CASE STUDY No. 9705
KEY WORDS REUSABLE CONTAINERS, CUSTOMER TAKE-BACK PROGRAM,
HIGH-VALUE ELECTRONIC COMPONENTS
EMC Corporation
P.O. Box 9103
Hopkinton, MA 01748-9103
Contact: Paul Rizzo, Procurement Specialist; George Kornfeld, Packaging Engineer.
Tel: 508-435-1000.
Summary
A pre-paid take-back kit enables customers to send packaging components back to the manufacturer for reuse, reducing packaging costs 20%.
Action
EMC Corporation designs information storage and retrieval systems for mainframe and midrange computing environments. The company employs 2,000 people at its headquarters in Massachusetts.
The genesis of the take-back program occurred several years ago when packaging issues--in particular, the reduction of packaging waste--were under discussion. EMC soon developed the "We Care Kit" return program for packaging of small- to medium-sized equipment weighing 90 to 115 pounds. From inception to implementation, the program took 5 months.
The program operates through the Shipping Department. Shipments to customers include a return kit, including a diagram showing which packaging materials can be returned (plastic skids, molded foam plastic, and some of the corrugated) and how to assemble these components for return. Also in the kit are two heavy rubber bands to secure the package; a self-addressed label to EMC's packaging vendor, Tuscarora Plastics; instructions for filling out the shipping form; and an 800 number to call for pick-up. The package weighs about 24 pounds, light enough for most customers to handle without difficulty. Outbound freight and return packages both are handled by an overnight delivery company.
Upon return to Tuscarora, EMC's packaging is checked to make sure it is complete and suitable for reuse. Then it is routed to EMC's Shipping Department. Materials unsuitable for reuse are recycled by Tuscarora.
Payback
Of EMC shipments including the "We Care Kit," 35% to 40% of packaging is returned for reuse. Tuscarora covers the cost of inspecting returned packaging. Among package parts, the plastic skids, which cost $16 new, are readily reused; molded foam cushioning can be reused two to three times; corrugated cardboard has the shortest lifespan. EMC calculates the program, overall, has reduced its cost of new packaging by 20%.
Additional benefits
