Think Outside the Box

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Think Outside the Box
Reusable Transport Packaging Benefits to
Business Communities

Justin Lehrer CRRA Annual Conference August 5,
2008
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Origin of Campaign

• Top 5 Materials From Businesses Going To
  Landfills
• Food waste
• Other paper
• Uncoated Cardboard
• Unpainted wood
• Film plastics

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Reusable Packaging Defined

• Products Reusable pallets, hand-held
  containers, bulk containers, racks
• Made of Plastic, wood, metal and others
• Services Pooling, logistics, cleaning and asset
  tracking

Bulk Containers
Reusable Pallets
Hand-Held Containers
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Benefits to Customers

• Reduce costs (waste materials)
• Improve efficiency
• Improve worker safety/ergonomics
• Improve Product protection
• Longer useful life of packaging
• Lasting operational change
• Corporate citizenship sustainability

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Environmental Benefits

• Life Cycle Study validates environmental impact
  of reusables
• Require 39 less energy
• Produce 95 less total solid waste
• Generate 29 less total GHG emissions
• Franklin October 2004 study life cycle
  inventory of Reusable Plastic Container and
  Display-ready Corrugated Containers used for
  Fresh Produce Applications.

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Use Reusables Campaign

• Increase business adoption
• The value of switching to reusable pallets and
  containers
• Provide technical assistance
• Drive Bay Area businesses to suppliers of these
  products
• Partner/alliance with RPA

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Reusable Packaging Association
A collaboration between supply chain partners who
promote the value of reusable transport packaging
across all industries as the preferred packaging
solution.

• Advocates the growth of reusable pallets and
  containers, regardless of material, in North
  America
• Promotes the economic, environmental and safety
  benefits created by re-use
• Initiatives include legislative and regulatory
  actions strategic alliances standards,
  guidelines, and best practices education and
  public awareness

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Our Opportunity Challenge

• Reusables are in early stages of adoption in
  many US industries
• Potential impact is large and lasting
• But complex system change requires time
• Deciding factor is usually cost

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When Should Reusable Packaging Be Considered?
A systematic, well-planned reusable packaging
program makes sense for many types of
applications, particularly those with the
following

• High volumes of solid waste
• Recurring product damage or risk of damage
• Expensive expendable packaging or recurring
  single-use packaging costs
• Under-utilized trailer space in transportation
• Inefficient storage/warehouse space

• Worker safety or ergonomic issues
• Significant need for cleanliness/hygiene
• Need for unitization
• Multiple component parts or complicated assembly
  operations
• Frequent trips

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Target Industries

• Alameda County - greatest opportunities
• Wholesale/Retail (non food)
• Manufacturing Assembly (non food)
• Food Production
• Food Delivery
• Scientific/Technical/Education
• Medical Care
• Public Agencies

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Outreach Activities
InterestedProspects
Outreach Activities Printed Collateral Presentati
ons Website PR Efforts Direct Mail Print
Ads eNewsletter Local Awards Partnerships
Target Audience Wholesale/Retail (non
food) Manufacturing Assembly (non food) Food
Production Food Delivery Scientific/Technical/Educ
ation Medical Care
StopWastePartnership
Viable Prospects
RPA
Appropriate Resuables suppliers and vendors
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Reusables 101 and 102
Redesigned, with revised content for our audience
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www.UseReusables.com

• Reusables Basics
• Interactive Cost Comparison Calculator
• Workshop Calendar
• Additional Resources

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Workshops

• 4 completed
• gt75 organizations participated
• Upcoming September 9th, 2008
• Hosted by the City of Fremont
• High level of interest from businesses as well
  as public agencies
• Are reusables right for your organization?
• Analyze the ROI does it save money?
• Benefits for making the switch
• Case Studies (including local)

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Advertising

• East Bay Business Times
• SF Business Times
• San Jose Business Times
• Newsletters
• Local Papers

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Case Study Greenville Utilities
Application Storage of nuts, bolts, regulators
and meters

• Results
• Substantial time money savings
• No interruption of operations or product damage
  during natural disasters
• Material protection
• Secure stackability

