|
ARM CLOSED LOOP™ Operations
Here's how the system typically works:
Customer Loop
ARM's business partner distribute their products using returnable components
(i.e. plastic trays, totes, pallets, boxes, etc.) selected for the program, or
designed by ARM to meet the business partner's needs. The business partner
identifies customers (or distributors) who meet its criteria, and ARM introduces
each customer to the program. ARM sends them a start-up kit, which includes:
-
Introduction letter
-
Instructions on how to return packaging or product
components
-
Custom shipping cartons, labels and/or other materials
necessary to return the components to ARM
Once ARM orients the customer or distributor to the CLOSED LOOP™
System, the customer/distributor is responsible for accumulating a specified
quantity of components, packaging the materials by a custom-designed system, and
"closing the loop" by shipping the materials back to ARM as directed at no cost to the
customer/distributor. ARM then sells the components back to its business partner
for reuse at an agreed-upon price.
Supplier Loop
ARM collects packaging materials or product components that were used to
package materials purchased by the business partner, such as trays used to
ship component parts or containers for raw materials. The business partner
can either gather or ship these materials to ARM, or ARM personnel can
manage collection and shipping from inside the business partner's
facility. ARM, its business partner and its supplier work together to
select or design packaging or product components that are ideal for a
reuse system. The business partner requests that its suppliers
purchase the used packaging materials or product components directly from
ARM. ARM manages inventories, and deals directly with suppliers to meet
their needs. ARM can supply any new components that are necessary if
quantities of reusable components are not sufficient. ARM bills the
suppliers directly for the reused components.
Full Loop
ARM implements both the Customer Loop and Supplier Loop systems.
Depending upon the needs of the business partner and daily demands,
packaging or product components are funneled through ARM from the business
partner's customers or distributors to its suppliers and/or the business
partner itself, and from the business partner to its suppliers. Packaging,
product, component, raw material and finished product distribution and
procurement systems are all designed to increase the efficiency of the
reverse logistics process. ARM is responsible for managing inventories of
packaging materials or product components required by its business partner
and its suppliers.
|