Why Reusable Systems in Your Supply Chain Are Important
Reusable packaging systems tackle some of the planet’s most pressing issues—climate change, waste, pollution, and resource depletion—and become the cornerstone for sustainable economic growth. This growth is fueled by circularity, innovation, and lasting value creation.
“The World Economic Forum and the Ellen MacArthur Foundation report that 10% of the reuse potential in plastic packaging is from transport packaging (labeled as large rigid containers) and from dunnage material like pallet wraps, which often can be eliminated with reusable products.”
New Plastics Economy
The modern marketplace demands agility and environmental responsibility. Companies are turning to a game-changing solution: reusable packaging systems. These systems streamline operations and deliver impactful benefits for the planet and the bottom line.
What are Reusable Packaging Systems?
Reusable packaging systems are an innovative approach to packaging and transporting goods. Unlike traditional single-use packaging, these systems utilize durable containers, pallets, or other packaging materials that can be used multiple times before reaching the end of their lifecycle. They’re designed to withstand repeated use, cleaning, and transportation, making them a more sustainable and cost-effective solution in the long run.
Benefits of Reusable Packaging Systems
- Sustainability and Environmental Impact
The environmental advantages of reusable systems are compelling. Reusable packaging significantly reduces waste, energy consumption, and greenhouse gas emissions. A study by Franklin Associates found that Reusable Plastic Containers (RPCs) produced 31% less global warming potential and 86% less solid waste compared to single-use corrugated containers. This aligns with broader sustainability goals as companies seek to minimize their ecological footprint.
“Globally, replacing just 20% of single-use plastic packaging with reusable alternatives offers an opportunity worth at least USD 10 billion. Reuse models can bring major user and business benefits, including superior user experiences, user insights, brand loyalty, and cost savings.”
Ellen MacArthur Foundation, Reuse – rethinking packaging
Reusable systems also contribute to reducing resource depletion. “Reusable packaging will form the foundation for lasting economic growth driven by circular principles, innovation, and value creation,” the Ellen MacArthur Foundation emphasizes. By adopting reusable systems, companies can transition towards a circular economy where materials are kept in use for as long as possible, thereby reducing the need for new raw materials.
- Economic Advantages
From a financial perspective, reusable systems present several cost-saving opportunities. Despite a higher initial investment, reusable packaging often proves more economical over time due to its durability and extended lifespan.
Even though a high-performance reusable packaging asset may be more expensive to produce than its equivalent disposable packaging, its constant reuse over an extended time is typically significantly more economical.
These savings are realized through reduced packaging material costs, lower waste management expenses, and minimized labor costs associated with handling disposable packaging.
Additionally, reusable systems enhance supply chain resilience. They provide stability against volatile commodity prices, as companies are less dependent on raw material markets. This was highlighted during the recent global supply chain disruptions, where businesses using reusable packaging experienced fewer operational interruptions.
- Improved Supply Chain Visibility and Efficiency
Reusable systems also offer enhanced supply chain visibility and efficiency. By integrating tracking technologies such as RFID* tags and GPS, companies can gain real-time insights into the location and condition of their assets. This improved visibility helps optimize inventory management, reduce loss and theft, and ensure timely deliveries.
Supply chain teams today need to know where their goods and raw materials are. Visibility plays a critical role in building resilient supply chains today and tomorrow. This visibility is crucial in dynamic supply chains, where timely and accurate information can significantly improve operational efficiency.
- Enhanced Product Protection and Quality
Reusable packaging is typically more robust than its single-use counterparts, offering better protection for goods during transit. This durability reduces the risk of damage, leading to lower product shrinkage and better product quality upon delivery. Reusable packaging can also provide better ventilation for perishable goods, enhancing their shelf life and reducing food waste.
Actually, some examples reveal dramatic reductions in product damage with reusable transport packaging. In some cases, damage rates plummet by over 80%.
For instance, IFCO reports their reusable plastic containers (RPCs) can minimize packaging-related damage in the fresh produce supply chain by up to 98%. Similarly, Tosca’s Egg RPCs have been shown to cut product shrinkage by 50%. These benefits translate to significant cost savings for retailers, as they experience less product loss and food waste throughout their supply chain.
- Supporting Technological Integration
As supply chains become increasingly automated, the consistent quality and specifications of reusable packaging make them ideal for integration with automated systems. Reusable assets support smoother operations in automated warehouses, reducing the need for manual handling and the associated labor costs. Walmart’s move towards automation, where 65% of stores will be serviced by automated supply chains by 2026, underscores the growing importance of integrating reusable systems with advanced technologies.
The Role of Design in a Reuse System
Design plays a critical role in the effectiveness and efficiency of reusable systems. Well-designed reusable packaging must be durable, easy to clean, and versatile enough to handle various types of products. This includes ergonomic features that facilitate handling and stacking and materials that withstand repeated use and sanitization processes without degrading.
“Innovative design is at the heart of developing reusable systems that are functional and sustainable from cradle to cradle.”
Eunji Park – Executive Director Indeed Innovation
Furthermore, the design of reusable systems must also consider end-of-life scenarios. Integrating design elements that enable easy disassembly and recycling ensures that the materials can be repurposed at the end of their lifecycle, contributing to the circular economy.
Closing Words
Incorporating reusable systems in your supply chain it’s a strategic imperative for modern businesses. These systems offer a multitude of benefits, from reducing environmental impact and operational costs to enhancing supply chain visibility and product quality. As companies continue to innovate and seek sustainable growth, the role of reusable systems will undoubtedly become more significant.
For more information on the benefits of reusable systems in supply chains, visit our services page. Additionally, insights into the economic impact of reusable packaging can be found in the Ellen MacArthur Foundation’s report on rethinking packaging.
Ready to make the switch to reusable packaging systems? Our team can help you develop a customized solution that meets your specific needs and maximizes your bottom line. Contact us for a consultation!
* RFID (Radio Frequency IDentification): A form of wireless communication that incorporates electromagnetic fields to identify and track tags attached to objects automatically. The tags contain electronically stored information.
