The Benefits of Moving to Reusable Packaging
There are many distinct advantages when it comes to moving to a reusable packaging platform. From cost savings to platform standardization, this article will illustrate the benefits that reusable packaging can have on a company’s supply chain.
Platform Standardization: By standardizing the packaging that is used within your supply chain, you can rest assured that the assets you receive will be optimal for your needs. Ongweoweh works with our customers to create a specific asset that prioritizes their specific needs. This includes wood pallets, plastic pallets, crates, dunnage, and packaging material.
Quality is also a large advantage that reusable packaging has over one-time use packaging. Reusable packaging has shown to reduce physical damage to products during transit and manufacture, as well as easier loading and unloading when moving between facilities.
Avoidance of Capital Expenditure: This can be a very large advantage when it comes to a company’s balance sheet. Many rental programs that feature reusable packaging can avoid a capital expenditure on a company’s books. In today’s economy, capital expenditures are very tight and the move to a rental program could allow for these expenses to become operating expenditures in which funds are much more easily available. This can mainly be done by utilizing a third-party management company who would own the assets and rent them to their customer(s).
Cost Savings: One of the biggest benefits of utilizing reusable packaging is it is often accompanied by a significant cost savings. Rather than purchasing a commodity outright, a rental program allows for the commodity to be reused several times as long as retrieval is possible.
On top of potential cost savings, a rental program featuring reusable packaging can fix rates for longer periods of time. Especially in the case of wooden packaging, whose market can be extremely volatile depending on several environmental and political topics, including availability and tariffs.
Environmental Impact: In a time where many companies are focusing on more “green” initiatives and landfill diversion, reusable packaging and pooling plays a major role in allowing them to meet their goals. Although most reusable packaging requires more resources upon initial manufacture, they require much fewer resources on a per-use basis over its lifespan. This includes energy required for freight as well as washing of the asset.
In the same vein as environmental impacts, the use of reusable packaging will also result in lower disposal fees and less labor needed for material handling for the disposing. This can be a secondary level of cost avoidance for any company trying to lower costs.
Although it does take research and examining a company’s supply chain data, rental and pooling programs can have a large positive impact on a company’s bottom line. If your company is looking for a solution to your packaging needs, Ongweoweh will help you every step of the way.
By: Chris VanSlyke, Ongweoweh Pooling