The Reusable Packaging Association (RPA, www.choosereusables.org) now offers an online tool, the Reusable Packaging Economic Calculator, designed to help businesses determine the cost savings of switching from single-use corrugated packaging to reusable packaging. The calculator, developed in cooperation with StopWaste.Org (www.stopwaste.org), is based on a financial model that covers the key concepts in the comparison of the per-container cost of both reusable and single-use packaging. The tool allows the user to perform some basic financial analysis to determine if the supply chain in question is financially conducive to reusable packaging.

"Now more than ever, businesses are trying to reduce their operating expenses, and reusable transport packaging is a proven and effective way to reduce costs," says Bob Klimko, chairman of the RPA board and director of general industrial marketing for ORBIS Corp.

Among the factors considered by the calculator are corrugated costs, dwell time (how long containers are held at various stages of the supply chain), cartons shipped annually, annual interest rate, return miles for reusables, and the expected replacement rate. 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, and additional assistance is available from RPA member companies.

Says RPA president Jerry Welcome, “The calculator is a great tool for potential users to show their CFOs and others in the company the hard numbers to start a conversation about switching to reusable packaging. In addition to these quantifiable savings, reusable packaging has been proven to reduce costs in other ways, including reducing product damage caused by faulty containers, reducing labor costs and injuries, reducing space required for inventory, and increasing productivity. These savings can help businesses weather today’s challenging economic environment.”