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BREADCRUMB

 1. Home


REUSABLE PLASTIC TRAY THEFT

Reusable plastic trays are integral to the distribution of baked goods. In North
America, it is estimated that the food industry’s annual reusable plastic tray,
crate, and pallet losses exceed $500 million.
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WHY IS REUSABLE PLASTIC TRAY THEFT AN ISSUE?

Reusable plastic trays are integral to the distribution of baked goods. Given
their durability and ease of cleaning, baking companies invest substantially in
reusable plastic trays that are circulated between their plants, depots, and
commercial customers. As the plastic trays are reusable, they are collected
after the baked goods are delivered to the customer, and the process begins
again.




TRAY THEFT CAUSES MAJOR OPERATIONS AND DISTRIBUTION DISRUPTION

The cyclical delivery process becomes interrupted when reusable plastic trays
are misused or stolen. The theft of the reusable plastic trays occurs in a few
different settings:

 * Criminal organizations – Organizations that are engaged in illegal regrinding
   operations
 * Corporate theft - Some companies try to evade capital expenditure costs by
   stealing other companies’ reusable plastic trays
 * Improper retail use or disposal – The retailer uses the reusable plastic
   trays for a different purpose than is intended


$10M

Baking industry companies spend more than $10 million annually in plastic tray
replacement costs due to the theft.




COST OF CRIME

Left unchecked, the tray replacement costs associated with these crimes can lead
to decreased capital investment and more expensive products for the consumer. It
is estimated that companies in the industry lose 30 percent of its reusable
plastic trays and spend well over $10 million annually in replacement costs.

Has tray theft has affected your business?



WHY DOES THE BAKING INDUSTRY USE REUSABLE PLASTIC TRAYS?


REUSABLE PLASTIC TRAYS ARE GOOD FOR THE ENVIRONMENT

Major university life-cycle studies indicate that returnable, reusable, and
recyclable rigid transport packaging is a more effective and sustainable
alternative to one-way disposable packaging systems in reducing greenhouse gas
emissions, energy consumed, and landfill use.


REUSABLE PLASTIC TRAYS ARE GOOD FOR THE BOTTOM LINE 

The more a company utilizes a reusable plastic tray, the greater the return on
investment and overall supply chain savings. Supply chains come in all shapes
and sizes. However, manufacturers that can identify a closed-loop distribution
model typically uncover a long list of operational benefits. Reusable plastic
trays can positively impact production, warehousing, distribution, quality,
safety, order selection, and retail delivery costs.


REUSABLE PLASTIC TRAYS ARE GOOD FOR FOOD SAFETY

Today’s supply chains are under constant pressure to mitigate the negative
effects of contamination. The Food Safety Modernization Act drives the food &
beverage industry to constantly refine best practices to ensure food safety. 
Plastic technology in materials and product designs contribute to continuous
improvement and seeking better solutions.

 1. High-pressure plastic injection-molded assets have a solid core and do not
    hold contaminants if the structure is compromised or damaged
 2. Plastic assets using structural foam or gas-assist technology creates a
    hollow core and will hold contaminants it the structure is compromised or
    damaged
 3. In general, HDPE or PP resins do not absorb foreign materials and will
    typically clean & dry to minimize contamination
 4. Plastic offers a long life-cycle, cleanability and can be recycled
    effectively

Solid HDPE and PP plastic packaging do not easily absorb contaminants or create
unwanted debris, the reusable assets can be designed to be easily cleaned &
dried, and technology in the form of RFID can be applied to document cleaning
cycles.


HOW DOES TRAY THEFT IMPACT BAKING COMPANIES?

The loss of reusable plastic trays will result in many negative consequences and
inefficiencies for the baking company. For example, raw materials will be wasted
or disposed of; hourly labor will sit idle, the company consumes electricity,
alternate one-way packaging will have to be procured, orders may be missed to
customers. The cost of replacing any reusable plastic tray combined with the
residual impact on everyday operations is high. Ultimately, this loss of
reusable plastic trays will result in substantial lost revenue for the baking
company.

