IFCO freshIMPACT™ Economic
Modeling Tool Shows RPCs Save Retailers Time and Reduce Supply Chain Costs
Compared to One-Way Packaging
(Chicago, IL) Daniel Walsh, President of IFCO Systems North America, today told a gathering of industry executives at the Reusable Packaging Association Forum, that IFCO, in collaboration with experts at California Polytechnic State University (Cal Poly), has developed a proprietary economic modeling tool, freshIMPACT, that quantifies the economic benefits of Reusable Plastic Containers (RPCs) versus one-way packaging for the fresh produce supply chain
“RPCs continue to be the packaging of choice for fresh food transport. The freshIMPACT tool demonstrates how increased use of RPCs in the retail supply chain results in increased cost savings and reduced product damage," said Mr. Walsh. “Thanks to researchers at Cal Poly, we now have a reliable method for quantifying the cost-effectiveness of RPCs versus one-way packaging and the results speak for themselves. RPCs save retailers time and reduce supply chain costs when compared to one-way packaging, and result in a much lower product damage rate than other packaging options."
The freshIMPACT economic modeling tool was developed by Drs. Jay Singh and Koushik Saha at Cal Poly. The economic analysis used data collected via direct observations at distribution center and store level at one national retailer and one regional retailer. Results showed:
Efficient: At Distribution Centers, RPCs
are processed between 9% and 226% faster than one-way packaging. RPCs are more efficient
when it comes to slotting, order picking, stretch wrapping and loading than
Store-Friendly: At retail locations,
RPCs are more efficient by 5% to 53% over one-way packaging in stocking, order
picking, transport to shelf and folding, stacking and baling. RPCs are more space efficient, both packed
and empty, helping better utilize limited space in the back room and on carts.
3. RPCs Are Easy to Handle: During disposal and sorting activities, RPCs are more efficient by 16% for unloading and 154% more efficient for sorting and securing. Folded RPCs were easier to handle than one-way packaging that frequently broke and required re-strapping after use.
4. RPCs Are Effective: RPC use results showed less than 0.5% packaging damage rate, while one-way packaging was over 4% damage rate due to structural integrity limitations and/or improper stacking.
“IFCO looks forward to working with retailers to assess their individual supply chain costs with the freshIMPACT economic modeling tool and to determine the viability of RPCs replacing one-way packaging as a strategy to maximize efficiency and drive growth," concluded Mr. Walsh.
For further information, please contact:
VP - Global Marketing
T: + 1813 463 4124 | F: + 1 813 286 2070 | M: + 1 813 992 1470
IFCO is the leading global provider of reusable packaging solutions, operating a pool of over 200 million Reusable Plastic Containers (RPCs) in 34 countries. IFCO RPCs are used primarily to transport fresh products from producers to leading grocery retailers worldwide. IFCO's solutions help retailers and producers reduce costs and increase sales by maximizing efficiency, product protection, sustainability, and safety throughout their supply chains. IFCO is a member of the Brambles family of companies. For more information, visit www.ifco.com.
Brambles Limited (ASX:BXB) is a supply-chain logistics company operating in more than 50 countries, primarily through the CHEP and IFCO brands. The Group specialises in the pooling of unit-load equipment and associated services, focusing on the outsourced management of pallets, crates and containers. Brambles primarily serves the consumer goods, dry grocery, fresh food, retail and general manufacturing supply chains. In addition, the Group operates specialist businesses serving the automotive, aviation and oil and gas sectors. Brambles employs more than 14,000 people and owns approximately 500 million pallets, crates and containers through a global network of approximately 850 service centres. For further information, please visit www.brambles.com.