Expert Note - Enabling Circular Economy With Returnable Packaging

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Enabling Circular Economy with Returnable

Packaging Management
Nov 2022
The information contained in this document is proprietary. Copyright © 2022 Capgemini. All rights reserved. Page 1
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Table Of Contents
Contributors
1. Summary 3 Milind Dumbre, Guruprasath D, Somkalpa Laha
2. Returnable Packaging Market Outlook –
Automotive Outlook 4
3. Leading Providers in Returnable Packaging Management Solutions 7
3.1 ........................................................................................................................................ 7
3.2 ................................................................................................................ 8
3.3 ............................................................................................................................. 9
3.4 ............................................................................................................... 10
3.5 .................................................................................................................. 11
3.6 ......................................................................................................................... 12
3.7 ........................................................................................................................................... 13
3.8 ........................................................................................................................................ 14
3.9 .......................................................................................................................... 15
3.10 ................................................................................................................................. 16
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3.11 ......................................................................................................... 17
3.12 .................................................................................................................................. 18
4. Leading IT Service Products 19
5. Returnable Packaging Product & Service Providers 21
6. Automotive Companies using Returnable Packaging Solutions 27
Reference Links 30
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1. SUMMARY
With the acceleration of the digitized supply chain and last mile delivery of products, a significant
volume of packaging material, most of which are plastic, are required in logistics and are disposed as
waste after they serve their purpose. In 2020, packaging waste generated was estimated at 177.2 kg
per inhabitant in the EU (varying from 66.0 kg per inhabitant in Croatia and 225.8 kg per inhabitant in
Germany).
This rising amount of wastage is one of the main reasons behind the rise of the concept of use of
reusable packaging material. Reusable packaging material can be used or processed at any point in
the manufacturing, thus leading to elimination of wastage. Thus, reusable packaging contributes
significantly to Circular Economy.
With rapid urbanization across the world, the global returnable packaging market size has been
growing steadily at a CAGR of 9.6%. The returnable packaging market growth has a direct impact on
the returnable packaging software market expecting prominent solutions by companies. The Global
Reusable Packaging Management Software market is projected to reach $36Bn by 2027.
For this increasing demand, several prominent players like Lowry Solutions, TrackOnline, Euro Pool
System, Kinaxis, Anaplan, Euro log, etc have risen in the returnable packaging solutions market. Their
focus is on RFID & IoT integration for efficient tracking of crates, pallets, containers, etc. along with
pooling services. The role of IT companies like Capgemini, Accenture, Deloitte, EY, KPMG, Atos, IBM,
TCS, Infosys, etc. is in thought leadership as of now as they do not have any solution specific for this
market.
The automotive industry has been significant in the application of returnable packaging. From small
parts to engines and batteries for EVs, majority are transported in large racks, pallets, or reusable
plastic. Moreover, the OEMs are co-ordinating with other stakeholders in the supply chain for more
efficient routes to ensure the least carbon footprint.
Research Methodology and Databases Used
We have done a thorough desk research including industry reports, blogs and articles from
companies and tried extensively searching on relevant databases accessible to us such as Gartner,
IDC, Factiva, and Forrester.
Returnable Packaging Market Dynamics
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Enhancing Brand image for sustainability
Increased govt regulations on packaging materials
Increased encouragement for ecofriendly packaging
Drivers
2. RETURNABLE PACKAGING MARKET OUTLOOK – AUTOMOTIVE
OUTLOOKHigher cost involved in return trip costs making returnable
packaging expensive
The Returnable Packaging
Small and Association (RPA)cannot
medium enterprises defines ‘returnable
afford the adoptionpackaging’ as packaging which
Restraints owing to its expensive nature
includes reusable pallets, racks, bulk containers, hand-held containers, and dunnage.
The market is bifurcated into Pallets, Crates, IBCs, and others. The pallets product segment led the
Growing Customer demand in developing economies for consumer
market and accounted for quite a 30% share of the worldwide revenue, on account of in-depth
durable, food & beverages, and Automotive market
utilization of pallets by multiple
Increased end-use
adoption industries
of internet ranging
and e-commerce boomfrom
fuelfood & beverages to petroleum &
demand
Increased awareness of using ecofriendly products
lubricants. The benefit at the customers’ end includes a 40-70% savings on overall cost on products
Opportunities
having returnable packaging.
Lack of Integration with existing conventional Supply chain

