How to Persuade Management that Returnable Packaging Is a Smart Investment

Some logistics specialists we talk to about upgrading their company’s packaging strategy come back with bad news: the management does not approve the investment. They believe that in a contracting economy, spending money on new packaging solutions is unnecessary. They want to focus on better ways to invest the budget. In this article, we will try to offer logistics professionals arguments to show their managers that returnable packaging is a smart investment.

Packaging Is the First Line of Defense for Products

Most products travel a lot before they end up in consumers’ home. They are manufactured in Asian countries, reach Europe by ship and then travel in trailers or by train to central warehouses. There, other trailers take then to local warehouses and, finally, distribution vans bring them to stores and supermarkets.

This journey can be fraught with dangers, from poor roads and inclement weather to accidents caused by human error. Returnable packaging made of sturdy plastic is what keeps these products safe and makes it possible to see them, neat and in good condition, on store shelves.

Returnable Packaging Makes Automated Handling Possible

We live in the era of speed and click to buy. Consumers are now more exigent than ever: they won’t wait for delivery for more than a few days and they want to receive their orders in pristine condition.

And this is why returnable packaging is a smart investment especially for online retailers. Fast ecommerce order processing is made possible by automated devices and equipment. They can seek products in warehouses, prepare orders, print and affix labels and get everything ready for loading faster than the most experienced employee.

However, these automated machines need modern plastic packaging, which are designed with various features that facilitate this type of handling. Older packaging will break down, block the entire automated process and result in delays in order fulfillment.

Reusable Packaging Maximizes the Use of Space in Trailer and Warehouse

Reusable plastic stackable containers have standard footprints and various optional dividers and compartments that allow companies to ship more products per container. Also, EURO and ISO plastic pallets are easy to stack neatly into a trailer or on warehouse shelves, reducing the total volume needed for a specific quantity of goods.

This means that the company will pay less for local or international shipping and find new ways to utilize storage space in warehouses.

Reusable Packaging Keeps Primary Packaging Intact

For many consumer products, primary packaging is also a marketing tool. Its size, shape, colors and lettering are the result of careful market studies and graphic design work. Thus, it is extremely important to get products in stores in perfect condition – and this means their primary packaging, as well. There should be no stain, dent or any other blemish on it.

To achieve this goal, your company must count on reliable plastic packaging. This is yet another reason that makes returnable packaging a smart investment. Your sales can take a hit or soar high depending on the condition of the products delivered after a long and difficult journey.

Returnable Packaging Is Recyclable

All businesses must be aware of their impact on the environment and try to reduce it. This is no longer a progressive and innovative thing to do, but a requirement. Consumers tax companies that are not environmentally responsible by refusing to buy from them.

Here is why reusable packaging is a smart investment. First, it has a longer useful life than other packaging solution (wood, cardboard). Second, it can be recycled. Indeed, some of the packaging materials we offer clients are already made from recycled materials.

Returnable Packaging Has a Low Total Cost of Ownership

Your financial manager definitely knows about TCO. It represents the total amount of money spent while owning and using a fixed asset. If an asset depreciates quickly, before achieving the return of investment (ROI), then its TCO is high.

Single use or unreliable packages have a very high total cost of ownership, despite the fact that their initial purchase price is small. By contrast, returnable packaging has a higher initial price, but you will achieve full ROI and calculate a low TCO when it is finally written off.

If you need more arguments to convince management that reusable packaging is a smart investment, get in touch with our logistics experts! Send us an email and let us start discussing the ways in which we can help your company!

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