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Key Steps: Converting to Reusable Transport Packaging
Step 2:
Compare Costs of One-Time vs. Reusable Transport Packaging
Follow these tips from the Reusable Packaging Association to compare the costs for one-time or limited-use packaging with the total costs of reusable transport packaging, including any costs for reverse logistics
(transporting empty containers back to your facility):
- Identify potential products. Develop a list of products that are similar in size, shape, and weight that are frequently shipped in large volumes.
- Estimate one-time and limited-use transport packaging costs. Estimate current costs of using one-time and limited-use packaging. Include costs to purchase, store, handle, and dispose of the packaging.
- Develop a geographical report. Develop a geographical report by identifying shipping and delivery points. Evaluate the possibility of working with suppliers to make a switch to reusable transport packaging.
Review reusable shipping container options and costs. Reusable transport packaging is available with various features that facilitate shipping, handling, and storage, including:
- Collapsibility: The walls of the container are designed to fold down when not in use.
- Nestability: Empty containers can be placed inside each other easily.
- Stackability: Tops and bottoms are designed to lock into one another to allow for greater stacking heights.
- Develop a preliminary cost comparison. Based on the information gathered in the previous steps, develop a cost comparison between one-time or limited-use packaging and reusable transport packaging. Consider using the Reusable Packaging Association's model to compare the basic cost differences between one-time and reusable transport packaging. The model uses basic assumptions and requires you to input various cost components, such as: the purchase price of the containers, dwell time in days that a container will be held at various stages in the distribution chain, number of containers shipped in a given year, internal rate of return, and the number of miles that an empty container will travel to return to your facility (return logistics).
Contact Paul Harding (801-536-4108) or Frances Bernards (801-536-0086) for further information on the content of this page.
