How do you rent reusable transport packaging within SAP

With regular rental, you register directly with the lending company when the assets are returned. Availability, invoicing and other processes can be covered with standard solutions. But what if the return flow is leading in the rental process and control must take place from logistics? Does SAP still offer a solution?

Companies that rent moving boxes, crates, containers, barrels or other reusable packaging materials have their own unique challenges. Most tenants also want to arrange the transport of packaging materials at the same time. In addition, the reusable packaging is usually used for third parties. This can create a chain of 'subtenants'. In this chain, the exact return time is more difficult to determine, the deposit registration becomes more complex and the condition in which the rented property will be returned is more difficult to predict.

When renting reusable packaging:

• manage return flows;
• the lead time must be high;
• extra attention to inspection and cleaning is required;
• an integrated approach keeps the process manageable.

Renting out reusable packaging is all about logistics

When renting reusable packaging, it is not the standard rental process that plays the leading role, but the logistics process. The lessor not only supplies packaging, but also ensures that it arrives on location. This requires the use of SAP's logistics modules. But they are not designed for the return of goods.

Solution with customization? Preferably not

Rental companies of reusable packaging often solve this problem by using custom solutions. This could be a complex series of Excel sheets, or an expensive proprietary application. Such solutions help initially, but quickly become impossible to manage. The link with invoicing and administration causes problems. Because customization must keep pace with updates to regular business software, costs increase over time.

Setting up a logistics rental process within SAP

It can also be done differently. SAP can set up its own process in which rental based on logistics is central. Planning and stock reservation are safely separated from current stock. This creates space to take the unique requirements of reusable packaging rental into account. These adjustments support the entire process within SAP. At the end of the rental, further processing (invoicing) can take place via the regular channels.

Working within the SAP standard

With this approach, the rental process works within the SAP standard. Goods movements are registered and invoiced based on sales orders. The same applies to the planning of inspections and the cleaning of the rented equipment. By providing returned packaging with a batch number, cleaning and inspection become a seamless part of the rental process.

All data within one integrated dashboard

Because all data remains within SAP, it can also be accessed integrally and used more effectively. This way, all data surrounding the rental process can be integrated into one dashboard. This makes management based on exceptions possible. A planner immediately sees what is in stock, what is on its way and what still needs to be checked. By filtering for deviations from the standard, problems can be responded to immediately.

Management reports keep the process manageable

The same data can also be used to reliably predict stock. In addition, other details can be recorded. This makes it possible to gain more insight into surrounding factors, such as working hours per shift, water consumption per order and wear per packaging. With such reports, management can focus on figures and better substantiate longer-term plans.

No circular economy without reusable packaging

The rental of reusable packaging is an important aspect of the circular economy. The sector that offers this is therefore growing steadily. Challenges in the field of registration and process management appear to be slowing down that growth. It is not necessary. Renting based on a logistics process can be easily integrated within SAP. This keeps the rental process manageable and improves the provision of information to customers.

Get in touch

Ready to make a business change? At Emixa, we'd be glad to share our comprehensive insights. Contact us to discover how our approach can help your organization thrive in the cloud era. Let's embark a journey towards enhanced efficiency and effectiveness together!  

Martijn van Dam

Martijn van Dam is a senior consultant and has more than 20 years of experience in the field of Supply Chain Management and digitalization.