Cummins, Robin Newing
Cummins is breaking the packaging silo because “packaging lives across the entire supply chain,” says packaging leader Robin Newing
Packaging can drive measurable cost savings, boost operational efficiency and deliver tangible sustainability gains. Cummins’ returnable packaging lead, Robin Newing, explains how early design integration, data-driven standardisation and cultural change are unlocking new value – and why packaging decisions belong on the agenda of every supply chain executive.
Packaging might not be the first thing that comes to mind for automotive logistics decision-makers. It has traditionally been treated as a macro-level function in the supply chain. Yet as the industry faces intensifying pressure to reduce costs, improve efficiency and meet ambitious sustainability targets, packaging is emerging as a lever that can unlock both immediate gains and longer-term, downstream value.
At Cummins, packaging has become a focal point in efforts to reduce waste and cost as part of the company’s “Destination Zero” strategy. “Packaging is certainly seen as one of the key drivers for waste reduction on a global basis,” says Robin Newing, returnable packaging operations leader at Cummins.
In conversation with Automotive Logistics, Newing outlines how Cummins is repositioning packaging as an enabling system within the wider supply chain – one that influences transport efficiency, operational resilience and sustainability performance. The discussion builds on Newing’s appearance at Automotive Logistics’ packaging livestream in October, where he first framed packaging not simply as a cost or sustainability initiative, but as a managed asset. Themes of early integration, standardisation, reuse and data ran through that session; and here, Newing expands on how those principles are being translated into practice.
Designing with packaging in mind
For Newing, packaging’s influence begins at the earliest stages of product development and sourcing. “We have some product groups where new product introduction or sourcing decisions are the point where you can really make changes,” he says.
When a new programme or contract is launched, suppliers are typically at their most attentive and open to new requirements, a dynamic Newing identifies as the ideal opportunity to build returnable packaging solutions into the process from the outset. As a result, Cummins’ packaging engineers are now shifting to work alongside design engineering, purchasing and logistics teams early on, ensuring parts are designed and sourced with optimal packaging in mind.
This approach mirrors a broader industry trend. General Motors, for example, recently consolidated its packaging engineers under the logistics function to ensure packaging and handling are considered in vehicle development from the beginning. Nissan, likewise, has made packaging a priority in its engineering process – maximising parts per container and even inputting packaging requirements in early product design to cut the number of truckloads needed.
Newing recalls a simple but telling example from his experience: A design engineer had specified a component that ended up just a few millimetres too large for a standard reusable box footprint. Rather than defaulting to a one-off crate, the packaging engineer challenged the design. “It was a simple conversation…and the small tweak meant the part fit in a standard footprint,” Newing says, noting the change eliminated the cost and complexity of a custom package.
The moment reflects a broader lesson where early collaboration between design and packaging teams can avert inefficiencies that would otherwise surface much later in the supply chain. As Newing puts it, “getting it right first time” with packaging means balancing the requirements of the entire supply chain – from part dimensions and protection needs to supplier batch sizes and logistics flows – before parts and packaging are finalised.
Data, modular design and standardisation at scale
One of the pillars of Cummins’ packaging strategy is standardisation underpinned by data. Newing explains: “If you don’t have boundaries and rules, then you have chaos.”
The company is establishing a core set of standards, modular container designs to cover the vast range of engine parts they ship. Rather than reinventing packaging for each part, they use a data-driven approach to choose the best option from a “library” of returnable containers. By inputting key parameters – a part’s size, weight, volume, and order frequency – an algorithm can recommend the optimal container type and size.
Crucially, this selection process also involves the supplier’s input. “You want to make sure the supplier can manufacture in that batch quantity, otherwise they’ll charge you more,” Newing notes, explaining that packaging choices must align with economical production lot sizes and be handleable in Cummins’ own plants. The goal is to find a balanced approach that works across the entire supply chain, aligning priorities while maintaining flexibility where needed.
