Case Study: CVS Health achieves lower packaging costs and greater efficiency with Quad

CVS Health cuts packaging costs 3.63% per SKU with Quad

CVS Health Corporation, a major American drug retailer, faced a challenge with the rapid growth of its private brands, which necessitated bringing on a new supplier, DSC Laboratories. The challenge was to ensure DSC's packaging for products like creams and ointments would meet CVS's strict cost and design objectives. They partnered with the vendor Quad for a packaging solution.

Quad implemented a comprehensive packaging strategy that included re-engineering for efficiency, direct coordination with CVS's brand agency, and machinery analysis. The solution successfully bridged the gap between the brand and the manufacturer. The results were significant, yielding a 50% cost savings for DSC from sturdier packaging and a 35% decrease in label costs. This also translated to an average cost savings of 3.63% per SKU for CVS.

CVS Health Corporation