Optimizing the Supply Chain with Returnable Packaging: Solutions to Improve Profitability in the Electronics Industry
In the complex electronics industry,supply chain costs can have a major impact on a company’s profitability. Like
the industrial supply chain,where costs are estimated to account for as much as 8% of a company’s operating
income,the electronics supply chain has many points that can affect the bottom line.
Assembly manufacturers,suppliers and contract manufacturers can positively impact their bottom lines by
optimizing their supply chains. Opportunities are greatest when companies focus on the big picture and make
improvements that benefit the entire operation.
One example of a supply chain improvement that can pay big returns for electronics component assemblers is
something they might not have considered: a returnable packaging system.
Returnable packaging systems contribute much more than durable,ESD-protective containers for shipping
components. They deliver cost-savings and efficiency at multiple points on the supply chain. The improvements
can add up to much greater financial benefits than most companies realize,including:
• Cuts in the Cost of Goods Sold
• Limits on Selling,General and Administrative Expenses
• Reduced Capital Costs
This paper presents a new way of looking at returnable packaging: how it can optimize the supply chain,where it
improves the bottom line,and how companies can achieve maximum return on their investment.