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. 

Why is Europe behind in design and manufacturing of strong plastic returnable packaging solutions?

European pooling companies, OEM’s and tier suppliers in the automotive manufacturing industry have to go the US for plastic folding containers - isn't it time that 900kg folder plastic containers are made in Europe?

I have always wondered why the European and UK industry are still going to the US; why haven’t they looked at improving injection moulding capabilities on the continent.

The demand is there and the use of steel packaging is costly and in some cases logistically unviable.

It is clear in Europe that manufacturers do not have the design and technical capabilities compared to their US counterparts. But this is no longer an excuse, if packaging suppliers had taken a sensible view on this gap in the market and invested in acquiring individuals with the required expertise, the European market could be on a par with the US.

Could it also be the fact that existing injection moulding specialists did not want to see the opportunity before them? If they ignored developments in other markets around the globe, their clients would be satisfied with their current offering.

If a 900kg folding plastic container is manufactured in Europe, it significantly reduces the cost of importing and transporting products rather going across the pond to source their supply chain solutions. Why hasn’t this opportunity been seized upon pooling companies who use US products?

Maybe it is now time for US expertise to arrive in the European market, it is now time for someone to realise the opportunity within the automotive supply chain.

Whilst on the topic of how far behind the European automotive market is with injection moulded containers, Macro Plastics will be launching the EuroBIN 1210 in Q3 of 2016 which can be stacked 10 high folded and has 900kg capacity.

This is an example of how the US and, more specifically, Macro Plastics have grabbed the bull by the horns and developed an innovative 900kg returnable plastic container which fits seamlessly into the global automotive supply chain.

The design of the EuroBIN has focused on -

More Product + Less Packaging = Less Cost. 

Automotive Logistics, Europe Conference - is the automotive industry actually going to look at cube utilisation?

With the Automotive Logistics Europe Conference in Bonn taking place in March, cube utilisation in the automotive supply chain is bound to be a topic discussed again - why is the industry doing so little about this?

Over a number of years cube utilisation is something that has been covered by conference after conference across the globe yet it appears that nobody within the automotive industry has bothered to look further into cube utilisation or act upon the information that is discussed at these conferences.

In the overview of the conference taking place from 15th - 17th March there needs to be a number of goals outlined -

●     reduced handling

●     less labour

●     fewer delivery delays

●     no damage

Firstly, why isn’t cube utilisation on this list of goals? Secondly, if those who work in the sector take a closer look at the returnable packaging options that are currently available on the market they could have already made significant improvements towards achieving some of these goals - cube utilisation being one of them.

I am looking forward to the discussion in Session 3 on Wednesday afternoon called Feeding the Line as ‘What is the role of packaging in part protection and cube utilisation?’ will be up for discussion. I am keen to hear about people’s thoughts on this but, more importantly, why there appears to be little activity to address cube utilisation. I would like to stress that this is an issue throughout the global supply chain, not solely in Europe.

By paying more attention to cube utilisation throughout the whole supply chain and acting upon this information, the industry would be able to drive down costs and significantly improve efficiencies. By the whole supply chain I mean inbound journeys to manufacturing plants, return journeys, continental and global trips as well as transporting spare parts.

The IsoBin from Macro Plastics cubes out at ISO Container to 97.2% of floor space and can be stacked three high when carrying components. Without looking at the how the IsoBin can help you to achieve the goals set out above, you can significantly reduce the space you require in transportation. The simple fact that reduced space means reduced cost, which goes straight to the bottom line, this should be enough for the automotive supply chain to do something about cube utilisation.

One OEM has saved $1 million by integrating the IsoBin throughout their global supply chain by improving the cube utilisation of the ISO Containers. These savings have been made on 3 parts on Northern to Southern hemisphere trips and the opposite way as well travelling from East to West and back across the Atlantic. This proves the potential impact of one solution on a global supply chain.

It is so important for top Automotive Supply Chain decision makers to understand what services are about and how Returnable Packaging now works on a Global scale.

