Kyle Otting, the CEO of Montreal-based Rebox, is making it his mission to teach businesses about the economic and environmental value of buying used cardboard boxes rather than recycling or tossing the containers.
Appointed to the role July 8, Otting is taking over from Mark Young, who co-founded Rebox in 1990. The company acquires corrugated cardboard boxes of various sizes and shapes that would otherwise be tossed or baled, and resells them to other businesses.
Rebox operates over 35 distribution centres in Canada and the U.S., serving more than 2,000 businesses, including large retailers and manufacturers. It moves approximately 50 million boxes per year.
Rebox “presents a win-win,” Otting said in an interview with Sustainable Biz Canada. “We get access to material, and those that generate them get additional revenue. And we’re able to track the sustainability efforts of doing such.”
Spreading the word about the win-win is his goal as chief executive. At a time when businesses are concerned about rising costs and sustainability, Rebox can alleviate both, he said.
A win-win for everyone
Otting comes to Rebox with approximately 20 years in the reusable packaging industry, with managerial and executive roles in U.S.-based businesses like IFCO Systems, CHEP, 48forty Solutions and PLA.
With extensive experience in the recycling of wooden pallets in particular from firms such as 48forty, Otting said the business model from that sector “is identical” to what Rebox does.
When approached for the CEO job, the circular nature of Rebox resonated with him, he said about why he joined the company.
“When I saw this opportunity I was very quick to engage with it, because it’s so interesting what can be utilized within used boxes.”
Rebox, Otting said, benefits every player in the supply chain.
For every ton of corrugated boxes it processes, the company saves 17 trees, he said. A study done by Rebox and Duke University found recycling corrugated cardboard requires approximately 10 times more energy and produces approximately 45 times more greenhouse gas emissions compared to reuse. To showcase the value of using Rebox, businesses can display the amount of waste and carbon they saved by using the company's service.
Companies with mounds of used boxes can generate incremental revenue with Rebox, rather than spend money on waste disposal or baling. “We’re actually able to offer a premium from a revenue perspective to those that are generating those used boxes,” Otting said. Additionally, the company’s service slots in so effortlessly that “operationally, nothing really changes,” he added.
New boxes are subject to “tremendous price volatility,” Otting said, while Rebox’s prices are steadier and more affordable. On average, Rebox shaves off 20 to 30 per cent on costs compared to a new box, Otting explained. The savings can be higher for some models: up to 40 per cent for heavy-duty bulk boxes.
Educating the market is Otting’s top goal
In his role, Otting’s priority is to educate Rebox’s customers and suppliers on the “value of a used box” and the “true capabilities of corrugated box reuse.”
Most of the organizations in supply chains are not aware that a corrugated box can be reused, he said, so the short-term challenge Otting looks to overcome is informing supply chains and potential customers about what the company can offer. Rebox is focused on communication campaigns and trial programs to achieve this.
Another crucial part of the job is thoroughly understanding the company’s team, partners and systems, Otting added.
Otting is seeing incremental demand for Rebox, with the biggest opportunity from customers that want to shift away from buying new boxes to reused ones.
“It’s that next chapter for me to help a great sustainable reuse business: help it educate the market on its value and help our customers and suppliers achieve their sustainability and financial targets.”
