Too Much Capacity, Too Few Customers

Anticipating a major contract, a packaging company purchased a new press to make membrane ends and produced an inventory of 20 million ends.

The contract went to a competitor and the packaging company found itself with an idle press and a mountain of unsold membrane ends. They turned to Gilpin for a solution. Gilpin quickly had a buyer for the 20 million ends that would have been scrapped if not sold. Gilpin also filled the production capacity of the idle press. Today, Gilpin has sold millions of ends on the once-idle press. The packaging company has added additional presses to keep up with the demand.