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Reusables 101
Reusable transport packaging saves your company money and resources
Think Outside the Box:
Think Reusable
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benefits of reusable transport packaging:
• Reducedwastemanagementcosts
• Lowerlaborcosts
• Betterproductprotection
• Lessproductdamage
• Lowermaterialscostsovertime
• Betterergonomicsforemployees
• Improvedworkersafety
• Greaterlandfillavailability withoutincreasedlandfillcosts
• Longerusefullifeofpackaging
• Reducedgreenhousegas emissions
What is reusable transport packaging?
DisposablewoodpalletsandcardboardboxescompriseasignificantamountofthewastegeneratedbybusinessesinAlamedaCounty,andthereislimitedandexpensivelandfillspaceleftforgarbage.
That’swhytheStopWaste Partnership—whichhelpslocalbusinessesdivertwastefromlocallandfills—haspartneredwiththeReusable Pallet & Container Coalition (RPCC)toprovideAlamedaCountybusinessestheinformationandresourcestheyneedtomaketheswitchtoreusablepalletsandcontainers.
TheRPCC,headquarteredinWashington,D.C.,advocatesthegrowthofreusablepackagingsystemsinNorthAmericaandhasbeeninstrumentalinassistingbusinessestosupporttheirbottomlinewhilealsoprotectingourenvironment.
StopWasteandtheRPCCwantyoutoknowaboutthebenefitsofreusables.Thetips,techniques,andtoolsprovidedherewillhelpyougetstarted.Youwillfind:
n Aguidethatoutlinesthebasicsofreusabletransportpackaging:whatitis,howitworks,andwhytheswitchmakessense.
n Severalin-depth,real-world examplesofhowreusablepackagingsavescompaniesmoney,foundinthecom-panionguide,Reusables 102: A Cost Comparison Model for Reusable Transport Packaging.
Visitwww.UseReusables.comforreusablescasestudies,vendorinformation,andaccesstopersonalizedsupport.
Reusabletransportpackagingreplacesone-time(andlimited-use)palletsandboxeswithreusablecontainers(suchastotesandbins)alongwithreusablepalletsandpallet/containerrentalsystems(“pooling”).
Reusabletransportpackagingisusedformultipletripsinclosed-loopandmanagedopen-loopshippingsystems,wherethereturnofemptytransportpackagingcomponents(“reverse
logistics”)canberepeated.
What are the pallets and containers made of? Reusablepalletsandcontainersaredesignedformanyyearsofuse.Theyaretypicallymadeofdurablewood,steel,orvirginorrecycled-contentplastic,whichisresistanttochemicalsandmoistureandhasgoodinsulatingproperties.Sturdy,moisture-proofcontainersarebuilttoprotectproducts,especiallyinroughshippingenvironments.
With pallet and container pooling,companiesoutsourcethelogisticsofpalletandcontainermanagementtoathird-partypoolingmanagementservice.Thepalletsaredeliveredtothecompanies;palletizedproductsareshippedthroughthesupplychain;thenapalletrentalservicepicksuptheemptypalletsandreturnsthemtoservicecentersforinspectionandrepair.Poolingpalletsaretypicallymadeofhigh-quality,durablewood,metal,orplastic.
Why are third-party companies necessary?Closed-loop systemsareidealforreusabletransportpackaging.Reusablecontainersandpalletsflowthroughthesystemandreturnemptytotheiroriginalstartingpoint(reverselogistics)tobegintheentireprocessagain.
Managedopen-loop shipping systemsrequiretheassistanceofathird-partypoolingmanagementcompanytoaccomplishthemorecomplexreturnofemptytransportpackaging.Forexample,reusablecontainersmaybeshippedfromoneormanylocationstovariousdestinations.Apoolingmanagementcompanysetsupapoolingnetworktofacilitatethereturnofemptyreusabletransportpackaging(reverselogistics).Thepoolingmanagementcompanymayprovidevariousservicessuchassupply,collection,cleaning,andrepairofreusabletransportpackaging.
