27 Nov Unit 7_MT437_Discussion response
13825Respond or elaborate on team discussion post below:
The idea of return packaging systems to is a logistical concept that integrates a reusable packaging design such as plastic containers, foam boxes, steel racks, or custom dunnage into goods for logistic efficiency throughout the supply chain (Universal Package, n.d.). Instead of using single-use packaging, companies develop a close-loop packaging design that will circulate between manufacture, distributor, and retailer that is held as a deposit and traded-in for a rebate on future orders. Firms implement this framework to make packaging more cost-efficient by reducing waste, while improving how goods are handled and persevered as it arrives to end-users. Other incentives for applying this packaging system includes environmental benefits that support sustainability goals, meeting extended producer responsibility (EPR) laws, and enhancing brand image and reputation with the public, primary environmentally conscious consumers.
While there is no explicit law that requires firms to integrate return packaging systems, some states are looking to expand their EPR to include packaging requirements in the future. Additionally, certain states have specific packaging requirements (how to recycle) and bans that can limit the contents in a good’s packaging (reduced plastics). It’s safe to assume that in the near future, businesses may need to think about how they will package their goods and whether allocating funds for development of their return packaging system now will help them avoid penalties and fee paid later if laws change.
As it stands now, the strategic advantage for integrating a return packaging system includes cost-efficiency, logistic efficiency, reduction of environmental waste, and enhanced brand reputation. However, in the near future firms may have to think about regulatory compliance under EPR laws if states decide to add packaging requirements to them.
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