The Taxi Journey

Within the Global Automotive supply chain and packaging industry, I have been surprised at the lack of knowledge and awareness of the role returnable packaging can play in these ever increasing and sometimes complex supply chains.

Everyone is concerned about cost savings wherever possible and squeezing all areas in order to reduce the money spent throughout the manufacturing and supply process. Then the second train of thought is how to cope with the growing demand across the globe to ensure they keep up with the demand of sales and deadlines. 

Yet there is a lack of awareness at the one solution that can help the automotive conquer both of these tasks, ‘one trip returnable packaging’ however when I speak to supply chain professionals there is a great number that don't grasp this idea.

I describe the concept of ‘one trip returnable packaging’ as simply a taxi service. One trip returnable packaging is the taxi service for the global supply chain. The Taxi is the packaging.

You call a taxi when you require it. The taxi arrives  you get in, or in this case the Component parts, the taxi proceeds on the journey dropping you, or in this case the component parts at the location. You pay the taxi driver the fare for the journey. Then the taxi moves onto the next job.

The plastic/steel returnable totes play the role of the taxi which are requested by the tier supplier to transport parts to the automotive manufacturer. The owner of the taxi is the pooling company, 4PL or OEM/Tier.

As a taxi takes you to the door of your location, returnable packaging can be taken directly to the assembly line. It does not require the handling processes associated with expendable packaging which could be likened to being dropped at the end of your street as opposed to outside your door. 

The client then pays for the journey that the parts have travelled. Then the returnable totes can then be used by someone else in a similar location. 

Therefore, the costs compared to expendable packaging are significantly reduced as there are no unpacking and repacking processes required as well as disposing of cardboard and wood from the expendable packaging.

Let’s discuss this in Bonn at the Automotive Logistics Conference.

Looking to save time and money in your supply chain? Returnable packaging can help you address that objective.

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. 

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. 

Plastic containers are not just beneficial for Fresh Produce itself but also handling & storage

Designed to make handling easier, the Marco Plastics’ bin are considerably lighter than wood, this increases ease of handling by the workers on the farms and forklift trucks.

Workers only handle bins when they need to be turned or pushed into place unlike wood where there is more effort required.

Shaped feet and 4 way entry improves movement when forklifts are being used around the factory and warehouse. This improves productivity especially when the process involves 2 lifts, the second lift can be made faster and simpler from 90 degrees.

Shipping and storing is another fantastic feature of the Macro Bins as they can be nested therefore reducing space and costs. The design allows for three bins to be nested inside each other. As you can see from the video, one bin can be stored on its side inside another. Then a third can be flipped upside down and slotted on top to form a box. As a result, it reduces space and cost by a third compared to wooden bins.

Outstanding durability, built to withstand impacts that would ruin a wooden bin. Being on a farm and being handled by heavy machinery there are going to be instances of heavy impact. As the bin is built to withstand more than wood that reduces the costs of repairs and replacements. The Macro Bin can be repaired through hot air welding, a cost effective method that extends the life of the bin, something can’t be done with wood. The plastic that Macro Bins are made from are UV resistant therefore can be stored outside in warm climates without having to worry they are going be damaged.

Then when you do eventually reach a point when you would like to replace the bin they can be recycled, which you will be able to receive a fee for. So not only is the bin cost effective to purchase and use but at the end of its lifecycle it provide revenue. 

Keeping fruit fresher for longer with Macro Plastic bins

In an age when customers want the freshest fruit and vegetables possible all year round, growers are required to step up to these demands which the market dictates to them.

As with all areas of business, when demands change you need to keep with the market and to do that your practises and tools need to evolve over time.

In order to, provide customers with fresher apples that have a longer shelf life Crane & Crane are now using plastic bins throughout their growing process instead of wood.

Ventilation is key to keeping the fruit fresher forlonger.  The fruit cools more rapidly in storage in plastic, producing a better piece of fruit in terms of appearance and taste. Crucially, this enhances its shelf life which in turn reduces waste and costs.

As opposed to wood, that Crane & Crane were using previously, the plastic containers have ventilation holes throughout. Ventilation and the cooling process are vital for Crane & Crane in America due to the climate. There is an increased need for the quick cooling methods in the orchards and farms across southern Europe and Asia too due to the warm climate all year round. These slight adjustments from wood to plastic can benefit the bottom line of the business by reducing costs.

In order for Crane & Crane to supply apples globally all year round they have the world largest cooling facility. Storage is a key area of their operation and the plastic bins play a large role in this process.

The plastic bins stack and store a lot better than wooden bins. Crane & Crane are impressed with the interlocking design as the bins can be stacked higher than wooden and are a lot safer. This improves the handling process and productivity whilst storing the apples, reducing the time the forklift drivers need when ensuring bins are stacked correctly. All they have to do is line them up, send them down and the bins lock into place in a straight stack.

Crane & Crane have invested money in this as they saw see a benefit to their consumers and customers which naturally benefited their business.

Everything comes back to quality which has never changed over the decades they have been producing apples. What has changed is how they deliver that quality. One of these changes has been the move to Macro Plastics’ bin. 

“The Bin of the future” - Dubois Agrinovation

From harvest, handling and storage in the field, warehouse and factory, the Macro Bin is exactly what Dubois Agrinovation have been looking for.

Dubois Agrinovation calls it “the bin of the future” because “quality products require quality containers”.  The bins are made of high resistant injection moulded plastic, meets all the modern requirements of food product handling.

1.       Food product handling

2.       Food quality preservation

3.       Environmental health

4.       Ease of handling

5.       Durability / impact resistance

6.       Work safety

The Macro Bin preserves quality during and after harvest which is something wood could offer but only to a certain standard. The quality requirements by customers and consumers of fresh produce are on a continuous rise, wooden bins can no longer fulfil these requirements.

A key point to make is that the top lip and corners are round which reduces bruising and damage to the produce compared to wood. With ventilation slots on 4 sides and base, cooling becomes more efficient with constant air flow and products will remain fresher longer.

It is easier to create more uniform stacks leaving gaps between each stack which increases air flow during storage helping to maintain an even temperature in all bins.

The cleaning process is a lot easier than wooden bins, disinfection is also made a lot simpler as the plastic is non-porous which is FDA approved. No chemicals or water are absorbed ensuring no organisms or pathogens can be carried like wood which reduces the risk of contamination of the produce.

When it comes to food quality and safety it has to be plastic bins over wood!

Crane & Crane continuously strive to make improvements to the safety and quality standards they have on their 1000 acre farm in Washington. As a global supplier of over 7 million apples per year, need to ensure that they get the right produce to the customers globally all year round.

In order to improve their safety and quality standards, they have moved the whole farm from old wooden bins that have been used for decades to Macro Plastics’ bin. This has transformed their operations from the orchard to the warehouse through to storage.

You can see in the video how moving to 100% plastic has instantly helped improve the quality of their fresh produce.

With fresh produce now being required all year round on a global scale food safety is taken very seriously throughout the system. Plastic bins offer far better safety standards that wooden bins cannot provide.

The bins are non-porous meaning that they can be cleaned and sanitised a lot easier than wood. They won’t harbour pathogenic or spoilage organisms.

The plastic bins flex less than wooden bins that Crane & Crane have used previously. This gives the content more protection when they are being transported around the farm the orchards and into storage. This considerably reduces the risk of bruising, improving quality levels and reducing waste.