Why can’t you make returnable’s work in a Global market?

There really is no reason why returnable packaging shouldn’t work for your supply chain. Returnable packaging delivers on all areas of the supply chain, most importantly on cost downs and efficiency.

Michael Scholl of Opel states that returnable packaging is a key part of the strategy yet questions the use of them due to cost. The cost of returnable options is reduced through the pooling companies offering one trip solutions. If you explore the market of returnable packaging you will be able to find viable alternatives that match the company’s needs and help to drive down costs.

Earlier this year at the Automotive Logistics Conference Andreas Ginkel highlighted the importance of returnable packaging to the supply chain and aiding automotive manufacturers in growing globally.

Scholl points out in the Automotive Logistics magazine that due to the rise in the number of parts there is “a critical focus on replacing extra handling in plants and warehouses, such as repacking or sequencing with the most advanced delivery concepts”. If Opel are aware of the needs to look at repacking and packaging, why are they unaware of what returnable packaging can do to help them address this issue?

Using returnable packaging removes the need for repacking; returnable options are able to go line side requiring no extra handling and aids in streamlining in-plant logistics. Using plastic returnable packaging reduces the risk of dust contamination during the manufacturing of vehicles as opposed to using cardboard is another benefit.

When asked about standardised packaging Scholl states the returnable packaging is “historically high and a key strategy”.

But then goes on to say - “However, for certain parts and supplier locations, returnable packaging cannot be justified from a cost perspective, as the length of the loop would require too high an investment and freight costs of empty returns.”

Returnable packaging is designed with global manufacturing at the forefront of thinking, so why can’t it be justified in terms of supplier locations? And then when it comes to the cost of empty returns, as mentioned above, explore the one trip solutions offered by pooling companies which removes the cost of returning and the added hassle.

The point that is missed by many when one trip solutions are mentioned is the fact it is not solely used for the automotive industry. They can be used to ship a variety of goods from clothing to pharmaceuticals.  

If Opel are so clued up on returnable packaging and the fact that they are a key strategy why aren't they equipped with knowledge to understand how returnable packaging can benefit them?

They have identified the need for them and also some of the associated problems that they could encounter, this is when a free trial is needed to understand the process and address the problems that they are outlining.