A model for managing packaging in the product life cycle in the automotive industry

Abstract

Due to its many benefits, the automotive industry is increasingly focused on the use of returnable packaging, but the benefits of using it can only be fully realized if the system is properly managed. This study therefore aims to build a model that enables a comparison between different sustainable packaging systems: non-returnable packaging, returnable packaging, and returnable foldable packaging. The applicability of the model was verified in a multinational manufacturing company that is a development supplier in the international automotive industry. The results highlight the main advantages of the model: enabling the comparison between the use of different sustainable packaging systems; when simulating different scenarios, it takes into account several different cost components and ensures a systematic selection of the packaging system in the early phase of product development. The high degree of practicality and usability of the model was also validated by the sensitivity analysis, as the longer the transport distance, the more acceptable the use of non-returnable packaging. In addition, higher demand for the product was correlated with a reduction in the total cost of all three aspects of packaging choice. The model upgrades existing studies and represents a practical decision-making tool for manufacturing companies and the logistics industry. It will contribute to the systematic construction of a packaging management system at an early stage of product development, which will reduce costs in the long run, improve the quality of logistics processes, and ensure an effective sustainable packaging management system.