Guest Columns

Perspective:
Dairy Packaging

Converting to reusable totes, pallets to maximize success

Bob Klimko

Bob Klimko is director of marketing development at ORBIS Corp., where he collaborates with world-class companies to solve their supply chain issues and reduce their environmental impact. He is a guest columnist for this week’s issue of Cheese Market News®.

“We are seeing an extraordinary impact on global supply chains … to really change the way they tackle these disruptions, companies need to change the way they work and think. Companies need to think more sustainably and more locally.”
-Omera Khan, professor of supply chain management, Royal Holloway University

Professor Kahn’s quote will likely resonate both within and beyond the cheese and dairy, and deli business. Companies from multiple industries are seeking ways to achieve a sustainable supply chain and drive what we refer to as the circular economy — a model of production and consumption that aims to reduce waste, drive supply chain-wide cost savings, improve efficiency, standardize workflow and optimize transportation. The question, of course, remains: How?

One key approach is the use and understanding of reusable transport packaging systems. Dairies in particular need reusable packaging solutions that streamline production, accelerate distribution processes and reduce labor touchpoints. In this article, I will explore the efficiencies and advantages of reusable transport packaging; keys to success and how to define it; and how to overcome obstacles when converting to reusable transport product solutions.

• Begin with a thoughtful plan

When exploring the efficiencies and advantages of reusable transport packaging, it’s imperative to begin with a thoughtful plan that incorporates the following steps:

1. Analyze — The process should begin with a careful analysis of your entire operation and supply chain. How are we moving and protecting our products currently? What equipment does our current packaging interact with?

2. Prove — After discovering the specific needs of the entire operation, plan and design a comprehensive reusable transport packaging program to optimize the supply chain whenever and wherever possible. What reusable solutions are available? How do I compare these options?

3. Design — Determine how packaging and related support services translate into measurable efficiencies and return on investment (ROI) (document metrics such as time, cost reductions, safety, cleanliness and warehouse utilization, greenhouse gas emissions, and solid waste and energy usage). What are the economic and environmental benefits and impacts of implementing a reusable transport packaging system?

4. Implement — Once the reusable packaging program is planned, the specific packaging is delivered and integrated seamlessly. How do I implement a reusable system and what are the considerations?

5. Evolve — New product launches, quality improvements, production process changes and new labor practices may require more innovative packaging. Experienced packaging providers will continually re-evaluate future optimization opportunities. How do I maintain and expand an optimized reusable transport packaging system?

• Recognize what success looks like and how you intend to achieve it

If our experience with COVID-19 and its impact on the supply chain has taught us anything, it’s that disruptions are the new normal, and the ability to be resilient and flexible is crucial. Customers expect more convenience and speed, and companies are more open to change than ever, seeking ways to mitigate disruption and add operational efficiency to their plants and distribution centers. Products need to move faster, safer and more cost-effectively, which presents an opportunity for converting to reusable transport products like containers, pallets and bulk handling solutions.

A key starting point is determining what success looks like for your supply chain. Perhaps it means less downtime or reduced product damage and waste. Or maybe a faster load/unload or picking and fulfillment will serve you and your customers well.

Analyzing data and, in turn, utilizing ROI and savings calculators, can help you uncover some of these success metrics. Life-cycle data enables you to compare reusable and single-use packaging and calculate the environmental impact in terms of solid waste, energy usage and greenhouse gas emissions. This unbiased analysis will provide you with measurable data as you consider the switch to reusables.

• Test and refine your program

Most importantly, be open, flexible and willing to adjust as needed. Begin with the end in mind, with the aim of creating zero-landfill facilities and returning obsolete packaging to your product provider for reprocessing into other useful products. Also, seek ways to obtain cash or credit that can be put toward future purchases.

• Overcome obstacles with data

We all know change can be hard, and when launching any new program, encountering obstacles is par for the course. But you can overcome these obstacles with the data I’ve mentioned in this article. Have the ROI data on hand to support the investment and remember to close the loop as to getting your packaging back, asking your provider about asset management, cleaning, tracking, repair and replenishment.

In conclusion, converting to a reusable transport packaging system offers a means for your company to streamline production, accelerate distribution processes and reduce labor touchpoints. Developing a comprehensive program requires thoughtful planning and the involvement of stakeholders who can serve as your champions. Yet the time investment will be well spent as you meet both short-term business and longer-term sustainability goals.

CMN

The views expressed by CMN’s guest columnists are their own opinions and do not necessarily reflect those of Cheese Market News®.

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