Broaden your knowledge of returnable packaging at Auto Logistics Global Conference, Detroit.

In September the Auto Logistics Global Conference is taking place in Detroit and we will be there showcasing the opportunities that Macro Plastics’ ISO Bin can provide you in your global supply chain.

The key areas of the conference will be Big Data and the internet of things and both of these can be utilised by the industry to improve sustainability and create opportunities for the coming years.

If the industry understood the potential of returnable packaging in a global supply chain, they would realise how they can make their operations more sustainable and help them realise opportunities they have on the horizon.

I believe that there is a lack of awareness within the automotive industry about the opportunity for Global returnable transit packaging. Due to the lack of knowledge there is a fear to try something new in the supply chain which is the only way that the individuals responsible for logistics will be able to get a better picture of how these type of solutions can benefit them in the long run.

I recently came across an infographic by Control Hub highlighting that supply chain and logistics mangers believe that costs could be better controlled. There were two statistics that drew my attention. Firstly, 43% were concerned about identifying the most efficient shipping routes and reducing miles. Identifying the shortest or most cost effective route to transport components from tier suppliers and OEM’s is always going to be on the agenda. The interesting element of this statistic was the reducing miles part. Fully understanding the opportunities of using returnable packaging, 

such as the ISO Bin, helps to increase pack density. Therefore, shipping more parts per load which in turn reduces the number of loads and therefore reducing the miles.

Secondly, only 28% of the managers were concerned about the optimisation of the transportation network with pooling points. This again raises my main angst about supply chain and logistics managers not fully understanding the potential pooling companies can provide when using returnable packaging in a global manufacturing footprint. The Control Hub article concludes that on the whole companies agree that logistics costs can be better controlled yet less than a third of those questioned are interested in looking at the efficiency improvements and cost savings pooling providers can deliver.

This is an industry growing on a global scale looking to reduce costs, increase quantities and improve the bottom line. Utilising a pooling company in the global supply chain using a market leading returnable packaging solution can answer two of those objectives and contribute the third which is also the ultimate one – improving the bottom line.

During the Auto Logistics Global Conference, one of my aims is to open the eyes and ears of supply chain and logistics providers to the benefits that a product like the ISO Bin can bring them. The industry is consistently innovating the vehicles they produce, they should be thinking innovatively about their internal processes too. 

What do you want Returnable Packaging to do for you? – Packaging Discussion, Auto Supply Chain Congress, Liverpool.

During the Auto Supply Chain congress in Liverpool, I will be chairing a discussion on packaging and what the automotive industry wants it to do in the global supply chain. I am keen to know what the industry is currently using to package their components, the issues they have with the materials they are using and most importantly, their plans for the future.

I want to understand the industries thoughts on those areas because packaging’s role is growing in importance within the global supply chain and overall manufacturing process in the automotive industry.

Logical planning and implementation of packaging solutions can help deal with the pressures of the overall manufacturing process from tier suppliers, OEMs and the 4PL’s through to the manufacturer.

So think about this – are your materials delivering value for money and, secondly, are they sustainable enough to cope with the increasing demands related to time frames and quality?

With increasing demand on a global scale, packaging is required to be robust, agile and cost effective. Are your packaging solutions meeting these expectations?

Plastic returnable packaging is one solution that caters for all of the demands of the automotive industry, driving down costs and improving efficiencies in the global supply chain. Plastic is increasingly becoming the material of choice for the automotive industry when looking to improve their packaging, the main reason behind this is the fact it can produce the results manufacturers require time and again.

Moving to returnable packaging offers a variety of options and benefits compared to expendables such as wood and cardboard. Plastic returnable packaging helps to streamline the handling process from tier supplier to plant reducing both costs and timescales.

You can mould the returnable packaging solution to suit your requirements by using pooling companies which also helps to reduce the costs of packaging. Using pooling companies in a global supply chain improves efficiencies without the need for capital investment as you only pay for the outbound trip. When using a pooler there is no charge for the return journey as the company uses it for another customer in the same area. There is no ROI as there is no investment in the first place when using pooling companies.

