Reusable vs. One Way Packaging

HOW REUSABLE PACKAGING OPTIMIZES PRODUCTIVITY AND ELIMINATES WASTE

Date: 03/12/15 Client: RPC Job #: 1372 File Name: 1372-ReusableVsOneWayPackaging-r7

Account Director: Henry Artime Editor: bm Designer: jb Revised By: dc, ov Production:

Color: 4C/Process Trim: 8.5"× 11" Bleed: 8.75"× 11.25" Safety: 8.25"× 10.75" Fold: none

Special Instructions: Approved By:

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Rehrig Pacific, a logistics optimization company, creates reusable packaging solutions that reduce costs and eliminate waste in supply chains.

In late July 2014, Rehrig Pacific conducted field tests to evaluate delivery and merchandising productivity at two stages in the DSD process. Solutions designed by Rehrig Pacific to improve beverage routing efficiencies at these stages in the DSD process were compared to an existing DSD method.

A set of tests assessed the time required for a driver to merchandise beverages and dispose of trash. The two different methods analyzed were:

1. Disposable one-way packaging—cardboard and shrink-wrap.

2. Reusable secondary packaging from Rehrig Pacific including Retail Ready Merchandisers.

OVERVIEW

To test and verify that

utilizing Rehrig Pacific’s

reusable secondary

packaging improves

driver productivity and

potentially reduces costs

associated with the

delivery of small format,

single-serve, immediate

consumption products.

PURPOSE

How Reusable Packaging Optimizes Productivity and Eliminates Waste | Case Study





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5:2510:16 4:28 1:46

Rehrig Pacific conducted time tests in July 2014 in Southern California. The tests compared a distributor’s existing delivery method—expendable one-way packaging, to Rehrig Pacific’s reusable secondary packaging solution—that included the use of Retail Ready Merchandisers. The field test was designed to determine the length of time required to merchandise Gatorade products into refrigerated cases and dispose of all corrugate and shrink-wrap.

Four cases of 20 oz. Gatorade (24 units per case) and twelve cases of 28 oz. Gatorade (15 units per case) were used in the time tests in order to gather objective, scientifically comparable results.

METHODOLOGY

RESULTS Minutes to merchandise

Rehrig Pacific reusable packaging saved 4:51

In the 28 oz. Gatorade product time test, the driver took 8:17 to remove shrink-wrap and merchandise the product and an additional 1:59 to dispose of packaging, resulting in a total time of 10:16. By contrast, utilizing

Rehrig Pacific’s reusable Gatorade Beverage Crates took 5:14 to merchandise and only :11 to place reusable shells in storage, for a total time of 5:25. Using reusable packaging from Rehrig Pacific reduced driver time by 4:51.

4:51 = $47,530,000Four cases of 20 oz. Gatorade (24 units per case) and twelve cases of 28 oz. Gatorade (15 units per case) were used in the time tests in order to gather objective, scientifically comparable results.

Time Savings Result and Substantial Cost Savings

Rehrig Pacific reusable packaging saved 2:42

The time savings for merchandising and the disposal of packaging for the 20 oz. Gatorade product were also significant. Traditional one-way packaging took the driver 4:00 to merchandise and

another :28 to dispose of the trash. Reusable Gatorade Beverage Crates took 1:35 to merchandise and :11 to place shells in storage, for a total time of 1:46. Using Rehrig Pacific reusable secondary packaging saved 2:42 of driver time. It is important to note that using Rehrig Pacific reusable packaging created a zero trash footprint.






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CONCLUSION

The primary focus of the in-the-field merchandising time test was to validate the concept that reusable secondary packaging would measurably improve productivity in the delivery and merchandising of small format, single-serve, immediate consumption products.

There are additional benefits of reusable Merchandiser crates for the C-Store. Reusable secondary packaging eliminates all costs related to one-way packaging including the C-Stores disposal costs (small format stores do not have bailers or separate recycling containers so cardboard and shrink wrap are almost never recycled), enhances sustainability initiatives and boosts revenue generation via proven Sales Lift. Based on previous research conducted by Rehrig Pacific in partnership

with Clemson University, unique secondary packaging designed with on-message, brand building color and graphics can enhance brand awareness and increase purchase intent when integrated into in-store marketing campaigns.

Benefits of using secondary packaging can also include fewer product touches (staging, breakdown, hand trucking, merchandising, etc.), reduced total delivery time per stop, decreased labor hours per driver and lower packaging related costs (plastic and corrugate).

Utilizing Rehrig Pacific reusable secondary packaging creates significant value in the supply chain by improving driver productivity and reducing costs associated with delivering small format, single-serve, immediate consumption products.

Rehrig Pacific Company Corporate Headquarters: 4010 East 26th Street, Los Angeles, CA 90058 (800) 421-6244 · (323) 262-5145 · FAX: (323) 269-8506

Email: [email protected] Web: www.rehrigpacific.com






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Business

Reusable vs. One Way Packaging