Returnable Packaging Material

Packing in Industry 

The packaging in the industry plays a crucial role, adding value to various manufacturing sectors including agriculture, pharma, retail, FMCG and so on.  

Global cellular company, Apple saved 5 billion pounds (over Rs 50,000 crore) by just removing the charging brick from the box. The company claiming that it will provide a positive impact on the carbon footprint. However, the company managed to ship almost 70 percent more units in the same supplying carrier. This has led to further savings on the part of the company.  

Managing the space and investments over packing of products and goods for industry is ramping day by day.  

Why returnable packaging material? 

• In business solution, packaging is very important which manages the final product reaching safe to the customer place without any damage. 
• Returnable Packaging materials are highly focused on the Transportation of materials. This provides the ability to manage end-to-end process from production till delivering it to the end customer.  
• Returnable Packaging materials works with the help of Transportation Management (TM) and Extended Warehouse Management (EWM) for hassle-free freight movement. 

What are Returnable packing materials?

• Returnable packaging materials (RTP) are materials made of metal, plastic, or wood. Those are designed to withstand the rough handling of a typical logistics system.  
• The process begins with a ‘returnable pack’ – which is loaded in a vehicle that will reach the destination, unload the finished product and return the RTP. 
• RTP materials can be utilized by any industry with wide variety of shapes, sizes, and material structures. Few of the RTP materials are Bulk Containers, steel racks, sleeve packs, boxes, and totes. 
•  RTP is typically used by manufacturers/processors and their suppliers/customers in a well-organized supply chain, with very tightly managed shipping loops. 

Milk-Run Process followed in Logistics Service

• Mode of transport may be of any kind like road, rail, ocean liner, and airplane, returns back the RTP materials to the manufacturer in order to pick more products to the destination, that is called “milk run” in logistics terms.  
• A variety of industries use milk runs process; those are a perfect fit for using RTP.  

Importance of RTP

• The capital spent on disposable packaging every time will be reduced by RTP materials by the concept of reusing the materials.  
• By using the RTP materials the company can save, the money spent on one-time packing materials for the finished goods. 
• Companies can make sure that goods reaching the customer with added protection. 

How RTP works?

• RTP materials placed at the customer’s location which are property of vendor company. The customer has to pay for the RTP materials if they fail to return the RTP materials within a specific period of time.  
• The RTP materials are designed to be more economic and include features like, handles to protect workers while lifting them. They also provide better protection for the product due to the durability of the RTP material. 

Solution Offered in SAP for RTP: 

Supply chain Management activities concerns on operational efficiency as its top priority which can be achieved with organized, well-planned reusable and RTP materials through ERP software like SAP.

• The main reasons for using the reusable shipping containers are 

1. lower packaging costs 
2. increased protection of goods and labours 
3. Reduced packaging waste 

• Monitoring and controlling finished products are easy with the help of Pallet Numbering, lot size, Display loading, appointment list, Transportation unit overview, Maintain the yard transportation unit. 

Conclusion:

With the help of the RTP, the company benefits the quality and quantitative deliverables of the goods. It reduces a considerable amount of time and cost in the inspection process. Thus, implementing the RTP in an organization helps to control waste management by reducing the money spent on one-time packing materials.