Changes in packaging logistics based on disposable carriers are becoming more and more noticeable. Companies are increasingly changing their single-use transport packaging, such as pallets, to reusable carriers. Is this a complicated process? How long does it take, and what benefits can it bring? We will find answers to these questions today from the person who knows the most about it. Our interlocutor is Dariusz Belkot, Manager of Pooling Services CEE, who is responsible for implementing the recovery process and building systems related to packaging reuse.
Hello, Dariusz. We've hardly seen you in the office lately. Does this mean more companies want to switch from disposable to reusable packaging?
Hi, yes, that's right. You could say that because we help our customers achieve gigantic savings. It's not just the lower price of carriers, but also the absence of many of the fees companies currently pay. I'm referring to the packaging fee and other packaging-related costs, including purchasing, storage, product negotiations, and tenders.
As a result, customer interest is very high, but we understand that each company has different business conditions. Therefore, we always want to understand its situation as well as possible and choose the optimal model for packaging recovery. To this end, we ask for additional information or meetings, allowing us to get as much data as possible. The more of them we receive, the better we can tailor a solution that will bring more benefits.
“It's not just the lower price of packaging but also the absence of many of the fees that companies are currently paying.”
How long does it take to switch to reverse logistics for packaging?
I don't have a definite answer to that. Many interdependent factors can make this time longer or, on the contrary, shorter. It also depends on the customer's business model and supply chain. For example, the start of the packaging workflow project for our client, URSA, went quite smoothly. The client was able to collect the necessary data quickly, and it took several months to launch the project.
Is it difficult?
No, because we have many scenarios worked out and can already help our clients at the data collection stage. It is this stage that is the most time-consuming. The pallets or other logistic carriers we want to recover for our clients are not always properly monitored and meticulously reported in their systems. Hence, there is difficulty in getting the data. And if they are, everything is much simpler and happens faster.
Our clients are often concerned about their customers' reaction to this change. Is it justified?
True, this fear is apparent, but in most situations, it is unfounded. The growing awareness and need for businesses to reduce their negative impact on the environment are already very high. We are all starting to do something about it, and unnecessary carriers are a growing problem for many companies. Currently, disposing of carriers like pallets is expensive and time-consuming.
Therefore, the returnable packaging system is the solution that customers are looking for and are increasingly using. It is crucial for us to inform all participants properly during this process. We are heavily involved in this process, and so far, we have not seen any customer rejection. Everyone just understands it, and many are already applying it.
What savings can we expect from implementing reusable packaging?
It is a question people often ask at the first meetings (Laughing). It is normal because it determines whether there is anything to talk about further. I will answer this: each case is different, and customers have different supply chains, carriers and requirements. However, achieving, among other things, 50% savings on packaging alone is the most accomplished result. In many projects, the cost reduction is even more than 60%. On top of that, there are other savings, such as no product or environmental fee and a decrease in operating costs. Another significant issue is the huge image benefits, which are crucial for customers and shareholders.
"Achieving, among other things, 50% savings on packaging alone is the most accomplished result. In many projects, the cost reduction is even more than 60%”.
There are many companies on the market offering pooling or packaging recovery. In what areas is Rotom's offering better?
Our most significant advantage is flexibility. We can adapt to the sometimes particular business models of our clients. The second thing is that we can recover non-standard carriers. Many companies in the market offer this service only for standard pallets, such as EPAL, or force a switch to their packaging. We not only can work with non-standard pallets, but we can also help modify them to make them more durable and last longer. It is also worth mentioning that Rotom Group is also a packaging manufacturer. It allows a lot and shortens the process if you need to replenish unusual pallets in the customer's circulation.
Is this already a trend in the market, or is it still a one-off situation?
It's hard to say, but companies struggle with increasing product fees and pressure to optimize costs. Changes in EU regulations, rising packaging prices, and problems with availability are driving interest. If we look at it from this side, we can talk about a specific change in the way we think about logistic carriers. I wouldn't call it a trend but rather an awareness that there is much room for savings.
What tends to be the biggest barrier to starting the process of reclaiming one's packaging?
As with any change, it is undoubtedly the human factor. As I said earlier, companies fear the reaction of their customers. Completely unnecessarily, although, of course, a common dialogue is essential. However, the bigger challenge, in my opinion, is the packaging diversity, such as pallets. Let me give you an example. Our client had dozens of different types of pallets that were used in several factories. As it turned out, they differed very little. Together, we managed to simplify and standardize their specifications so that they could be used in all factories. This greatly simplified the supply chain, and the recovery process resulted in huge savings.
And is the large number of locations where the customer's packaging goes a problem?
Of course, the ideal situation is when the number of these locations is smaller. But with our several hundred points in almost all of Europe, we can recover them from anywhere without a problem. Most of our projects are international. Borders don't exist except on the map, of course.
Thank you for the interview
If you are interested in recovering your packaging and the savings that will result, we invite you to contact us directly or fill out the form below. Our specialists will be happy to analyze your supply chain and advise you on choosing the right system for returnable packaging.
