March 19, 2009
RPA Calculator Analyzes Cost Savings of Reusable Packaging
The Reusable Packaging Association (RPA) has unveiled a Reusable Packaging Economic Calculator to help businesses determine the cost savings of converting to reusable packaging from single-use corrugated packaging. In addition to quantifiable costs savings, reusable packaging also increases productivity, and helps companies meet their environmental and sustainability goals, says the Arlington, Virginia-based organization.
More and more companies are embracing sustainable packaging as part of their environmental initiatives. A recent study from The Freedonia Group projects demand for rigid, reusable containers to grow 3.5 percent annually, reaching $6.6 billion by 2011 as businesses switch to reusable packaging.
The calculator, developed in cooperation with StopWaste.Org, allows a potential reusable packaging user to perform some basic financial analysis to determine if there are cost savings in the supply chain by switching to reusable packaging. The calculator factors in corrugated costs, dwell time (how long containers are held at various stages of the supply chain), cartons shipped annually, annual interest rate, return miles for reusables and the expected replacement rate.
RPA says the tool offers guidance and is not an absolute indication of exact cost benefits.
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