Case Studies: Going Green with Reusable Shipping Containers

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 shipping containers.

Solution: AFL hired CAPS. Within a few weeks together, AFL and CAPS developed and implemented a comprehensive, customized returnable 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 the 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.

"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 shipping 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 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 tote 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 returnable liquid container requirements:

• Product is shipped on time at consistent volumes from Darifair to their processors.
• Returnable liquid 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, more efficient returnable container supplier and a more durable liquid tote container.

 

Solution: Darifair contracted CAPS to provide an all-inclusive solution to their reusable shipping container woes.

 

Each week, CAPS delivers the right number of returnable 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. 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 totes when they need them and where they need them, so production never shuts down due to a shortage of shipping 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 totes are also in like-new condition.