What happens to an OEM without an integrated packaging policy?

I recently came into contact with the owner of a machine factory that supplies indirectly (as 2nd tier supplier) to a major aircraft manufacturer. He enthusiastically told me about a large order he had won. The machine shop, a small company of five, was commissioned to make a special type of bolts to be inserted in the landing gear drive system.

These landing gear units are manufactured by the aircraft manufacturer’s direct suppliers (first-tier suppliers). The bolts are also stocked at the ‘Repair Centre’ and in the aircraft manufacturer’s warehouses.
Unfortunately, the engineering works did not receive any logistics specifications with its order. It asked for clarification, but its customer (the first-tier supplier) simply replied: “I don’t know; the aircraft manufacturer didn’t say anything about it – you sort it out.” The metalworker opted for packaging with accompanying labelling which he was convinced was correct.

What went wrong?
The machine factory had chosen to package the bolts by 10. Very convenient for the 1st tier supplier, because during assembly he prefers products that are packed as bulk. However, the same supplier also has to supply the bolts as spare parts and then they should be packed single. Big question is of course: who is going to do that and what kind of box should it come in?

Repackaging
Here again, you could leave the question to the 1st tier supplier or you could choose (as it happens quite often) to repackage things as they come in as an OEM. In the latter case, you could give some direction to your packaging policy, but you could have solved this problem much earlier in the chain by informing that chain and being clear as an OEM in exactly what you want.

Now in this case it might not be too bad if the bolts are not in the right box, but what if issues like cleanliness, ESD, humidity, salt water and possibly sterility come into play? If you start leaving packaging to fate in those cases, then you really don't have to wait long before things go seriously wrong.

Integrated chain approach to packaging
An example showing the risks an OEM without an integral chain approach or policy on packaging. The main reason for this is that no one has over-all process responsibility. As a result, packaging remains an unnoticed value drain. In every organisation, the strategic importance of sound and integrated packaging management should come to the fore more often.

Johan Faes - consultancy in packaging