Why moving automotive parts across continents in one-way packaging isn’t sustainable

Modifications within the international automotive business are exhibiting how CHEP reusable containers are extra environmentally, operationally, and economically sustainable than cardboard.

The automotive business goes by way of fast change. The transfer in direction of electrification – pushed by environmental rules and client considerations – means many fully totally different parts can be wanted. Alongside the disruption brought on by the pandemic, that is forcing an enormous shift in provide chains the world over and placing growing give attention to the complexities of intercontinental transport.

It’s comprehensible why many within the business may suppose that one-way packaging makes extra sense for lengthy transport flows. Cardboard seems a lot much less of an environmental drawback than a plastic field, with the ability to be recycled. And it appears comparatively low cost to purchase or substitute, without having for an empty return movement.

But the issues with one-way cardboard for lengthy export/import journeys are vital – not only for discount of CO2 emissions and waste, however for being much less cost-effective in operational phrases as effectively.

There’s a greater approach than one-way

One-way packaging isn’t as sustainable because it appears. In reality, over the packaging’s life cardboard embodies much more greenhouse gases than plastic. There’s additionally the problem of disposing of it correctly (a lot of it leads to landfills, the place it rots producing much more greenhouse fuel).

As importantly for complicated export journeys, there’s additionally the matter of hidden prices, CAPEX, extra storage, higher guide dealing with, and threat of product harm.

For instance, Tenneco – a world Tier 1 provider – labored with CHEP to analyse the Complete Value of Possession of their packaging system and located the biggest areas of hidden prices was from single-use packaging. [Footnote 2]

Due to CHEP’s far higher scale and international community, they’ll assure that their clients at all times have the availability of the packaging they want – not like one-way packaging – it doesn’t matter what the adjustments in demand. And their reusable packaging is frequently in circulation around the globe, eradicating expenses for empty reverse flows.

Strong reusable pooled packaging takes the chance out of complicated intercontinental flows, the place harm and interruptions to the journeys can imply manufacturing strains coming to an costly halt. CHEP’s Worth Chain Evaluation appears at buyer flows and helps them calculate probably the most environment friendly methods to scale back prices, enhance transparency and sustainability, and make the export/import provide chain sooner, easier and safer.

One of many main methods builders and suppliers for the automotive business – with 40 manufacturing amenities the world over – was involved concerning the capital expenditure of their one-way packaging logistics, in addition to the sustainability impression.

So, they labored with CHEP Automotive consultants to trial CHEP’s reusable containers for only one lane for a 12 months – transporting catalysts from South Africa to Germany. Not solely did this scale back bodily waste by round 193 tons, however all their reliability, sustainability, and cost-effectiveness objectives have been met. Additionally they discovered extra advantages when it comes to reductions in product harm, journey volumes, warehousing, and sea freight optimisation. This resolution can now be expanded all through their provide chain.

Sustainability is on the core of the automotive business’s future, and CHEP reusable pooled packaging is probably the most environmentally and economically sustainable approach ahead for intercontinental transport.

About CHEP

For over 30 years, CHEP has been a world chief in reusable automotive packaging options, serving to our clients transfer merchandise the world over. CHEP works with main OEMs and Tier1s throughout all continents and work with over 5,000 clients worldwide from 60+ automotive service centres.

Footnote 1: https://www.theguardian.com/environment/2010/mar/31/plastics-cardboard
Footnote 2: https://packagingrevolution.net/automotive-packaging-role-continues-to-evolve-in-global-supply-chains/

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