Returnable transit packaging (RTP) in India covers plastic crates, wooden crates, pallets, metal cages, and large containers used to move goods between manufacturers, distributors, cold stores, wholesale mandis, and retail. The most common unit is the 60x40x30 cm plastic crate — used heavily in fruits and vegetables, dairy, FMCG, and pharma secondaries.
The cycle: a filled crate leaves a supplier, travels through one or two intermediaries, arrives at a buyer who unloads and returns the empty crate. That return leg is where everything breaks.
Who does the work:
The supplier's logistics manager tracks crates by WhatsApp. He sends photos of dispatched crates to the receiver. The receiver counts crates on arrival against the photo. Disputes — missing or damaged crates — are settled by a phone call. If the count is off, the receiver either deducts from the supplier's account or asks the driver to bring the missing crates back on the next trip.
If crates go missing at a mandi or wholesale level, they are rarely traced. Drivers sell empty crates to kabadiwalas. Suppliers write off 8–15% of their fleet every year and treat this as a cost of doing business, like pilferage.
Small manufacturers (turnover Rs 5–30 Cr) use no software. Crate counts live in the dispatch manager's phone. Large FMCG companies (Hindustan Unilever, ITC, Britannia) run SAP or Tally-based manual registers. They track outbound but have zero visibility on return. Third-party logistics (3PL) providers like Delhivery, Mahindra Logistics, and Ecomm are hired to move crates but are not accountable for their return.
Brokers in the NCR fruit markets maintain informal ledgers. A broker might handle 50–200 suppliers and allocate crates by WhatsApp broadcast. His margin is 2–5% on the crate rental or sale price. He resolves disputes through WhatsApp voice notes and takes a cut of settlements.
Where time and money leak:
- Empty return trips: No systematic back-haul planning. Return logistics cost equals or exceeds forward logistics in many commodity supply chains.
- Dispute resolution: Each missing-crate dispute takes 20–60 minutes of manager time per incident. A supplier handling 50 deliveries per day with a 5% dispute rate burns 5 hours per day on crate disputes alone.
- Phantom fleet: Suppliers own 20–40% more crates than they need because they cannot trust that crates in circulation will return. This is pure capital waste.
- No live count: A supplier who owns 10,000 crates does not know if 8,200 or 9,400 are currently with buyers versus in transit or lost.
- Buyer reluctance to return: Buyers have zero incentive to return crates promptly. Crates sit in their godown until the next supplier visit. Some buyers use crates as storage bins permanently.