ABSTRACT

As part of their lean conversion, our customers are demanding that we ship parts in returnable containers. How should we respond?

Agreeing is advisable, but you should also understand why they are doing it and how you can make it work to your advantage. Returnable containers protect parts better than disposables, their dunnage (packing material) mistake-proofs your shipping, they are cheaper if used long enough and frequently enough, and they are friendlier to the environment. In addition, when used exclusively for an item, they cap inventory, and can sometimes serve as pull signals.