David Maloney has been a journalist for more than 35 years and is currently the group editorial director for DC Velocity and Supply Chain Quarterly magazines. In this role, he is responsible for the editorial content of both brands of Agile Business Media. Dave joined DC Velocity in April of 2004. Prior to that, he was a senior editor for Modern Materials Handling magazine. Dave also has extensive experience as a broadcast journalist. Before writing for supply chain publications, he was a journalist, television producer and director in Pittsburgh. Dave combines a background of reporting on logistics with his video production experience to bring new opportunities to DC Velocity readers, including web videos highlighting top distribution and logistics facilities, webcasts and other cross-media projects. He continues to live and work in the Pittsburgh area.
When something needs to be moved or stored in or around the DC, most people grab a box—a corrugated carton. A mainstay of shipping operations everywhere, the familiar six-sided carton can be used for an endless variety of applications. But it's not necessarily the best choice. For all its virtues, the corrugated cardboard box has drawbacks too: it's an easy target for thieves, it's easily pierced or crushed, it's prone to snagging when used in automated handling operations, it requires disposal after use. That's why more and more operations are bypassing cardboard for an alternative that has none of these shortcomings: the returnable plastic container.
It's not hard to understand why returnables are making headway in the container market. Most commonly made of plastic (though they can be made of wood or metal), returnable containers trump cardboard in a number of ways, their advocates say: They reduce purchasing and disposal costs. They offer a higher level of security. They offer better ergonomics. And they do a better job of cubing out space.
Better still, they're versatile. Returnables come in designs and sizes to fit just about any application. Large bulk containers, for example, can be used for transporting large items (or a multitude of small items) or for storing products in racks. They're typically designed with fork entries to allow easy transport via lift trucks or pallet jacks. And many times these containers offer hinged side doors that, when lowered, allow easy access to the items inside. Many bulk containers also come with collapsible sidewalls so that they can be easily stored or transported when empty.
Smaller containers are typically designed so that when placed side by side, they match the footprint of a standard 40- by 48-inch pallet. They offer a wide range of stacking configurations, and most are designed with top and bottom grooves to facilitate stacking into solid cubes that can max out available space in storage racks or on trucks. Top covers—and sometimes straps—hold the load together during transit for a secure ride.
Safe and secure
Returnables easily outperform their corrugated counterparts when it comes to product protection, according to plastic container manufacturers. Most returnable containers used for shipping offer hinged lids to help protect the products placed inside. Typically, they're also designed to accommodate security cable ties that loop through the lid and a hole in the container's sidewall. This locks the lid in place and discourages theft of the contents. A broken tie provides an easy method of identifying containers that may have been breached. And because they are made of sturdy plastic, which resists piercing or crumpling, these containers also tend to protect products better than corrugated cartons can.
Most returnable containers are also designed to stack one on top of another to save floor space. Turn one container 180 degrees in the opposite direction and it can be inserted into the empty tote below it for dense stacking. This "nesting" feature allows a large number of empty totes to occupy a small space in storage racks or for transit back to the facility.
Because plastic containers come in uniform sizes, they're ideal for use with automated material handling systems. They're also the container of choice for automated mini-load systems and carousels because, unlike corrugated cartons, they have no rough edges that can snag when used in automated systems. Further, they can be easily transported on conveyors and sorting systems.
Plastic containers are also designed to work well with the latest in inventory control technology. Most are designed with special areas on their outside panels to accommodate bar-code labels and RFID tags. These areas are recessed so that conveyors or other material handling equipment will not tear the tags as they move through the distribution operations.
Easy on the back
Plastic returnable containers also offer
ergonomic advantages over cardboard cartons, according to plastic crate manufacturers. Easy-to-grip handles on the plastic containers' ends make them much easier to lift and move than corrugated cartons. And their uniform size helps ensure that loads don't exceed weight limits. Many companies will designate specific sizes of containers for certain classes of products, knowing exactly how many items can be picked into the containers before they reach a maximum threshold for safe lifting.
Since plastic containers can be made in virtually any color, some facilities designate certain colors to represent the various functions within the distribution facility. Red may be reserved for picking tasks, while a green container may signify that the items inside are destined for a value-added service station.