I have been surprised at the lack of knowledge of pooling companies offering returnable solutions in the automotive industry. Even more surprised to hear that some in the industry aren’t even aware of the viable options now available.

The packaging discussion at the Auto Supply Chain Congress is all about hearing your ideas and thoughts on what you want your supply chain to do for you. 

The ISO Bin should be the industries returnable of choice, see why at Auto Supply Chain, Liverpool

How much does it cost you to dispose of your packaging? Or if you do happen to use returnable, do you think there could be competitive alternatives?

With the ISO Bin from Macro Plastics, sponsor of the AutoSupply Chain Congress, there are no costs to disposing of packaging as there is nothing to dispose of. Installing dunnage inside the ISO Bin removes the need for cardboard and plastic packaging, therefore no rubbish means no cost.

Then you have concerns about the cost of shipping back to the OEM or tier supplier? Have you encountered extortionate costs for return journeys previously?

Pay me a visit whilst in Liverpool at the congress so that you can see why this type of packaging is a viable alternative to your current method solely on the benefits of returning the bins.

Purchasing cardboard and assembling the packing is a recurring cost that is removed when using plastic returnable. Plastic returnable packaging also removes the costs associated with processing components in cardboard packaging. There are no storage costs, there is no need for picking and repackaging at the plant as the ISO Bin can go lineside. Then there are disposal costs that you incur with cardboard. This sustainable product not only helps your bottom line but also ensures that your supply chain is environmentally friendly, especially as we are now in a time when green standards are high on the agenda.

The ISO containers can be stacked 8 high on their return journey, this significantly reduces the space that is needed in comparison to current returnable options on the market. Therefore you can increase the number of units per container and reducing the cost of returning the bin.

With regard to the dunnage, a dedicated container is used to return the dunnage used in the delivery of the components to the plant. The bulk of the ISO Bins can then be collapsed down and stacked to either be returned to the tier supplier or can be used elsewhere in the supply chain.

The ISO Bin can be safely stacked in a warehouse 6 high when fully loaded, again reducing the space required in comparison to alternatives and reducing the storage costs.

Potential cost downs couple with improved performance of your growing supply chain cannot be ignored. This is a solution that delivers on the two key areas of the logistical process having a direct impact on the bottom line providing a ROI.

But then why do you need to be concerned about ROI when there are options that do not require capital investment?

How can returnable packaging drive the performance of your global supply chain?

In March, I will be attending the annual AutomotiveLogistics Conference in Bonn, Germany, representing Macro Plastics.

To quote the beginning of the overview on the AutomotiveLogistics website of the conference – “Supply chain professionals at OEMs and Tier Suppliers across Europe are coming up with innovative – and contrasting – ways of improving the bottom line.”

This is exactly what returnable packaging provides and the ISO bin from Macro Plastics is both innovative and contrasting. Global returnable systems are currently in operation in the automotive supply chain.

Moving out of the financial difficulty which has shrouded the previous years, the automotive supply chain industry is looking towards refining their processes. Returnable packaging is one process that can be refined to make improvements to the supply chain immediately and making it resilient for years to come.

Reducing operating costs and improving efficiency are the two main aims of a supply chain. With the quantities, speed demands increasing on a continental and global scale returnable packaging is becoming a must.

The ISO bin is innovative in its design to a standardised international footprint, therefore it can fit in seamlessly into your global supply chain. Moving towards sustainable returnable packaging is inevitable as it is required to remain competitive in the automotive market. 

Take a Closer Look at Returnable Packaging

So how robust do you believe your supply chain is and how are you looking to manage and increase your capacity in the growing global market?

I will be taking part in a panel discussion on the capacity and robustness of supply chains at the Automotive Supply Chain Congress in Liverpool.

Over the next two days the executives from the leading automotive manufacturers will be attending the annual conference to discuss where their supply chain is heading and how they can keep up the growing market, returnablepackaging being one key area of interest.