Reach out to ABA for help



HOW ABA HAS HELPED STOP THE THEFT OF REUSABLE PLASTIC TRAYS

ABA has produced impactful success on the state level in our pursuit to fight
the harmful effects of tray loss through policymaking. In 2013, ABA successfully
passed a law in Maryland and Texas in 2019. 

How the industry tackles plastic tray theft



AREAS OF RESPONSIBILITY

To stop the theft of reusable plastic trays is going to take a combined effort.
The baking industry needs broader awareness of the severity of the issue,
internal leadership of companies, technology, law enforcement, and legislative
action to increase the penalty of theft of these reusable plastic trays. Baking
companies are serving as model environmental stewards by investing in this
distribution method. However, if the theft of reusable plastic trays continues
to burden the supply chains of baking companies and their resources, this will
likely increase prices for consumer products and undermine any environmental
benefits.  

Drivers

Your Responsibility – Drivers are on the front-lines of a company’s distribution
chain and – as a result – have the responsibility to keep track of plastics.
Make sure that you collect any reusable containers left from previous deliveries
and let your supervisor know if a second pickup is needed. Also, if you see
something, say something. If you see an unauthorized person handling or stealing
company plastics, collect as many details about the incident as you can and
report immediately to your supervisor.

Impractical Alternatives – Company’s such as yours utilize reusable plastics
because they are durable and easy to clean. When containers are lost, your
company may be forced to evaluate cheaper options that create a bigger hassle
for drivers such as cardboard boxes – a pain in the rain.

Executives

Responsible Buy-In – As a leader in your company, your managers look to you to
create focus and keep them accountable. If reducing the excessive losses from
tray theft and misuse is a priority for your company, simply mentioning the
issue every so often will not accomplish enough. It is up to you as a leader to
consistently reiterate responsibility for the property of your company. Before
long, your managers will pass along the same sentiment to your drivers.

The Bottom Line – Utilizing reusable plastic containers prevents your company
from using dirtier, less sustainable, and expensive alternatives. However, when
you have to spend thousands or even millions per year replacing your lost
property, the choice may not be so clear. By making a priority of keeping track
of your plastics, you will get the return on investment you should expect from
every tray or crate.

Consumers

Cheaper Food – When companies are forced to constantly replace their returnable
plastics year over year, many are compelled to raise the prices of their goods
simply to remain competitive. Keeping track of plastics can significantly aid
companies in keeping the goods your family needs affordable.

Clean and Sustainable – The companies that make the brands you love know that
environmental stewardship is important now more than ever and use reusable
plastics to prevent excessive waste. By reducing the number of lost containers,
companies can continue to use these ecologically-conscious materials rather than
revert to cardboard and other storage.

Law Enforcement

Organized Crime – While catching a truck transporting stolen plastics may seem
insignificant, tray and crate theft operations are extremely organized and
lucrative. Often, these plastics will be brought to illegal recyclers who will
grind down the plastics and sell the pellets for a profit – often back to China
and other foreign manufacturers. These operations frequently fall afoul of RICO
statutes and busts have been known to exceed $1 Million dollars in lost assets.

Don’t Be Fooled – It is important to note that these plastic trays are the sole
property of the bakery who purchased and commissioned their production, with
ownership usually being indicated by an imprint of the company’s name or logo.
Persons or organizations that are in possession of a plastic tray or crate that
a) bears the imprint of a baker that they are not explicitly affiliated with or
b) is not accompanied by legal and legitimate proof of sale can be assumed to
have stolen these trays. Any reported instance of “tray sharing” would represent
a highly uncommon practice between companies and would need to be validated in
the form of an explicit, written agreement between the two parties.

Legislators

In My Neighborhood? – While theft of reusable plastics may seem like an
insignificant problem, costs to local businesses can exceed millions of dollars
and are often at the hands of organized criminal enterprises. By ignoring this
issue, these criminal operations can grow in size and scope – creating areas
with high theft rates. Legislation requiring documentation requirements for
recyclers can stop these organizations from operating at scale.

Stifled Growth – A thriving business community is a key success for every town
in the United States. When companies choose to invest in a new facility, they
create jobs and tax revenue that can expand public services and even help other
local businesses. When companies must spend millions replacing reusable
plastics, that new facility or that new improvement may need to be put on hold –
leaving avenues for economic growth untapped.

