| By CurTec |
| Friday, 09 October 2009 |
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On the average supply chain, packaging costs represent a significant part. Often triggered by environmental issues companies consider a switch to re-usable packaging.
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Looking at the feasibility in detail it turns out that what's good for the environment can also be good for business!
- Elimination of the high purchase and disposal costs of one-way packaging:
- Safer ergonomics and lower labour costs !
- Product protection and lower product damage costs
- Smoother flow of goods through
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distribution channels
- Higher worker safety
- Serious environmental benefits
Typically, reusable packaging has a higher initial cost than one-way packaging, because it is designed and manufactured with more durable, longer-lasting materials.
Other costs may include reverse logistics (return transport of empty packaging), maintenance and repair, cleaning and depreciation. However, these costs are offset by the saving opportunities.
How often you reuse over the extended useful life of the packaging determines your return on investment (ROI) for the higher cost
of returnable transport packaging. The greater the frequency of re-use,
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the faster the return on investment.
Is reusable packaging right for your company?
Generally, a company will make the switch to reusable packaging when it is less expensive than one-way packaging. CurTec developed a cost comparison model that can help you get first indications of potential savings from switching to re-usables.
For more informationcontact CurTec: curtec.en@curtec.com
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