Reusable Packaging 101

Presented by the Reusable Packaging Association

Property of the Reusable Packaging Association | 1100 N. Glebe Road, Suite 1010 | Arlington, VA 22201 | 703.224.8284 | www.reusables.org

Let’s Begin

What is Reusable Packaging?

 Reusable Packaging is comprised of pallets, containers, wraps, bands and dunnage designed for reuse within a supply chain

Reusable Packaging is not:

– Single or limited use packaging – Non transport packaging Property of the Reusable Packaging Association | 1100 N. Glebe Road, Suite 1010 | Arlington, VA 22201 | 703.224.8284 | www.reusables.org

Many Benefits of Reusables

Financial Environmental Health &Safety Property of the Reusable Packaging Association | 1100 N. Glebe Road, Suite 1010 | Arlington, VA 22201 | 703.224.8284 | www.reusables.org

Financial Benefits

Operating Expense Reduction

• Standardized packaging streamlines the supply chain • Reduced labor in back of the stores or line side • Reduced total freight cost • Material substitution

Revenue Enhancement

• Merchandising at store level • Elimination of white space at the plant level allowing more units sold

Capital Utilization

• Pooling/rental of reusables Property of the Reusable Packaging Association | 1100 N. Glebe Road, Suite 1010 | Arlington, VA 22201 | 703.224.8284 | www.reusables.org

Environmental Benefits of Reusables

Reusable transport packaging containers • generate 29% less total greenhouse gas emissions; • require 39% less total energy; and • produce 95% less total solid waste on average.

See Reusables 101 page 9

Property of the Reusable Packaging Association | 1100 N. Glebe Road, Suite 1010 | Arlington, VA 22201 | 703.224.8284 | www.reusables.org

Health & Safety Benefits

• Reusable totes can

reduce injury from overfilling

non-uniform boxes.

• Reusable pallets can

reduce injury from broken pallet debris

hazards such as splinters, nails and wood on the floor.

• Ergonomically designed reusable totes can reduce

bending, lifting and handling injuries

. • Reusable intermediate containers can

reduce injuries from rolling drums and chime removal

Property of the Reusable Packaging Association | 1100 N. Glebe Road, Suite 1010 | Arlington, VA 22201 | 703.224.8284 | www.reusables.org

Reusable Packaging Event Cycle

The reusable packaging event cycle occurs in several phases Phase 1 R.P.

Concept Understanding Phase 2 R.P.

Concept Acceptance Phase 3 R.P.

Concept Implementation Phase 4 R.P.

Concept Refinement • • • • Cost Analysis Case Studies Financial Alternatives Asset Management • • • • Stakeholder Alignment Level of Outsourcing Financial Decision Reusable Products • • • Training Packaging Trials Operations Execution • • • • Cost Improvements New Training Benchmarking New Reusable Products Property of the Reusable Packaging Association | 1100 N. Glebe Road, Suite 1010 | Arlington, VA 22201 | 703.224.8284 | www.reusables.org

When Should Reusable Packaging be Considered?

          High volumes of solid waste Recurring product damage or risk of damage Expensive expendable packaging or recurring single-use packaging costs Under-utilized trailer space in transportation Inefficient storage/warehouse space Worker safety or ergonomic issues Significant need for cleanliness/hygiene Need for unitization Multiple component parts or complicated assembly operations Frequent trips Property of the Reusable Packaging Association | 1100 N. Glebe Road, Suite 1010 | Arlington, VA 22201 | 703.224.8284 | www.reusables.org

Attributes of Good Opportunities

Property of the Reusable Packaging Association | 1100 N. Glebe Road, Suite 1010 | Arlington, VA 22201 | 703.224.8284 | www.reusables.org

Attributes of Good Opportunities

Property of the Reusable Packaging Association | 1100 N. Glebe Road, Suite 1010 | Arlington, VA 22201 | 703.224.8284 | www.reusables.org

Attributes of Good Opportunities

Property of the Reusable Packaging Association | 1100 N. Glebe Road, Suite 1010 | Arlington, VA 22201 | 703.224.8284 | www.reusables.org

Things to Consider

What is the best reusable product solution for your application?

• What’s the return-on-investment?

