The Reusable Packaging Association (RPA) is a non-profit, member-based trade organization.

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1 reusables.org

2 About RPA The Reusable Packaging Association (RPA) is a non-profit, member-based trade organization. We connect the industry and promote reusable transport packaging systems. RPA member companies supply and use reusable transport packaging products and services. Trade Show Pavilions Education Programs Committee Projects Communications 2

3 What Is Reusable Transport Packaging? Packaging to move goods through the supply chain in an operational or business-tobusiness transfer Can be primary, secondary or tertiary packaging Material neutral Designed for a system of recovery and reuse 3

4 Reusable Packaging System Design to optimize purpose and reuse Full supply chain collaboration Focus on asset utilization and management Processes in place to close the loop 4

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8 Industrial Economies Linear Economy Take, Make, Waste system fueled by consumption Turns natural resources into products for sale through a series of value-adding steps Ownership and liability for risk and waste is passed to the buyer Circular Economy Reuse/Repair/Recycle system fueled by restoration Keep products and materials at highest utility and value Reprocessing activities create economic opportunities while reducing energy, resource needs and waste Packaging exemplifies a linear system of production and waste, even as companies ramp up efforts to increase the recyclability and actual recycling of packaging materials. - GreenBiz, How packaging plays in the circular economy, K. O Dea, March 2015 For a sustainable world, the transition from a linear to a circular economy is essential. - Frans van Houten, CEO and Chairman, Philips Shared Economy Borrow or rent assets owned by someone else; resource sharing Collaborative consumption Allow customers to access goods when needed Sources: Ellen MacArthur Foundation; Nature, WR Stahel, March

9 Adapted from Ellen MacArthur Foundation; Philips 9

10 Reuse Versus Recycling by returning a product to its constituent materials you lose all the energy, labour and expense that went into creating it in the first place. Source: sustainablebrands.com 10

11 Reuse Versus Recycling Hierarchy of Waste Management Waste Prevention Source Reduction & Reuse Recycling & Composting Waste Management Energy Recovery Treatment & Disposal Source: US Environmental Protection Agency 11

12 Reusable Supply Chain Performance Supply Chain Sustainability: the management of environmental, social and economic impacts, and the encouragement of good governance practices, throughout the lifecycles of goods and services. Objective: to create, protect and grow long-term value Environmental Planet Social People Economic Profit (3Ps Triple Bottom Line ) 12

13 Reusable Supply Chain Performance Environmental Natural resources Mining and deforestation Climate change Atmospheric emissions Energy consumption Water consumption Solid waste COMPARATIVE LIFE CYCLE ASSESSMENT OF REUSABLE PLASTIC CONTAINERS AND DISPLAY-AND NON-DISPLAY-READY CORRUGATED CONTAINERS USED FOR FRESH PRODUCE APPLICATIONS, published in February 2017 by Franklin Associates, A Division of Eastern Research Group (ERG). 13

14 Reusable Supply Chain Performance Social Employment Wages and benefits Worker health and safety Ergonomics Training and best practices Weight limitations Equipment use 14

15 Reusable Supply Chain Performance Economic Raw material sourcing 2016 Manufacturing costs Transportation Storage and inventory Packing time and labor Pallet unitization Cube utilization Product protection/quality Recovery and recycling 15

16 Reusable Supply Chain Performance Environmental: conserve raw materials Environmental: lower manufacturing emissions and energy use Economic: product cost stability and ROI opportunity Social: labor-friendly design of products and systems Economic: improve cube and transport volume Economic: new economies created in the reuse activities Social: job growth Environmental: elimination of solid waste Social: consumers prefer reusable and repurposable packaging * *63% of US consumers believing this to be a key purchasing driver. Mintel, Global Packaging Tends,

17 Essentials for a Reusable Packaging System Go Circular with a Reusable Packaging System Adapted from Philips Four Enablers for a Circular Economy Business Model Product Design Collaboration Reverse Logistics Reusable Packaging Essentials Systems approach Asset utility Durability & lifespan Fit for purpose Suppliers & users 3 rd -party providers Retrieval Reconditioning Asset management Value-added features Closed & open loops Repositioning End-of-life renewal Part repair Data sharing Consolidation Performance metrics Return efficiency Standardization Transportation Cycles, Turns, Dwell Source: Adapted from Philips.com; Reusable Packaging Association 17

18 Six Technology Megatrends People and the Internet Computing, Communications and Storage Everywhere The Internet of Things Artificial Intelligence and Big Data The Sharing Economy and Distributed Trust The Digitization of Matter Connectivity Access Sensors Robotics Networks 3D Printing Source: World Economic Forum 18

19 Technology Is the Real Enabler for Reusable Packaging Go Circular with a Reusable Packaging System Product tracking Networks Supply chain visibility Big data analytics Inventory management Cloud computing Business Model Predictive analyses Collaboration Sharing platforms IoT 50 billion things will be connected to the Internet by 2020* Material science Consolidation hubs 3D printing/speed to market Fleet efficiency Sensor functions Route optimization Product Design Connected/intelligent assets Reverse Logistics Autonomous vehicles * Internet of Things in Logistics, DHL Trend Research Cisco Consulting Services,

20 Tips and Considerations for a Reusable System Go Circular with a Reusable Packaging System Engage supply chain partners up front to determine shared objectives. Research the whole supply chain to study all packaging impacts, including end-of-use. Seek to optimize and measure impact at every step and deliver a net gain. Volume (trips), pool speed (cycle time), and turns (reuse over time) are critical variables. Asset management requires everyone s participation. Technology advancement is a game-changer for reusable packaging in a circular economy. 20

21 Thank You reusables.org 21