Going Green with Reusable Shipping Containers

Before you read the case study below, we encourage you to consider the following two common myths about using environmentally friendly reusable shipping containers.

 

Myth 1:

Being environmentally friendly while using reusable shipping 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 reusable shipping containers is more expensive.

The following container rental case study proves why these statements are myths, and demonstrates how greening your supply chain with reusable shipping containers from CAPS can actually save you money.

 

Alcoa-Fujikura Reusable Shipping Containers Case Study

CAPS works with a variety of automotive industry clients, and understands the industry’s special material handling needs.

 

CAPS-TRAC™ reporting positively affects AFL costs. It is a big benefit to me to document where my reusable shipping containers are and how long they have been sitting there. Now I can literally see and help manage movement of the fleet no matter where I am. As long as I have an Internet connection, I have access to my fleet information.” - Keith Crouse, AFL Packaging Engineer

 

Background: Alcoa-Fujikura “AFL” is one of the leading suppliers of electrical harnesses to the automotive industry.

 

Challenges: AFL previously shipped harnesses in corrugated containers on wooden pallets to its automotive customers. Over time, the company became increasingly concerned about product safety and the inadequacy of their shipping materials. Corrugated containers had a variety of intrinsic problems, three of which directly jeopardized the contents:

• Forklifts and utility knives were easily puncturing corrugated containers and their contents.
• Due to weight restrictions, corrugated containers collapsed if stacked more than two at a time.
• During transportation, corrugated containers would shift and collapse, thus causing product damage.

In addition, the end of the material handling process produced a large amount of wasteful by-product for AFL customers. After shipments were received, corrugated boxes and wooden pallets became warehouse clutter and a costly disposal burden.

 

Bottom Line: Corrugated containers did not protect AFL’s product and were a costly, wasteful burden.

 

Action: AFL decided to purchase durable, high-quality plastic reusable shipping containers, pallets and totes.

 

While the company saw the advantages of using plastic reusable shipping containers, its new fleet became a management burden. Between 1992 and 1996, AFL purchased thousands of containers. In a short period, it discovered that maintaining the assets and managing the reverse logistics associated with the empty shipping containers had become an overwhelming and costly chore.

 

AFL lost many expensive assets and was often unable to ensure container availability for crucial shipments or increased consumer demand. The company was unable to focus on their core business because it spent precious resources managing its reusable shipping containers.

 

Solution: AFL hired CAPS. Within a few weeks together, AFL and CAPS developed and implemented a comprehensive, customized returnable container management program. This enabled AFL’s management team to relinquish day-to-day program activities and no longer worry about storage, damage, disposal or transportation of its reusable shipping containers.

 

Since CAPS’ reusable plastic shipping containers are durable, (equipment is manufactured with high-density polyethylene construction) they provide superior product protection and prevent damage due to forklifts, natural elements and over-stacking. Unlike corrugate and wood, this equipment supports AFL’s manufacturing plans.

 

Now the fleet is also traceable, and product can be followed throughout the supply chain. CAPS labeled every piece of equipment and each time a unit ships, data is captured and uploaded into CAPS’ Internet-based tracking CAPS-TRAC™. For the first time, AFL management can account for shipment history, dwell times, asset loss and damage.

 

To help manage AFL’s changing production demand, CAPS established customer service centers throughout North America to provide and reposition equipment from end-users to the company's manufacturing facilities. The service centers provide all necessary equipment maintenance such as cleaning, storage and repairs. For the operation to run smoothly, the only thing AFL has to do is place an order. By working with CAPS, and implementing the Provide, Track & Manage services, AFL effectively reduced its cycle-time from 54 to 34 days.

 

Summary: The superior packaging, asset tracking and reusable shipping container management CAPS provides gives AFL the tools it needs to improve product protection, shipping cycle efficiency and more.

 

As a result, AFL is happier with the improved product output and their customer satisfaction has increased as well. AFL and CAPS continue to work together to innovate the material handling process. Most importantly, AFL is able to concentrate on the growth and success of their business instead of wasting time, money and energy managing their reusable shipping containers.