Reusable Plastic Tray Theft
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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 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.