Increasing the level of control in packaging management - Best practices for managing the returnable transport items at Volvo Logistics Services

Abstract

Packaging is a fundamental element in logistics, which significantly affects costs and efficiency of logistics activities. Returnable and reusable packaging items are seen as corporate assets and capital investments for companies. However, one problem regarding returnable packaging management is that companies usually have weak visibility and control over them especially in extensive supply chain networks. The purpose of control is to assure returning of assets, satisfy service level and make sure to utilize packaging efficiently. The cores of this study constitute identifying important factors in business models regarding packaging management, and evaluation of their efficiency based on critical performance indicators i.e. leakage and turnaround time in the network. Therefore, this study first created an analytical framework in order to provide holistic view over packaging systems and their management by combining different elements in the packaging control systems. The six important dimensions of the framework are loop design, packaging ownership types, pool control systems, order management, network design and tracking systems. Then this study analyzes the efficiency of the packaging pool at Volvo Logistics Services and finally provides recommended solutions to achieve higher level of control in their packaging management system.