and logistics
Higher maintenance and operations cost
Challenges
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Global Returnable Packaging Market size in $ Bn
CAGR: 9.6%
The CAGR from 2022 – 2027 is 9.6%
Nonetheless, returnable packaging market has been showing a prominent growth from the year
2020. The fastest growing application segments of returnable packaging have been seen in the
following industries –
 Automotive
 Consumer Goods & Electronics
 Food & Beverages
 Pharmaceuticals
The automotive industry is driving rapid rise in the use of reusable packaging. In automotive industry,
expendable packaging is typically paper, and wood based (corrugated or plywood) and are meant
for one-time use. This kind of packaging material are much more cost effective for longer distribution
routes as they are disposed of at the destination. In contrast, returnable packaging like racks, crates
and pallets are brought back from the destination and are reused in the manufacturing & distribution
cycle, thus reducing packaging material waste and in a way carbon footprint.
Smaller parts will create opportunities for different approaches to packaging
 Electric vehicles will feature smaller motors, transmissions, and related drive train components.
 The internal combustion engines are typically shipped on a large rack, multiple smaller engines will be
a better fit for standardized reusable plastic.
Packaging design and certification for lithium-ion batteries
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 With electric vehicles and lithium-ion batteries, there are new packaging challenges to ensure safe
handling.
 Considerations such as the state of the battery, battery weight, and mode of transport.
Intelligent packaging and supply chain visibility
 OEMs, tier suppliers, and 3PLs are looking at how to better share routes and cross docks to increase
efficiency. Technologies to improve visibility, such as intelligent packaging, are critical to such
initiatives.
Key Highlights
 Worldwide, more than 88.3 million euro pallets (EPAL) are produced annually, Moreover, the volume
of pallet collar production is 29.4 million pieces per year.
 The cost of replacing “lost” reusable packaging and pallets in the North American auto industry is
around $750 million per year, according to a 2010 survey by the Auto Industry Action Group.
 The automotive sector loses roughly 15 to 20 percent of its pallets and lids annually, according to
Deloitte
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3. LEADING PROVIDERS IN RETURNABLE PACKAGING MANAGEMENT

SOLUTIONS
Organization Product/Service Benefits
SAP Returnable Packaging Management is

powered by the SAP Business Technology
Platform to enable collaboration with partners  Manage Returnable
along the supply chain ecosystem and it integrates Packaging
to multiple backend systems. The features include  Manage Returnable Rentals
Analytical Dashboard, Integration with SAP  Manage Packaging Planning
S/4HANA, Real time Returnable Inventory
Management.
INFORM's software for container
management effectively combines demand  Reliable supply and lower
costs
forecast, tracking, distribution, and transport
 Track all containers in real-
and optimizes the use of loading equipment for
time
more efficiency.
EuroLog SCM Platform, is a software-as-a-  Company-wide transparency
service (SaaS) solutions help all partners to regarding container cycle
achieve digital transformation not just rapidly  User interaction with
but also simultaneously and sustainably. container management app
(CMS app)
TrackOnline Insights is the new online
reporting environment developed by  Availability across multiple
TrackOnline in collaboration with Cohelion. devices - desktop, tablet and
Packaging software like TrackOnline can mobile
contribute to the whole pooling loop, to record  Easy configuration with ERP
all information easily and have it available at with automated data import
any time
Kinaxis Recycling End-to-End Planning
(REEP) by OCYO is a digital, collaborative
platform supporting the end-to-end reverse  Enables coordination between
logistics process. different stakeholders
Kinaxis Inventory Management application,  Reduces or maintain
proactively identify inventory risks and inventory levels across
categories
opportunities, simulate changes and balance
 Reduce wasted product,
trade-offs. mitigate carbon emissions,
RapidResponse Platform, makes significant enable efficient recycling
contributions to help customers reduce waste in
its many forms every day.
ESGplan serves as a platform for effective  Single source of truth
strategy development and implementation and  Detailed roadmap of project
scenario-based risk management, as well as implementation across time
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monitoring and reporting.  Ready-to-publish customized