Closed-Loop System
Manufacturer/Shipper
Customer/Retailer Manufacturer
Shipper/Transportation
Company
Customer/Retailer
Managed Open-Loop System
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Mostcompaniesswitchtoreusabletransportpackagingbecauseitsavesthemmoney.Reusabletransportpackagingcanaddprofittoacompany’s
bottomlineinmanyways:
Improved ergonomics and worker safety • Eliminationofboxcutting,staples andbrokenpalletsreducesinjuries.
• Reusablecontainerswithergonom- icallydesignedhandlesandaccess doorsimproveworkersafety.
• Standardizedsizesandweightsof packagingcomponentsreduceback injuries.
• Standardizedcontainersfacilitate theuseofmerchandisingracks, storageracks,flowracksandlift/tilt equipment.
• Removalofin-plantdebris,suchas straypackagingmaterials,reduces slipandfallinjuries.
Reduced inventory and just-in-time delivery • Standardizedtransportpackaging componentsandorderingquantities improveorderingcapabilitiesand inventorytracking,whilereducing errors.
• Morefrequentshipmentsofsmaller quantitiesdeliveredclosetothetime ofusagereducethenumberofdays thatinventoryanddollarsareidleand nonproductive.
• Combiningsupplierpick-upsor customerdeliveriesin“milkrun” fashion(small,dailytruckroutes) savesmoney.
Benefits of reusable transport packaging
Improved worker safety
Quality improvements • Lessproductdamageoccursdueto transportpackagingfailure.
• Moreefficienttruckingandloading dockoperationsreducecosts.
• Ventilatedcontainersreducecooling timeforperishables,increasing freshnessandshelf-life.
Packaging material cost reductions • Longerusefullifeofreusable transportpackagingresultsin packagingmaterialcostsofpennies pertrip.
• Costofreusabletransportpackaging canbespreadovermanyyears.
Reduced waste management costs • Lesswastetomanageforrecycling ordisposal.
• Lesslaborrequiredpreparingwaste forrecyclingordisposal.
• Reducedrecyclingordisposalcosts.
environmental impacts • Reducedneedtobuildexpensive disposalfacilitiesormorelandfills.
• Helpsmeetstateandcountywaste diversiongoals.
• Supportsthelocalcommunity.
• Attheendofitsusefullife,most reusabletransportpackagingcan bemanagedbyrecyclingplastic andmetalwhilegrindingthewood forlandscapemulchorlivestock bedding.
• Reducedgreenhousegasemissions andoverallenergyconsumption.
Reusable packaging containers produce 95% less total solid
waste on average
Lower packaging failure
rate results in quality
improvements
Reusable packaging containers generate 29% less total greenhouse gas emissions
and require 39% less total energy
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Environmental Benefits of ReusablesEnvironmental Benefits of Reusables
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Real-world success stories
aNG Newspapers: efficiencies from plastic palletsANGNewspapersworkedwiththeStopWastePartnershiptoidentifyhowtheymightfurtherimprovetheirenvironmentalperformance.StopWasteassessedthesituationanddeterminedthatANGhadtheidealdistributionsystemforreusableplasticpallets.
ANGappliedforandreceiveda$7�,000StopWasteBusinessWastePreventionFundAwardtopurchase�,700reusableplasticpallets.Eachyear,theprojectcutslaborcostsby$�6,000andprevents�7tonsofwoodwaste.
Toimproveefficiency,ANGcolorcodesitsplasticpallets,whichhelpsdriversknowinstantlywhichloadstheyaretopickup.Plus,thestandardizedshapemakeshandlingandstorageeasierthanwithafleetofmismatchedwoodenpallets.Andfinally,becauseworkersarefreedupfromrepairingwoodenpallets,theycannowfocusonactivitiesthataddtocustomervalue.
