ReBoxes·MarketSt. Louis · Since 2008
Blog · Field notes

Retail backroom corrugated: the most wasted stream in the country

Store replenishment generates mountains of flat board that nobody owns, nobody counts and nobody grades. Roughly 60% of it is still sellable.

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Details
Published
September 21, 2023
Reading time
8 min
Subject
Field notes
Written by
Yard desk
Source
Own yard data

We show the workings

Every figure here comes from containers we marked and counted, or loads we graded. Ask and we will send the underlying data.

If you want to find reusable packaging being destroyed at scale, go to the back of a retail store on a Tuesday morning. The volume is enormous, the material quality is better than almost any other source, and virtually none of it is recovered as containers.

Why the material is good

Store replenishment boxes have had an easy life. One trip from a distribution centre, handled on a pallet, opened once, flattened immediately. No rack time, no weather, no repeated folding. Our grade A yield on retail backroom material runs around 24% against a yard average of 15%.

Why it gets destroyed anyway

Four structural reasons, none of them about the material.

  • Nobody owns it. It is not inventory, not product, and not anybody's performance measure. The only person with an opinion is whoever has to move it, and their opinion is 'away'.
  • Store-level space is the scarcest resource in retail. Flattened board is bulky and the backroom is already full.
  • The waste contract already exists. Somebody collects cardboard, and the path of least resistance is the compactor that is already there.
  • Fragmentation. One store produces a trickle; the value only appears when you aggregate across a region, and nobody at store level can do that.

What the aggregation looks like

The programmes that work use the distribution centre, not the store. Stores already receive deliveries from the DC; the trailer goes back anyway. Flattened board travels on that return leg, arrives at one place in volume, and becomes a sortable stream.

Store-level versus DC backhaul recovery
MeasureStore-level collectionDC backhaul
Incremental freight costHighNear zero
Volume per collection pointLowHigh
Sortable?Not economicallyYes
Typical resale yield—55 – 65% of collected board
Store labour addedSignificantMinimal — board already goes on the trailer

That 55–65% figure is the one that usually ends the debate. More than half of what is currently being baled as a commodity can be sold back as containers, frequently into the same organisation's own distribution network.

The closed loop version

The most satisfying arrangement we run: board collected from stores on backhaul, graded at our yard, and the grade A and B material sold back to the same retailer's DC for outbound replenishment. The boxes do a second lap of the same network they came from.

The best reuse programme is often one where the supplier and the customer are the same organisation, two steps apart.

What makes it fail

  • Treating it as a waste project. It gets assigned to facilities, who are measured on disposal cost, not on packaging spend.
  • No named owner at the DC for the inbound flattened board.
  • Store-level collection without DC aggregation. The freight eats everything.
  • Measuring success in diversion tonnage rather than in boxes resold, which makes baling look like a win.

Where to start

One DC, one region, one quarter. Collect on backhaul, grade it, and count what comes out: tonnage, grade distribution, and boxes resold. The answer is specific to your network and you will have it in twelve weeks.

Do not start with a chain-wide policy. We have watched two of those collapse under their own administrative weight before a single box was recovered.

Written by the yard desk

Our pieces are written by the people who do the work rather than by a content agency, which is why they contain more numbers and fewer adjectives than is fashionable. If a figure here does not match your experience, we would genuinely like to hear about it — two of our published coefficients have changed that way.