MARCH 2012
Editors: Meredith Thompson & Lisa Allen
Pump Up Your Heart
Health
Thefactsrelatedtoheartdiseasein
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Thegoodnewsisthereareseveral
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Value Chain Project
Earlier this year, Hallmark signed a new contract with Disney. This contract has a stipulation that Hallmark sell a certain
amount of party product. In an effort to meet this goal, our business partners in Kansas City have asked Leavenworth to
reduce the manufacturing cost of our party products. Their specific goal is to offer a commodity product line for stores
like Dollar General, Dollar Tree, and Family Dollar.
Thanks to hard work by the operators in Gravure and Party, we tested new substrates for plates, cups, and napkins. Some
of these stocks worked very well, some did not. From the testing, we were able to make a recommendation to the busi-
ness unit of less expensive paper options.
This final recommendation resulted in an average cost reduction of 9.5% per format. This potential cost reduction is very
exciting to the business unit, as they are getting pressured from Wal-mart to provide more profit margin. They were very
interested in the potential to move existing designs to less expensive paper.
The next steps planned are to further test the stock, perhaps on some live jobs. This will help ensure the Leavenworth
plant doesn’t lose any efficiency by going to less expensive stocks. After that, we will hopefully start to produce product
for the dollar stores and see our production volumes increase from where they are today.