Preventing Asset Loss and Promoting Reusable Packaging Uptake: Why We Need More Than Engineering

• Asset loss elimination:  How reuse success depends on more than just reusable packaging design.
• A new toolkit is emerging for reusable packaging behavior change from sensors to psychology.
• If you want to protect reusable assets, start with smarter systems and better human habits.

I used to be one of those people responsible for keeping pallet replacement costs in check, whether those costs came from sloppy pallet control or from damage caused by rushed operators colliding with pallets as they raced to meet production targets. In that urgency, they may perceive there isn’t time to fully stop before entering the pallet, or to properly align their forks. That same sense of pressure can lead delivery drivers to shave five minutes from their route by skipping the retrieval of empties, or cause packers to reach for the nearest container instead of the correct reusable needed to fill the next order.

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These days, reusable packaging systems continue to deliver on their promise of efficiency and sustainability, but even the most rugged, thoughtfully designed pallet or container can become prematurely damaged in use or vanish into the supply chain void without one critical element: human behavior. Even as tech tools rapidly become better and more available as an enabler of reusable packaging ROI, behavior is often still crucial.

As the podcast Normalizing Reuse With Behavior Change Science recently explored, fostering better environmental practices isn’t just about giving people good options; it’s about making the right option the easiest and most attractive one.  While the podcast from Upstream was focused on business-to-consumer applications, that insight has deep implications for supply chains increasingly reliant on reusable assets.

“We actually know what we need to do when it comes to pollution,” noted Jennifer Carrigan, Director of Strategic Initiatives at Upstream. “For most of these [issues]… we have solutions already. It’s just implementing the solutions that’s the problem. And when you talk about implementing solutions, that’s when you get into people.”

Why Supply Chain Behavior Matters in Preventing Reusable Asset Loss

While individual behavior change is a well-researched topic in public health and sustainability, supply chain behavior, particularly as it relates to reusable packaging asset loss, has mostly received comparatively little academic attention. Yet the stakes are high.

One well-known example of how behavior impacts supply chains is that of the Beer Game. The Beer Game was developed in the early 1960s at MIT’s Sloan School of Management by Jay Forrester and his colleagues to illustrate how systemic problems in supply chains often stem from human behavior, not just logistics. In the game, players take on roles within a simple beer supply chain, including retailer, wholesaler, distributor, and factory, each trying to meet demand while minimizing costs.

In real-world logistics systems, behavioral failures are often the root cause of lost or misused reusable packaging, based on my experience. Whether it’s a driver failing to retrieve empties, a warehouse worker tossing a premium container onto the wrong outbound trailer, or a facility manager overlooking the vulnerability of outside storage, human choices ripple across the asset management lifecycle.

Understanding behavior within this context helps businesses go beyond loss prevention toward process design that anticipates and guides human interaction with reusables, especially in decentralized supply chain environments with multiple handoffs.

Make Reuse the Default—Not a Detour

A recurring theme in the podcast was the principle that the easiest behavior is usually the most adopted. “If you want to change individual behavior,” said Carrigan, “you need to change the menu of available behaviors.” In other words, if the system makes it harder to throw away or misplace a reusable asset than to return it properly, you’re on the right track.

That principle is already at work in Upstream’s ambitious Grand Canyon National Park project, where single-use foodservice packaging is being eliminated in favor of reusables. “They are literally going to stop using disposables,” Carrigan said. “We are changing the menu of available behavior.”

In a distribution center, this might mean automated return lanes for reusable crates, color-coded storage zones, or clear dock signage to ensure reusables go on the right truck, not just any truck. Small design tweaks can eliminate friction points and reduce training burdens.

Feedback Loops: The Behavioral Power of IoT

In recent years, IoT-based tracking systems have emerged as a key tool to support behavioral compliance in asset management. Whether using RFID, GPS, or BLE sensors, the integration of these technologies with control systems can provide real-time data on the location, status, and handling of reusable assets like pallets, bins, or totes. Geofencing alerts can offer early notice that your reusables are in the wrong location.

