Returnable packaging material supports the circular economy by enabling the reuse, recycling, or repurposing of materials. The circular economy is a system that prioritizes the reduction, reuse, and recycling of materials to minimize waste and resource use. Returnable packaging materials help create a closed-loop system where packaging can be reused after its initial purpose and significantly reduce the environmental impact of packaging.
The returnable containers/packages need to be circulated amongst the business partners; however, some partners tend to retain the returnable containers for longer, resulting in a supply crunch for others and thus causing a shortage of product supply and loss. This becomes a challenge for businesses that affect easy equipment availability and can impact overall supply chain performance. Here’s a list of primary challenges that companies face:
SAP Return Packaging Management’s Rental Reports can effectively address these challenges.
Learn more about SAP Return Packaging Management for Circular Logistics.
SAP RPM Rental Reports provide an overview of data related to business partners holding on to returnable containers, rental information related to payments owed to partners, and any payments owed by partners for returnable packaging material. With SAP RPM Rental Reports, businesses gain adequate visibility of the returnable containers that are occupied and can be utilized. They can penalize business partners holding the returnable containers with a rental charge to discourage the vendor/customer from holding on to the container longer than needed.
These features help businesses overlook the interim and final settlements with the customers.
Streamline operational, tactical, and strategic processes and accelerate complex supply chain decision-making with the unmatched power of SAP IBP. At ArchLynk, we leverage SAP solutions to help your business gain control, improve flexibility, streamline processes, decrease costs, and maximize resource utilization. Contact us to learn more about SAP RPM and how it can help your business streamline return packaging management, or request a demo with an expert.