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40-60%

Reduction in disposal costs after full rollout

6-8 weeks

Typical timeline from audit to pilot launch

12-18 months

Equipment payback period for balers and sortation

Step 1 · Assess Current State (Weeks 1-2)

Launch with a focused two-week audit to quantify material flows, capture disposal costs, and pinpoint high-value recovery streams.

Wood pallets

  • Grade A/B pallets resell for $2-5 each via Repackify or local brokers.
  • Grade C pallets can be repaired; broken pallets ground for mulch or biomass fuel.
  • Track ISPM-15 status for export lanes to avoid rejections.

OCC & corrugated

  • Bale cardboard into 1,000-1,200 lb loads; target 12-16 bales per full trailer.
  • Maintain moisture-free storage; wet OCC can be downgraded or rejected.
  • Monitor OCC #11 index for pricing benchmarks and contract negotiations.

Stretch film & plastics

  • Segregate clear LDPE film; target contamination <2% for premium pricing.
  • HDPE totes and drums should be triple-rinsed before refurbishment or grinding.
  • Remove labels, strapping, and mixed polymers to protect bale value.

Metals & mixed materials

  • Steel strapping, drums, and pallet collars have consistent scrap value.
  • Capture aluminum and specialty metals separately to avoid downgrades.
  • Develop outlet for foam dunnage and laminates (often co-processed as RDF).

Savings example:

  • • Current disposal: 10 tons/month @ $75 = $750
  • • Recycling revenue: 7 tons OCC & film @ $30 = +$210
  • • Remaining landfill: 3 tons @ $75 = -$225
  • Net monthly impact: $735 savings ($8,820 annual)

Step 2 · Design Your Program (Weeks 3-4)

Full-service recycling partner

Vendor manages pickup, sorting, processing, and resale with revenue sharing.

Best for:

Multi-material streams, limited internal labor, rapid deployment across sites.

Direct mill or processor contracts

Sell baled OCC, stretch film, or metals directly to end processors for top pricing.

Best for:

High, steady volumes of a single material with on-site baling capacity.

Repackify resale marketplace

List reusable pallets, totes, and drums to enterprise buyers with logistics support.

Best for:

Grade A/B pallets, food-grade totes, or specialty containers with regional demand.

Equipment & space planning

ItemPurposeCostROI
OCC balerCompact cardboard for mill-ready bales$3K-$15K12-18 months
Film baler or compactorProcess LDPE stretch wrap and poly bags$5K-$20K18-24 months
Sorting bins & gaylordsSegregate recyclables at source stations$500-$2KImmediate
Pallet racks or cagesStage baled materials safely before pickup$1K-$5KInfrastructure
Floor scaleCapture accurate outbound weights for payment$1K-$3KAccuracy & compliance

Core workflow blueprint

  • Deploy color-coded collection points near receiving, production, and shipping lines.
  • Train staff to remove contaminants (labels, banding, food residue) before consolidation.
  • Compact materials—bale, bundle, or stack—to maximize trailer cube and reduce pickups.
  • Verify weights and document loads with photos for audit trail and ESG reporting.
  • Schedule pickups to match production cadence (weekly, bi-weekly, or on-call).

Step 3 · Stand Up Infrastructure (Weeks 5-6)

Align logistics, technology, and contracts before go-live to avoid stalled collections.

Technology checklist

  • • Recycling module or custom WMS fields for weights and revenue tracking.
  • • Photo documentation workflow (mobile app or shared drive) for audit trails.
  • • Contract repository with automated reminders for renewals and pricing reviews.

Logistics readiness

  • • Confirm trailer access, dock scheduling, and after-hours procedures.
  • • Align pickup frequency with production surges and seasonality.
  • • Document backup hauler plans if primary partner misses pickups.

Step 4 · Launch, Train, Optimize (Week 7 onward)

Employee enablement

  • Program goals and financial impact to secure frontline engagement.
  • Material identification guides with photos for acceptable vs. rejectable items.
  • Contamination avoidance steps for OCC, film, pallets, and totes.
  • Safe handling of baling equipment, sharp metal edges, and heavy containers.

Financial KPIs

  • Monthly recycling revenue and rebates earned.
  • Net disposal cost avoided ($/ton diverted).
  • Program ROI compared to equipment investment.
  • Revenue contribution by material stream and facility.

Operational KPIs

  • Diversion rate (% of packaging waste recycled vs. landfilled).
  • Contamination rate (% of loads rejected by partners).
  • Processing labor hours per ton recycled.
  • Pickup cadence adherence and on-time performance.

Continuous improvement rituals

  • Monthly performance reviews to remove bottlenecks and celebrate wins.
  • Quarterly market check-ins to renegotiate contracts or switch outlets.
  • Expand to new materials (wood crates, drums, plastics) once baseline stable.
  • Launch recognition programs for shifts or facilities hitting diversion targets.

Common Pitfalls & Prevention

Contaminated loads

Mixed materials or residual product trigger rejections and surcharges.

Mitigation

Use visual SOPs, random audits, and escalate repeat offenders.

Underestimating space

Overflowing bins create safety hazards and slow production.

Mitigation

Allocate 500-1,000 sq ft for staging and adjust pickup cadence as volumes grow.

Commodity price swings

Budgeting on peak OCC/film pricing causes missed ROI targets when markets dip.

Mitigation

Model scenarios using trailing 12-month averages and prioritize disposal savings.

Lack of executive sponsorship

Programs stall without visibility at the C-suite level.

Mitigation

Tie KPIs to ESG scorecards and review progress quarterly with leadership.

Ready to monetize your packaging waste?

Repackify connects you with vetted recycling partners, pallet refurbishers, and reclaimed packaging buyers. We launch pilots, negotiate commodity pricing, and deliver the reporting your finance and ESG teams need.

Related resources

Industrial Packaging Recycling Program Setup | Pallets, Gaylords, IBC Totes | Repackify