Red and Blue go Green for the Environment and the Bottom Line!
August 29, 2007
When Redbox Automated Retail, LLC was developing a deployment strategy for a new DVD rental vending system, they collaborated with Absolute Transportation LLC, a specialized logistics provider. Together they were able to totally eliminate packaging for the redbox kiosks.
Initially, the redbox kiosks came packaged in a wooden crate with significant cost for the materials, labor to build, pack and unpack, and for transportation and disposal. The crate was viewed as important protection for sensitive equipment that included an on-board computer, a robotic arm, and revolving carousels.
Trials took place that led to replacing the wooden crate with a cardboard sleeve. Once satisfied with that transition, further trials concluded with the total elimination of packaging for the kiosks. Redbox kiosks are now delivered to supermarkets, McDonald’s® restaurants and other sites all over the U.S., Canada and Puerto Rico riding only on re-usable cushion pallets.
What is the impact? No wood or cardboard packaging is required. With no longer any disposal needs, environmental stewardship has prevailed. From a cost perspective, redbox will save over $500,000 this year from this initiative alone. Next year, as projected volumes increase, so will the savings. Redbox and Absolute have other environmental initiatives on the table to further reduce the footprint and cut more cost from the deployment strategy, including better trailer cube utilization (finding ways to fit more on each trailer) to reduce the total miles traveled and diesel fuel burned.
About Redbox – Redbox Automated Retail, LLC is the nation’s leader in automated DVD rental services. Redbox continues to revolutionize the DVD rental industry with kiosks featured in the nation’s leading grocery stores, select McDonald’s restaurants and other locations nationwide. In September 2006, redbox launched online rentals – offering guaranteed and immediate access to new release titles with no membership or mailman required. Redbox Automated Retail, LLC is owned by Coinstar, Inc., McDonald’s Ventures, LLC, a wholly-owned subsidiary of McDonald's Corporation, and private investors. More information about redbox can be found at www.redbox.com.
About Absolute Transportation LLC – Absolute is a specialized logistics organization focused on driving unnecessary cost from supply chains. Absolute executes collaborative strategies throughout Canada and the U.S., employing logistics consulting, shipment planning, marshalling and consolidation, inside pick-up and delivery, set-up and installation services from domiciles near Raleigh, NC and Toronto, Canada. Visit www.absolutegroup.com.