Do you use Returnable Packaging for your Intercontinental supply chains?
Rodney Salmon
Supply Chain Consultant – Packaging Industry Expertise in Global Automotive, Industrial & Produce sectors - Open to NED Opportunities. Currently working with Tri-Wall Group on the introduction of Returnable Packaging
In my experience, OEM's rely upon one trip expendable packaging throughout their intercontinental supply chains simply because they view it as the easy and best cost option.
Their view is that it is much easier to use expendable options to ship components from one of their plants to another and create vast quantities of waste.
This is viewed as any easy option because it doesn't require the need for internal international communication.
I am keen to understand if the OEM's and Tier Suppliers know their internal intercontinental routes which have return options.
By simply creating a returnable loop within your global supply chain, you remove the need for expendable packaging.
This significantly reduces your costs and the amount of waste you are creating, which in turn reduces the cost of disposing of expendable packaging.
Consolidating your packaging needs through simple, effective communication can deliver a series of efficiencies. Taking the time to understand your global footprint and plotting where you can create returnable loops will allow you to reduce the waste you create.
Those in the automotive supply chain using expendable packaging ought to be embarrassed of being a waste expert.
There is no reason not to consider returnable options at a time when the costs of a returnable plastic bin far outweigh that of expendable alternatives. If you then consider the pack density of returnable solutions, Tier Suppliers can ship more with less when using a returnable solution.
As the pressure to reduce waste and single use plastic heightens, why are suppliers still purchasing vast quantities of packaging materials that are going straight int the bin?
I work closely with OEM's and their Tier Suppliers, offering free consultancy to ascertain where you can remove waste throughout your global supply chain.
Would you like to know where you can remove waste and save costs in your global supply chain?
Project manager
5 年Don't give up Rodney!
Branch Manager at C-P-S-Holding GmbH & Co. KG
5 年I agree that expandable packaging comes up first thinking about oversea packaging. Returnables would be used more, if you could arrange full transportation in both directions. Coordination of returning empties is one thing. You have a huge invest due to the long loop you have to do upfront. This is one thing out of my experience which scares companies. And a business case cannot be guaranteed in all cases. Beside that there can also regulative hurdles. Returnables between US and EU e.g. is doable. In some Asian countries this can be a pain with customs. And there is one thing in the article I strongly disagree. It makes the impression that pack density in returnables would be better, which isn't case. Depending about what kind of returnables we are speaking off it can be that the filling degree in expendables is even higher than in a returnable. Coming back to the beginning communication and standardization between companies for oversea transportation would give returnables a huge boost.
Company Owner - BagBox Group - Megafab Ltd - Megaplas Limited - John Wright Plastics Limited -
5 年The container looks Mega! Well done.
Director of Operations
5 年Yes!!!
Quality Officer at United Machinists
5 年We have used collapsible steel bins for many years trans Tasman.? Load up to 500kgs.? About 1/3 cost of wood and no fumigation required.? It does require a little coordinationof shipping and to store the collapsed empties at either end of the chain.