As producers of reusable plastic packaging, the Logistic Packaging team is aware of the challenges our customers face when selecting and implementing new packaging systems. This is an important investment for every company, one which must add value to the logistic operations.
However, there are many factors which prevent companies from getting a good return on investment for their stock of reusable packaging materials. Some of these factors are outside of the control of the company. Others can be mitigated through careful planning and firm rules for tracking and monitoring packages every time they leave the company premises.
A Huge Market Facing Ever Increasing Challenges
A research paper by market research company Smithers Pira indicates that by 2022 the global market for reusable packages will reach a value of US $124.9 billion, with a rate of growth of 3.5% per year. Over 50% of this market is represented by plastic pallets and accessories for them (pallet lids, corner protectors).
Logistic Packaging is a part of this market and we are committed to our mission to assist our clients with professional, high quality plastic packages and advice to optimize their logistic operations. We know that you need a reliable stock of reusable packaging in order to store and ship your products safely.
In the ecommerce era speed is the number one requirement for the supply chain. This means that manufacturers and distributors must be always prepared with an adequate stock of merchandize and packages to fulfill every order.
In this global economic context, we identified these key challenges for our clients:
1. Increasing Costs Across the Distribution Channel
The ecommerce delivery model involves additional packing and handling. The supply chain is remodeled by the addition of local distribution points breaking the direct link between central warehouses and the end consumer.
The primary distributor is usually charged with these additional costs. To mitigate them, our clients should focus on creating and maintaining a stock of reusable packaging materials for order shipping: attached lid containers, nestable containers with lids, small foldable containers. These packages are reliable, compared to single use cardboard boxes, and can be used even for home deliveries, where several orders are carried by the courier and delivered one by one to clients living in the same area.
2. Reducing the Time Spent by Reusable Plastic Packaging in the Logistic Cycle
There is an increasing pressure on companies to improve the efficiency of their logistic operations. Customers demand same day or next day deliveries. In this context, suppliers need to have a very clear planning for their stock of reusable plastic packaging.
Logistic managers must know how many packages are in transit, how many are still at the client’s premises and how many are available in the warehouse. To speed up the logistic cycle, these companies should start automating as many of their operations as they can: order picking, container loading/unloading, etc. They can also opt for reusable packaging materials with RFID tags which can be monitored at every check point in transit.
3. Recovering the Packaging Materials
This is an issue of great concern. There are situations when clients who receive products in reusable plastic packaging delay their return. In other cases, the packaging is damaged during the unloading process.
One way to mitigate this issue is educating clients on the importance of reusable packaging in the supply chain. Another option is to add a small charge for each delivery, which will be repaid to the client when the packages are returned.
4. Reducing the Environmental Impact
Protecting the environment is not just a good idea, it is also regulated by law. Companies across all industries are required to reduce their environmental impact by decreasing the quantity of wastes they generate and creating efficient recycling programs.
The reusable packages produced by Logistic Packaging are made from recyclable materials. Some of our product ranges are made from recycled materials. We are committed to be a green company and help our clients comply with their environmental requirements.
5. Maximizing ROI per Packaging Unit
A plastic pallet or container sitting in the warehouse is not working towards achieving a full amortization of the investment. However, there are moments when reusable packaging materials are out of the logistic loop: during washing cycles and when they need to be repaired.
We help our clients keep their packages active in the logistic loop by designing and manufacturing sturdy and reliable reusable plastic packaging, adequate for intense and long term use. Our packages are easy to clean and sanitize. Some of our products have a modular build and can be easily repaired by changing the damaged parts.