Returnable plastic packaging flow in the automotive industry

In this thesis, companies using returnable plastic packaging are investigated from a green logistics’ perspective, focusing on the washing process performed after they are used. Returnable plastic boxes used to carry components are, in some cases, washed systematically to secure customer requirements. The purpose of this master thesis is to describe existing flows of returnable plastic boxes by investigating customer requirements on cleanliness of the boxes and to evaluate the activities within their supply chain as well to assess the environmental impact related to the washing. A case company in the automotive industry was involved in this thesis, and their supply chain of returnable boxes was the main source of information. The research methodology utilised in this study consisted of semi-structure interviews with different actors related to the supply chain of the boxes. Other companies using returnable boxes were also investigated as point of reference. The empirical findings was analysed by using a Lean approach, performing a Material Flow Mapping (MFM) at one washing terminal in Sweden and a Life Cycle Assessment (LCA) at four washing terminals in Europe. The MFM result showed that the lead-time inside the washing terminal for one box was approximately 12 days and that only 4 min was dedicated to the washing or the relative “value added time”. The LCA showed that the washing of one box contributes on average to 50 g of CO2 emissions and consumes 0,24 kWh of electricity and 0,7 litres of water. The results revealed that the washing stands for high environmental impact during the life cycle of a box. The main reasons for companies to perform systematic washing were identified and were evaluated to some extent i.e. some of the attached identification labels are difficult to remove by hand. Sorting has been identified as the only way to avoid systematic washing. Potential set-ups of supply chain have been identified, if deciding to sort clean/dirty boxes and specific guidelines are needed for the different set-ups. The principal conclusion was that by eliminating the unnecessary washing of returnable plastic boxes, related activities to the washing process itself could be reduced but new activities like manual sorting may occur. Other conclusions are that the design parameters of the boxes are key factors that determine the relative definition of the level of cleanliness, the logistic terminals are not just useful for the washing but important consolidating points and to offer the same type of services to different customers does not guaranty customer’s satisfaction. Recommendations to the case company are to look further into sorting set-ups of their supply chains, standardize the labels’ specifications, and try to differentiate the solutions regarding customer requirements by looking into different alternatives i.e. disposable boxes.