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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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