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Cost Impact Modeling: Open Pool
Dan Walsh
President
IFCO SYSTEMS North America
Pooled RPCs in the retail produce supply chain
Producer
Retail DC
Pooler
Retail Store
Indirect costs total up to 85%
of packaging-related costs
Quantifying Indirect Costs
Step 1
Identify cost drivers of each indirect cost
Step 2
Investigate impact of packaging on cost drivers
Step 3
Convert impact to cost
Case Study:
RPC Packaging Cost Evaluation Tool
for fresh produce retailers
•
•
•
Study and tool commissioned by IFCO,
performed by Cal Poly
Enables customized modeling of
indirect costs impacted by produce
packaging
Compares impact of different degrees
of standardization via RPC use
Identify cost drivers of each indirect cost:
Labor
Inbound
Transport
Unload
truck
DC
Operations
Break
down
pallet
Take into
inventory
DC-Store
Transport
Slot
Asset
Recovery
Activities
Store
Operations
Pick
Order
Secure
unit
loads
Load
Truck
Identify cost drivers of each indirect cost:
Product Damage
Inbound
Transport
DC
Operations
DC-Store
Transport
Store
Operations
Asset
Recovery
Activities
Investigate impact on cost drivers:
Product Damage
Convert impact to cost: Customize
Convert impact to cost: Customize
Convert impact to cost: Calculate
Convert impact to cost: Results
SCREENSHOTS OF RESULTS