How returnable packaging implementation will help the supplier to increase proficiency of their supply chain, the returnable packaging will boost the speed of their supplies or not.« Back to Questions List

Keeping a generalised view, returnable packaging is oriented with multiple approaches towards optimizing the supply chain under the following headers –

1. Cost Benefit – The returnable solution converts multiple investments on regular packaging and wooden pallets into a one-time investment, where the solution can have a life cycle from 2-4 years. Along with this cost saving, the returnable packaging, also reduces scrap dumping and the empty packaging keeps moving back in a cycle from OEM to the supplier. The same set of packaging, keeping a buffer, can also be utilized for movement from multiple suppliers to multiple destinations. Hence in the same cost, multiple transits can be timed and managed.

2. Speedy Operations – Since, the returnable packaging solutions are more flexible towards handling, it speeden ups the operations. It removes time wastage on opening covered nailed wooden boxes, as these can be hinged and opened up directly. The solutions can also have wheels and hence can be directly dragged as trolleys to operation areas reducing the waiting time for movement through forklifts. These are hence easy to load/unload.

3. Green SCM – Since, it eradicates the usage of wooden packaging, it reduces the scrap dumping and space wastage. The carbon footprint is reduced to an effective level, making the supply chain greener. The returnable packaging can also be made stackable which there by reduces space utilisation by empty bins.

Supplier is the one who is responsible for producing the raw material/ component needed to an OEM for producing finished goods.

Implementing returnable packaging has following advantages which not only increase proficiency but add various value to supply chain.

a. The component packed in returnable packaging adds an extra layer of safety to the component with adhering to the green supply chain, reducing carbon footprints.

b. It reduces the time of packaging as customized and standard solutions are implemented as per customer requirements. This time saving will boost the supply in faster time.

c. In Carton and wooden boxes, there is a huge risk of damage to the box which in turn can also damage the component, also it has safety concerns while unloading of the boxes. All mentioned issues are rectified in returnable packaging.

d. In the race to be on top, every aspect is looked now. Suppliers already implemented returnable packaging will have an edge over others while gaining more business volumes with similar OEM or while targeting a new OEM.
e. Returnable packaging assets are stackable and collapsible which leads to space savings, optimization of transport thus adding value to the supply chain.

Returnable packaging reduces the packaging cost over the life cycle of packaging asset. As the returnable packaging are made up of steel or PP and also customized as per the product, it reduces product damage. These packaging are specially designed for ease of handling and transportation so are faster, safer and more efficient.