DEQ Home > BizHelp > Business Sense > Tools > Reusable Packaging > Right Choice
Key Steps: Converting to Reusable Transport Packaging
Step 1:
Determine if Reusable Transport Packaging Will Work for Your Company
Reusable transport packaging works the best for companies that ship in closed loop distribution systems, meaning the container and/or pallet always goes back to the same point of origin. Although companies that ship products in a managed open-loop system can use rental companies to manage the return of empty packaging, as well as ensuring that the packaging is inspected, cleaned, and repaired as needed.
T
he following list of conditions, developed by INFORM, Inc. and the Reusable Packaging Association (RPA), can be used to determine if reusable transport packaging is a good choice for your company:
- Short distribution distances. Shorter distances mean lower freight costs are incurred in hauling back containers. Shorter distances also expedite the return of containers to suppliers.
- Frequent deliveries of consistent products in large volumes. Frequent deliveries of consistent products in large volumes usually mean that inventory turns over rapidly, which makes it possible to collect empty containers with each delivery. This minimizes the number of containers in storage and transport and minimizes the supply of containers that a company must purchase.
- Company-owned or "dedicated" vehicles. If companies involved in shipping and receiving use company-owned vehicles, there is typically no charge for return shipping. Producers may also work with trucking companies that have dedicated part or all of their fleet to making deliveries to or from a single customer.
- Small number of parties. Controlling the return of empty containers is easier when the number of parties handling containers is small; for example, when a bakery delivers directly to a grocery store without intermediate storage in a warehouse.
- Large or bulky products or those easily damaged. Large or bulky products, or those that are easily damaged, require bigger, more expensive one-time or limited-use containers, so the potential for long-term cost savings is greater.
Contact Paul Harding (801-536-4108) or Frances Bernards (801-536-0086) for further information on the content of this page.
