Optimization of reusable packaging management process

At Elkom Trade, we have developed a project management system based on international standards. It is a traditional cascading project management through:
  • emphasis on precise goal setting
  • control and anticipation of operations (project steps / milestones)
  • clear, accessible and up-to-date documentation.

The described project defines and closes the entire range of activities that Elkom Trade SA undertakes. Therefore, it was divided into several smaller projects spread over time.

Elkom Trade SA has over 40 years of experience in the metal industry. Competences for comprehensive management of the logistics process have been developed by the company for a minimum of the last 10 years of operation. Almost all the costs incurred so far in the company served to implement and improve the optimization design of rotary packaging management.

Below is a case study comparing the cost of non-returnable packaging management (octabine) vs. the cost of managing the rotating packaging.

The cost advantages of mesh containers per art vs. single-use / cardboard packaging are included in the table below:

costs

* 5 rotation for octabine and 150 rotation for a mesh container were accepted. The cost of octatine turnover was calculated by dividing the average octatine purchase cost (PLN 50) by 5 rotations. The cost of rotation of the mesh container was calculated by dividing the average purchase cost of the container in the amount of PLN 420.00 for 150 turns.
** 0.5 minutes of the employee's working time for spreading the mesh container and twice as long time for octabine preparation for use. Calculation based on the gross minimum salary with the employer's costs.
*** a radius of distances up to 300 km was assumed for the calculation. The approximate cost of transport for this distance in the amount of PLN 1260.00 for 52 filled with oktabin product or mesh containers for the recipient is PLN 24.23 / unit one way. The return transport oktabin is also 24.23 PLN / unit, because the cartons used are not made for transport. The return transport of mesh containers takes 182 complex carriers, which reduces the cost of return transport to the amount of 6.92 PLN / pcs.
**** The cost of using 1 sq m of warehouse on average 12.50 PLN is divided into 3 in the case of octabin at 2/1, while in the case of mesh containers it is divided into 5 when stacking 4/1.


Our business partners have clearly felt the financial benefits associated with extending the activities of Elkom Trade with advisory services and service. This allowed for savings associated with:
  • using the available storage space as a result of designing a functional carrier
  • improving the handling of rotating packaging
  • lower packaging costs due to the transition to permanent packaging
  • launching comprehensive maintenance services that allow you to regenerate your fleet while minimizing the need for replenishment.

Ultimately, the media management process will lead to the acquisition by Elkom Trade SA. management of rotating packaging through full outsourcing of the logistics process.

The next phase of the project will be equipping Elkom trade SA's logistic systems with RFID labels, which together with complementary devices will improve circulation and control of the flow of goods in carriers between the participants of the supply chain and enable optimal inventory management.

With such a refined system, our partners may consider departing from self-management of the logistics process, which will further reduce operating costs by:
  • saving storage space
  • significantly lower employment costs
  • optimized process management costs

solution



empty
 

Mesh containers – ET’BOXES, tops, rollcontainers, storage racks, storage frames

Poland