DC Velocity - March 2009

who want to compare the costs of one-way corrugated packaging with reusable plastic packaging can use the Reusable Packaging Economic Calculator on his group’s Web site, choosereusables.org. Designed to help potential users figure out whether switching to reusables makes economic sense for them, the calculator factors in corrugated costs, dwell time (how long containers are held at various stages of the supply chain), cartons shipped annually, annual interest rate, return miles for reusables, and the expected replacement rate.

Klimko admits that it’s difficult to develop a similar calculator on the environmental side of the equation, given the large variety of products that would have to be included. But he does cite a 2004 study conducted by researchers at Franklin Associates for the then-RPCC that compared reusable plastic containers (RPCs) and disposable display-ready corrugated containers (DRCs) used for shipping fresh produce. Although the authors warn against using the study as the sole basis for comparing the two systems’ environmental attributes, the research showed that “on average across all 10 produce applications [studied], RPCs required 39 percent less total energy, produced 95 percent less total solid waste, and generated 29 percent less total greenhouse gas emissions than did DRCs for corresponding produce applications.”

Not for everyone

The benefits notwithstanding, Klimko acknowledges that returnables are not for everyone. “We’re not saying one solution is better than another,” he says. “You have to understand the drivers.”

What are the key drivers, then, that make returnables worth considering? To begin with, there’s volume. As Klimko points out, the companies most likely to see a swift return on their investment are those that use large numbers of containers and turn them around quickly. “You have to have some mass,” he says. “If you are shipping once a month from Maine to California, it’s not so good.” Klimko adds that another key driver is consistency in shipments. “[Returnables] work best for shippers that have fairly standardized order quantities or lot sizes.”

But even shippers who meet these criteria still have to justify the expense to the keepers of the corporate vault. That’s why most of the providers offer to help customers develop cost justification metrics, and some, like Worthington Steelpac, are developing financing options such as leasing to help reduce the initial investment.

In the meantime, vendors can take comfort from the fact that while the economy may have slipped into a deep recession, it has not come to a standstill. “You still have to be able to move and sell products,” Pieszala says.

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