Ghirardelli Chocolate Company in San Leandro, Calif., is the longest continually operating chocolate manufacturer in the United States, and they value tradition. But when it comes to smart operational decisions, the company is not afraid to chart new territory. In 2005, Ghirardelli replaced disposable cardboard boxes with reusable plastic totes to transport their premium chocolate squares inside the plant and to outside packagers. Since making the change, they have not looked back.

"Before switching to reusables we'd have to replace and pay for the disposal of some 350 tons of chocolate-soiled cardboard boxes each year," remembers the plant's planning manager, Vellay Kannappen. Ghirardelli expects to realize over $2 million in net savings over the course of five years, the assumed life span of the containers and washing equipment.

Like Ghirardelli, a growing number of companies are taking a hard look at the cost and performance of cardboard boxes, wood pallets and other limited-use transport packaging. While it's far from being a standard across industries, "going reusable" has paid off handsomely for many leading companies. Some of them -- including John Deere, Toro, Cummins, General Motors, Pepsico, as well as Ghirardelli Chocolate -- will share their success stories and experiences at today's "Choose Reusables!" Education Forum, a conference in Oakland, Calif., focused on all aspects of reusable transport packaging.

Benefits and Advantages

Unlike cardboard boxes and wood pallets, reusable containers and pallets are made of durable materials and designed for many years of use. Switching to reusables eliminates the purchase and disposal costs of one-time or limited-use transport packaging. Once the initial cost of reusable transport packaging is recovered, this means direct savings-and a boost to the bottom line.

In addition there are less obvious, secondary savings opportunities, such as lower labor, reduced inventory and shipping costs, and decreased product damage. Savings in these areas is what makes the switch to reusables worthwhile for many companies. One of them is ANG Newspapers, which has since merged with the Contra Costa Times to form the Bay Area News Group.

The costs associated with repairing, storing and handling the company's huge fleet of wooden pallets amounted to $46,000 annually and was eating into ANG's profits. Disposing of large amounts of waste from broken pallets added to the company's expenses. The switch to 1,700 reusable plastic pallets has made time-consuming pallet repair a thing of the past. The reusable pallets have also increased operational performance and worker safety because, unlike wooden pallets, they rarely collapse under a heavy load. As a bonus, the change has helped streamline ANG's distribution system.

"The standardized shape of these pallets makes handling and storage much easier," says packaging plant manager Randy McLeod. "We've also hot stamped them for identification and to keep track of inventory and space. Nothing gets lost."