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Returnable transit packaging can offer better returns if outsourced.

Plastic returnable transit packaging (RTP) is becoming more popular among retailers--the market is predicted to grow at an annual rate of 6.25 percent (Source: TechNavio)--as they look to make savings and reduce waste in their logistics operations.

Last year the retail market for UK groceries expanded and is expected to grow by 2L3 percent between 2013 and 2018 to [pounds sterling].205.9bn (source IGD), this is expected to boost the number of RTP trays in circulation--independent research indicates that 30 percent of food producers are anticipating their RIP requirements to increase--which in turn will lead to a demand for more washing facilities.

The RTP market is being driven by the major supermarket players and the delivery services they offer, along with the emergence of well-known multiple food retailers setting up smaller, branded convenience stores in towns, at petrol forecourts and on the edge of cities.

Key to a successful migration to RTP will be having access to sufficient trays to meet peak demand and ensuring that they are properly washed to the highest hygiene standards.

PHS Teacrate, part of the PHS Group and a leading RTP supplier in the UK, believes outsourcing this service can be more cost-effective, reduce the amount of administration leg-work and free up capital.

Specialist independent providers like PHS Teacrate, have the flexibility and capacity in key RTP products to meet peak demands, whether from very small retailers or at supermarket level, and offer support when the customer's in-house washing equipment suffers mechanical breakdown.

Maintaining maximum product hygiene during transit is of paramount importance to retailers. At PHS Teacrate's central wash facility in the West Midlands plastic trays, crates and pallets go through a regular washing and drying regime designed for each individual customer's requirements to ensure they meet essential hygiene standards.

PHS Teacrate's Sales Director, Patrick Sheehy, said: "Having access to sufficient trays to meet peak demand and hygiene standards must always be key priorities in the food supply chain. For example our own state-of-the art wash facility is centrally located in the West Midlands, easily reached by road from any corner of the UK, and we own the tooling to manufacture our own trays guaranteeing supply."

PHS Teacrate, which supplies over 25 million crates every year to nonfood and food sectors, says that flexible, reliable and quick delivery of crates provides a commercial advantage for retailers, especially during peak periods such as Christmas and Easter or for other seasonal fluctuations.

It has invested in its infrastructure, including a transport hub in Bristol serving the South West and environmentally friendlier vehicles offering reduced haulage costs. The ambitious company's modem national fleet, which has achieved FORS (Fleet Operator Recognition Scheme) accreditation from Transport for London, now operates out of eight depots nationwide giving fast and reliable delivery of plastic crates and trays to anywhere in the country.

In addition, PHS Teacrate purchased the manufacturing tooling from Rehrig Pacific UK Ltd to exclusively produce its range of plastic crates and trays for the Home and European markets for food and non-food items such as automotive and pharmaceuticals.

By making these significant investments, PHS Teacrate is offering producers and retailers of any size and sector reduced logistic costs by providing a much greater choice of RTP from a single supplier, along with the option of renting crates which saves on storage space and capital outlay.

Supply chain stability is vital for food and non-food industries; plastic crates offer better product protection on the move under almost any circumstances and eliminate the waste that can accumulate from single trip alternatives. Reusable transit packaging such as crates, trays and pallets are specifically designed for numerous trips over an extended product lifespan.

PHS Teacrate offers crates, trays, pallets and plastic containers in a variety of dimensions including attached lid containers, patisserie and bread trays, produce boxes, hygiene pallets and nestable bale arm trays that are compatible with retailers' existing trays.

With the growth in demand set to continue, prospects for the RTP industry look good. PHS Teacrate is committed to ensuring a competitive market by continuing to invest in products and wash services that meet the bespoke requirements of customers.

Parent company PHS Group is one of the UK's leading workplace service providers. It has grown from a family run firm in 1963 to become a multi divisional, multi-national company, servicing over 200,000 customers at over 450,000 locations. The Group employs more than 5,000 staff and has a wide network of over 100 regional service branches, strategically located throughout the UK.

Contact: PHS Teacrate tal: 0800 980 7000 Website: and
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Comment:Returnable transit packaging can offer better returns if outsourced.
Publication:Food Trade Review
Geographic Code:4EUUK
Date:Jun 1, 2014
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