Taking advantage of this, some of the more sophisticated conveyor systems have sensors built in that are able to distinguish colors. Pickers completing a wave of orders may pick the last products into, say, a yellow container to signal that this completes the wave. Once the container is sent off to the sorting equipment, the sensor identifies the yellow tote as the last tote to be diverted to a particular spur line.
Closing the loop
By their very nature, plastic containers must be reused again to be cost effective. Because of this, most reusable containers in use at distribution centers are used exclusively within the facilities. But that's not always the case. Some companies have developed distribution systems that call for their containers to be shipped out to stores and select customers. These, however, must have some mechanism for returning the containers to the distribution center for reuse. Companies operating such closed-loop systems often ship the containers on their own dedicated fleet (see sidebar). Filled totes are dropped off at delivery and empties are gathered for the return trip back to the DC.
Pooled container programs offer an alternative for those companies wishing to use reusable containers but that don't operate under a closed-loop distribution model. With pooled programs, the containers are owned by the pooling company. The pooler takes responsibility for retrieving the empty containers, washing them and delivering fresh empties to the distribution centers.
The best thing about returnable containers is that they can be used over and over again, making them extremely cost effective.When they do reach the end of their lives following hundreds of trips, they can be recycled easily, which also makes them a sound environmental choice.
urban legends
For Sneaker Villa, a chain of a dozen stores featuring the latest hip-hop clothing and shoes designed for the urban lifestyle, corrugated boxes are so yesterday. Last year, the Philadelphia-area chain bought 500 reusable plastic containers from Buckhorn to replace the corrugated boxes it was using to ship split-case orders of clothing and accessories to its stores. The company was so pleased with the totes' performance that it bought another 500 this summer.
Today, jeans, sweatsuits, jerseys, belts and other accessories (everything but the shoes) are picked into plastic containers at the company's Wyomissing, Pa., distribution center, before being loaded onto Sneaker Villa's own fleet of trucks for transport to stores. About 500 totes ship weekly, with most stores receiving deliveries two to four times during the week. Each store delivery includes anywhere from 15 to 50 containers, depending on store volumes and the selling season.
Once emptied, the containers can be nested inside each other to save space when stacked in the stores' backrooms. The empties are picked up for the return trip back to the DC upon the next delivery.
The durable totes, each measuring 27 by 17 by 12 inches, are uniform in size, which makes them easy to handle. That uniform size also provides much more stable stacking for transit than cardboard cartons can and makes it easier for managers to calculate payloads. "They cube out the pallet and allow us to easily know how many containers can fill a truck," explains Brandon Naples, warehouse manager for Sneaker Villa.
The plastic totes easily outperform cardboard boxes when it comes to product protection. And the attached-lid totes offer greater security than the corrugated boxes they replaced. Sneaker Villa uses cable ties to seal the lid of each container before it leaves the DC, so it can tell at a glance if a container has been opened.
The plastic containers offer other advantages as well. For example, the containers feature textured side panels that make it easy for workers to remove old shipping labels before new ones are applied. They also feature ergonomic handles that make the totes easy to lift and carry, reducing the potential for injuries. "We have not had anyone hurt lifting them," says Naples. "The handles make them so much easier to move."
the case for cardboard
For every company like Sneaker Villa that's embracing the plastic returnable container, there are several others that are sticking
with the plain old cardboard box. For all the recent interest in returnables, corrugated boxes, with their ready availability and low cost, still far outsell their plastic counterparts.
That's not to imply that users only choose cardboard as a matter of convenience. Corrugated boxes offer a number of benefits, according to the Corrugated Packaging Council, a Rolling Meadows, Ill.-based advocacy group. On its Web site (cpc.corrugated.org), the council provides an extensive list of the advantages of using corrugated cartons, including the following:
Low shipping costs. With their light weight, high stacking strength and space-efficient packing geometry, corrugated cartons are cheaper to ship than plastic crates, the council claims. And unlike companies using plastic containers, those who choose cardboard avoid the expense of returning the containers, cleaning the crates, tracking their whereabouts in the distribution system, and modifying existing packing methods and equipment to accommodate the new shipping container.
High level of product protection. The fluted construction of a corrugated box offers superior product protection through built-in air cushioning, according to the council. If needed, cartons can be customized to provide extra protection for heavy, fragile or hazardous materials.
Ease of customization. Today's computer-designed corrugated boxes can be customized to accommodate an ideal pack count for a particular commodity. In addition, corrugated packaging can be cut and folded into an infinite variety of shapes and sizes.
