging, and label production took place in RRD Debrecen in Hungary. Tins and other product containers were sourced externally and incorporated into the workflow. On final product completion and pack-out, RRD delivers the products to the client’s primary European distributors for delivery to retailers.

RRD’s enterprise-wide system was used to manage the company’s entire supply chain, from forecast to delivery. Purchase order and sales order processes were automated, with enhanced inventory controls for receiving and finished goods. RRD also integrated a web portal enabling the company to have real-time visibility into product inventories onsite at RRD and with other project partners. 

RESULTS

By partnering with RRD, the company was able to move kitting and production to RRD’s European facilities, establishing a single point of contact for the European market. Benefits have been numerous, including:

• Significant reduction of logistics costs 
• Reduced carbon footprint
• Elimination of expedited air freight costs for product launch
• Reduction of freight costs for Asia-sourced materials
• Enhanced ability to synchronize global launch of product
• Reduced in-region storage
• Greater flexibility to shift capacity to meet regional demands in terms of production and storage
• Enhance product security for print, pack, and final assembly
• Enhanced ability to localize product regionally
• Elimination of duties by manufacturing in the EU
• Enhanced customer service locally