PRESS RELEASE
13 December 1996
Computer program for the flow of goods proves:
Returnable packaging saves both time and money

With the Reco computer program the profitability of an investment in returnable packaging can now be calculated simply and quickly. All results are presented graphically, which supports the decision making process and simplifies evaluation. In addition, a number of sensitivity analyses can be performed.
Returnable packaging has proved itself both cost-effective and environmentally friendly, and it offers improved product protection. Interest is growing steadily due to the implementation of new environmental legislation, among other things.

First the Swedish company Nefab developed the product - reusable and collapsible transport packaging. Then the program that helps customers evaluate the economics of moving to returnable packaging. With the Reco software and their returnable packaging the company has elevated decisions about packaging systems to senior management level.
"We have noticed that several criteria influence the decision to implement a returnable packaging system," says Tommy Pudas, Nefab's head of business development. "It involves the service life in terms of the number of transport cycles, collapsibility, payoff period, protection of goods and environmental impact. The service life should exceed 20 cycles, the packaging should collapse to less than 25% of its unfolded size and the payoff period should be less than 1.5 years. This is the minimum requirement that should be established by anyone thinking of changing to returnable packaging. The purchase cost of returnable packaging often proves to be of secondary importance," says Tommy Pudas.

Interesting results
With the aid of the program, questions about the profitability of investing in a returnable packaging system are answered in less than 30 minutes. Some companies are deterred initially by the size of the investment. When the necessary key data have been entered - amount of disposable packaging (for calculating the equivalent requirement for returnable packaging), service life of the returnable system, cycle period, means of transport, etc. - it is often shown that the company recovers its investment within 6-12 months. This applies particularly if the flow is between a limited number of distribution points. It has even proved profitable to invest in returnable systems for long distance transport overseas.
"Savings with returnable packaging are found primarily in the time aspect and staff requirements," says Håkan Swahn, who is responsible for packaging at Ericsson Radio Systems AB. "It is quicker and easier to pack and handle the product in returnable packaging than in disposable packaging. At the same time we avoid the expense of getting rid of disposable packaging. When choosing packaging, the environmental factor is becoming increasingly decisive."

Great interest
The program has been in use for just over a year. According to independent experts and logistics experts who have seen it in action, the program is judged to be well qualified for development into an advanced tool for analysing packaging systems.
"This development creates new demands for us," says Tommy Pudas. "Now we discuss logistics, optimisation, sensitivity analyses, payoff periods, internal rates of return, etc. In order to provide the necessary competence we carry out staff development and recruit universitytrained logistics experts."
The Swedish company Nefab AB has manufactured transport packaging in plywood since the late 1940's. Today their distinctive returnable packaging is used all over the world by more than 400 companies. After use the packaging is folded with a few simple actions, giving easily handled, spaceefficient units with low homeward freight costs. Larger users include Ericsson and Scania (Sweden), Post AG (Germany), Valeo and Termico F.A. (Spain), Ford (Canada), Multipart (UK), Rank Xerox (Holland) and DuPont (USA)./ins

Picture caption 1
The Reco computer program makes it possible to present graphics analysing profitability during the transition to returnable packaging systems - in less than 30 minutes.

Picture caption 2
After use, a few simple actions fold Nefab's distinctive returnable packaging into easily handled spaceefficient units.



For further information please contact:
Nefab UK Limited
4 Kilvey Road Brackmills
NORTHAMPTON NN4 78Q
Great Britain
Tel: +44 (0) 1604 76 63 77, Fax: +44 (0) 1604 76 59 21

Nefab Inc
605 Neal Drive
PETERBOROUGH
Ontario, K9J 6X7, Canada
Tel: +1 705 748 4888, Fax: +1 705 748 0034

Nefab Inc
815 W, Van Burten, Suite 330
CHICAGO, IL 60607, USA
Tel: +1 (312) 733 2200, Fax: +1 (312) 733 7866