A tier 1 auto industry supplier aims to reduce packaging costs by 30% within 12 months. The case explores strategies to achieve this goal, including analyzing corrugated vs. reusable packaging, supplier consolidation, and internal process improvements. Key considerations include evaluating a new supplier’s proposal, which could potentially meet the cost reduction target by switching from reusable containers to all corrugated boxes. The case also addresses risks and additional factors to consider when making this decision, such as quality concerns, environmental impact, and the implications of eliminating existing suppliers.