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Reusables Cost Comparison Tool          
This model compares basic cost differences of one way corrugated packaging and reusable plastic packaging. The model uses basic assumptions and requires you to input various cost components. While the model uses factual inputs from prospective users it is intended to offer guidance and not an absolute indication of exact cost benefits. More specific models are available to determine specific cost benefits once an overall feel for expected costs are understood.  
 
   
 
  Corrugated     Reusable Handheld Container  
Purchase Price       * average values, your cost will vary  
Enter your actual cost for a corrugated carton, and the cost of a comparably sized reusable container. Default values are provided. Corrugated carton     Container price    
Enter the cost of tape or other materials used to seal each carton. Tape per carton            
  Total purchase cost            
         
Dwell Time          
"Dwell time" is the amount of time in days that a reusable packaging container will be held at various stages in your supply or distribution chain. In addition to time at your facility, be sure to also enter time at any distribution centers, transit time, time at the destination, and time for preparing and returning the container for reuse. All times are in full days. (Leave lines blank for rows that do not apply to your situation).  
           
Containers in use, waiting to be used, or waiting to be shipped     At your site    
"Safety Stock" is an amount of excess packaging kept on hand to avoid running out at any time. If the cycle time through your supply chain is relatively predictable, your required "safety stock" might not be very significant. Experts recommend at least 1 to 3 days.     Safety stock    
      Transit days to 1st location        
Distribution Center, for example.     Days at 1st Location    
      Transit days to 2nd Location        
2nd Distribution Center, or warehouse, if applicable.     Days at 2nd Location    
      Transit to final Location    
Final destination (e.g., retail store, warehouse). Includes containers in use, waiting to be emptied, queued for return.     Days at Final Location    
      Transit back to starting point    
      Processing time for RPC, cleaning etc    
    Total Dwell Time    
The # of complete round-trips. As dwell time decreases, the # of round trips per year increases, resulting in better payback potential.     Turns per year    
 
Volume  
                 
For this example, the annual number of corrugated boxes shipped in a given year, equals the number of individual reusable containers shipped. Total number of cartons shipped per year     Total number of RPC containers shipped per year    
                   
     
Returnable Container Cost Per Use  
           
Enter your needed internal rate of return here.This may reflect your return on investment goal, or payback target.     Annual interest rate     
Containers can last indefinitely if not lost or mishandled, but it is typical to amortize the cost over a 5 year period.     Amortization years 5    
This is the total quantity of containers needed in your system, based on the number of containers shipped per year and the number of turns per year.     Total reusable fleet size    
    Total investment    
    Simple interest, Annual    
    Annual, principal    
 Total annual cost factoring in your internal rate of return.      Total Annual Cost        
    Total cost per trip    
 
Return Logistics (Costs to Return Containers)  
           
Enter the number of miles the empty containers will travel to return to your facility for additional use     Number of miles to return empty RPC to the starting point    
    Cost per mile used $1.75    
    Minimum truck load 600    
A typical truck load can hold 4000 RPCs       RPC per truck load 4,000    
    Cost per truck load    
    Return cost per RPC    
Override: If you'd like to enter your own cost for returning the containers and override these calculations, select Yes and enter the cost.     Enter your own override reverse logistics cost here (and select yes on left):    
         
  Calculation will use this reverse logitics cost per container    
       
   Cost per container   
         
Replacement Rate:At what rate do you expect to replace lost or damaged containers annually? The Default value is 3%        
           
         
   Cost per container   
         
Processing Cost:Use the default value of $0.15 to clean and prepare returned containers for reuse, or estimate your own.     Processing Cost    
             
   
Other Cost (savings) Estimates    
Use the optional spaces below to enter additional costs or savings for corrugated and reusable containers. Examples are provided - delete or modify as appropriate for your circumstances.    
Item Calculations - Corrugated Cost per ctn   Calculations - RPC Cost per container  
   
   
   
   
   
   
  Additional cost (savings)          
       
       
Total cost per use *This cost comparison is presented as guidance on evaluating reusables. Each situation will be unique.  
                 
  Corrugated Cost     Reusable, total cost    
  Annual cost        
                   
     
Cost Savings / (Penalty) using Reusable Shipping Container    
                 
  Cost per unit per trip    
  Annual Savings / (Penalty)    
               
 
Does not include potential cost savings from the following benefits of using Reusables  
  · Reduced product damage from packaging  
  · Easier loading and unloading of product; ergonomic benefits  
  · Better cube utilization in trailers; reusables are made to stack and interlock  
  · Reduced tangential packaging costs, (e.g., stretch wrap, corner boards)  
  · Benefits from reusables creating enabling processes for lean manufacturing  
  · Potential for reduced greenhouse gas emissions and overall energy consumption