Although bioplastics are becoming cost competitive in packaging and durable applications, they're often more expensive than petrochemical-based polymers. So it can be surprising to find out that, in at least one instance, they can be cheaper than cardboard.
The key is in the reusability of plastic packaging, which pushes down the overall cost. But it's also in a closed-loop/reverse logistics setup between Ecospan, the manufacturer of bioplastic shipping containers, and its customer, a very large consumer electronics manufacturer. This setup reclaims and recycles bioplastic material and puts it back into the manufacturing loop.
Originally, the electronics manufacturer sent cardboard shipping containers to its customers so they could send back small electronics, such as smartphones, for repair or exchange. Typically, the cardboard boxes can't be reused, Jeff White, Ecospan's president, told us. "Due to wear and tear and the amount of relabeling when the box is packaged and unpackaged several times in a repair instance, it can't structurally withstand multiple repair instances."
Bioplastic shipping containers used for consumer electronics repair may cost more per unit, but they can be cheaper overall because they're reusable and can be recycled back into the supply chain in a closed-loop/reverse logistics setup. (Source: Ecospan)
Under Ecospan's closed-loop reuse and recycling model, its BioFlow plastic containers can be reused through six complete repair instances. Even though the bioplastic-based box might cost twice as much to purchase as a cardboard box, its cost of ownership is several times cheaper. At the end of its lifespan, the container's material is reclaimed, reground, and turned into a new container, keeping these materials within the supply chain.
In the closed-loop system, on the front end of the cycle Ecospan provides customized design of bio-based plastics for both durable goods products and product packaging. On the back end, the company makes bioplastic shipping containers and manages reverse logistics operations that incorporate reuse and regrinding of both containers and products made from its plastics.
"We make the material, and we certify third-party mold makers and others that process the material, run the molds, and make the parts for the customer," said White. "Or we can help guide the customer to do all this themselves as the general contractor. We have centers around the world where used products are picked up, cleaned, and sorted for processing, so they can be reclaimed and reused."
The consumer electronics company's annual repair volume is 10 million units. The company was spending about $27.5 million per year on cardboard packaging, labeling, and transporting the cardboard, including buffer stocks and fallout from damage. After implementing the closed-loop/reverse logistics cycle and switching to a bioplastic shipping container, the company figured it would spend $6.6 million, saving $20.9 million.
"The cost of our container and cleaning, labels, etc. was higher per piece, but because we could get at least six full repair instances per Ecospan box, we could provide an enormous annual ROI," said White. "The actual savings is higher because they're getting more than six."
BioFlow is 100 percent petroleum-free and can be blended with other petroleum-free ingredients or with petroleum-based polymers. In January, the US Department of Agriculture (USDA) certified BioFlow as 94 percent biobased, under the agency's BioPreferred program. The remaining 6 percent represents carbon that's not petroleum-based.
Clinton, this is the comments board. For off-list communication about a possible story, you can find my email address on our website at Contact Us/Editorial & Production Directory:
http://www.designnews.com/document.asp?doc_id=231129
I didn't see a way to email you other than choosing the "reply" button. However, this screen looks remarkably similar to the posting screen. We'll see if this goes to only you or if it ends up out on the message board.
I would be more than happy to speak with you. After we establish that this is a method that goes directly to you, I can send my phone number.
CLMcDade, thanks for replying. I'd like to follow up this discussion with an off-list conversation, possibly leading to an article. Please contact me by email if you're interested.
I am the Senior Designer of Plastic Products for Schaefer Systems International. One of our largest divisions is Returnable Packaging Solutions, which sells Close-Loop returnable solutions. Mostly plastic, our products replace disposable, easily damaged products (i.e. wooden pallets, paper corrugated boxes). These systems include plastic pallets and top caps with matching, multiple sized injection molded totes.
A primary user of such systems in the U.S. is the automotive industry. Their first tier suppliers are required to deliver their components to the assembly plants in approved packaging. This usually consists of: a plastic tote, reusable dunnage (packaging within the tote, i.e. the cardboard partition set inside wine cases) and labeling with tracking and routing information.
These filled totes actually travel to the workstations within the assembly plant. The totes are emptied one part at a time as each component is installed in a car or sub-assembly. The palletized empty totes are returned to the supplier to be restocked and reused. This makes up a closed loop.
These packaging systems are bought en masse at the beginning of a car program and, barring forklift interactions, last the lifetime of the car model. At the end of the program, all of the boxes/pallets/top caps can be ground up and recycled to make new product.
As in your bio-plastic example, plastic returnable systems are usually more cost effective than disposable systems. The upfront costs are higher, however, and saving money short-term sometimes gets in the way of real savings.
If you'd like more information, please ask. I tried to keep this answer short. :)
CLMDade, I meant ship-back or return containers, the subject of the article. Does that answer your question? And can you tell us more about what your company makes?
Could you clarify your statement, "I haven't seen plastic return packages, either, so I don't think they're very common yet."?
The reason that I ask is that the company I work for designs and manufactures injection molded returnable systems. But before I describe them in more detail, I wanted to make sure that it is those systems that you meant and not something else.
Thanks, Chuck. I was surprised to hear that ship-back cartons were still made of cardboard. Details about cardboard type weren't available, but I'd guess that it must have not been the corrugated variety.
I agree, one of the most exciting things about this development is not only saving cardboard (and trees, and carbon sequestration), but doing it with bioplastics, and then recycling them, too.
Yes, it probably is a groundbreaker, which fits with your coverage. Environmental advances seem to be all over the place these days. And more and more, the green avenue doesn't seem to be a cost-added road. That's good news.
Thanks for the input, Rob. Good to know that reverse logistics has been integrated into supply chain management, which makes sense. I haven't seen plastic return packages, either, so I don't think they're very common yet. Another reason this looked like a groundbreaker.
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