Managers

Stop Wondering – Distribution managers are too often faced with the question
“why don’t I have enough of my plastics?” Loss of your returnable containers is
due to several factors including misplacement, mismanagement, or even theft.
Make sure you hold your drivers accountable for each reusable plastic container
that goes out the door.

Communication is Key – Active relationship management with your customers is
vital to know where your property is. By regularly communicating with the
retailers and restaurants your drivers deliver to, you can get a better sense of
where the biggest losses are occurring. Additionally, it may be worth contacting
your sales team to do the same. A check-in every few months can go a long way.

Report, Report, Report – In the case of theft, no solution can be found by
keeping quiet. Ask your drivers to keep details of suspected thefts and be sure
to file a police report. Without knowledge of the extent of the problem, law
enforcement and prosecuting officials will not know what to look for.

Retailers

The Cost of Indifference – Retailers and restaurants benefit greatly from the
utilization of returnable plastics, even when it might be so clear. If an
alternative to plastics is chosen, substitutes that are more expensive, less
sustainable, and more prone to breakage may be chosen – causing purchasing
prices to rise over time. By being taking care of your vendors' trays and
crates, your company will not only save time and money – but become a customer
of choice for drivers serving your business.

Make the Call – Picking up the phone to call your vendor can go a long way into
preventing loss of plastics and clearing out cluttered storage. Without your
crucial intelligence, many of those delivering may not know where their property
is and will continue to stock without clearing out. Additionally, informing
vendors about possible thefts can create a positive relationship with your
seller and keep your prices low.


COMMUNICATION TOOLKIT FOR ABA MEMBERS

In attempting to prevent this costly problem, one of the most significant
barriers to progress is awareness of the issue. ABA recommends using our ABA
Tray Theft Prevention Communication Toolkit to help you and your team quickly
educate your employees and customers on this problem and how to solve it
efficiently.

Download all resources



TRAY THEFT DOWNLOADABLE RESOURCES

Legislators: Reusable Plastic Tray Theft (790.43 KB) 790.43 KB



Supervisors: What to know about tray theft (325.24 KB) 325.24 KB



Drivers: How to report tray theft (161.4 KB) 161.4 KB



Tray theft informational posters (936.31 KB) 936.31 KB



Template Letter to Retail Company/food service establishment on Tray Theft
(21.61 KB) 21.61 KB




ABA MEMBER-ONLY SHARE GROUP ON LINKEDIN

ABA created a virtual Members-only group on LinkedIn so Members can bring their
collective minds together in search of solutions for a number of issues -
including plastic tray theft. Please consider using this forum as a way to
connect easily and quickly with others throughout the supply chain – to enable
practical and timely actions to help solve very real issues we are all facing.
 Ask questions and get advice. Share instances of things that have worked well,
and maybe ones that haven’t. 

This group is Members only, no press. If you are an employee of an ABA Member in
good standing, please request to join the group to get the conversation started.

ABA Member-only share group on LinkedIn



PLASTIC TRAY THEFT UPDATES FROM ABA

Loudspeaker icon
Press Releases


BAKERS LAUNCH TRAYTHEFT.ORG TO HELP THE INDUSTRY STOP THE THEFT OF REUSABLE
PLASTIC TRAYS

Dec 3, 2020
|

ABA unveiled a new online resource to help their Members fight this ongoing
problem. This new resource can be found at TrayTheft.org.
Plastic Tray Theft
Logistics
State Affairs
Member Resources
Pencil icon
Member Resource


LESSONS LEARNED FROM STOPPING ORGANIZED TRAY THEFT

Oct 29, 2020
|

These three accounts of how organized tray theft was stopped in Ohio, Florida,
and Illinois demonstrate the key elements were effective...
Logistics
Plastic Tray Theft
State Affairs
Business Impact
Pencil icon
Article


TRAY THEFT: BUILDING ON WINS IN STATE LEGISLATURES

Oct 1, 2020
|

In our pursuit to fight the harmful effects of tray loss through policymaking,
ABA has produced impactful success on the state level.
State Affairs
Plastic Tray Theft
Business Impact
Logistics
View all news
Latest News


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