reports
Reusable Packaging Management is available
as a standalone module and as a part of  Easily dispatch packaging
Alpega’s end-to-end TMS. RPM has access to orders to multiple fulfillment
sites
reliable data for better stock forecasting and
 Better customer service,
holding cost reductions, audit-ready data is security, and quality
stored and easily accessible
Lowry provides container management  Increased productivity,
systems that enable the efficient tracking and shipping velocity, and drive-
control of reusable containers by associating a on/drive-off times
unique RFID tag with each asset.  RFID to improve the visibility
of its returnable container
fleet
Euro Pool System service centre, offer a fully  Eliminates unnecessary
outsourced pooling service that ensures to offer transport kilometres,
the right trays in perfect condition, from a wide reducing a considerable
range of service centres located throughout amount of CO2
 Automated order picking
Europe.
 Storage of all data on a cloud
platform, for quick online
monitoring
Nefab Pooling is a solution that offers optimal
flexibility regarding packaging. It provides  Environmentally friendly and
customers an option, instead of investing capital profitable alternative to one-
way packaging
in own packaging, based on demand they can
 Customers have more control
rent returnable packaging whenever needed in
over the quantities they need
as large quantities as required.
LoopManager is a nuVector’s Returnable  Centralized asset catalog that
Packaging Management Software that offers allows multi-tenant
online centralized packaging cataloguing. enterprises to consolidate all
relevant information
 Complete history of the
utilization of every asset
OPTEL’s RPM solution allows manufacturers  Real-time visibility on asset
to track their reusable packaging from fleet: dashboards and alerts
manufacturing sites to end user and back.  Interoperability with existing
systems (ERP, API, WMS)
 Valuable analytics: asset age,
losses, durability, return rate,
scuffing level
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4. LEADING IT SERVICE PRODUCTS
Organization Product/Service Key Insights

 Improve turnaround time and
reduce losses of returnable
Returnable container management for containers in the automotive
automotive industry
This solution includes RFID technology  Provides container tracking

that allows OEMs to create visibility and through RFID technology
thereby establish a sense of ownership  Optimize investment in
for containers throughout the entire containers through a combination
cycle. of process and organizational
changes and a corresponding IT
solution.
 The last mile includes physical
sensors, flexible electronics,
cameras, QR codes, NFC tags
Digital innovations are now enabling and RFID tags among many
companies to completely transform what others, in addition to the software
packaging can do with the help of smart and systems used to control smart
and connected packaging. packaging systems and analyze
data for business purposes
Smart connected packaging provides
digital touchpoints at every stage of the  The specialized scanners used in
product lifecycle. warehouses and distribution
centers are examples of smart
connected packaging but so are
QR codes.
Smart Packaging
 Blockchain technology is an
Connected packaging which can increasingly component of these
communicate with other packages, or the applications, as it allows
internet is still a relatively untapped producers and consumers to
opportunity with simple bar coding and create a secure, unchangeable
RFIDs used increasingly for tracking and record of product’s provenance
tracing package location in the supply and path to market.
chain.
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5. RETURNABLE PACKAGING PRODUCT & SERVICE PROVIDERS
Organization Key Services Service Offerings