Supports marketing efforts. Corrugated packaging can be printed with colorful, high-quality graphics, the council notes, enabling the containers to serve as traveling billboards. In many cases, the corrugated carton serves as the primary package all the way to the sales floor, reducing packaging costs for the manufacturer and handling costs for the retailer.
Easy availability. More than 1,600 box plants in the United States and Canada produce corrugated, making it readily available anywhere in North America.
Environmental friendliness. Though plastic crates are reusable, they're made from a non-renewable resource: fossil fuels. A significant percentage of plastic crates eventually end up in landfills where they do not degrade, the council reports. By contrast, currently about 74 percent of all corrugated is recovered for recycling and then used to make new corrugated boxes.
Container traffic is finally back to typical levels at the port of Montreal, two months after dockworkers returned to work following a strike, port officials said Thursday.
Today that arbitration continues as the two sides work to forge a new contract. And port leaders with the Maritime Employers Association (MEA) are reminding workers represented by the Canadian Union of Public Employees (CUPE) that the CIRB decision “rules out any pressure tactics affecting operations until the next collective agreement expires.”
The Port of Montreal alone said it had to manage a backlog of about 13,350 twenty-foot equivalent units (TEUs) on the ground, as well as 28,000 feet of freight cars headed for export.
Port leaders this week said they had now completed that task. “Two months after operations fully resumed at the Port of Montreal, as directed by the Canada Industrial Relations Board, the Montreal Port Authority (MPA) is pleased to announce that all port activities are now completely back to normal. Both the impact of the labour dispute and the subsequent resumption of activities required concerted efforts on the part of all port partners to get things back to normal as quickly as possible, even over the holiday season,” the port said in a release.
The “2024 Year in Review” report lists the various transportation delays, freight volume restrictions, and infrastructure repair costs of a long string of events. Those disruptions include labor strikes at Canadian ports and postal sites, the U.S. East and Gulf coast port strike; hurricanes Helene, Francine, and Milton; the Francis Scott key Bridge collapse in Baltimore Harbor; the CrowdStrike cyber attack; and Red Sea missile attacks on passing cargo ships.
“While 2024 was characterized by frequent and overlapping disruptions that exposed many supply chain vulnerabilities, it was also a year of resilience,” the Project44 report said. “From labor strikes and natural disasters to geopolitical tensions, each event served as a critical learning opportunity, underscoring the necessity for robust contingency planning, effective labor relations, and durable infrastructure. As supply chains continue to evolve, the lessons learned this past year highlight the increased importance of proactive measures and collaborative efforts. These strategies are essential to fostering stability and adaptability in a world where unpredictability is becoming the norm.”
In addition to tallying the supply chain impact of those events, the report also made four broad predictions for trends in 2025 that may affect logistics operations. In Project44’s analysis, they include:
More technology and automation will be introduced into supply chains, particularly ports. This will help make operations more efficient but also increase the risk of cybersecurity attacks and service interruptions due to glitches and bugs. This could also add tensions among the labor pool and unions, who do not want jobs to be replaced with automation.
The new administration in the United States introduces a lot of uncertainty, with talks of major tariffs for numerous countries as well as talks of US freight getting preferential treatment through the Panama Canal. If these things do come to fruition, expect to see shifts in global trade patterns and sourcing.
Natural disasters will continue to become more frequent and more severe, as exhibited by the wildfires in Los Angeles and the winter storms throughout the southern states in the U.S. As a result, expect companies to invest more heavily in sustainability to mitigate climate change.
The peace treaty announced on Wednesday between Isael and Hamas in the Middle East could support increased freight volumes returning to the Suez Canal as political crisis in the area are resolved.
The French transportation visibility provider Shippeo today said it has raised $30 million in financial backing, saying the money will support its accelerated expansion across North America and APAC, while driving enhancements to its “Real-Time Transportation Visibility Platform” product.
The funding round was led by Woven Capital, Toyota’s growth fund, with participation from existing investors: Battery Ventures, Partech, NGP Capital, Bpifrance Digital Venture, LFX Venture Partners, Shift4Good and Yamaha Motor Ventures. With this round, Shippeo’s total funding exceeds $140 million.
