Changing the Automotive industries perception of Recycled Returnable Packaging

There has been a longstanding question from automotive manufacturers about what happens to returnable packaging at the model end-of-life stage? There is also the perception that all returnable packaging is bought new.

As a result of this perception, the automotive industry assume that the value of the returnable solutions at the end of their life is zero which becomes a barrier to them moving from expendables to returnable.

Unbeknown to them that there is a bustling refurbished and recycled packaging market with specialists looking to continuously purchase packaging.

Packaging refurbishment specialist purchase totes and general purpose applications from OEM’s and tier suppliers who clean, repair and de-brand them before selling them back to the market. This is a great alternative to replacing broken or stolen returnable with new packaging.

Bespoke packaging solutions may not be fit for general re-use but in this instance they can be ground down and recycled to be re-used elsewhere. Therefore, there is no reason for the automotive industry to believe that returnable packaging has zero value at the end of its life. 

I think that some of the issue is that automotive manufacturers don’t want to talk about recycled packaging in fear of them buying their own returnable packaging back.

It is important to know that this is a legitimate market and that resellers accept packaging only with the correct legal documentation to ensure transparency.

If you would like to understand the potential of recycled packaging or find out how much your returnable packaging is worth please contact me. 

Do you understand the potential of one-way returnable packaging?

As intercontinental logistics flows increase in the automotive manufacturing industry, could we see manufacturers forced to take a fresh look at global pooling packaging solutions.

For a number of years, there has been underutilisation of pooling companies and one-way returnable packaging methods in the global automotive industry. There could be a number of factors responsible for this – perceived high-cost, lack of understanding of plastic returnable solutions or smaller logistic flows.

With the increase in intercontinental manufacturing footprints, the supply chain and logistics operations could be forced to reconsider returnable packaging and pooling solutions provided by the likes of DHL, Chep and Goodpack.

I was recently quoted in an Automotive Logistics article stating that the biggest trend the industry is seeing at the moment is the increased use of pooled returnable packaging over long-distance, one-way flows.

I believe that OEM’s and tier suppliers are not fully aware that they can receive all of the benefits of returnable packaging with the pooling provider handling and managing the return journey.

Put simply, the OEM or tier supplier pays one price for the use of the tote or plastic container to be transported to its destination. The packaging solution increases cube utilisation, reduces risk of damages or contamination and handling in comparison to disposable packaging – therefore experiencing all of the benefits.

Once the items have been removed from the packaging, it is then the responsibility of the pooling company to arrange the freight for the reverse-leg.

Implementing a pooling provision into intercontinental flows significantly reduces transportation and handling costs, reduces waste costs and removes the need to identify reverse-leg freight to make returnable packaging viable.  

Next week we will be exhibiting at the Automotive Leader’s Summit in Liverpool where you will be able to see the Macro EuroBin which is the new 900kg folding plastic container.

If you are attending the conference, please come and see how I can help you make savings on your current packaging solutions.