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OBM: What is Wal-Mart's use of RPC?
BP: We don't publish specific numbers, but it's about 70% overall. For example, watermelons are mostly corrugated boxes and are unlikely to use RPC. It is not reasonable to change these habits. Some merchandise can not be divided into individual boxes, only to maintain the original packaging. Of course, the plastic box will replace the three-layer wallpaper box in the future; this box is a problem.
OBM: Why is a three-layer wallpaper box a problem?
BP: They are not very suitable for pallets. Put it on the tray it will come out of the corner; this gives the customer a safety hazard on the transport. You can't get the bottom layer when you use it to hold watermelon. However, a plastic box can be used to open a hole on the side, while maintaining the same strength.
Your readers should understand that they should broaden their minds and think about the usefulness of boxes for me. The box is part of the supply chain. You have to think of another point in the supply chain and look at the entire supply chain. Many corrugated producers fail because they only look at a small segment of the supply chain; they simply ask: “What does the manufacturer want me to design for his employees?†RPC people do more than this. I think that carton manufacturers have fallen behind RPC people for several years in this regard.
Wal-Mart looks at the supply chain from the customer's back end. Any change in the upstream part should bring some benefits to the customer; otherwise, we will correct it. In short, consumers are pushing everything. No one can ignore this.
OBM: How do you look at the RPC supplier situation?
BP: The real trump card is Georgia-Pacific (Georgia Pacific). If the company enters the RPC industry, the prospects are very broad.
OBM: Let's go to the cost. How is RPC compared to corrugated boxes on the transport?
BP: We decided to replace the entire agricultural product with RPC packaging 18 months ago. We did decide to do so after we really felt the benefits.
OBM: What do you think of the “Unified Tile Products Land Occupation†campaign launched by the carton manufacturers?
BP: Very good. The unchanging part of the argument is that the more you standardize, the more you want to be special. The corrugated industry has made great efforts and can also do something more personal. The industry finally awakened, recognizing that it should be part of the solution to the problem of joining the battle.
I think the FBA and corrugated box industry made a correct decision and introduced a standardized corrugated box. This is a wonderful strategy. FBA shows leadership and we also do our best to support it. Walmart's status today comes from a simple creed: Give consumers the most value possible. Throughout the entire upstream, all changes are for customers to get more value ratio. This is our only driving force.
OBM: Has the "Unified Land Occupation" activity changed your plans and opinions on RPC?
BP: It broadened my horizons.
OBM: What do you think about the argument that "the standard carton has the same advantages as RPC?"
BP: I basically do not oppose this point of view. As I said before, it is not absolute and cannot be generalized. As the standardized display program has emerged, we have begun to look for personalized packaging products. The RPC industry wants to be big, but any industry will not be abandoned; what we value is the improvement it brings to the distribution system.
OBM: Unlike corrugated boxes, RPCs cannot be bundled and must be cleaned and returned. In contrast, corrugated boxes are easier to handle. What do you think?
BP: What I heard from the mall was to pack the trouble back and forth; separating the wax from the un-waxed carton was too much trouble; the resulting confetti was inconvenient.
The European government stipulates to retailers that “solid waste that must be sent to landfill must be reduced by 50%â€; this causes retailers to turn to plastic substitutes. I have heard that 75% of corrugated cartons are recycled, but 25% are sent to landfill and the total number is increasing, which is 25% of a large base. Of course not RPC will eventually be sent to bury, but in any case not so much. Under the leadership of President Bush, I think you will not see such restrictions on regulations (laughs); but in the past, the government may have.
OBM: Does your supplier accept plastic boxes? No complaints?
BP: People are reluctant to change. From the perspective of our suppliers, most of their equipment is designed and assembled on the premise of handling corrugated boxes. In terms of marketing, they can print their own brand on the carton, which is meaningless to customers.
Wal-Mart has good relationships with suppliers and we will not say what we say. Other supermarkets have also made changes in this area; we advise them on the basis of understanding the cost of agricultural products. They didn't like it at first, but they liked it after using RPC.
OBM: Have you measured the usual floor space?
BP: Yes. We do this work with Georgia-Pacific. In 2002 you saw more standardized cardboard boxes at Walmart. (USA) Mark Arthur Manian
Wal-Mart: RPC and Corrugated Boxes Can Be Co-located (Bottom)
Another important point is whether you want to choose a closed loop system or open loop system. Have you ever thought of doing a fishery business? RPC is the first choice for aquatic products; fisheries companies usually rent containers. The European CHEP Aquatic Company has its own boxes; their delivery staff sends the boxes to the transporter; they are transported to us and empty and returned to CHEP. CHEP washed the boxes and sent them to the transporter. This is an open loop.