GPS Implements Packaging Rental Initiative for Circular Supply Chains | Knowledge Hub | Circle Economy Foundation
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Business case
GPS Implements Packaging Rental Initiative for Circular Supply Chains
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GPS, a logistics solutions provider, has introduced a packaging rental initiative to promote sustainable supply chains. The initiative enables customers to rent reusable packaging solutions for their products, reducing waste and promoting a circular economy.

Problem

The packaging industry is known for its extensive environmental impacts, such as plastic waste and pollution. More and more companies in the industry are looking for alternative packaging solutions which are more sustainable and eco-friendly.

Solution

The company GPS offers a service of renting of multi-rotating metal crates specifically designed for the packaging of synthetic and natural rubber but also for the packaging of fruit juices, automotive parts, etc. After each return of empty cases from the users, the boxes are washed and maintened.


GPS “pay per use” system includes the usage of a crate or pallet for a pre-defined number of days as well as the collection from final users at a fixed rate. The “pay per use” price structure gives customers the advantage of using only the number of packaging they need and paying one predefined price per each packaging use thereby promoting supply chain efficiency.


Outcome

Besides cost efficiency, the system helps customers to participate actively in the reduction of packaging waste and preventing disposal of packaging into the environment.

Additional information

Photo by Boba Jovanovic on Unsplash

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