The modular design of Cummins’ containers is optimised to fill a standard pallet or truck space efficiently, and heights can be adjusted by adding or removing sections (collars). “If you work in modular packaging, which one you pick and which size you scale up won’t matter because it will fit in the supply chain – it’ll fit road freight, it’ll fit the warehouse,” Newing explains.
This modularity also future-proofs the system – as parts change or new models launch, the same containers can be resized or reconfigured rather than replaced. Newing highlights that standardised, modular packaging can span multiple vehicle model cycles, reducing obsolescence. “You’re not buying packaging for the life of one model; you’re making packaging that can be used in two or three model lives,” he says. Likewise, interior dunnage is being designed to be interchangeable across these containers, so it can be reused or adjusted for different parts over time. This repeatability yields long-term savings, even if the benefit isn’t immediate. Over a few years the avoided cost of designing new packaging for each part or model adds up significantly.
Standardisation, however, does not equate to a one-size-fits-all mentality. Cummins preserves flexibility for parts or regions with specific requirements, while deliberately constraining the overall number of packaging variants. The focus is on disciplined consistency. By reducing the proliferation of ad-hoc packaging sizes, the company can improve truck cube utilisation, make more efficient use of warehouse space, and streamline planning processes. Central to this model is high-quality data. Precise information on each container’s dimensions and pack quantities underpins effective route planning and load building within transport management systems, turning standardisation into a measurable operational advantage.
Speaking alongside Newing on Automotive Logistics’ livestream, Adam Wiley, packaging strategic planning senior principal engineer at Honda Development & Manufacturing of America, underscored the importance of standard pack footprints supported by accurate, reliable data. Such discipline, he noted, is a key driver of supply chain reliability, efficiency, and scalability.
Cummins’ data-guided, rules-based packaging framework is providing the backbone for scaling up reusable packaging globally for the company. The structure helps ensure that what might otherwise become a complex and fragmented operation instead runs on a lean, optimised set of packaging assets. Crucially, the model is not intended to be prescriptive to the point of rigidity. Newing emphasises that openness to feedback and continuous improvement from partners is essential.
Driving efficiency, savings and sustainability with reusables
At the core of Cummins’ initiative is a fundamental shift away from expendable to returnable packaging in its inbound supply chain. The company is converting one-way cardboard boxes and wooden crates into durable, reusable plastic containers for a growing portion of its parts flow. This not only reduces corrugated waste and disposal costs, but also addresses less visible inefficiencies embedded in transport, handling and packaging management. “If you use reusable [packaging] and you can keep reusing it and get it back into your supply base efficiently, it drives a cost saving [and] a sustainability saving,” Newing says. Each expendable container removed from the system eliminates a stream of waste – and often reduces the amount of “air” being shipped instead of product. By shifting to right-sized returnable packaging, Cummins can increase trailer fill rates, moving more parts per load and, in turn, reducing the number of truckloads, fuel usage and emissions.
Nissan, for example, reported that by redesigning one part’s packaging and eliminating excess dunnage, it doubled the parts per trailer and halved the number of trailers needed annually. Newing sees similar opportunities across Cummins’ network. “Better optimisation improves truck fill, so you’ve got fewer trucks on the road and less fuel and everything else that goes with it,” he notes. Fewer trucks also mean fewer touches and lower labour and handling costs at docks and yards. “All the other macro factors – fewer drivers, busier roads – they all factor in,” Newing adds, underscoring that optimising packaging is a lever to relieve wider supply chain strains.
A big impetus for returnable packaging has also come from new EU sustainability rules – the Packaging and Packaging Waste Regulation (PPWR). Newing sees the regulatory push as a “good motivation” to accelerate change. It has strengthened the business case for investing in reusable packaging, he says, by turning what were once tentative efficiency gains into clear compliance requirements. “Where we previously had ambiguity around return on investment or softer benefits further down the line, we now have to be in that space for regulatory compliance,” he explains. In his view, the PPWR removes any real debate about whether companies should shift to returnable systems.
