CHICAGO, IL - IFCO, along with California Polytechnic State University, has developed a proprietary economic modeling tool, freshIMPACT, that quantifies the economic benefits of Reusable Plastic Containers (RPCs) versus one-way packaging for the fresh produce supply chain.
Daniel Walsh, President of IFCO Systems North America, released this information at a gathering of industry executives at the Reusable Packaging Association Forum.
“RPCs continue to be the packaging of choice for fresh food transport. The freshIMPACT tool demonstrates how increased use of RPCs in the retail supply chain results in increased cost savings and reduced product damage,” said Walsh. “Thanks to researchers at Cal Poly, we now have a reliable method for quantifying the cost-effectiveness of RPCs versus one-way packaging and the results speak for themselves. RPCs save retailers time and reduce supply chain costs when compared to one-way packaging, and result in a much lower product damage rate than other packaging options.”
The freshIMPACT economic modeling tool was developed by Drs. Jay Singh and Koushik Saha at Cal Poly. The economic analysis used data collected via direct observations at distribution center and store level at one national retailer and one regional retailer.
According to a press release, results showed the following:
- RPCs Are Efficient: At Distribution Centers, RPCs are processed between 9% and 226% faster than one-way packaging. RPCs are more efficient when it comes to slotting, order picking, stretch wrapping and loading than one-way packaging.
- RPCs Are Store-Friendly: At retail locations, RPCs are more efficient by 5% to 53% over one-way packaging in stocking, order picking, transport to shelf and folding, stacking and baling. RPCs are more space efficient, both packed and empty, helping better utilize limited space in the back room and on carts.
- RPCs Are Easy to Handle: During disposal and sorting activities, RPCs are more efficient by 16% for unloading and 154% more efficient for sorting and securing. Folded RPCs were easier to handle than one-way packaging that frequently broke and required re-strapping after use.
- RPCs Are Effective: RPC use results showed less than 0.5% packaging damage rate, while one-way packaging was over 4% damage rate due to structural integrity limitations and/or improper stacking.
Walsh concluded his speech by saying that IFCO is looking forward to working with retailers to assess their individual supply chain costs and to determine the viability of RPCs replacing one-way packaging as a strategy to maximize efficiency and drive growth.
