Case Study: Autoliv

Autoliv, a worldwide leader in automotive safety, specializes in the manufacture of airbags at its Ogden facility. The company wanted to eliminate waste, decrease the risk of product damage, and significantly reduce other costs associated with the use of wood pallets and cardboard boxes. In 1994, Autoliv made the switch to reusable containers using collapsible and nestable containers of all sizes. The collapsible or stackable containers take up less space—as much as 5 to 1 density—on the return trip to the factory. To improve efficiency, Autoliv also color codes its reusable containers, which helps conveyance personnel identify containers.

Due to the frequent reuse of the containers, Autoliv's return on investment (ROI) occurred within three months. As an added benefit, with reusable containers, workers are less likely to suffer from repetitive stress injuries associated with opening and taping cardboard boxes.