Case Study

How We Improved RTx Shipping with Custom Boxes

Problem

To adequately meet a number of major clients needs, our shipping department needed a solutions to get surplus electronics, e-waste and hard drives with proprietary data back our facility for disposition processing and serialized manifested tracking. Our shipping department was normally using regular carton boxes for our shipping needs. The cartons were less costly but not durable for more than a one time use. Every time we received a package from selected client’s location, the boxes were returned damaged and had to be recycled

Solution

We approached our shipping partner and worked with them to develop a solution. The shipping partner had a program they selectively used for returning devices and equipment but it had never been used in this volume, configuration or high service level. We can ship i.e. 50 boxes to one location. In a Green Team Meeting our Green Team’s idea was to use a heavier recycle “double wall” content quality custom boxes for our RTx service. We had hoped to be able to reuse the boxes a couple times but are getting 4-6 uses. We pre-packaged empty boxes with used packing materials and a return label. In a Turnkey service, the shipping partner packages the assets, labels the box and ships it all for the client. All the client has to do is email us for the pick up. It initially increased our unit cost per box but in the long run it saved us a substantial amount of money

Sample Using Regular Boxes

Total number of shipments in 2 months = 1440 transactions
Total boxes used for shipping in 2 months = 1308 boxes
Average # of uses/box = 1.1 times
Average cost/box = $ 0.97
Total cost for 2 months on boxes = $1268.76
Average box cost/transaction = $1.13

Sample Using Custom Made Boxes

Total number of shipments in 2 months = 1380 transactions
Total boxes used for shipping in 2 months = 340 boxes
Average # of uses/box = 4.05 times
Average cost/custom recycle box = $1.57
Total cost for 2 months on boxes = $533.80
Average box cost/transaction = $0.38

Result

We decreased costs by $0.75/box, (66%) or a period savings of $734.96. By shipping custom recycle boxes RTx, we went from shipping a box one (1) time to over 4x saving 968 boxes!