Looking to save time and money in your supply chain? Returnable packaging can help you address that objective.

Global returnable packaging strips out the unnecessary packaging and handling processes. One solution fits all when you are looking to save money and time at the same time as improving the quality of your products.

At the Automotive Logistics Europe conference in March I will be interested to hear the industry’s thoughts on how they are looking to improve efficiencies and reduce costs in their global supply chain.

The automotive industry need to look at the opportunities “one trip” returnable packaging can offer them in a global market, especially when OEM’s and tier suppliers are exporting parts at an accelerating pace. An increasing number of parts are required in a growing number of manufacturing plants across the globe in larger quantities and more frequently.

Then the question arises, can your current handling processes handle these demands? Do you have the capacity to facilitate the demands? And lastly, have you considered the increased costings that are attached?

Using cardboard and wood is currently the norm and has been for many years and because of this the supply chain is ignoring all of the costs of one trip packaging. Currently OEM’s are employing 4 LPs and specialist repack companies to receive in component parts in wood and cardboard.

The classic hidden costs that are ignored by the supply chain are purchasing, procurement and making up of cardboard boxes, wood, dunnage and strapping.

Do you know what your damage costs are from one trip packaging in your global supply chain?

Returnable packaging allows the parts to go straight into the plant and to the line side. This is compared to cardboard packaging which has to be unpacked and then repacked at a handling centre near to the plant before being transported to the assembly line. Then there are the attached costs of disposing of the cardboard and plastic.

OEM’s – how much do you pay your repack company to unpack from one trip and then pack again into returnable packaging? And, by the way, what are your disposal costs?

These processes are unnecessary with the evolution of plastic returnable and will eventually become defunct. At a time when the automotive industry is looking to reduce costs and looking to 5 to 10 years ahead in improving their manufacturing and supply chain methods.

Look out for my next blog when I explain what the taxi service is.