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Reusable containers for logistics instead of piles of cardboard and plastic film garbage: By using the returnable packaging systems concept in logistics, it will probably be possible to fulfil the vision of having responsible-minded, resource-saving logistics in the very near future. After all, sustainable practices to prevent garbage have no longer just been a passing fashion at trendy cafés in large cities for some time. The driving force behind this is that 19.2 million metric tons of packaging materials were used in Germany alone in 2021 – and this was just in the retail and wholesale sector. About 5.5 million tons of this figure involved transport packaging, 68 percent of which, in turn, consisted of paper, cardboard or cartons.1 The additional quantities of packaging materials, which occurred industrially or on a large commercial scale, have not yet been taken into consideration here. It is true that most of the packaging materials are fed into recycling systems after use, but any type of single usage still has an effect on the environment.
Many logistics specialists and manufacturers are therefore focusing on alternatives like returnable packaging systems in logistics in this connection. Key questions that arise in this context are: Is it really worthwhile switching to more expensive reusable crates made of plastic? And what do the different stakeholders gain from this apart from the benefits for the environment?
Reuse rather than recycling
The European Union has repeatedly published directives that incorporate its growing ambitions to save packaging materials or even prevent them since 1994. According to the EU’s Packaging and Packaging Waste Regulation (PPWR), 65 percent of the weight of all packaging waste should be recycled and reused by the end of 2025 and that figure should rise to 70 percent by the end of 2030.2 Complying with this measure is not only an expensive business, but can become even more costly as a result of additional charges if corporations fail to fully meet these requirements. Then there is the additional factor that the general public may view paper, cardboard and cartons as an environmentally-friendly alternative, but large amounts of energy are consumed when manufacturing or even recycling cardboard boxes. The fact that just switching to cardboard will not be adequate in the long term is reflected in the EU’s waste hierarchy too.3 This defines the priorities that should be set when processing garbage. “1. Prevention, 2. Reuse, 3. Material Recycling, 4. Thermal Usage, 5. Disposal“ is the motto and it applies to all binding packaging materials that are in circulation in the European Union, both in industry, commerce or private households.
The momentum for switching to a circulatory system has therefore already been created in political terms, as the EU envisages in its current directive.
Why reusables can achieve more
In an ideal world, only packaging materials, which are so stable and robust that they can be used on more than one occasion, are in circulation within any closed-loop system.
In addition to the classic Euro pallets, which have been used to transport goods around the world since 1961, one example of standardized reusable containers for logistics is the GS1 Smart-Box, which has been available since 2021. However, other corporations like the packaging innovator, ‘hey circle,’ have specialized in designing and manufacturing shipment and transport packaging for returnable packaging systems in logistics. Thanks to having standard dimensions, reusable containers enable corporations to use automated solutions to sort or pick items and they can also boost efficiency. In this connection, it is beneficial to equip the containers with tracking technologies like RFID (Radio Frequency Identification) or QR codes. This not only makes it possible to track the units in a transparent manner, but also analyze procedures so that logistics processes can be optimized.
A sophisticated concept is required in order to feed back the reusable containers in logistics so that they can be used again and this must also regulate the return transport operations for the containers. In many cases, a deposit system is a viable option, where a deposit is due at the outset or in retrospect and this is then refunded when the container is handed back.
The purchasing costs for returnable packaging systems in logistics usually pay off, the higher the circulation rate is. According to one study conducted by the Fraunhofer Institute, this is only possible if reusable containers develop their full potential, i.e., providing a high reusage rate for the primary raw material. It reports that it is ideal if more than 95 percent can be reused – and this figure cannot normally be achieved with recycling because of material shrinkage. The principle of “reuse“ is preferable to “recycling” here too. If we compare all the energy and resource expenditure as well as the serviceable life of the containers, Fraunhofer argues that plastic containers with their tough materials provide better results in the end.4
What returnable packaging systems for logistics can achieve
Corporations are not only able to meet their responsibility for the environment with the help of using returnable packaging systems, but also benefit from a large number of other advantages. Here is a summary of them:
- A corporation’s overall footprint is improved because less garbage is created.
- Purchasing reusable containers is cheaper in the long term than investing in single-use packaging with a high proportion of recycling. This prevents any charges for non-compliance.
