Reusable packaging for all branches of food industry - L.A.B.B. Group's unique system

By using plastic reusable boxes, agricultural manufacturers, processors, purchase stations and market chains can save 50% of the money they spend when using cardboard and wooden packaging. That service is now available in Serbia because L.A.B.B Group started production of chipped plastic boxes and it is the first in the whole world to integrate RFID (Radio Frequency Identification) technology into reusable packaging. The investment in unique production unit in Šid, which was opened in November 2009, exceeded RSD 300m.

- The advantages of use of the plastic boxes made by Šid-based company lie in better preservation of the quality of products, better air circulation during storing and transportation, as well as in the fact that the boxes can be used from farm to retail facility without the need for additional repacking of products. The use of these boxes creates the preconditions for implementation of all standards stipulated by the EU. If the user damages packaging, he is not required to pay for the damage, but only to return all parts of the damaged box, which are then included in the recycling process - Vera Kojić, the Manager of L.A.B.B. Group, explains in the interview for eKapija.

In addition to increasing the cost-efficiency of the operations, the use of these boxes directly preserves environment because they are made of the material that is easy to recycle after use, while it indirectly prevents cutting of forests.

Each plastic box of L.A.B.B. Group has two built-in microchips where complete product declaration is stored by means of manual reader, while the application of RFID technology facilitates positioning, tracking and quicker reading of all data on the product.

The boxes are rented on daily basis to various manufacturers who use them to deliver the goods to their purchasers. Upon delivery, purchasers transport empty boxes to the washing station to be disconnected from the system and thoroughly cleaned and washed. Clean boxes are then sent to the warehouse where they are reconnected to the electronic tracking system.

According to Ms. Kojić, this system allows them to monitor the boxes; where they are, which of the producers needs some boxes and, if we have empty boxes from individual customers, we can transport new boxes to producers and bring back empty ones from the customers.

- We offer our customers the complete service - production of boxes, rental of reusable packaging, transportation, washing, disinfection. Since we are talking about large number of units, we have made the positioning and tracking of boxes easier with the introduction of RFID technology. We offer our users to introduce RFID technology if they enter the system. Each market chain is able to read complete product declaration thanks to RFID technology. This system substitutes bar code – the Manager of L.A.B.B. Group explains.

She says that the process starts from the supplier who rents the packaging from them.

- The supplier stores all data on the product on the microchip, so that, once the product is delivered to the warehouse of the market chain that is a part of the RFID system, the operator in the market chain can read all the data on the product – says Vera Kojić.

She points out that individual manufacturers will introduce RFID technology slower, but she expects them to realize the significance of that innovation very soon.

- For the time being, individual manufacturers are satisfied with the fact that they are able to use cheaper packaging, but it is not impossible that they will invest in RFID technology since RFID means that you need only one reader of the size of a mobile phone to store all the data on the product on the microchip built in the box – says Vera Kojić.

The product of L.A.B.B Group, the reusable packaging with RFID technology, was this year's nominee for the Investment of the Year Award - Aurea 2010.

Ms. Kojić also says that L.A.B.B. Group is focused on Serbian market, but it plans to expand the business to other countries as well.

- That, primarily, concerns the existing possibility of enabling the suppliers of Serbian market chains in Croatia, Montenegro, Turkey and Greece to rent our boxes and use them to transport the goods to our market.

The possibility that our manufacturers transport the goods in reusable packaging to other markets is in the company's plan for the following period.

L.A.B.B. has, so far, cooperated with Swisslion Takovo, Interprom from Belgrade, Blik Trade from Kikinda, Golden Garden from Subotica, PIK Južni Banat from Bela Crkva and others.

- One of the eminent purchasers in Serbian market, Swisslion, did the whole last year's purchase by using the reusable packaging. Before that, they had been purchasing wooden packaging for their suppliers to transport the goods in. There was a lot of waste and they were unable to use the complete packaging in the next season. Swisslion is the biggest purchaser of pear brandy in Serbia. They gave us the positions of their suppliers, we delivered them the packaging, and then the goods in our packaging were delivered to Swisslion's warehouse. Once they took the goods, we collected the packaging.

L.A.B.B. Group purchases plastic items of polypropylene and polyethylene that it first processes and then uses in further production. Within the scope of that project, which was launched in May, the company purchases mainly plastic tables and chairs and other items made of "full" plastic at the price of RSD 10 per kilogram.

Analyzing the market needs, L.A.B.B. Group has expanded its portfolio by starting production of plastic boxes intended exclusively for sale. They are made of polypropylene and can be used for transportation, storing and distribution of fruits and vegetables. In case the user damages that packaging, L.A.B.B Group offers possibility of repurchase of its products for recycling and further production.

- In case our customers store the goods for export in our reusable packaging and can not guarantee its returning, we offer them to buy our packaging.

These reusable boxes can be used in all branches of food industry.

- These boxes can be used for transportation of milk and dairy products, meat and meat products, etc. The Swedes distribute nearly 70% of goods reusable packaging. They are even used in pharmaceutical and electronic industry.

Calculation of how much wood is used in the production of wooden boxes

According to the data provided by the Republic Statistics Institute, the crop of apples in 2008 amounted to 235,601,000 kg. Apples are transported to buyers in wooden boxes.

Total of 15,706,733 wooden boxes were needed for aforementioned crop. One cubic meter of poplar can be used for production of 700 boxes, which means that it was necessary to cut 22,435 cubic meters of poplar (note: 60% of wood can be used in production).

When we add to this calculation the need for cutting trees for production of crates and cardboard boxes for other fruits and vegetables, we come to the conclusion that the ecology of our country is seriously endangered in this way. Aforementioned packaging is thrown away after use.

S.O.

L.A.B.B. d.o.o. Šid

eKapija.com Beograd

Swisslion Takovo Beograd-obrisano iz registra

Interprom Novi Beograd

GOLDEN GARDEN SUBOTICA

PIK Južni Banat a.d. Bela Crkva

Aurea

Aurea 2010

RFID

box

boxes

Vera Kojić

Vladimir Pavlović

plastic box

chipped box

Radio frequency identification

reusable packaging

Blik trade Kikinda

polypropylene

polyethylene