 Distribution & transport
solutions  Battery Packaging Solutions
 Automotive solutions  Intercontinental Solutions
 Warehouse & Inventory  System Wide Solutions
solutions  Sustainable Solutions
 Store & retail solutions
 Packaging solutions  Outer Packaging
 Inner Packaging
 Packaging and Logistics  Pallets
optimisation  Packaging Requirements
 Logistics services  Products – Nefab ExPak, Nefab
RePak, EdgePak, CratePak
 Metalworking
 Machinery
 Optimal Packaging Solutions
 Packaging Companies
 Packaging and Logistics Services
 DIY Industry
 Logistics
 EPP and EPS Car
Components
 Transport Packaging
 Transport Packaging
 Car Battery Pack
 Automotive Injection
Molded Parts
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6. AUTOMOTIVE COMPANIES USING RETURNABLE PACKAGING

SOLUTIONS
Returnable container tracking boosts efficiency and cost optimisation for the automotive companies
Automotive OEM Lucid Motors
RPM firm SAP
Solution  SAP's Returnable Packaging Management solution is implemented.
Automotive OEM Man

RPM firm Alpega
Solution  Alpega's Reusable Packaging Management solution is deployed at all
twelve European production sites and five logistics centers of MAN
 It guarantees a reliable supply of empty containers tailored to MAN‘s
needs.
Automotive OEM Mobis

RPM firm Lowry Solutions
Solution  Lowry provides container management systems that enable the
efficient tracking and control of reusable containers by associating a
unique RFID tag with each asset
 For the software, Lowry deployed a solution from Austrian firm 7iD
Technologies. 7iD specializes in RFID infrastructure management and
control and provides specific applications for automotive and
container management solutions
TrackOnline Pooling solution manages an asset pool or pool of reusable packaging for various clients
to track every packaging movement
Automotive OEM de Paauw (Innovative supplier of bread and pastries for supermarkets)
RPM firm TrackOnline
Solution  Bakery de Paauw now registers bread crates completely digitally, the
registration of packaging is one of the last processes that still involved
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paper delivery notes and Excel sheets

 Drivers uses TrackOnline in the organization, they transport the bread
with the bread crates and dollies and are responsible for the delivery
and return of load carriers
Automotive OEM Van der Knaap