StopWastealsohelpedsetuparecyclingsystemthatcapturesover��,000poundsofplasticfilmayear.ANG’sabilitytoimplementsuchprojectscombinedwithStopWaste’sresourcesmadeforarewardingpartnership.
solutions• Research and cost-benefit analysis
• $75,000 Business Waste Prevention Fund Award
• New equipment purchases with award funds
• Hot-stamped pallets to make tracking easier
• Improved signage to increase recycling
Awidevarietyofbusinessesandindustriesinmanufacturing,materialshandling,andstorageanddistributionhavediscoveredtheadvantagesofreusabletransportpackaging,includingmanyinAlamedaCounty.Herearesomeexamples:
Manufacturing • Electronicsandcomputermanufacturers andassemblers
• Automotivepartsmanufacturers
• Automotiveassemblyplants
• Pharmaceuticalmanufacturers
• Manyothertypesofmanufacturers
Food and beverage • Foodandbeveragemanufacturersanddistributors
• Meatandpoultryproducers,processors anddistributors
• Producegrowers,fieldprocessinganddistribution
• Grocerystoresuppliersofbakery,dairy,meat andproduce
• Bakeryanddairydeliveries
• Candyandchocolatemanufacturers
Retail and consumer product distribution • Departmentstorechains
• Superstoresandclubstores
• Retailpharmacies
• Magazineandbookdistributors
• Fast-foodretailers
• Restaurantchainsandsuppliers
• Foodservicecompanies
• Airlinecaterers
• Autopartsretailers
Who uses reusable transport packaging?
The bottom line• Annual labor costs reduced by $46,000
• Prevention of 37 tons of wood waste a year
• Less space needed to store pallets
• Improved operations and worker safety
• 125% return on investment (ROI)
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Ghirardelli Chocolate Company: Reusable totesGhirardelliChocolateCompany’sSanLeandrofacilityproducespremiumchocolateproducts.
Thecompanywantedtoeliminatethewaste,productbreakage,andhighcoststhatresultedfromtransportingitspremiumchocolatesquareswithintheplant(andtopackagers)incardboardboxes,whichwouldgetsoiledandeventuallythrownaway—atanannualcostof$�,700fordisposal.
EntertheStopWastePartnership,whichassessedGhirardelli’soperationandidentifiedreusabletotesasonepotentialsolution.ThereusabletotesolutionallowsGhirardellitorealize$�.9�millioninnetsavingsoverthefive-yearlifeoftheprojectthroughpackagingreduction,andprevent��0tonsofsoiledcardboardayear.
Inaddition,workersarenowlesslikelytodeveloprepetitivestressinjuriesfromopeningandtapingcardboardboxes.
solutions• Recognize the potential for reusable totes
• Cost-benefit analysis
• $75,000 Business Waste Prevention Fund Award
• Purchase reusable totes with award funds
Toyota: Toward zero waste ToyotaLogisticsServices(TLS),aNorthAmericanDivisionofToyotaMotors,hassixVehicleDeliveryCentersintheUnitedStates.ThecenterinFremontisresponsibleforcustomizingandupgradingToyotacarsandtrucksstraightfromthefactoryfloor.Theyprocess�00,000vehiclesayear.
TLSFremontapproachedtheStopWastePartnershipforhelpinreachingzerowaste.Oneofmanysolutionswastoemploycollapsibleandstackablereusableplasticcontainersforshippingcarpet,atypicalupgradeitemforautomobiles.Thisswitchprevents�,000tonsofcombinedwoodandcardboardwasteandsavesatotalof$�.�millionforthesixfacilitieseveryyear.
TLSFremonthasalsoarrangedtohavemultipletruckrunningboardsshippedtogetherinthesamecontainer,savingmoneyandresources.
solutions• Supply chain management analysis
• Waste prevention recommendations
• Assistance to improve recycling
• $5,000 mini-grant
The bottom line• Combined annual savings of $3.5 million for the TLS facilities
• 75% reduction of waste
• Over 120 tons of resources diverted from the landfill each year
The bottom line• Provides $1.95 million net savings over life of project
• Prevents 350 tons of soiled cardboard waste a year
• Decreases repetitive stress injuries
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Thereareseveralareasalongthesupplychainthatmayholdadvantagesfortheuseofreusabletransportpackaging.
