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software, that we are able to visualize that inventory going through the supply chain both from the supply base and the OE individually. So now we have the data to problem solve this habitual problem we’ve had forever about how to manage returnables.”
The initiative will come out later as an AIAG best business practice or case, McBrien said. “It is still being developed a little bit, but one thing I want to leave you with is isn’t the end of it. It is just the first foundational piece to what can happen next.”
McBrien said that the collaboration did not signal a loss of competitive advantage. “Absolutely not…How we operate in that environment is really what becomes the competitive advantage. There will likely be some some of the group who will adopt 100% of it, some that will likely adopt a portion of it…”
The importance of integrating people into the management process
While the promise of technology for achieving better reusable container management is tantalizing, the value of dedicating people to the process should not be underestimated, either from inside the company, or through a third party provider. When it comes to managing reusables, whether in food, pharma, or industrial, having people directly involved repeatedly been proven to make a difference. For example, as outlined in a recent CHEP OEM case study, it utilized a team of 35 people across 17 North American plant locations to achieve some remarkable results. These improvements included:
- 48% reduction of expendable packaging claims
- 53% reduction in repack costs
- 36% reduction in lost container replacement
Based on its work with top OEM and tier 1 brands globally, CHEP was named as the 2018 Environmental Awareness Award recipient at the Automotive Global Awards. Held in the heart of Motor City, the awards gala celebrated the industry and recognized companies and individuals who have pioneered a new way of thinking or working.
Automotive packaging continues too often to be portrayed as a problem, rather than an opportunity. Continued exploration of collaborative approaches to tracking technology, investment in management, pooling and product innovation will help in that shift.