On the panel there will be Jonathan DiMambo from Bentley Motors, Richard Horswill from Stena Freight, Cengiz Kabatepe of Ford Otosan, Timothy Nickel of Surgere, Mike Silvio from Cooper Standard Automotive and Stewart Robertson from DHL.

With today’s demand and capacity restraints due to fast and accelerated movements through the supply chain no one has time to waste with waste.

The procurement of one trip packaging and disposal is completely unnecessary when the offer of hiring/ renting quality returnable solutions on a one trip basis is available regionally and globally.

The automotive industry is surprisingly unaware of the opportunities that returnable packaging presents to their supply chain. The amount of options that are now available to OEM’s and tier suppliers are endless.

Development of the returnable packaging market and the emergence of new companies now provide OEM’s and tier suppliers with solutions that they could only dream of previously.

Returnable packaging solutions can help solve your issues around capacity and robustness in order to improve the performance of your supply chain. This one simple change can transform your whole supply chain.

Intercontinental supply chains have grown significantly and will grow even further in the future, the need for more components required in more locations and more often is rocketing. Bringing costs down and improving capacity utilisation is integral, returnable packaging using plastic improves cubed utilisation allowing you to ship larger quantities for lower costs.

With the speed of supply chains growing and quality standards going in the same direction there is little room for error, plastic returnable solutions are built to ensure quality and reduce damages.

Reducing damages and ensuring the quality of components is high on the agenda, using returnable packaging solutions can reduce these risks associated with the expendable packaging such as cardboard. By reducing the risk of damaged goods this in turn reduces the costs and aids the speed of the supply chain.

With the progress that has been made by the returnable packaging industry it is now easier than ever to justify the shift to using these new methods as opposed to using old and inefficient packaging solutions.

Now, the automotive industry has all of their needs catered for in terms of packaging. All they need to do is try returnable packaging for themselves to experience the benefits first hand.

Automotive Logistics Conference, Bonn 2014 – How are you Exploring Value?

The theme of this year’s Automotive Logistics conference in Bonn is the Exploration of Value. As the supply chain industry evolves value is becoming the main focal point.

How do we transport automotive components globally as cheap and effectively as possible? This is the burning question on the manufacturers’ minds.

The global automotive market is growing at a pace; this requires more components being required in more locations more often. Quality, time and cost are the three core objectives. With competition growing all three have to be delivered to a high standard. And these standards will only grow as time goes on.

So my question is – if you are not using returnable packaging how are you exploring value in your supply chain and logistics solutions?

Where are you currently making efficiency and financial savings as well as improving quality at the same time?

Macro Plastics’ ISO Bin is the perfect example of how to explore the value of your supply chain in the automotive industry.

Do you know of an expendable packaging solution that optimises the space in an ISO container to 97.2%? Macro’s ISO bin can be stacked 3 high in a container when full and 8 high when empty. Ensuring that you are able to transport as much as possible for your money is a fine example of ensuring value.

This is only 1 example of exploring value.

It is all in the Design

“Packaging is about so much more than designing a box or a crate” – Sam Ogle

There is a lot more than the design process of packaging but that is where the real benefits are realised whether that is in the form of cost, environmental or efficiency. It all begins at the outset.

A key element of the design process is gauging the amount of materials required, this can then have a considerable impact on the benefits when the packaging is in use. The less plastic used leads to lower costs; this is a quick fix to making savings before the customer experiences the other financial benefits of using containers in their supply chain.

As well as reducing production costs by using less plastic, it also means using less resin which reduces the weight and has environmental effects. Ensuring that a design looks at the maximisation of weight is essential as it is now important to ship as much as possible in a short space of time. Using fewer raw materials is environmentally friendly in the production of the packaging and also being able to transport more per container will help to reduce transportation costs which are directly linked to the effects on the environment.

Looking towards bespoke returnable packaging is the movement away from off-the shelf options. Returnable packaging is now offering innovative methods of transporting goods. There is a perception that off-the-shelf returnable packaging is has stagnated and seeing a drop in quality.

So now there is no reason to say no to returnable packaging.