Reusable objects: From cost drivers to sources of income — this is how reusable management works in the 21st century
Reusable objects such as pallets, mesh boxes, and individual load carriers, like special racks, are indispensable in logistics. Despite their importance, managing these items represents a significant challenge for many companies—whether industrial, logistics, or retail. The reason is that managing reusable packaging involves considerable costs.
Personnel costs alone amount to 14.5 billion euros per year across Europe for documentation, booking, and coordination with partners, tying up 2% of the working time of all logistics employees. Additionally, there is the annual purchase of reusable items due to shrinkage, costing around 25 billion euros across Europe. Managing existing reusable items incurs additional capital commitment costs of 37.5 billion euros per year, which corresponds to 15% of the value of the entire pool.
Overall, managing reusable packaging is therefore a significant financial burden for companies in Europe and requires innovative solutions and more efficient approaches.
Analog processes lead to immense costs
A first central problem in packaging management is the high personnel costs associated with the manual administration of reusable objects. Employees must be able to track the large number of transactions with various exchange partners at any time. Although a lot has already happened in logistics when it comes to digitization, it is still not uncommon that countless emails and phone calls have to be made in order to complete exchange processes and correctly enter the data.
A second serious problem is financial loss due to shrinkage. A lack of transparency and standardized processes mean that companies have to buy 10% of their reusable properties every year. These costs can quickly reach the five-figure range and place an unnecessary burden on the budget. In addition, missing load carriers can lead to delays in operational processes. This can lead to delivery delays and, in the worst case, affect customer satisfaction and service levels.
Reusable properties are also expensive to buy, particularly when they are individual properties, which leads to a third problem — they tie up capital that could be used elsewhere for investments or to improve operational efficiency. Long turnaround times exacerbate this problem. Fixed capital generates running costs such as warehousing, maintenance and administration. The longer the objects are in circulation without being used effectively, the more oppressive these costs become. This results in losses in financial flexibility and the company's ability to react to market changes.
Our solution automates and digitizes reusable management. Holistic and sustainable.
The Logistikbude's software automates the tracking and management of reusable objects and thus reduces manual work. 80% of companies already have everything they need in terms of data. By combining existing data from common systems (TMS, WMS, ERP, etc.) in combination with partner applications such as RFID or IoT, companies can monitor the availability of their reusable objects in real time and precisely measure turnaround times. This transparency reduces subsequent purchases that were previously caused by shrinkage in the supply chain. The automation of exchange processes also minimizes personnel costs because no manual entries, corrections or monitoring of the objects are necessary.
“What if companies now even make money with their
Can load carriers earn? ”
How does that work? With Logistikbude rental model! Our customers set a specific rental period for each individual load carrier. Should there be a delay in returning the item, a daily fee will be charged, which the exchange partner must pay. In this way, our customers are financially compensated if third parties return the load carriers late.
And this is how our rental model works in detail:
- Determining the rental period: A specific rental period is defined for each individual load carrier. This means that companies can define exactly how long a load carrier can be with the customer before it has to be returned.
- Delay fee: If the return is delayed, a fee will be charged from the first day of the rental period exceeded. This fee is paid by the exchange partner who returns the load carrier late. The amount of the fee is set by our customer himself and can be charged both daily and monthly. In addition, a maximum amount of the fee can also be set.
- Financial compensation: Instead of just being passive victims of circumstances that you cannot control, our customers are financially compensated for the late return. This means that they generate revenue when other partners don't fulfill their obligations on time.
- More efficient logistics chain: This system promotes a more efficient logistics chain, as all parties involved have an incentive to return the load carriers on time. The fee for delays ensures that partners work more reliably and meet the agreed deadlines.
- Improved predictability and reliability: The fixed rental periods and transparency about return deadlines allow our customers to better plan their logistics processes and ensure the availability of their load carriers. This results in improved overall reliability and efficiency in operation.
Conclusion: Win-Win Situation
Our goal is to create a win-win situation for all parties. Companies benefit not only from financial compensation in the event of delays but also from improved logistics planning and management. This helps to minimize the financial burdens of long turnaround times and simultaneously opens up new sources of income. Our rental model allows companies to make optimal use of their investments in reusable assets.
Would you like to talk to us about the rental model or another topic?
Logistikbude not only offers its customers an intuitive and ready-to-use software solution for managing all reusable assets, but we are also happy to contribute our many years of experience in the packaging world at Fraunhofer IML to a non-binding exchange, a digital coffee, or at events. Get in touch at any time via the contact form. We look forward to getting to know you!
