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Tough containers bear heavy ROI

Emerson Power Transmission's returnable plastic container system delivers 112% return on investment in first year.

By Sara Pearson Specter, Editor at Large -- Modern Materials Handling, 4/1/2004

Transporting heavy ball bearing components between Emerson Power Transmission's two plants in Aurora, Ill. and Morehead, Ky. has been much less expensive since the company switched from heavy-duty corrugated cartons to returnable plastic containers.

Because of the nature of the parts, the corrugated containers could only make one trip between plants. With costs for the corrugated containers and their disposal continuing to rise, the company needed to find a more cost-effective alternative. The change has helped the company streamline the flow of materials between the plants, while eliminating the need to use new packaging for every shipment. Return on investment for the containers is pegged at 112% in the first year.

Ed Paver, senior engineer at Emerson's Aurora location, looked for strength, cost-effectiveness and reusability, but also had to live with a specific size requirement. Already in place was a unique storage rack system with precise height dimensions. It was vital that the new containers fit into the existing storage system. He also needed a container with a base strong enough to handle the heavy, densely-packed parts.

The returnable plastic containers Paver selected (LINPAC Materials Handling, 800-442-4892) measure 32 × 30 × 25 inches and have a capacity of 2,000 pounds, making them ideal for high-density, small- to medium-sized bearing components. The compact footprint of the containers was also a good fit for both the Aurora and Morehead plants' specifications.

The new container system has also helped Emerson Power Transmission maximize cost savings, while improving time, space and labor efficiencies. "The containers are pretty much embedded into our plant," Paver observes. "We use and re-use them continuously, filling them with our bearing parts for shipment to the Morehead plant, which then returns the empty containers to us for further shipments."

For increased productivity, the company has also standardized their other equipment at both facilities, such as pallet jacks, to match the 32 × 30 inch container bases. "We don't want to jeopardize what works," says Paver.

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