- When compared to PPP, for example, the reusable solutions have a significantly lower breakage rate. And if something does get damaged, it is easy to repair the items.
- Reusable packaging materials provide better protection for goods, as they are more robust and are better able to withstand wet conditions. Logistics processes are therefore handled much more cleanly than with packaging made of cardboard, which often leaves behind plenty of dust.
- However, the service life of reusable containers in logistics is also limited to a particular number of cycles. Recycling is the obvious choice at the end here too. If the containers are in circulation as part of a pool system, the final recycling rate is very high.
- Returnable packaging systems in logistics can provide greater efficiency, as they are ideally suitable for automation processes thanks to their standard sizes, their robustness and the possibility of using digital tracking.
Making full use of the opportunities presented by reusables
Various factors determine in which field and for which types of products returnable packaging systems for logistics can help achieve greater productivity. Using the reusable packaging materials within an enclosed system with clearly defined processes, locations and regular consignments works best of all.
From B2C…
There is already a strong demand for sustainable packaging solutions in the B2C sector, particularly in e-commerce. This is especially true in the fashion sector where customers often order several sizes or colors for articles – meaning that high numbers of returns are inevitable. Returnable packaging systems for logistics are not only ecologically beneficial and cost-efficient here, but also mean comfort for purchasing customers. In this case, they can use the container for their returns and thereby feed it back into the pool. And even if no article is returned, a customer can simply hand in the reusable container via the nearest mailbox or the nearest parcel center instead of tearing up a cardboard box after it has only been used once and disposing of it in the paper container. Customers’ readiness to cooperate and their awareness of environmental issues are crucial for the success of reusable containers for logistics.
…to B2B
However, the benefits of the model are not restricted to the fashion and e-commerce sectors. Returnable packaging systems for logistics, for example, are playing an increasingly important role in the B2B field and can be beneficial for in-house logistics and when making deliveries to business customers. Among other things, the warehousing segment at Rhenus has already been able to gain experience with handling products with the help of reusable containers for logistics. “We’ve been using this system in the B2B field for a very long time and already have a great deal of experience with returnable packaging materials. For example, we have a customer project with Thalia where we supply goods to its stores using reusable container systems. This is a much more efficient, cleaner and naturally more sustainable process,” says Dominik Schmidt, the Head of Sustainability at Rhenus Warehousing Solutions. When handling these kinds of projects, it is simpler to organize the recirculation of the containers, as regular deliveries to branches or business customers do not require any elaborate deposit systems. Logistics specialists can return the containers themselves and therefore make the logistics process more efficient. Dominik Schmidt and Dominik Moers, the Business Development Manager at ‘hey circle,’ share more about their experiences with innovative packaging solutions and returnable packaging systems in logistics in their Logistics People Talk podcast.
“The key to long-term success with reusables is that nationwide regulations are in place in the future, which pick up and encourage the benefits of returnable packaging systems,” says Dominik Schmidt. He adds, “Working alongside our customers, we’re already focusing even more on the possibilities of introducing more projects involving reusables and supporting the corporations in question with the relevant advice.”
Conclusion
Reducing packaging waste is an important step along the way towards achieving more sustainable logistics. According to the EU motto of preferring to prevent garbage rather than recycle materials, reusables represent a long-term solution to meet the conditions and in-house ambitions for greater sustainability. However, in addition to the advantages of reusable containers for logistics from a sustainability point of view, stakeholders can profit from numerous benefits that arise by using them. If they are utilized in the right fields, returnable packaging systems in logistics can already be a cost-efficient solution now. Thanks to their stability and homogeneity, reusable containers are predestined for automation processes and can provide greater optimization in logistics operations.
2 Source: European Parliament and Council Directive 94/62/EC of 20 December 1994 on packaging and packaging waste (https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=celex%3A31994L0062)
3 Source: Directive 2008/98/EC of the European Parliament and of the Council of 19 November 2008 (https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32008L0098)
4 Source: Fraunhofer-Publica: Reusable Plastic Crates vs. Single-Use Cardboard Boxes (https://publica-rest.fraunhofer.de/server/api/core/bitstreams/20b3024c-f4b0-42a5-b7b6-a59a337287f6/content)