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Location: Pack Place
Title: Scaling Reuse: How Packaging Design Must Change
Event Type: Show Floor Education
CPG Packaging has been designed for 1-way shipments. This is a problem when it comes to reuse economics as reverse logistics costs are a major barrier to scale. I will show a few case studies of the problem and how packaging can be redesigned to solve the issue. For example, a peanut butter manufacturer sends out a pallet of peanut butter with 4,000 bottles on it. The value of the pallet going out is $10K, because it includes the value of the peanut butter and packaging. But on the way back, the value is only $1,750 or the value of the packaging alone. If it costs $250 to ship a pallet back to the manufacturer, then the cost of reverse shipping alone is $0.06 per bottle based on current designs. However, if the packaging was redesigned to be nestable, you could fit 20K empty bottles onto a pallet for shipping back to the manufacturer and the cost per unit would drop to only $0.01 per unit. I will show a range of CPG packages that are redesigned for reuse, considering these new reuse economics.
