Schoeller Allibert, a leading global manufacturer of returnable and recyclable transit packaging, has shared its perspective on how retailers are addressing their approach to logistics packaging ownership in response to incoming regulatory changes.
Assessing its customer base, the business has noted increased interest in renting transit packaging rather than up front acquisition, which appears to be accelerated by the imminent UK Plastic Packaging Tax. Market conditions are pushing asset management to the forefront and opening up new production paths and in particular, Schoeller Allibert notes growing interest in plastic container rental over purchase.
Gero Liotti, Retail Account Director, at Schoeller Allibert UK, explains: “There’s a real wave of change happening in the manufacturing and retail industries. Sustainability is now front and centre of operations, which for many businesses means streamlining and reducing any areas of potential waste. In essence, this means a changing view of the supply chain and where that all-important capital is going. As such, we are seeing more and more businesses choosing to rent over purchasing. It seems to be that the agility this gives the supply chain is particularly valuable.
“A number of benefits are secured when renting including the reduced cost of not purchasing equipment outright, maintenance is already taken care of by a dedicated team and notably, the new plastic tax can be avoided. The rental approach also means it’s easier to upscale or downscale as needed, providing the flexibility that global brands are looking for.”
In addition to developing a rental framework, the business launched its pioneering buy-back scheme in 2020. Designed to reduce supply chain costs and environmental impact for customers, the scheme sees the company break down existing plastic supply chain packaging from any manufacturer and reprocess it into Schoeller Allibert’s leading product range. Solutions created in this way go through the same stringent quality testing as all its products to ensure the brand’s hallmark quality and performance.
Gero adds: “Success in today’s fierce retail sector means being able to pivot and change at short notice. In addition, margins are tighter than ever, which means CAPEX is under the microscope, and more often, focused on product development over supply chain logistics. In response, we’re seeing massive growth on the rental side of our business, a trend that is no doubt reflected across the wider industry. I think we’re going to see a major shift in this regard, eventually it’s likely that rental models will become the norm, not the exception.