Reusable packaging can reduce costs throughout the supply chain. For example, reusable packaging systems:
- Reduce overall packaging costs
- Deliver rapid ROI
- Reduce costly product damage
- Reduce labor costs
- Reduce inventory, therefore requiring less space
When evaluating the costs of one-wayand reusable packaging it is necessary to take all areas of the supply chain into perspective for a morecomplete financial picture. The Reusable Packaging Economic Calculator below was developed in cooperation with the StopWaste Partnership and is based on a basic financial model covering the key concepts in the comparison of the per container cost of both returnable and single-use packaging.
This tool is intended primarily for a potential returnable packaging user who wishes to perform some basic financial analysis to determine if the supply chain in question is financially conducive to returnable packaging.
Description of Inputs
Corrugated costs — actual current cost of corrugated packaging for an end user
Dwell time — the amount of expected time in days that a reusable packaging container is held at various stages in an end user’s supply chain
Cartons Shipped per Year — represents the annual number of corrugated containers purchased by an end user in a given year
Annual Interest Rate — the end user input that is their internal hurdle rate
Return Miles Reusable Packaging — represents the number of miles required to return the empty reusable packaging back for additional use
Replacement Rate — represents the percent estimated annual replacement required for reusable packaging
Click here to launch Quick_Calculator
