There really is no reason why returnable packaging shouldn’t
work for your supply chain. Returnable packaging delivers on all areas of the
supply chain, most importantly on cost downs and efficiency.
Michael Scholl of Opel states that returnable packaging is a
key part of the strategy yet questions the use of them due to cost. The cost of
returnable options is reduced through the pooling companies offering one trip
solutions. If you explore the market of returnable packaging you will be able
to find viable alternatives that match the company’s needs and help to drive
down costs.
Earlier this year at the Automotive Logistics Conference Andreas Ginkel highlighted the importance of returnable packaging to the supply
chain and aiding automotive manufacturers in growing globally.
Scholl points out in the Automotive Logistics magazine that
due to the rise in the number of parts there is “a critical focus on replacing
extra handling in plants and warehouses, such as repacking or sequencing with
the most advanced delivery concepts”. If Opel are aware of the needs to look at
repacking and packaging, why are they unaware of what returnable packaging can
do to help them address this issue?
Using returnable packaging removes the need for repacking;
returnable options are able to go line side requiring no extra handling and aids
in streamlining in-plant logistics. Using plastic returnable packaging reduces the
risk of dust contamination during the manufacturing of vehicles as opposed to using
cardboard is another benefit.
When asked about standardised packaging Scholl states the
returnable packaging is “historically high and a key strategy”.
But then goes on to say - “However, for certain parts and
supplier locations, returnable packaging cannot be justified from a cost
perspective, as the length of the loop would require too high an investment and
freight costs of empty returns.”
Returnable packaging is designed with global manufacturing
at the forefront of thinking, so why can’t it be justified in terms of supplier
locations? And then when it comes to the cost of empty returns, as mentioned
above, explore the one trip solutions offered by pooling companies which
removes the cost of returning and the added hassle.
The point that is missed by many when one trip solutions are
mentioned is the fact it is not solely used for the automotive industry. They
can be used to ship a variety of goods from clothing to pharmaceuticals.
If Opel are so clued up on returnable packaging and the fact
that they are a key strategy why aren't they equipped with knowledge to
understand how returnable packaging can benefit them?
They have identified the need for them and also some of the
associated problems that they could encounter, this is when a free trial is
needed to understand the process and address the problems that they are
outlining.
