General saving advantages of returnable packaging;
• Reduces total cost
• Improves product protection
• Improves workers safety
• Improves housekeeping
• Improves space utilization
• Improves environmental impact
Reduces cost
Expendable packaging
is typically used once and then thrown away. The cost of this package is added into the product unit cost. Returnable packaging eliminates this recurring cost. If your packaging will remain constant for a long period, returnable containers and dunnage are frequently lower in annual cost than expendables.
The Initial investment will be much higher, however. Over a period of time, the cost of a returnable container system is typically much less than that of expendable one-way packaging.
Improves product protection
Returnable containers
are constructed to support heavy loads and to provide excellent resistance to impact, resulting in better protection of the product carried inside.
A well-designed returnable package can often provide more handling and storage protection then an expendable packaging.
Improves workers safety
Returnable containers and pallets provide handles and smooth grasping areas for ease of use and reduce worker injuries.
A returnable can often be fitted with material-handling features, like handles, that would not be economically feasible with an expendable container.
Improves housekeeping
Returnable packaging
eliminates dirt, dust, and the trash clean-up associated with expendable packaging.
Improves space utilization
Returnable packaging is typically built to support heavy loads and stack high in the warehouse and trailer, saving space and eliminating the damage from crushed product.
Improves environmental impact
Returnable packaging reduces the amount of trash going into the landfill. A package reused is one less package that will wind up in the solid waste stream. With fewer returnables going into landfills over a given period of time, the cost of packaging material disposal is greatly reduced.
An example;
1 returnable with a lifetime of 100 turns replaces 100 expendable containers.
Weight for the expendable; 25 kg
Weight for the returnable; 40 kg
Total packaging material weight saving
would be;
100 x 25 – 1 x 40 =2,460 Kg !!!
Important note
: The principal driving force since the 1980s has been pressure from environmental sources.
General disadvantages of returnable packaging;
• Large capital expense or high Initial Investment
• Increased transportation expense, mainly for the returns
• Cost for tracking and accounting and sometimes cleaning
• Storage space for empties
Large capital expense
Initial cost is probably the largest deterrent to the wide use of returnables. Savings over time have to be significant to justify the capital expense. On the other hand, by the experience we have had, Pay-Off-time for the Investments are normally <1 year, which means the Investment is quickly covered.
Increased transportation expense
Returnables have to be returned and the return trip is usually not free. The cost must be factored in. Our experience shows that the return cost is normally dominating over other costs. The degree of “collapsibility” or “nestability” of containers and dunnage is of key importance and increases with shipping distance.
Cost for tracking and accounting
Because returnable packaging is relatively expensive, it´s important that they don´t get lost in the return system. A loss rate of 10% losses per trip will give the result of complete system loss in just 10 cycles (10% loss x 10 cycles results in 100% loss). On top of this cleaning might sometimes be an issue.
Storage space for empties
It typically takes more space to store empty returnable packaging than to store expendable packaging due to strength and design.