Returnable transport packaging as a company value driver

Abstract

PurposeReturnable transport packaging (RTP) solutions have found increasing attention in the recent past. It is not clear, however, under what conditions an RTP system improves a company's financial performance. This paper investigates the operational factors that influence the financial attractiveness of an RTP solution in a manufacturing environment and discusses how these factors are related to each other.Design/methodology/approachThe paper presents the results of five empirical RTP use cases and compares the case study findings with the results found in literature in order to develop a taxonomy of RTP cost effects. Drawing on the concept of value-based management (VBM), the operational drivers of these RTP cost effects are systematized and categorized in a value driver model that relates RTP cost effects to overall economic value added (EVA).FindingsBased on the use case findings, additional cost factors are identified that have not been previously discussed in literature. The amended taxonomy of influence factors is further operationalized in a value driver model.Originality/valueThe present paper is the first one providing a taxonomy of RTP cost effects and putting these effects in a conceptual framework that can be used for decision-making and performance benchmarking.