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.
