Manufacturer Reclaims Rusted Piping and Saves $116,000 Per Year

Executive Summary

FlexPAC partnered with a large agricultural equipment manufacturer to help them save money through corrosion prevention. By preventing rust on parts used for manufacturing, the company was able to save essential parts that were incorporated into their overall cost of goods. Through FlexPAC’s process, the manufacturer is now able to continue their production without interruptions due to rust prevention.

Previous Challenges

This manufacturer was losing money in their cost of goods, impacting their gross profits. Many of their parts would become rusted, thus becoming unusable. Rusted parts will affect paint, weld, scrap costs, and part availability. All of this can be avoided.

FlexPAC’s Process

FlexPAC recommended a 3- Phase Approach.

Phase 1:

• Application of BioCorr SC 10% to parts without rust
• Covering treated Conticos with VCI Tote Covers
• Walk through audit of rusted parts

About BioCorr Rust Preventative

• Water-based, bio-based and biodegradable
• Intended for preservation of metals in storage and during transportation
• Provides multi-metal protection
• Environmentally sound alternative to petroleum derived products
• Can provide protection for up to two years of indoor storage, or during shipments when combined with VpCI packaging materials.
• Leaves a dry film on the surface of the metal that is virtually undetectable
• VOC free

About Zerust ICT Tote Covers

• Provides both corrosion prevention and barrier protection against dirt, dust, smoke, and other contaminants
• Designed to cover most common sizes of plastic, stackable totes
• Covers are transparent, so parts and components remain visible for easy identification and inspection

Phase 2:

• QE/ML will complete hold tag for rusted
• FlexPAC will pick up, remove rust, and return parts

Phase 3:

• Weekly auditing all departments within HX
• Covers for outside storage (BioCorr SC 10% is water soluble)
• Rolling out BioCorr SC 10% for all HX suppliers required to use rust prevention
• Exploring the use of VCI bags and emitters for smaller parts

Results

FlexPAC was able to help this company save over $58,000 of crucial materials to their manufacturing process in just six months, while also finding a safer and more environmentally friendly solution. That amounts to annual savings of over $116,000. This manufacturer no longer has to worry about part availability, keeping them working continuously to serve their customers.

Cost Breakdown:

Total cost estimate for application of BioCorr SC 10% to parts and VCI Tote Covers was around $6.00 per container. In this 6 month time frame, $24,207 was spent to restore parts and $82,527 total cost of goods was recovered.

$181.00 average cost/container to restore parts

$615.00 average cost of goods/container saved