Reasons why a company should switch to reusable packaging
Industrial packaging that can be reused multiple times is known as reusable packaging . Most reusable packaging is made from strong materials such as wood, metal, and plastic, such as pallets, ibc totes, cardboard boxes, trays, totes, and racks. Sustainable, cost-saving, and productivity are all major benefits of reusable packaging.
There is a clear distinction between reusable packaging and the product. Reusable packaging refers to the process by which packaging travels through its intended purpose and is then collected and reconditioned, enabling it to achieve another purpose. In addition to offering advantages to product manufacturers, their primary or end customers, and their supply chains, this system of recovery is also advantageous for the supply chain.
Critical to a modern business
To respond to rapidly changing environmental climates and operating conditions, we must take a serious look at material handling and reusable packaging. We have seen unprecedented changes in the earth’s natural systems over the past 50 years as a result of the global economy. A number of factors contribute to this accelerated change, including population growth, waste management, energy and water use, raw material consumption, real GDP, and transportation.
Approximately 33% of the waste not being handled in an environmentally appropriate manner is estimated to generate 2.01 billion tons of solid waste annually by 2050. The average American produces 5 pounds of trash per day. Companies financials and profit margins will continue to be stressed by waste inefficiencies and management.
As more initiatives are being implemented to reduce waste, pollution, and carbon emissions globally, and consumers are supporting sustainable actors, businesses are seeking ways to understand how their operations affect the environment in a more responsible manner. In order to remain competitive, supply chain operators must anticipate challenges such as disruption in inventory sourcing and understand how reusable packaging can meet today’s demands and tomorrow’s challenges.
Sustainability’s economic benefits
Being green in the eyes of customers is not the only reason why a company can improve and become more sustainable. When companies want to become more sustainable, they should stop thinking about it as a way to respond to a situation, but rather as a way to develop a new economic model or value proposition that allows for growth decoupled from adverse environmental impacts – while ensuring that the company can better withstand disruptions. In order to drive sustainable business operations and supply chain performance, it is imperative to invest in systems-based approaches to managing resources.
Towards achieving supreme efficiency, a circular economy reduces resources inputs and waste. A circular economy follows three principles: designing out waste, maximizing the use of products and materials, and regenerating natural ecosystems. As a result of this economic model, a business can grow while remaining resilient during disruptions – while protecting the environment and society.
A supply chain approach to reusable packaging
Throughout the world, the Covid-19 pandemic exposed fractures and vulnerabilities in supply chains. There was no doubt that material shortages and price spikes could cripple many industries.
Food and beverage industries are seeking greater control and visibility over their processing equipment and distribution of products, and this has contributed to the growth of the reusables industry.
Your supply chain can benefit from Reuseable Packaging in the following ways:
It is possible to inspect and repair or sanitize packaging between uses with reusable packaging models, ensuring optimal functionality and hygiene.
In addition to being made from recycled materials, a lot of RTPs are recyclable or repairable in the end of their life cycle, making them durable over disposable and resource-stable. In addition to these benefits, there are also:
A reduction in solid waste
CO2 emissions are lower
A reduction in energy consumption
Reduced water consumption
Cutting costs and saving money
Supply chains can experience reduced commodity prices in addition to a reduction in erratic commodity prices due to RTP’s sturdiness and steadiness, allowing for reuse and the ability to load more loads on trucks (savings on shipping). Further cost savings can be achieved by lowering per-use costs, improving labor efficiency, preserving perishable food quality, and automating warehouse management and inventory management.
As retailers use retail-ready reusables, they can increase revenue by placing more product on the same shelf or adding additional SKUs to the same space. The proliferation of SKUs is causing many supply chains to struggle, and reusable packaging can accelerate the flow of product through the supply chain as well as reduce downtime and costs.
Reusable packaging powered by technology
With ongoing developments in technology, the reuse industry is only going to get better when it comes to reusable transport products. Powered by smart and connected devices, reusable packaging is the perfect platform for tracking cases and items, performing predictive analytics, sharing data among partners, and seeing entire supply chains in real time.
With RP and IT partnering, supply chains now have end-to-end visibility into the movement of goods. Real-time tracking of shipments is enabled by asset tracking and IoT-enabled technology. Having this type of quality assurance and monitoring is crucial for perishables and the cold chain, giving manufacturers and consumers a deeper sense of trust.
There will be continued advancements in supply chain digitization. With its tough, rigid materials and longevity in mind, reusable transport packaging will continue to play a vital role in warehouse logistics, asset tracking, and supply chain management in the years to come.