Every logistics manager knows that of all the costs associated with packaging, shipping, and materials handling, the costs related to expendable containers usually rank quite high.
Expendable containers can drain a significant amount of resources, costing a company a substantial amount of money over time, especially when compared to recyclable and reusable packaging.
A new eBook by Universal Package—titled Save $633,744 by Changing Your Container Type—dispels this idea. The eBook presents a detailed cost analysis of operations over five years, analyzing the impact of both returnable and expendable container types throughout the enterprise.
A cost analysis is also explored from the point of view of three considerations having to do with packaging, shipping, and material handling: cost, quality, and operational efficiency.
Cost, Quality, and Operational Efficiency
From a quality standpoint, expendable packs are often seen as a far cheaper option than returnable containers. Customers can simply throw away most expendable packs once they receive the order, so several manufacturers opt for containers that are of lower quality, and can be made of less durable materials that don’t need to last as long.
From a cost standpoint, expendable packages require a lower investment up-front than reusable containers. The initial investment usually incorporates a number of factors, such as the length of the shipping cycle (time spent in transit and at different facilities), and any cleaning or sorting operation. The type of container also matters, such as whether it’s standardized or specialized.
From the point of view of operational efficiency, expendable packaging is seen as adding far less to a company’s overall operational costs. Returnable packaging often requires you to keep track of a number of moving parts involved with shipping. And as such, you have to have staff to deal with these factors.
Cost Savings with Returnable Containers
Universal Package’s new eBook uses real data and cost analysis to show exactly how returnable containers can save a company far more over time than expendable containers. The eBook goes into remarkable detail using real dollar amounts for parts and units, and paints a clear picture of the cost savings achievable with returnable containers.