Cummins has identified six key elements needed to make its returnable packaging programme successful: pooled packaging, tracking, inventory control, container management centres, planning, and implementation. In practice, this means setting up a supportive infrastructure around the new containers. One important step has been establishing container management centres (CMCs) – dedicated hubs that receive empty containers, inspect and clean them, then redistribute them to suppliers as needed. By centralising these activities, Cummins removes non-value-added work from its plants and achieves efficiency through scale – the CMC can balance container inventory across multiple factories and coordinate returns so that no site runs short.
“We have suppliers delivering to multiple sites, so we can look at the whole picture and be more efficient,” Newing says of the centralised approach. This pooled model also allows the company to treat packaging as a shared asset, rather than each plant or supplier owning its boxes in isolation. Cummins’ use of passive RFID tags on all returnable containers further enables this pooled system. The bottom line is a more reliable circulation of containers, which in turn means suppliers can depend on them and fully eliminate expendables.
Jump to digital-enabled smart packaging
Consistency in packaging also yields indirect benefits in manufacturing and safety – standard bins with ergonomic features reduce injuries (like cuts from opening cardboard or banding) and can be designed for safer line-side delivery. For example, Newing notes that Cummins’ new lightweight, modular plastic bins improve line-side handling and can integrate with automated storage and retrieval systems.
All of these advantages feed into a wider business case. Newing prioritises safety and quality first, confident that “if you get your safety right, get your quality right, get your process right…the cost will take care of itself”. And with Europe’s regulations looming, compliance is being baked in – the move to returnables, use of recycled plastic in containers, and designing for recyclability all position Cummins to meet the PPWR requirements on reuse and recyclability. Newing shares, it’s about “driving waste reduction…making sure the reusable packaging we have does contain the minimum 35% recycled content…and improving the efficiency and fill rate on trucks” as part of a holistic sustainable strategy.
Digital visibility and smart packaging
To enhance packaging as a strategic asset, Cummins is also leveraging digital technology to track and manage its containers. “Underpinning all of this is digitalisation,” Newing says of the returnable programme. One of the perennial complaints in using reusables is not knowing where the containers are – they tend to “disappear” or fall out of the system, causing costly losses and stockouts.
“Some of the noises you hear are, well, I’ve got enough packaging, I just don’t know where it is,” Newing notes. To solve this, Cummins has tagged its fleet of returnable containers with RFID, giving each a unique identity in a cloud-based tracking system. Every time a container moves through a checkpoint (such as leaving a CMC or arriving at a plant), it can be scanned and logged. This provides real-time visibility of where packaging assets are across the network and helps prevent bottlenecks or shrinkage. The data feeds an inventory control system so that planners can see, for example, how many empties are at a given supplier and how many are in transit, and then proactively reposition containers if needed. “We can cross reference where packaging is with our demand and make sure, we get it to suppliers in the right quantities at the right time,” Newing says.
Essentially, the company is building a digital twin of its packaging loop, enabling tighter control and even automation of transactions (like triggering container replenishments). Newing points to digitisation as a critical enabler for addressing what the company has identified as significant loss within its own returnable packaging network – with internal analysis showing shrink can reach up to 30% without effective tracking.
Looking ahead, Newing is excited about the possibilities of advanced tracking technology and analytics. “Digital tech is moving so fast…and the more effective it gets, the better the cost barrier gets,” he says. RFID provides a foundation, but newer options like cellular GPS trackers and IoT sensors are becoming more affordable for selective use. For high-value or long-distance shipments, Cummins can deploy smart sensors that log a container’s exact geolocation, temperature, shock impacts and even whether it’s been opened or remains folded. This trove of data delivers practical benefits across the organisation. Engineers gain a clearer picture of the real-world stresses products face in transit – how long containers linger on docks, or the g-forces they endure in rough seas – insights that feed directly into improved packaging design and more resilient supply-chain planning.
