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THE HIDDEN COSTS OF PLASTIC CRATES
Less Product Protection Inherently rigid plastic crates provide less
product cushioning and protection from scuffing and bruising. These
containers have only a small number of standard sizes; not all
products fit well into these sizes so dunnage (typically corrugated)
is required to keep product from shifting. The additional expense of
dunnage can be significant.
High Initial
Investment Considerable costs will be incurred to produce
enough
to support a plastic logistic system. Packing
methods and equipment may have to be modified to accommodate the new
shipping container.
Increased Shipping Cost Plastic
crates have higher weight and poor shipping density, which tend to
increase shipping costs vs. products shipped in
corrugated.
Back-Shipping Plastic systems incur the
cost of shipping containers back to the original user (including
trucking, gas, mileage and labor). It has been estimated that when
products are shipped in plastic crates, one out of every four to
five truckloads is dedicated to returning containers to the original
user.
Increased Storage and Handling The packager
and end user are likely to have additional handling and storage
costs associated with plastic crates. It may be expensive for the
packer to install this storage space close to manufacturing
operations. Growers must redistribute the crates back to harvesting
areas, which change on a daily basis.
Mandatory
Cleaning Plastic crates cannot be reused if they are
contaminated with food and other refuse. Somewhere in the system the
crates must be washed, creating up-front costs, ongoing labor and
possible sanitation concerns.
Tracking and
Inventory It is time-consuming and difficult to keep track of
where the plastic crates are in the distribution system. The crates
can be returned to the wrong user, creating a shortfall of
containers elsewhere. To ensure the availability of containers for
just-in-time delivery, some manufacturers carry back-up corrugated
boxes—at additional expense in capital and
space.
Replacement Costs Due to loss, theft or
breakage, it has been estimated that up to 25 percent of the plastic
crates in use during a given year will have to be replaced. That
means the initial capital investment in plastic containers never
really ends.
COMPETITIVE ADVANTAGES OF
CORRUGATED
Product
Cushioning The fluted
construction of a corrugated box protects products with built-in air
cushioning.
Low Initial Cost One-way corrugated
containers are a small fraction of the cost of plastic. Users incur
no costs to fill the distribution channel or replace inevitable
shortfalls. Subsequent package design changes are inexpensive. It’s
an economical, pay-only-for-what-you-need system.
Custom
Design Corrugated boxes are computer designed to maximize
protection and shipping density, create shelf appeal and minimize
product handling, to name just a few.
Fast to
Market Corrugated containers can be available in days or even
hours. Even when product designs are changed last minute, the
container will be ready to meet shipping deadlines.
Low
Shipping Costs Corrugated’s light weight, high stacking
strength and space-efficient packing geometry provide for lower
shipping costs than plastic crates. In fact, the end user will be
paid for recovering used corrugated. And there are no back-shipping
expenses.
Marketing Benefits The corrugated box is
a billboard for brand identification and product information. Many
products have enhanced corrugated containers with high-end graphic
labels or direct printing to make corrugated the primary package all
the way to the sales floor. This reduces packaging costs for the
manufacturer and handling costs for the retailer.
Easy
Breakdown and Storage Before use, corrugated lies flat for
space-efficient storage. It also easily breaks down to store for
subsequent recovery.
Problem Solving Because of
corrugated’s inherent design flexibility , it’s easy to have a
corrugated container designed and supplied to meet your particular
packaging or shipping needs. |
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