Shippeo says it offers real-time shipment tracking across all transport modes, helping companies create sustainable, resilient supply chains. Its platform enables users to reduce logistics-related carbon emissions by making informed trade-offs between modes and carriers based on carbon footprint data.
"Global supply chains are facing unprecedented complexity, and real-time transport visibility is essential for building resilience” Prashant Bothra, Principal at Woven Capital, who is joining the Shippeo board, said in a release. “Shippeo’s platform empowers businesses to proactively address disruptions by transforming fragmented operations into streamlined, data-driven processes across all transport modes, offering precise tracking and predictive ETAs at scale—capabilities that would be resource-intensive to develop in-house. We are excited to support Shippeo’s journey to accelerate digitization while enhancing cost efficiency, planning accuracy, and customer experience across the supply chain.”
ReposiTrak, a global food traceability network operator, will partner with Upshop, a provider of store operations technology for food retailers, to create an end-to-end grocery traceability solution that reaches from the supply chain to the retail store, the firms said today.
The partnership creates a data connection between suppliers and the retail store. It works by integrating Salt Lake City-based ReposiTrak’s network of thousands of suppliers and their traceability shipment data with Austin, Texas-based Upshop’s network of more than 450 retailers and their retail stores.
That accomplishment is important because it will allow food sector trading partners to meet the U.S. FDA’s Food Safety Modernization Act Section 204d (FSMA 204) requirements that they must create and store complete traceability records for certain foods.
And according to ReposiTrak and Upshop, the traceability solution may also unlock potential business benefits. It could do that by creating margin and growth opportunities in stores by connecting supply chain data with store data, thus allowing users to optimize inventory, labor, and customer experience management automation.
"Traceability requires data from the supply chain and – importantly – confirmation at the retail store that the proper and accurate lot code data from each shipment has been captured when the product is received. The missing piece for us has been the supply chain data. ReposiTrak is the leader in capturing and managing supply chain data, starting at the suppliers. Together, we can deliver a single, comprehensive traceability solution," Mark Hawthorne, chief innovation and strategy officer at Upshop, said in a release.
"Once the data is flowing the benefits are compounding. Traceability data can be used to improve food safety, reduce invoice discrepancies, and identify ways to reduce waste and improve efficiencies throughout the store,” Hawthorne said.
Under FSMA 204, retailers are required by law to track Key Data Elements (KDEs) to the store-level for every shipment containing high-risk food items from the Food Traceability List (FTL). ReposiTrak and Upshop say that major industry retailers have made public commitments to traceability, announcing programs that require more traceability data for all food product on a faster timeline. The efforts of those retailers have activated the industry, motivating others to institute traceability programs now, ahead of the FDA’s enforcement deadline of January 20, 2026.
Online grocery technology provider Instacart is rolling out its “Caper Cart” AI-powered smart shopping trollies to a wide range of grocer networks across North America through partnerships with two point-of-sale (POS) providers, the San Francisco company said Monday.
Instacart announced the deals with DUMAC Business Systems, a POS solutions provider for independent grocery and convenience stores, and TRUNO Retail Technology Solutions, a provider that powers over 13,000 retail locations.
Terms of the deal were not disclosed.
According to Instacart, its Caper Carts transform the in-store shopping experience by letting customers automatically scan items as they shop, track spending for budget management, and access discounts directly on the cart. DUMAC and TRUNO will now provide a turnkey service, including Caper Cart referrals, implementation, maintenance, and ongoing technical support – creating a streamlined path for grocers to bring smart carts to their stores.
That rollout follows other recent expansions of Caper Cart rollouts, including a pilot now underway by Coles Supermarkets, a food and beverage retailer with more than 1,800 grocery and liquor stores throughout Australia.
Instacart’s core business is its e-commerce grocery platform, which is linked with more than 85,000 stores across North America on the Instacart Marketplace. To enable that service, the company employs approximately 600,000 Instacart shoppers who earn money by picking, packing, and delivering orders on their own flexible schedules.
The new partnerships now make it easier for grocers of all sizes to partner with Instacart, unlocking a modern shopping experience for their customers, according to a statement from Nick Nickitas, General Manager of Local Independent Grocery at Instacart.
In addition, the move also opens up opportunities to bring additional Instacart Connected Stores technologies to independent retailers – including FoodStorm and Carrot Tags – continuing to power innovation and growth opportunities for retailers across the grocery ecosystem, he said.