Going Green with Liquid Bulk Containers: Sustainable Shipping Containers Case Study
Before you read the case study below, we encourage you to consider the following two common myths about using environmentally friendly liquid bulk containers.
Myth 1:
Going green with liquid bulk containers is more complex. (46% of supply chain executives cited resistance to process change as the major factor that will impede their supply chain performance.)**
Myth 2:
Implementing “green” strategies when using liquid bulk containers is more expensive.
The following container rental case study proves why these statements are myths, and demonstrates how going green with liquid bulk containers from CAPS can actually save you money.
Darifair® Foods: Sustainable Shipping Containers Case Study
"Our CAPS fleet is well over one year old and they still look new. The plastic tote containers are easier to clean, they don't rust, and they are always inspected and repaired by CAPS before they get to our customers. And the logistics side has worked perfectly. We've never even come close to running out of reusable liquid bulk containers." - Ed Stevens, Darifair Vice President of Operations
Background: Chartered as America's first "national" dairy supplier in 1985, Darifair® Foods provides top-quality dairy products nationwide with unwavering consistency and great prices. The company continues to expand its product line and in 2002 introduced "The New Taste of Darifair." Now, along with industry-leading dairy products, restaurant chains and industrial manufacturers can also turn to Darifair for everything from compound butters to cream alternatives developed by their experienced culinary team in their new 3,000 square foot test kitchen.
Challenges: Darifair ships dairy blends in bulk liquid tote containers to processors servicing national restaurant chains, retail outlets and food service distributors. The initial liquid material handling program for Darifair did not meet the company's exact needs. Darifair reported some of the following problems with its previous program:
- Container short-ships that led to filler production line shut-downs. The supplier did not pick up or accurately track empty totes in a timely manner allowing totes to stack up at customers' warehouses.
- Shipping Container cleanliness.
- Broken or damaged reusable shipping containers. On average, one or two liquid bulk containers per shipment were broken/unusable. Sometimes, broken totes would not be discovered until after they were placed on the filling line, resulting in production down-time to remove and replace the broken tote.
In 2004, Darifair was faced with replacing their reusable liquid container supplier and was interested in finding a program that more closely matched their operating footprint. Darifair had the following requirements for their liquid bulk containers:
- Product is shipped on time at consistent volumes from Darifair to their processors.
- Returnable shipping containers are cleaned; old liners and labels are removed, and the new liner and containers are shipped to processors.
- Reusable shipping containers need to be durable, easy to clean, and free of hard-to-clean nooks and crannies.
- Processors and distributors require top-fill and bottom-discharge shipping containers and liners.
Bottom Line: Darifair needed a more responsive and efficient bulk liquid tote container supplier and a more durable liquid tote container.
Solution: Darifair contracted CAPS to provide an all-inclusive solution to their liquid bulk container woes.
Each week, CAPS delivers the right number of liquid bulk containers, including disposable liners and accessories, to Darifair processors. The containers are filled, scanned into CAPS-TRAC™, and shipped to the distributor. The reusable shipping containers are discharged at the customer's facility, collapsed, and stored until picked up by CAPS. At the CAPS service center, containers are scanned, cleaned, inspected and stored until they are ready to ship back to the processor. Inspecting the reusable shipping containers at the service centers also ensures that the customers never receive a broken, unusable container.
CAPS has also demonstrated a commitment to ensuring customer satisfaction:
"CAPS has been very responsive both helping resolve challenges and educate new customers," said Stevens.
CAPS sends a sample container and liner to new customers and follows up with an in-plant site visit to ensure that customers are using best practices to maximize the benefits of the CAPS-supplied reusable shipping containers. Going green with liquid bulk containers has never been easier! The new liquid tote containers also look better. The old metal liquid tote containers were susceptible to damage and rust.
"Initially, we were concerned about moving from metal totes to plastic totes because we know our liquid tote containers get a lot of hard use," said Stevens. "We've been using these totes for more than a year, and they are every bit as durable - if not more so - than the old metal ones."
Summary: Through fleet optimization and visibility, CAPS tracking system has eliminated many of the issues that Darifair experienced with the previous liquid material handling program.
Customers receive the right number of liquid tote containers when they need them and where they need them, so production never shuts down due to a shortage of containers. The liquid tote containers are also picked up on time, so they aren't stacking up in customers' warehouses. Because they are regularly cleaned and inspected, the sustainable shipping containers are also in like-new condition.