Operationally, knowing a container’s status and contents in real time allows the logistics team to treat in-transit inventory almost as an extension of the warehouse. Newing gives an example: a truck carrying production-critical parts is on-route to a plant. The team may know the truck is arriving, but not where the needed items sit within the load. With smart tracking, he says, “you know exactly where it is on the truck, down to a square meter,” making it possible to prioritise unloading and pull that pallet first.
Newing envisions a near future in which an assembly line waiting on a component can pinpoint its location inside a specific container on a specific truck – and trust it will arrive within 30 minutes. That level of insight, he says, “will help us lean out stuff even further,” turning packaging into a critical enabler of total supply chain visibility and agility.
Legacy packaging designs, as Automotive Logistics has noted, are increasingly a barrier to automated logistics, with many older containers and protective materials ill-suited to robotic handling. Redesigning packaging to be both robot-friendly and digitally trackable is fast becoming a source of competitive advantage.
Cummins is laying the groundwork by standardising containers that will work with future automated warehouses and by employing tracking that feeds into its digital systems. Newing notes that with AI and machine learning analysing the rich data from smart packaging, they can start to predict patterns (for instance, anticipating when and where empties will accumulate) and further optimise asset usage – ultimately feeding into packaging becoming a connected part of the digital supply chain.
“We’re only just getting started with where we can go with this and the value it really brings,” Newing reflects, suggesting that in the next five years the industry will be talking about packaging in a very different light.
Making packaging everyone’s business
Treating packaging as a strategic priority means pulling it out of its traditional supply-chain silo and into the wider business conversation, Newing says. Packaging engineers, by virtue of their role, are often closest to the opportunities and value packaging presents. “We live and breathe this every day,” he says.
While data and analysis are essential, Newing believes they only take the discussion so far. What really builds momentum, he argues, is making the benefits visible. “Showing and demonstrating that you’ve taken it from this to this…people see it visually and it definitely grows the momentum,” he explains.
In practice, that might involve placing a new collapsible plastic crate next to the stack of disposable cartons it replaces or showing how trailer utilisation has increased from 60% to 95%. “When other stakeholders see the improvements for themselves, interest builds and conversations quickly turn to what else could be done,” Newing adds.
Newing says his team is deliberately focused on a small number of pilot projects, carefully measuring the outcomes before sharing the results more widely. “Create some success, then distribute it out,” he says. Over time, that approach helps embed packaging excellence into everyday operations. Eventually, he adds, new employees “won’t know any different” – it simply becomes the standard way of working.
Developing talent and transferring knowledge are also central to that journey. Cummins has senior packaging experts mentoring newer hires and is building packaging exposure into graduate rotations. The aim is not only to strengthen capability, but also to raise the profile of packaging as a career path within the organisation.
Collaboration, Newing adds, is another critical cultural factor. That means breaking down internal silos but also working more closely with external partners. “You want to be collaborative with all your key partners,” he says. One example is standardising containers so suppliers can use the same packaging for multiple OEM customers. Higher volumes and lower costs benefit everyone, but only if standards are aligned. Newing sees a growing willingness across the industry to share best practices in packaging because the gains are collective.
Whilst investment remains a challenge, Cummins are investing into returnable packaging recognising improvements require upfront spending on containers and process changes, with returns that may not be immediate. As a result, the function is dedicated to catching up to its true strategic importance, Newing says. "Is there enough investment in this area? Short answer is no, not at all." The value of optimised packaging, he adds, "is still being understood" and that's an industry challenge. The way forward is to prove the concept incrementally. "Prove it out, demonstrate value, and then it will grow."
Against the backdrop of electrification, digitalisation and mounting sustainability demands, Newing believes packaging’s influence is only increasing, touching cost, efficiency and environmental performance end-to-end. Reflecting on the progress so far, he remains clear-eyed about what lies ahead. “We’re only just getting started,” he says.