Inbound freight Rawmaterialsorsubcomponentsshippedtoaprocessingorassemblyplant,suchasshockabsorbersshippedtoanautomotiveassemblyplant,orflour,spices,orotheringredientsshippedtoalarge-scalebakery.
In-plant or interplant work in process Goodsmovedbetweenassemblyorprocessingareaswithinanindividualplantorshippedbetweenplantswithinthesamecompany.
Finished goods Shipmentoffinishedgoodstouserseitherdirectlyorthroughdistributionnetworks.
service parts “Aftermarket”orrepairpartssenttoservicecenters,dealersordistributioncentersfrommanufacturingplants.
Where in the supply chain is reusable transport packaging used?
Severalfactorsdeterminewhetheritwouldbebeneficialtochangeallorsomeofacompany’sone-timeorlimited-usetransportpackagingtoareusabletransportpackagingsystem.
Oncereusabletransportpackagingisshippedtoitsfinaldestinationandcontentsareremoved,theemptytransportpackagingcomponentsarecollected,staged,andreturnedwithoutagreatdealoftimeandcost.Reverselogistics—orthereturntripforemptypackagingcomponents—mustberepeatedinaclosed- or managed open-loop shipping system.
Areusabletransportpackagingsystemiseasiertojustify,maintain,andrunifthereisaflow of consistent products in large volumes.Iffewproductsareshipped,thepossiblecostsavingsofreusabletransportpackagingmaybeoffsetbythetimeandexpenseoftrackingemptypackagingcomponentsandreverselogistics.Significantfluctuationsinshippingfrequencyortypesofproductsshippedmaymakeitdifficulttoaccuratelyplanforthecorrectnumber,size,andtypeoftransportpackagingcomponents.
Large or bulky products or those easily damagedaregoodcandidatesforreusabletransportpackaging.Largerproductsrequirebigger,moreexpensiveone-timeorlimited-usecontainers,sothepotentialforlong-termcostsavingsbyswitchingtoreusabletransportpackagingisgreat.
suppliers or customers grouped near one another arelikelycandidatesforreusabletransportpackagingcostsavings.Thepotentialtosetup“milkruns”(small,dailytruckroutes)andconsolidationcenters(loadingdocksusedtosort,clean,andstagereusabletransportpackagingcomponents)createssignificantcost-savingopportunities.
Inboundfreightcanbepickedupandconsolidatedfordeliveryonamorefrequentjust-in-timebasis.Outboundfreight—theemptytransportpackagingcomponents—canbesentbackthroughthissamelogisticalsystem.
Is reusable transport packaging right for your company?
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Steps to get started
Generally,acompanyshouldconsiderswitchingtoreusabletransportpackagingwhenitwouldbelessexpensivethanone-timeorlimited-usetransportpackaging.Thefollowingsixstepshelpyoudetermineifreusabletransportpackagingcanaddprofitto
yourbottomline.
1. Identify potential products Developalistofproductsfrequentlyshippedinlargevolumeand/orthatareconsistentintype,size,shapeandweight.
2. estimate one-time and limited-use packaging costs Estimatecurrentcostsofusingone-timeandlimited-usepalletsandboxes.Includecoststopurchase,store,handleanddisposeofthepackagingandaddedcostsofanyergonomicandworkersafetylimitations.
3. Develop a geographical report Developageographicalreportbyidentifyingshippinganddeliverypoints.Evaluatetheuseofdailyandweekly“milkruns”andconsolidationcenters(loadingdocksusedtosort,cleanandstagereusablepackagingcomponents).Alsoconsiderthesupplychain;itmaybepossibletofacilitateamovetoreusableswithsuppliers.
