fordlogo.jpg (5258 bytes)Plastic Pallet Systems Trim Packaging Costs at Visteon

A leader in the use of returnable packaging, Visteon Automotive Systems is having success with plastic pallets and totes manufactured by ORBIS. A supplier of automobile electronics, from audio components, to driver information and powertrain components, fordpic.jpg (10797 bytes)Visteon uses a variety of interlocking totes on the auto industry standard 45 x 48 in. pallet.  Visteon also utilizes a top cap and seatbelt system to ship finished assemblies to customer assembly lines.

"We ship all of our products on a just-in-time basis," says Maurice Montambault, supervisor for material handling and package engineering for Visteon's electronic operations in North America. "So the fact that we can load our components into hand-held totes and build those up into a partial or full unit load - whatever lot size our customers require - is a major benefit."

Visteon's switch to standard-size totes and pallets for the downstream shipping loop was part of an overall company strategy to cut costs by commonizing on
standard, off-the-shelf container sizes.  Visteon then tailors each container to a specific part type through the use of custom interior dunnage. "The beauty of it is that any container and pallet combination can be used by any assembly plant or customer location in our system, which helps us better manage return shipping costs," says Montambault. "If we start production on a new part, we can reuse the same containers by using a custom insert."

Another benefit of having only a few standard container sizes is that manufacturing personnel now know what they are dealing with when a new program comes down the pipeline. "They know the range of tote sizes and can take that into account early in the conceptual stages of a program," says Montambault. "They could not do that before."

Visteon, which estimates a payback of less than two years, justified the expenditure of the new pallets and totes largely on the basis of eliminating the costs of expendable packaging materials and their disposal costs. Built-in seat belts on the pallet also eliminate the need for stretch wrap or banding. "It was a lot of money we were throwing away," says Montambault. "If you look at returnables from a total cost perspective, they make great business sense."

So impressive has been the payback, in fact, that Visteon is planning to eventually extend the use of returnables to its suppliers upstream.

Company:  Visteon, Dearborn, MI
Products handled: Automotive electronics
Number of plastic pallets/totes in use:  Approximately 250,000
Maximum load weight: 1,300
Pallet usage: Downstream shipping loop
Number of Ford shipping locations: 5
Number of customer receiving locations: 20
Pallet type: Orbis 45 x 48-B SBRR CISF nestable pallet with seatbelt, 45 x 48 MP TOPCAP, StakPak Containers, custom interior dunnage.
Specific benefits: Cost savings by eliminating expendable packaging materials
Estimated payback: Less than two years