Despite advances in the reusable container and pallet industries, some retailers remain reluctant to take the plunge into the reusables pool.
But reusable products suppliers say retailers’ resistance often is based on misconceptions, especially about costs and logistics. They think reusable pallets and RPCs are too costly and too difficult to deal with.
Providers of reusables say not to worry. Reusable products are economical in the long run, easier than ever to track and highly sustainable.
Switching from a linear economic model of single-use product waste and recycling to a circular model of reusing products calls for a “transformative systems change” accompanied by a “shift in mindset,” said Tim Debus, president and CEO of the Washington, D.C.-based Reusable Packaging Association.
The systems change can be temporarily disruptive, but longer-term, it unlocks economic growth and can result in widespread economic, environmental and social benefits, he said.
“Retailers who adopt reuse systems can achieve far-reaching business improvements and competitive advantages in the marketplace,” Debus said.
The most common misconception about reusables that retailers have involves the logistics implications of having to return empty reusables for washing after each cycle, said Iñigo Canalejo, vice president of ESG and strategic marketing for Tampa, Fla.-based IFCO Systems US LLC.
“Reusables require additional reverse logistics flows that you would not have with single-use packaging,” he said. “However, there is a way to make it work, and the key here is scale.”
IFCO manages the largest network in reusable plastic container pooling globally, he said, and that allows the company to manage reusable packaging flows efficiently.
“Having a large network allows us to be closer to our customers, reduce empty miles and therefore the associated emissions,” he said.
A pooled pallet program brings a capital expenditure benefit compared to purchasing pallets outright and offers lower total cost of ownership, said Drew Merrill, senior vice president of sales, marketing and customer experience for Alpharetta, Ga.-based CHEP U.S.
“CHEP helps its customers eliminate waste, eradicate empty miles and improve network efficiencies at scale,” he said.
