Case Studies | Vendor
Overview
Packaging serves an integral function in the movement and distribution of products. Well-managed companies have proven that there are several inherent opportunities for savings in systems that ship and distribute goods. Packaging materials can be reused, recycled or altogether avoided to save money and avoid waste. Businesses can potentially save money in two ways:
- working with their suppliers to reduce waste of incoming packaging, and
- improving efficiencies of their outgoing product packaging.
One significant practice change involves replacing disposable cardboard containers with reusable/returnable crates, mobile carts, trays, totes, racks, or tubs. Once the contents are emptied, reusable containers can be collected and stacked for return to the supplier.
Many types of reusable shipping containers are in use today, including those made of metal, plastic, paperboard, wire, or fiberboard. Containers can be collapsible or nestable for ease in backhauling. An efficient system design is dependent on specific requirements and restrictions within a shipping process.
Benefits
Although reusable shipping containers may be initially more expensive than corrugated containers, over time there will be a clear cost savings. Savings are realized through reduced purchasing costs and disposal costs, although additional costs, such as return transportation and labor, may be incurred.
COMPARISON OF SHIPPING CONTAINERS BY MATERIAL
(Based on typical two-cubic foot size)
| ATTRIBUTE OF CONTAINER |
CORRUGATED ONE-WAY |
CORRUGATED REUSABLE |
FIBERBOARD REUSABLE |
PLASTIC
REUSABLE |
| Weight |
1.5 lbs |
2.2 lbs |
5 lbs |
5.5 lbs |
| Durability |
Poor |
Fair |
Fair to Good |
Excellent |
| Estimated Initial Cost |
$0.53 |
$1.06 |
$6.05 |
$11.03 |
| Estimated Life |
1 trip |
5 trips |
50 trips |
250 trips |
| Cost/trip (avg.) |
$0.53 |
$0.21 |
$0.12 |
$0.044 |
| Other costs |
Setup
Disposal |
Setup
Breakdown
Return
Re-setup |
Return
Repair |
Return |
Source: Buckhorn, Inc. "How to Select Shipping Containers", Milford, OH.
Packaging changes can result in a series of improvements that ease handling, reduce storage, use less material, and save money while meeting business goals of profitability, market share, safety, and customer satisfaction.