4. Review reusable transport packaging options and costs Reviewthevarioustypesofreusabletransportpackagingsystemsavailableandthecoststomovethemthroughthesupplychain.Investigatethecostandlifespan(numberofreusecycles)ofreusabletransportpackagingcomponents.
5. estimate the cost of reverse logistics BasedontheshippinganddeliverypointsidentifiedinthegeographicalreportdevelopedinStep�,estimatethecostofreverselogisticsinaclosed-loopormanagedopen-loopshippingsystem.
Ifacompanychoosesnottodedicateitsownresourcestomanagingreverselogistics,itcanobtaintheassistanceofathird-partypoolingmanagementcompanytohandleallorpartofthereverselogisticsprocess.
6. Develop a preliminary cost comparison Basedontheinformationgatheredintheprevioussteps,developapreliminarycostcomparisonbetweenone-timeorlimited-useandreusabletransportpackaging.Thisincludescomparingthecurrentcostsofone-timeorlimited-usepackaginginStep�tothesumofthefollowing:
• Thecostfortheamountandtype ofreusabletransportpackaging researchedinStep�
• Theestimatedcostofreverselogistics fromStep�
Ifyouwanttodomoreresearchonreusables,seepublicationssuchas:
Inbound Logistics Magazinewww.inboundlogistics.com
Material Handling Management Magazine www.mhmonline.com
Forlocalassistanceorquestionsaboutmakingyourbusinessmoresustainable,contacttheStopWastePartnershipat�-�77-STOPWASTE(7�6-79�7),orsendanemailtoReusables@StopWaste.Org.Visitusatwww.StopWastePartnership.Orgforserviceswecanofferyourcompany.
For additional assistance Ifyourpreliminarycostcomparisonindicatesthatareusabletransportpackagingsystemwillsavemoney,youmaywanttoseekassistancetodesignandimplementareusabletransportpackagingsystemforyourbusiness.
Visitwww.useReusables.comforhelpidentifyingmanufacturers,logisticsproviders,andotherexperts.Theycanhelpwithadetailedevaluationandcostanalysisofchangingfromone-timeandlimited-usepalletsandboxestoreusabletransportpackaging.
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stopWaste PartnershipIn�990,AlamedaCountyvotersoverwhelminglyapprovedMeasureD,withtheambitiousgoalofreducingwasteby7�percentby�0�0.MeasureDrequiredthatStopWaste.Orgdedicateasignificantamountofitsrevenuestreamtorecyclingandreductioninitiativesthathelpdivertwastefromlandfills.
TheStopWastePartnershiphashelpedhundredsoflocalbusinessessavemoneyandlocalresourcesthroughinnovativeprograms,ultimatelydivertingwastefromourlocallandfills.Itmakesgoodbusinesssenseaswellasbeinggoodforourlocalcommunities.
RPCCTheReusablePallet&ContainerCoalition(RPCC)isanon-profittradeassociationrepresentingmanufacturers,poolers,distributors,retailers,educators,andothersinvolvedinthereusabletransportpackagingindustry.TheCoalitionpromotestheuseorintegrationofreusablepalletsandcontainersinNorthAmericantransportpackagingsystemsbecauseoftheeconomic,environmental,andsafetybenefitscreatedbyre-use.Itadvocatesthegrowthofreusables,regardlessofmaterial,asawaytoreduceenergy,solidwaste,andgreenhousegasemissionsandtoimprovethesystem-wideproductivityofindustriesemployingreusableproductsandservices.
This document provided by the StopWaste Partnership and the Reusable Pallet & Container Coalition (RPCC). The StopWaste Partnership would also like to recognize and thank the Solid Waste Management Coordinating Board of Anoka
County, Minn., who provided the original copy and concepts upon which we based this brochure. Images provided by IFCO SYSTEMS and ORBIS Corporation.
©�007StopWaste.Org.
Printedon�00%recycledpaper(�0%postconsumerwaste)
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