By Frank Bozzo, Vice President and General Manager, CHEP Canada & Pallecon North America
Key Takeaways:
- Collapsible liquid IBCs offer cost savings and efficiency: They maximize storage space, reduce transportation costs, and allow for more product volume per shipment compared to traditional containers.
- Reusable IBCs mitigate contamination risks: They provide better protection against leaks and contamination than cardboard IBCs or improperly sanitized drums, ensuring product safety.
- Collapsible IBCs support sustainability goals: They reduce carbon footprint by requiring fewer truck loads, minimize packaging waste, and can be part of a pooled, reusable container program for enhanced environmental benefits.
As the leaves fall outside, the peak season begins for food manufacturers preparing to meet the increased holiday demand for popular ingredients, like oils, fruit fillings, sauces, dairy, and syrups. In fact, McKinsey recently reported that 20% of U.S. consumers expect to spend more on meat and dairy products between September and November, and 18% say the same for center-store/shelf-stable groceries.
To satisfy this heightened consumer demand, food manufacturers are challenged to transport large volumes of liquid ingredients through the North American supply network with speed and agility. Collapsible liquid intermediate bulk containers (IBCs) offer some clear advantages over traditional corrugate IBCs or bottle-in-cage totes for getting the job done. Let’s explore a few of these benefits.
Reduce production and transportation costs
Transporting liquids at scale often requires significant real estate at each step — on docks, in warehouses, and in transit. Efficient use in all three spaces is key, especially because rent for industrial spaces has grown by 4.3% yearly compared to the first half of 2023, according to the Commercial Real Estate Development Association’s Q3 2024 report. This is particularly important to consider during peak season, as every square foot may be leveraged to meet demand and can make a notable difference in a food manufacturer’s ability to deliver the most value.
One of the most cost-effective ways to maximize square footage is to transition to collapsible liquid IBCs, which hold more volume than traditional alternatives while requiring less space to store and transport them. This might be compared to consumers choosing to purchase large or bulk-sized bottles of olive oil from a wholesale store as it provides a greater quantity of the product at a more cost-effective price. In both cases, fewer trips on the road are required too — liquid IBCs can move more products with fewer trucks and consumers opting for bulk-sized goods will take fewer trips to the store to replenish.
Mitigate risks to consumers and business
Transitioning to reusable liquid IBCs also helps mitigate the risk of contamination to the end user. For example, with cardboard IBCs, there is a risk of the cardboard being compromised due to moisture and leaking. Drums and bottle-in-cage containers could also be contaminated if not properly sanitized between use. The consequences that stem from these risks can be very serious. Having a partner that can provide the necessary cleaning and prevention services to eliminate these risks not only protects the business and end users, but provides peace of mind to the production and transportation teams, too.
Beyond contamination, an IBC partner with broad scale and resources can minimize additional production risks. Often, they can identify potential challenges and offer preventative solutions to the manufacturer before they become a problem. From an operational perspective, this means the provider reliably communicates and delivers containers, enables strategic forecasting and efficient production, and leverages its end-to-end supply chain visibility to provide valuable network insights. All of these factors are particularly important to consider during the busy season when delivering products on time and in full is critical.
Support sustainability initiatives
Finally, while collapsible liquid IBCs’ packaging- and space-saving qualities streamline costs and mitigate risk, they also support sustainability goals. Fewer fleet vehicles are needed to move the product, reducing an organization’s carbon footprint. For example, one truckload of collapsed IBCs can equate to as many as 4.3 truckloads of empty drums.
Plus, less packaging — especially reusable packaging — equates to less waste. To maximize these environmental savings, manufacturers can opt for a pooled, reusable container program. With this approach, the IBC provider manages the containers throughout the process, transporting them to the manufacturer to be filled and picking them up once emptied. This makes it the provider’s responsibility to ensure container performance, administer proper sanitization, and manage the transportation network.
Each of these components works together to shrink transportation emissions and single-use packaging waste. This happens all while minimizing the food manufacturer’s oversight, freeing them to focus on broader business initiatives and overall operability during peak season.
Drive ongoing success
Collapsible liquid IBCs inherently boost food manufacturers’ bottom line, operational safety, and sustainability, but depending on the supplier of choice, there are potentially even more benefits to uncover.
When a liquid IBC provider doubles as a trusted partner and strategic advisor, new opportunities emerge through collaboration and innovation which can help food manufacturers increase overall network efficiency and performance.
For example, the right IBC provider can serve as a consultant, helping its customers reach their sustainability goals through various solutions beyond packaging. Additionally, the provider may facilitate valuable industry connections to form new strategic partnerships and drive greater supply chain results.
By transitioning to collapsible liquid IBCs and carefully identifying the right supplier, food manufacturers can mitigate challenges during peak season — and beyond — while positively impacting long-term business and sustainability goals.
Frank joined Brambles in 2003 and was promoted to Vice President and Country General Manager, CHEP Canada in 2020. In 2022 he assumed responsibility for the Pallecon North America business. He began his career with the company as Manager of Sales for the Canadian business, and was promoted to National Director in 2012. Frank was promoted to Senior Director, Sales and Customer Service, in 2017, and held that position until his promotion to his current role as the Canadian leader and member of the Americas Executive Leadership Team role which he currently maintains today.