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Gatorade Bottling PlantOakland, CA

• 1 bottling line converted from wood to reusable,
  plastic pallets 8 months ago and began
  feasibility trial
• After successful feasibility trial, both
  production lines switched permanently to
  reusable, plastic pallets
• Pallet Selected plastic pallet with RFID
• Key Driver Customer refusal of finished product
  due to poor wood pallet quality
• Missing boards
• Wood debris
• Inconsistent pallet dimensions
• 45 55 truckloads moved every 24 hours (up to
  1,320 pallets)

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Gatorade Bottling PlantOakland, CA

• Documented Benefits
• Customer Service NO loads refused due to poor
  pallet quality
• Production Eliminated damage to product from
  pallets
• Production - Reduced palletizer and conveyor down
  time
• Safety - Less potential for injury less slip
  trip hazards
• Logistics Over 37 lighter than wood pallets
• Use less fuel potentially ship more product
• Quality Less potential for product
  contamination
• Labor - Reduced handling required
• Environmental Sustainability 100 Recyclable
  Plastic promotes forest conservation Reduced CO2
  emissions
• Material Improvement - Increased durability,
  consistency and quality

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Case Study StopWaste.Org Office Move
Application Move into newly renovated 14,000
sq. ft. building

• Results
• Prevented cardboard waste
• Eliminated heavy lifting
• Reduced plastic film waste
• Increased moving truck capacity by 40-50
• Cut greenhouse gas emissions
• Cost competitive

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Whats Next

• Increase Reusables adoption
• Extend the campaign regionally
• EPA Funding
• Partner with municipalities
• Host a workshop / Suggest a venue
• Promote to local businesses
• RPA Education Forum
• - Sept 24 - 25, Oakland

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Questions?
Reusables_at_StopWaste.Org
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Marketing Tactics

• Role of the StopWaste Partnership
• Serve as an initial, neutral contact for
  companies (prospects) trying to learn more about
  their options.
• Assist all prospects with a preliminary (simple)
  evaluation.
• Provide selective, targeted technical assistance
  to potential StopWaste Partnership clients, that
  might include
• Lead referrals.
• Limited financial incentives.
• Case study development.
• Cost benefit analysis in some cases
• Conducting onsite workshops and meetings.

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Marketing Tactics

• Role of the StopWaste Partnership
• Refer the prospects to appropriate reusable
  manufacturers, consultants, etc.
• Follow-up over the subsequent 24 months to
  monitor the progress and give further assistance
  if they are stuck.

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Understanding the Opportunity
Closed Loop Systems
Open Loop Systems
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Challenges with Returnables

• Potential challenges to open pool RPC use
• Limited network of participating retailers
• Product rejections at retail level asset
  tracking
• Pool management
• Inventory turns
• Pool accountability
• Cooperating network
• Freight cost implications, especially on asset
  collection
• Seasonality of industry (e.g. Produce)

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RPCC Corporate Members

• Avery Dennison User Advisors
• Bruel DUDA Farm Fresh Foods
• CHEP East Coast Seafood
• Georgia-Pacific John Deere
• IFCO Systems NACCO Material Handling
• iGPS Nestle Waters
• IPL Products Ltd. Seald Sweet
• Kennedy Group Tanimura Antle
• MACRO Plastics Virginia Tech
• Norseman Plastics WalMart Stores, Inc.
• Numafa
• ORBIS Corporation Cumulative Revenue (est.)
• Otto Environmental Systems gt 2 billion -
  RPCC-related
• Polymer Logistics gt 5 billion N. American
• Rehrig Pacific Company gt 25 billion global
  sales
• Schoeller Arca Systems
• TOSCA Ltd.
• TriEnda

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What to Look For

• Velocity How many uses will one container make
  each year
• More uses, the cost per use for the capital goes
  down
• Consistency The more steady the shipment
  pattern, the easier and cheaper to set up a
  reusable pool
• How controlled is the supply chain
• How many different supply chain partners able to
  use returnable
• Where are they located
• Will they cooperate
• How are you getting them back What are the
  reverse logistics costs
• Volume Is there sufficient volume to make it
  worthwhile