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"PROPOSAL FOR A REVERSE LOGISTICS ... - POMS Meetings

"PROPOSAL FOR A REVERSE LOGISTICS ... - POMS Meetings

TABLE 4 –

TABLE 4 – Characteristics of box types. WOODEN BOXES CARDBOARD BOXES PLASTIC BOXES non-palletizable (generally) large and heavy for stacking more labor for handling palletizable (generally) palletizable (generally) resistant and with appropriate size relatively light and resistant less labor less labor disposable disposable reusable occupy much space (packing house) high level of product losses occupy little space if assembled at that moment (packing house) occupy space (packing house) zero losses (disposable) low level of losses average ventilation low ventilation high ventilation high cost high cost low cost (per operation) difficult sterilization hygienic (disposable) easy sterilization Source: Silva (2006) 20

3. THE PACKAGING CENTER The feasibility of the Packaging Center had strong support in the project on the part of strategic planning at CEAGESP, under the coordination of the CQH – Horticulture Quality Center in São Paulo. The Packaging Center rents the plastic packaging through a minimum contract of 24 months, and it stores, sterilizes and repairs empty boxes. The Packaging Center proposal is a success in the retail market where large chains like Pão de Açúcar, Sé Supermercados, Carrefour and Wal-Mart require their suppliers to use plastic boxes from the Packaging Center. As a guarantee, they require the supplier to present a rental contract for the number of boxes needed for the proper flow of boxes. This number can reach up to five times the volume of each delivery. Gutierrez (2000) reports that this system still has many problems: - the box cannot be purchased, only rented; - even if the supplier only has production 60 days per year, he must continue to pay rent for 24 months; - the lessee of the boxes is responsible for administering their return; - lost boxes are the exclusive responsibility of the lessee. Most of the large chains will not assume responsibility for losses within their own premises; - the boxes are not being sterilized, which is contrary to the project proposal, where box rental would guarantee necessary disinfection; - rental cost for the box is very high. After approximately six months of rental, it is possible buy a good, new box; - some large chains are renting the box, and passing it on to the supplier at a good profit margin; - removal of the empty box from large retail chains takes too long; - the large number of rented boxes required by retail (up to five times the volume of each delivery) serves as a “lung” for large chains; 21

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