RPM firm TrackOnline
Solution  The dashboard of TrackOnline is easy to customize by adding tables
and graphs that show the top ten balances
 In addition, the company was able to view for which customers the
address data is incomplete
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REFERENCE LINKS
https://www.verifiedmarketresearch.com/product/returnable-packaging-market/
https://www.thebrainyinsights.com/report/returnable-packaging-market-12758
https://www.kronus.eu/company/blog/a-reference-solution-for-ensuring-delivery-from-asia-to-Europe
https://www.kronus.eu/company/blog/market-overview-outcomes-and-trends-of-2020
https://www.kronus.eu/company/blog/wooden-market-overview-q1-2021
https://www.kronus.eu/company/blog/the-role-of-packaging-in-supply-chain-management
https://www.kronus.eu/company/blog/benefits-of-using-pallet-collars-in-fasteners-transportation
https://www.kronus.eu/company/blog/wooden-market-overview-q1-2021-update
https://www.nefab.com/en/solutions/packaging-solutions/products/
https://www.kinaxis.com/en/industries/automotive
https://www.inform-software.com/company/client-references
https://www.inform-software.com/logistics/container-and-reusable-packaging-management
https://www.inform-software.com/ajax/50-years-of-inform/adrian-weiler
https://www.linkedin.com/company/inform?trk=public_profile_topcard-current-company
https://www.worldpharmaceuticals.net/contractors/brand-protection-and-anti-counterfeiting/optel-group/
https://www.eurolog.com/en/eurolog-scm-platform/
https://www.eurolog.com/en/eurolog-scm-platform/container-management/
https://www.eurolog.com/eurolog-scm-plattform/behaeltermanagement/
https://www.eurolog.com/unternehmen/
https://trackonline.com/pooling-solution-returnable-assets/
https://trackonline.com/what-is-trackonline/#pricing
https://ie.linkedin.com/showcase/trackonline?trk=recent-update_see-all
https://www.kinaxis.com/en/industries/consumer-products
https://www.kinaxis.com/en/about-us/gartner-magic-quadrant-supply-chain-planning-solutions
https://www.kinaxis.com/en/resources/content/greener-practices/recycling-e2e-ocyo
https://www.kinaxis.com/en/solutions/inventory-management
https://www.kinaxis.com/en/solutions/platform
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https://www.anaplan.com/resources/analyst-report/2022-gartner-magic-quadrant-for-supply-chain-
planning-solutions/
https://www.anaplan.com/wp-content/uploads/2022/04/ESGplan-One-Pager_Landscape-vS.pdf
https://www.anaplan.com/partners/boston-consulting-group/esg-plan/
https://www.alpegagroup.com/en/tms/solutions/reusable-packaging-management/
https://customers.microsoft.com/en-us/story/1342697026461181048-alpega-group-professional-services-
azure-english-austria
https://be.linkedin.com/company/alpegagroup
https://lowrysolutions.com/
https://lowrysolutions.com/wp-content/uploads/2015/08/Lowry_Mobis_CS.pdf
https://www.casestudies.com/vendor/lowry-solutions
https://www.linkedin.com/company/lowry-solutions
https://www.linkedin.com/in/mike-lowry-61bb454
https://www.europoolsystem.com/
https://packagingrevolution.net/euro-pool-system-launches-smart-return-logistics-srl-for-optimised-
reverse-logistics/
https://nl.linkedin.com/company/euro-pool-system
https://www.europoolsystem.com/blog/reducing-food-waste-with-smart-trays?utm_campaign=2022%20-
%20External
%20communication&utm_content=218850204&utm_medium=social&utm_source=linkedin&hss_chann
el=lcp-51529
https://www.nefab.com/en/solutions/logistics-services/pooling/#:~:text=Nefab%20Pooling%20is%20a
%20solution,large%20quantities%20as%20you%20wish.
https://loopmanager.com/featuresreturnable-packaging-management/
https://nu-vector.com/
https://www.linkedin.com/in/manuel-pachano-5654a715#:~:text=Manuel%20Pachano%20%2D
%20President%20%26%20CEO%20%2D%20nuVector%20%7C%20LinkedIn
https://clutch.co/profile/nuvector#summary
https://www.optelgroup.com/en/solution/reusable-packaging/
https://in.linkedin.com/company/optel-group
https://www.optelgroup.com/en/about-optel/
https://www.all-for-one.pl/en/whitepapers/rfid-in-returnable-packaging-management/
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https://blog.roambee.com/supply-chain-technology/how-to-execute-reusable-packaging-management-
and-tracking
https://sap.io/sustainable-retail-business-solutions-from-sap-showcased-during-nrf-2022/
https://ec.europa.eu/eurostat/statistics-explained/index.php?title=Packaging_waste_statistics

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POV Template

Enabling Circular Economy with Returnable

Research Methodology and Databases Used

Lack of Integration with existing conventional Supply chain

Global Returnable Packaging Market size in $ Bn

The CAGR from 2022 – 2027 is 9.6%

Smaller parts will create opportunities for different approaches to packaging

Packaging design and certification for lithium-ion batteries

Intelligent packaging and supply chain visibility

3. LEADING PROVIDERS IN RETURNABLE PACKAGING MANAGEMENT

SAP Returnable Packaging Management is

monitoring and reporting.  Ready-to-publish customized

4. LEADING IT SERVICE PRODUCTS

Organization Product/Service Key Insights

This solution includes RFID technology  Provides container tracking

5. RETURNABLE PACKAGING PRODUCT & SERVICE PROVIDERS

Organization Key Services Service Offerings

6. AUTOMOTIVE COMPANIES USING RETURNABLE PACKAGING

Automotive OEM Man

Automotive OEM Mobis

paper delivery notes and Excel sheets

Automotive OEM Van der Knaap

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