Key takeaways
- Expendable and returnable trays are both valid choices. The decision depends on where the tray goes after use.
- An in-plant returnable circulates between departments of the same plant. A closed-loop returnable goes from supplier to customer and comes back empty.
- The tray's price is only one part of the full cost, which also includes cost per cycle, freight, disposal, and part damage.
- When the tray ends its trip at the customer's assembly line, an expendable tray is usually the best choice.
The choice between expendable and returnable trays depends on where the tray goes after use. When the tray comes back, whether inside the plant or between supplier and customer, a returnable tray spreads its cost over many cycles and usually pays off. When the tray ends its trip at the customer's assembly line, an expendable tray is usually the best choice. Either way, base the decision on the full cost, not just the unit price.
When is an expendable tray the best choice?
An expendable tray is the best choice when there's no return path. The typical example is a Tier 1 supplier shipping to the company that builds the final product, where the tray ends up on the customer's line and is discarded or recycled there. In that case, organizing the return can cost more than the tray itself. The general criteria are in our guide to specifying trays by life cycle.
It also makes sense for low volumes or short-lived parts, such as launch quantities or a component that's due for a revision soon. A well-specified expendable tray still protects, organizes, and speeds up counting. The difference is in the material and wall thickness, sized for a single trip.
For a low-cost expendable tray, recycled material made to an agreed specification is usually the best choice, with limits on dark specks and gloss set in advance. When the component needs protection against electrostatic discharge (ESD), a topical anti-static coating works well for this short cycle.
The two types of returnable trays: in-plant and supplier-to-customer
An in-plant returnable circulates between departments of the same plant. One department produces the parts and loads them into the tray, which moves on to the next department, then to packaging, and back to the start. This is the most common type. As part of in-plant logistics, the tray is handled many times a day and has to withstand impact, stacking, and, on some lines, oil.
A closed-loop returnable goes from supplier to customer and comes back empty, cycle after cycle. This is where the customer's requirements come in. The tray has to fit the container the customer uses, whether that's a KLT bin (small load carrier), a rack, or OEM-standard packaging, and returned trays have to be counted. In the auto parts industry, this model is common between suppliers and OEM assembly lines.
In both cases, the tray is built to last. We thermoform these trays from thicker sheet, using impact- and oil-resistant materials such as ABS and HDPE, chosen based on the life cycle and the application. When ESD protection is needed, an in-resin anti-static additive keeps pace with trays that have a service life of three to five years. See our returnable trays.
What goes into the cost comparison besides price?
On a quote, the returnable tray usually looks more expensive, because the comparison is made per unit. The math changes when you divide the price by the number of cycles the tray completes and add in the costs that don't show up on the quote. These are the items that usually carry the most weight.
- Cost per cycle: the tray's price divided by the number of trips it makes before it's replaced.
- Outbound freight: how many parts fit per box and per shipment. A well-sized tray puts more parts in the same space.
- Return freight: for closed-loop returnables, the cost of shipping the empty trays back.
- Disposal: the cost of collecting and discarding or recycling expendable trays, which falls on the receiving company. If needed, used trays can come back to Termotray through reverse logistics, with shipping paid by the sender, and we dispose of them properly.
- Part damage: dented, scratched, or ESD-damaged parts that lead to rework, scrap, and returned lots.
- Replacement: returnable trays lost or damaged over their service life.
- Upfront investment: the mold, which is spread over the total volume.
Here's a hypothetical example. If a returnable tray costs several times as much as an expendable one but completes dozens of cycles, its cost per cycle can drop below the expendable tray's even before you factor in the disposal you avoid. If the return loop loses a lot of trays along the way, the same math can flip.
That's why the calculation should use your operation's numbers: volume, frequency, distance, loss rate, and the cost of damage. Our engineering team helps build this comparison and recommends the appropriate specification for each scenario.
How does shipping as a Tier 1 supplier change the decision?
A Tier 1 supplier makes the component and ships it to the company that builds the final product. The tray has to protect the part in transit and be easy to discard or return, and the decision isn't always the supplier's to make. Often, the customer's packaging specification states whether expendable trays are accepted or a returnable tray with controlled returns is required.
When the customer requires returnables, the tray becomes part of a closed loop between the two companies, with counts of trays shipped and returned. When the customer accepts expendables, the focus shifts to cost per shipment and disposal at the customer's site. In some supply chains, both coexist: a returnable process tray inside the Tier 1 supplier's plant and an expendable tray for shipping.
For higher-value components, the expendable shipping tray can get extra layers of protection, such as an internal insert and a snap-lock lid. A loose lid is used when the tray above already closes off the one below, and a snap-lock lid holds the part without marking it during shipping and heavier handling. See these formats on our inserts, lids, and blisters page.
How to run the numbers for your operation
To compare both options on the same basis, gather the information below before talking with our engineering team. It also helps you justify the choice to purchasing and finance, who tend to look only at the unit price.
- Where the tray goes after use and who keeps it.
- Volume per lot, shipping frequency, and distance between plants.
- The box or rack the tray needs to fit.
- Current disposal and damage costs, even if estimated.
- How many years the part is expected to stay in production.
Send this information with your part details through our quote form. Our engineering team calculates the pack density per box and presents a proposal that fits how your trays move. For the other specification decisions, see our tray specification guide.
Frequently asked questions
No. A returnable tray doesn't always cost less in the end. It depends on where the tray goes after use. The tray's price is only one part of the full cost, which also includes cost per cycle, freight, disposal, and part damage. When the tray ends its trip at the customer's assembly line and there's no return loop in place, an expendable tray is usually the best choice.
Yes. You can start with expendable trays while volumes and shipping patterns settle, then switch to returnables once the return loop is organized. Because the cavity is based on the same part, the tray design serves as the starting point for the new specification, with material and wall thickness revised for the longer cycle.
Yes. The returnable tray is sized to fit the KLT bin, rack, or OEM-standard packaging you already use. Include the container model in your request so our engineering team can calculate how many trays and how many parts fit in each shipment.
