Incorporating Bulk Containers into Automotive Supply Chains

Guest blog by MHI member ORBIS Corporation

Automotive supply chains are complex, with parts moving between suppliers, warehouses and assembly plants before reaching the vehicle. The packaging used to transport, store and stage those parts plays an important role in keeping those flows efficient.

For automotive applications, reusable bulk containers provide an effective option for these functions. The containers are designed for demanding industrial environments and can be used for a range of needs.

Selecting the right bulk container, however, involves more than simply choosing a size. Footprint, collapsibility, truckload fit, automation readiness, maintenance discipline and AIAG compatibility all play a role in determining whether a reusable container program delivers the expected value.

Start With the Application

One of the first considerations is the type of parts being handled. Common automotive applications for reusable bulk containers include:

•    Stamped metal parts and body panels

•    Plastic trim components and fascias

•    Engine and drivetrain subassemblies

•    Seat frames and structural components

•    Oversized or irregularly shaped parts

Match the Footprint to the Application

There is no single bulk container size that works for every automotive application. Your goal should be to match the container to the parts, shipping requirements and the handling environment, rather than defaulting to a generic size. A practical approach would include:

•    Considering extended footprints when parts exceed the length that an AIAG standard 48 x 45 container can accommodate.

•    Using Euro sizes when cross-border flows or customer requirements call for European supply chain compatibility.

Cost-Per-Trip a Key Metric for Success

Reusable bulk containers are engineered for multi-year service, yet service life largely depends on factors including load profile, handling frequency, storage conditions and maintenance protocols. For high-cycle automotive operations, a more useful metric is cost-per-trip over the usable service life rather than simply the number of years a container remains in service.

Keeping bulk containers in service is critical for OEMs and tier suppliers. Proper handling is key to a long service life. Several factors can affect service life. Exceeding rated capacity can accelerate stress fractures and hinge wear. Forklift contact with sidewalls can cause premature damage, while improper collapsing can stress latches, hinges and corner posts. UV exposure and temperature extremes can also degrade plastics over time.

Regularly Inspect Containers

A consistent maintenance program can extend service life and strengthen the financial case for reusable bulk container programs. Containers should be inspected at three key points throughout the cycle:

1.    At receipt: Check for structural damage, cracked sidewalls, bent corner posts and latch or hinge issues before the container enters the flow.

2.    Before loading: Confirm the container is clean, properly assembled and rated for the load being placed.

3.    After return: Document any damage before the container is collapsed and restacked, so repair decisions can be made before the next trip.

Damaged containers should also be evaluated based on their condition. Minor structural damage may be repairable, while compromised corner posts or cracked load-bearing walls typically warrant decommissioning. Bulk bins can be returned to the manufacturer to be recycled and reprocessed into other useful bins. This is an effective way to keep material out of landfills, for a truly circular solution.

Calculate the ROI

Collapsible containers can reduce empty storage footprint by up to 80%, helping to decrease storage requirements and improve return-trip efficiency. Replacing expendable packaging can eliminate disposal costs. And standardized containers can further reduce labor associated with sorting and inspecting incoming parts and disposing of packaging.

For a reusable bulk container program, Return on Investment (ROI) depends on factors including trip frequency, expendable packaging spend that is displaced and damage reduction. Well-matched programs typically achieve full ROI within six months to 1.5 years.

Selecting the right bulk container is a systems decision. Footprint, height and collapsibility all interact with the parts profile, handling environment, storage density requirements and return logistics. Getting that match right is what determines whether a reusable bulk container program delivers on its ROI potential.