Reusable Packaging News No. 5, 2018 | Page 22

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By offering a wider range of foldable plastic IBCs (e.g. footprint, volume, adapted to different transport media) we want to gain market share and replace non-efficient transport packaging where it is possible.

HOREN has a full fleet of different IBCs with a very high folding ratio (up to 4:1) and very good load capacity. Now we want to provide an alternative to other fluid transport packaging options where possible and where it makes sense.

RPN

RPN

Keeping a Lid on Dangerous Goods

The topic of dangerous good packaging was the topic of a breakout session at the Automotive Logistics Europe Conference 2018.

“We immediately jumped on the lithium ion batteries, because that is what we need to be prepared for,” one meeting participant said in summarizing the session. He noted that with the growth of electric vehicle manufacturing, there is a “huge wave inbound from Asia to Europe” requiring dangerous goods packaging. “Do we have the right knowledge to ship this product according to the regulations which are both country based and global? It is a different concept than just shipping parts.” Standardization was also one of the topics,as various OEMs use different batteries. Cross coordination among OEMs should be nurtured, he urged.

The cost of the one-way packaging was described as “insanely expensive” – not a €6 cardboard box but a €30 or €40 container, resulting in a huge amount of packaging waste inbound. “In regards to recycling it is a one way flow, it goes from Asia into Europe. There is nothing going back.”

Aftermarket was also flagged as a challenge. Shipping batteries from the shop back to the recycling facility involves a different dangerous goods regulation. Given the insurance implications for shipping lithium ion batteries, the use of sensors and other technologies to support supply chain visibility “could be a nice value ad.” Also of note, huge companies have entered the battery market, including Samsung and LG.

“It will be the tail wagging the dog here if we try to dictate to them what kind of packaging we want,” he continued. “There are people we need to talk to, also from a logistics point of view. What is a good packaging to bring lineside to the point of use for transport optimization. Do they really care?”

Tracking Technology and the Automotive Packaging Problem

A new shared platform for returnable container management was announced at the 2018 Automotive Logistics Supply Chain Conference.

The platform is being widely deployed and is expected to move into an AIAG committee to form industry standards. Founding members of the Automotive Data Ecosystem Design Group and AIAG Committee include Fiat Chrysler Automobiles, General Motors, Honda North America, Nissan North America, Toyota North America, Adient, Denso North America, MAHLE North America and Yanfeng Automotive Interiors.

According to a report in Automotive Logistics, the five OEMs are currently joined by “12 medium to large tier suppliers, two logistics providers and the Automotive Industry Action Group (AIAG) on the initiative for a data system providing accurate visibility over returnable containers at every stage of their movement between supplier and OEM.”

“Basically we all came together because we all have a common problem,” said Dana McBrien Associate Chief Advisor at Honda. He spoke at the Automotive Logistics Conference on May 22. “We don’t manage our reusable containers very well. We have varying severity of problems, but it all comes down to not managing our returnables very well. We started some conversation around September last year and got a lot of participation.”

“Most automotive companies struggle to reduce supply chain costs year over year,” said William Wappler, Surgere CEO and the brainchild of the digital ecosystem. “We conservatively predict the participants in our digitized ecosystem can achieve double-digit cost savings through highly accurate visibility into the supply chain and through the collaborative power of shared information and analysis across OEMs and their supply base,” he said.

“Really, what we were trying to get to was getting the right container to the right place in the right quantity, in the right configuration, in good condition that we could protect our parts being delivered from our tier 1 suppliers,” McBrien continued.

“We looked at this as being one of the big problems in the auto industry. I don’t think there would be any of us who have annual meetings with suppliers where this doesn’t come up. There are very few venues where this doesn’t come up as being one of the problems.

“We looked at creating a data ecosystem that we shared having an input into,” he said, acknowledging that current management shortcomings lead to production delays, repacking, and the use of expendables. “If we can eliminate those issues we are going to be way ahead of the game.