Assessing the results of a worldwide packaging takeback system

Quantum Corporation, a computer storage products company, designed a new packaging system for their bulk hard disk drive product shipped to original equipment manufacturers (OEMs). The system involves a packaging design with a smaller environmental footprint and, more significantly, collection and reuse of the used packaging from OEM sites worldwide. The general analysis of the new packaging system is that of a traditional investment problem, with up front costs in terms of redesign, program rollout, etc., and expected savings over time from reduced use of packaging. Although some cost savings are expected once collection of used packaging replaces a threshold amount of new packaging purchases, costs of implementation were generally higher than predicted, and participation has been slower. The program should reduce package material costs by 30% at long-run peak usage. Because one of the primary drivers for the new system was to reduce environmental damages, the life cycle impacts of switching to the new packaging system were estimated using Carnegie Mellon University's Life Cycle Assessment method. The associated life cycle impacts suggest that energy and global warming emissions will be reduced by about 40%. This is significant because use of transportation networks will be increased with takeback.