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.