Case Studies
Overview
Whether using a 5-gallon pail, 55-gallon drum, 2,000-gallon tote or a larger permanent tank, buying supplies in the largest container feasible makes financial and environmental sense. Manufacturing managers must weigh a few factors when deciding on the optimal container size:
- How much of the supply is used each month?
- How much storage space is available for the supplies?
- How mobile do the supplies need to be?
There are many options to reduce the amount of packaging used. Some companies hard pipe supplies from bulk tanks directly to the production process. Others carry supplies from bulk containers to the production area with washable pails. There are, however, trade offs between one-use and multi-use containers. Containers that are used more than once must be cleaned between uses, which can mean a higher cost of labor and water. Fortunately, lower purchasing costs by buying in bulk sometimes outweigh the labor and water costs of cleaning and reusing tanks. Each manager needs to do a financial analysis of the costs and benefits associated with a change in container size.
When using bulk containers larger than 55-gallons, other benefits accrue for companies as well.
- Avoiding the fee recyclers charge for collecting, hauling and recycling 55-gallon drums.
- Reducing need for storage space for the drums, which must be accumulated to reach a minimum quantity for the recycler.
- Possible reduction of storm water requirements and safety regulations.
- Reducing labor time needed to transport materials around the facility.
- Reducing the potential for employee injury when handling and transporting chemicals and heavy drums.
Benefits
Many companies have switched to bulk or reusable containers to reduce purchasing and disposal costs and to save labor hours. The following table summarizes the major benefits of using these containers. The containers are ranked in descending order of financial and waste reduction benefit.
|
CONTAINER |
DESCRIPTION |
BENEFITS |
POTENTIAL SAVINGS* |
COMMENTS |
|
Permanent Tank |
Purchase from supplier. Vendor refills at facility. Requires installing some piping. Good for cleaning chemicals. |
Lower purchasing costs |
Usually 10-15% product savings |
Bulk purchase |
|
Lower disposal costs |
$1-2/drum/month |
Avoid drum storage and compliance issues -- possible tank permitting requirement |
|
Reusable Totes |
Purchase totes from suppliers. Vendor refills at facility |
Lower purchasing costs |
Usually 10% product savings |
Bulk purchase |
|
Lower disposal costs |
$1-2/drum/month |
Avoid drum storage and compliance issues |
|
Disposable Totes |
Purchase from chemicals vendor |
Lower purchasing costs |
Usually 10% product savings |
Bulk purchase |
|
Lower disposal costs |
$1-2/drum/month but then pay for tote disposal |
Avoid drum storage and compliance issues |
* Estimates based on discussions with Red Star Yeast 12/2001.
2/2002
