Contract Manufacturing (CM) market is worth over two trillion dollars today.
It became standard practice in CM to take over customers’ manufacturing centers.
OPPORTUNITY
Today there is an opportunity to recreate the market for another industrial service still generally maintained internally in most companies
It can be done using proprietary (patented) automation technology that provides cost savings 75% cheaper than existing technology and cut B2B Distribution Center costs 30%-40%
The opportunity exists with individuals that were key in originating contract manufacturing, automated contract manufacturing, and best- of-breed processes used in that service today
BUSINESS-TO-BUSINESS (B2B) CONTRACT DISTRIBUTION
The internal service is B2B distribution. Today, that service is still generally maintained by most companies, certainly large multinational companies, believing there are no real cost advantages to outsourcing.
While 3PL (Third Party Logistics) services exist, they have focused on eCommerce distribution, not the more mundane B2B distribution.
While 3PL companies do provide piecemeal services to internal B2B distribution functions, 3PL’s have not focused on the turnkey takeover of internal B2B distribution operations as was originated in the contract manufacturing business model.
Since outsourced B2B distribution is not a recognized market today, its definitive size is unknown, but the B2B distribution issues faced within industries like grocery, automotive, pharmaceutical and others are well documented.
TauPac can alleviate those industries from this burden, create a Smart Warehouse, and provide a cost reduction with it, making the opportunity significant.
TAUPAC AUTOMATION SOLUTION
Maximize use of commercial off the shelf technology
No technology risk
High reliability
Maximize reutilization of existing capital
Lift trucks
Pallet racks • Conveyors
Minimize cost and maximize ROI
Maximize performance
Provide complete automated retrieval for any SKU
Piece picking including slow/bulky SKU's
Full-cases for pallet assembly
Large/heavy boxes
Full pallets
Maximize cubic space utilization allowing multi-site integration
TAUPAC BUSINESS APPROACH
Utilize savings to incentivize company DC (B2B) to outsource
$7M - $10M savings possible per site
Very short ROI
Follow up with additional cost saving mechanisms to increase profit
Process optimization
Integrate multiple facilities into one by optimizing volumetric space
Capital asset utilization
“Don’t reinvent the wheel”
Acquire 3PL company to provide all missing DC business elements to optimize contracted B2B facilities
Trucking / logistics
Software / systems • Infrastructure / credibility
Retrofit 3PL company with TauPac systems to increase their competiveness and then pursue B2B DC takeovers