Katie Patrick, an expert in gamified behavior design, emphasized the importance of feedback. “Just showing people’s comparison to each other—and also their own history—can motivate them to do better.” In supply chain terms, this could mean dashboards showing return rates by facility, driver, or shift. Or alerting managers when assets are idle, misplaced, or held too long by a customer.

IoT systems can also integrate with performance metrics and trigger nudges: text alerts, digital signage, or in-app notifications that make errors visible and motivate corrective action. The goal isn’t just tracking—it’s visibility that drives smarter behavior.

For example, if a warehouse sees it is underperforming on reusable retrieval compared to its peers, that transparency can spark internal improvements. IoT is no longer just an operational tool—it’s a behavioral catalyst.

Reusables Often Offer a Better Experience, So Highlight It

In the push for sustainability, the user experience of reusable packaging is sometimes overlooked. Yet it’s often a key behavioral hook. Reusables are typically sturdier, easier to handle, quieter on warehouse floors, and more ergonomic than their single-use counterparts. That matters, especially in high-turnover logistics environments where small quality-of-life improvements can enhance adoption.

For example, reusable pallets may offer fewer sharp edges or splinters, and reusable totes may stack more securely or come with user-friendly grips. When that improved experience is communicated and valued, not just mandated, it becomes another reason workers prefer and protect reusables.

In short: Make it feel like an upgrade, not just one more task.

Social Comparison: A Powerful Nudge

Patrick pointed to social comparison as a powerful, often underused tool. “Do it for the environment” or “do it to save money” might fall flat. “But do it because your neighbors are doing better than you? That worked.”

In a supply chain setting, this could mean publicly posting shift-by-shift reusable packaging compliance scores or making team-level reuse performance visible and gamified. Who’s retrieving the most empties from customers? Who’s scanning assets accurately and consistently?

This type of friendly competition, especially when paired with small incentives or visual leaderboards, can engage employees and instill a sense of shared responsibility. The same logic applies to external partners. Carrier scorecards might include reusable packaging KPIs to reinforce expectations across logistics providers.

Embed Reuse in Team Culture

One idea touched on in the podcast—“join a group”—has a practical application inside supply chains. Behavioral improvements are more likely to stick when reuse isn’t just a checklist item, but part of the team’s shared goals.

That means including reusable asset handling and performance metrics in regular shift huddles, team meetings, or Kaizen events. It could also mean encouraging peer-to-peer recognition when best practices are followed. By bringing asset management into routine operational conversations, reuse becomes something workers feel accountable for, not just responsible for.

Avoid Doom, Embrace Direction

Both guests criticized the sustainability movement’s historical reliance on doom-and-gloom messaging. “Crisis messaging only works if you say, ‘The house is on fire—here’s a hose,’’” Carrigan said.

Instead, positive visions of progress, what Patrick called a “quest mindset,” are more likely to foster long-term engagement. For reusable packaging systems, that might mean painting a picture of less cluttered facilities, reduced waste disposal costs, or a cleaner, safer dock environment.

Ultimately, people are more willing to change when they see where they’re going, not just what they’re avoiding.

Reusable packaging systems succeed when people do the right thing by default, not by exception. That means smarter infrastructure, clearer workflows, real-time feedback, and a team-oriented approach to continuous improvement. It also means treating reuse not as an extra task, but as a better experience.

As behavior change science continues to inform environmental design, supply chains that embrace its insights stand to gain more than just fewer lost pallets. They build systems and teams that will help make the widespread adoption of reusable packaging systems a reality.

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Rick LeBlanc

Rick LeBlanc, EMBA, is the founder and editor of Reusable Packaging News (subscribe to the free newsletter) and editor of Western Pallet Magazine. A supply chain journalist with more than 30 years of experience, he specializes in pallets, reusable packaging, material handling and related operations. Rick is co-author of Pallets: A North American Perspective and Pallets & Progress: A Collected History of Pallets and Palletized Handling 1922–1945. He is also an advisory board member of the Virginia Tech Center for Packaging and Unit Load Design. Read Rick’s full bio.