• What is the environmental impact?

How will you manage the packaging logistics

?

• Will you buy or lease?

• Where/how will we store them?

• How will we get them back?

What type of services will you need?

• Do we need to clean them?

• How will we track them?

Property of the Reusable Packaging Association | 1100 N. Glebe Road, Suite 1010 | Arlington, VA 22201 | 703.224.8284 | www.reusables.org

Factors Affecting Logistics Costs

• Geography of return logistics • Number end users • Dispersion of end users • Style of Reusable equipment • Degree of sanitization required after each use Property of the Reusable Packaging Association | 1100 N. Glebe Road, Suite 1010 | Arlington, VA 22201 | 703.224.8284 | www.reusables.org

Financing Options

Property of the Reusable Packaging Association | 1100 N. Glebe Road, Suite 1010 | Arlington, VA 22201 | 703.224.8284 | www.reusables.org

Financing Options

OWNERSHIP

• Purchase (Cash) • Financing/Capital Lease

or

THIRD PARTY

• Rental/Operating Lease • Pooling (rental w/ services) Property of the Reusable Packaging Association | 1100 N. Glebe Road, Suite 1010 | Arlington, VA 22201 | 703.224.8284 | www.reusables.org

Decision Checklist

Program life Secondary use Maintenance requirements In-house capabilities Cash availability Supply chain complexity Adoption requirements Rent/Pool

Short Term Low Heavy Weak Limited Complex Weak

Own

Long Term High Light Strong Abundant Simple Strong Property of the Reusable Packaging Association | 1100 N. Glebe Road, Suite 1010 | Arlington, VA 22201 | 703.224.8284 | www.reusables.org

Asset Tracking Options

Property of the Reusable Packaging Association | 1100 N. Glebe Road, Suite 1010 | Arlington, VA 22201 | 703.224.8284 | www.reusables.org

Tracking: If you can’t measure it, You can’t manage it… Property of the Reusable Packaging Association | 1100 N. Glebe Road, Suite 1010 | Arlington, VA 22201 | 703.224.8284 | www.reusables.org

Tracking Misconceptions…

C OSTLY $ $ $ $ C OMPLACENCY VS . C OMPLIANCE I MPACT ON P RODUCTION /H IGHLY M ANUAL “P ILE ON -T ECHNOLOGY ”

Property of the Reusable Packaging Association | 1100 N. Glebe Road, Suite 1010 | Arlington, VA 22201 | 703.224.8284 | www.reusables.org

What Makes Dollars and Sense?

Aggregate Tracking

Barcode

Individual Tracking

RFID

Property of the Reusable Packaging Association | 1100 N. Glebe Road, Suite 1010 | Arlington, VA 22201 | 703.224.8284 | www.reusables.org

Tracking Technologies

Barcoding (Linear, 2D, 3D) Passive RFID Active RFID / Semi-Passive GPS, Cellular, WiFi Property of the Reusable Packaging Association | 1100 N. Glebe Road, Suite 1010 | Arlington, VA 22201 | 703.224.8284 | www.reusables.org

Implementation Best Practices

Analyze

 Review your product’s life cycle  Identify product load characteristics: Type (boxes/cases, powder, liquid, etc.), Temperature requirements, Dimensions and weight, Value, Load distribution.

 Determine level of cleanliness needed

Select/Design

 Determine required footprint and size: GMA, Euro-sized  Determine automated equipment interface

Justify

  Conduct a financial anaylsis Compare environmental impacts of packaging alternatives

Implement/Execute

 Get all stakeholders involved (material handling, maintenance, etc.)   Conduct a small trial Train, train, train

Continuous Improvement

 Explore new materials  Add facilities and expand usage Property of the Reusable Packaging Association | 1100 N. Glebe Road, Suite 1010 | Arlington, VA 22201 | 703.224.8284 | www.reusables.org

Resources for You

Reusable Packaging Association is made of up leaders in the industry and will help you find resources to learn more about reusable packaging.

Visit www.reusables.org

to learn more.

Property of the Reusable Packaging Association | 1100 N. Glebe Road, Suite 1010 | Arlington, VA 22201 | 703.224.8284 | www.reusables.org