Why is packaging registration such a big challenge?

Many companies, not only in the Netherlands but all over the world, have to deal with packaging. Packaging is also called load carriers or containers. It is a transport item that helps to transport goods efficiently from A to B. There are many different types of packaging and each packaging item represents its own value. In addition of the many different types of packaging, various of agreements can be made about packaging. Who is responsible for the packaging at what time and which agreements do you make about the financing and costs of packaging? Tconsult is the packaging specialist that can help your company! We draw our knowledge from more than 15 years of experience in the packaging world!

Different types of packaging

There are many more items that are packaging, load carriers and containers than most people realize. For example, there is the difference between single-use packaging (single-use pallets, boxes, etc.) and multi-use packaging. Bakeries mainly use bread crates (Broban crates), cooling boxes, plastic bins, pastry carts, pastry stands, and wedding cake stands as their packaging. The flower trade, on the other hand, uses completely different packaging items. The flower trade mainly uses auction carts, auction trolleys, CC carts (Dainish trolleys), DC carts with CC plates, flower buckets (566, 577, 596), flowerboxes (525, 527, etc.), pot plant containers (251, 256, 702, etc.), pallets (Euro pallets, single-use pallets), cage carts and roll-containers. These are just a few examples; each branch has its own packaging items with its specific application.

Value of packaging

Packaging items are mainly utensils to transport goods efficiently from A to B. It contains the functional operation of packaging. Often the focus and attention within a company is entirely on the (sales-) goods and products that the company produces and/or delivers. However, they often do not realize is that packaging items also represent a very large monetary value. Single-use packaging sounds easy but can also cost a lot more money than multi-use packaging, load carriers and containers. The multi-use packaging, load carriers and casks are designed to use the item several times, so the cost of a multi-use packaging, load carriers and containers will often be cheaper than when using single-use packaging. The single-use cask is designed to throw away or give it a different destination.

A Broban Crate, also called the bread crate, the transport item for the bakery costs €7,50. It ‘only’ transports the fresh baked bread from A to B. Transporting flowers is already much more complex. The flowers stand in a bucket, these can be single-use of multi-use buckets. These buckets stand on a cart with shelves / plates. A multi-use flower bucket costs €4, – per piece, the cost of a CC cart or auction is between €35, – and €450, – and the required plates costs between €8, – and €30, – per plate. In short, packaging represents a high value which is not always visible for employees, transporters and customers who work with it.

Packaging agreements

There are many different types of packaging, load carriers and containers available and necessary to transport goods efficiently from A to B. The registration system behind the packaging is often complex and the packaging administration often represents great value. Before setting up a packaging administration, it is important to record the packaging agreements properly.

What do we mean by packaging agreements?

We mean by packaging agreements: who is responsible for the packaging at which time and who has a balance with whom at which time. If the balance is between supplier and carrier, there is also a balance between carrier and customer. Another possibility is only a balance between supplier and customer, the carrier has no responsibility. He only drives from A to B and from B to A. At the time of transfer, it is important that the recorded agreements are unambiguous, and you have to keep a close eye on these agreements. As a selling party you can make the same agreements with all your customers or with all your carriers, but it is also possible that you make certain specific agreements per customer.

Next to the agreements about who is responsible for the packaging after transfer of the goods, there are more types of agreements. Do you put (all) packaging on the invoice to the customer as the selling party, or do you keep a packaging balance? If the packaging is on the invoice; this can mean actual sales, but this can also represent deposit for the packaging. In case of selling the packaging to the customer you do not get it back unless you buy the packaging back from your customer.

If the selling party wishes more security, he can charge a deposit. This deposit is included in the total outstanding balance and influences the spending credit of the customer. If the customer exceeds the spending credit you can ‘close’ balance with this customer until the credit is positively changed.

When there is a deposit, there is no real rush for the receiving party to return packaging, except that the cashflow will be better. With a deposit, a small fee has been paid to allow the packaging to be borrowed. This amount is not higher when you have the packaging longer in your possession.  The third option is to rent the packaging. With day rent it is an incentive to return the packaging as soon as possible to the original owner. Every day the packaging is longer in your possession, you pay more rent in the form of a small amount. The longer you keep the packaging in possession the higher the rental amount will be.

Packaging advice

In short, packaging, load carriers and containers are not that easy to manage properly. At packaging management, different names of packaging items are shown, each representing its own financial value. There are various agreements of responsibility, whether or not to calculate deposit and / or daily rent and finally packaging registration and last but not least discipline, focus and support in dealing with packaging. Before setting up a packaging flow or packing administration, it is important to have a complete picture of all facets with regard to packaging management. You should start with careful thinking about responsibility with regard to packaging and which agreements with regard to packaging are used. Once arranged, it is often difficult, but not impossible, to adjust these responsibilities/ agreements.

Tconsult has over 15 years of experience with and in packaging. Ernst Tjaden has worked at various companies and has embarked on their packaging challenge. In addition, he has advised many companies in setting up a good packaging administration and packaging registration. Do you also have a challenge with packaging or can you use some advice? Do not hesitate and ask your question! We can help you further and put your packaging management in order!

 

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