Implementing global pooling into the automotive supply chain will deliver a wealth of efficiencies which reduces costs, risk and removes waste that creates a sustainable, environmentally friendly process.
Introducing a global packaging pool into a supply chain removes the need for expendable packaging.
Expendable packaging in plastic and cardboard are the two main materials used when packaging and transporting parts and components throughout the automotive industry, this creates large quantities of waste and high costs.
A returnable packaging loop provide OEMs and Tier Suppliers with the ability to reduce supply chain costs and HR time which helps to reduce the cost down of manufacturing each vehicle in vehicle operations
Removing the waste created by expendable packaging, the supply chain becomes more sustainable by offsetting the carbon footprint of manufacturing vehicles.
What is global pooling?
A global pool is very similar to a taxi – you only pay for your journey to the destination. The return is offset by the pooler finding a returnable solution.
In the context of the automotive industry, there is only a charge for inbound logistics containing parts and components.
You are no longer required to pay for the return transportation of empty loads or paying for the removal of expendable packaging.
We provide one way trip payments, similar to paying for a taxi, where we work closely with pooling providers to offer this unique global returnable system of using the ISO Bin one way and only paying for one way.
The pooling provider will deliver components to their destination and collect the empty bins and totes to go back into their pool and used for another journey at their cost.
Pooling Providers have global operations allowing the automotive market to use a pool of returnable bins for their global, intercontinental and local supply chains.
Why should Tier Suppliers use a Global Pooling provider?
Suppliers can run the risk of investing in returnable packaging solutions and ending up with a large quantity of unused bins in an insusatainable processes and supply chain. They are not running a successful pooling system internally to realise the benefits.
Returnable bins can become idle assets taking up valuable space and not being put to good use which create inefficiencies instead delivering efficiencies.
Some see one-way expendable packaging as being ‘lower cost’ and simply opt for the easy option.
Expendable packaging may be cheap to purchase which is why it is so common in the supply chain.
But when you factor in costs of component damage, increase handling, extra transportation and removal of waste – is it really that low cost?
Distance
If you are operating a returnable packaging pool, you can reduce the costs of transportation costs globally by renting a bin and paying for one trip.
You aren’t paying the transportation of parts into a plant and for the return journey of the empty returnable bin – essentially paying to transport fresh air.
Reduce Component Damages
Rigid plastic returnable bins help to reduce damage and waste costs of components during transit.
Returnable bins can used inside the assembly plant which reduces the handling processes required and the potential risks of damage.
Pack Density
The EuroBin and IsoBin have been designed to maximise space utilisation in shipping containers allowing you to ship larger quantities of bins in comparison to other packaging options.
As a result, you will reduce the number of containers required providing you with further cost reductions and reduce the emissions created throughout the supply chain.
Sustainability
Using returnable packaging loops significantly improves the sustainability of the whole supply chain at each crucial stage. Implementing such an operation will provide you with ongoing cost savings and continually reduce the carbon footprint. This is not only the carbon footprint of assembling a vehicle but also of the vehicle too.
Handling Requirements
Parts and components can be placed into the returnable bins at a Tier Supplier and be delivered lineside. Which removes the need for unnecessary handling, unpacking and transportation when using expendable packaging.