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Sustainability's bottom line

The process of packaging—sourcing materials, design, transportation, handling, and warehousing—is costly.

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Manufacturers seeking ways to reduce costs while maintaining or increasing efficiency should employ a supply-chain perspective to their packaging by identifying and maximizing sustainable solutions, which can often generate significant savings.

The following three critical packaging process elements outline tactics that companies can start employing today to optimize their supply chain.

1. Design for sustainability

Approximately 70% of an organization’s sustainability goals can be addressed at the package design or the “anticipatory design” stage, during which manufacturers should anticipate sustainability impacts and eliminate waste and problems.

Elements to consider in the anticipatory design phase include:

• Evaluating life-cycle impacts

• Anticipating energy use over the package’s life

• Assessing the impact of materials on end-of-life scenarios

• Designing to facilitate material recovery

For example, the new flat-top, squared-off milk jugs available in refrigerated cases at Costco and Sam’s Club eliminate secondary packaging—the plastic crates used with traditional jugs. The flat-top design of the new container allows direct stacking with only tier sheets on pallets. The result is storage of 50% more milk in the same space. The package increases efficiency throughout the supply chain, including refrigerator space at the retail store, and cuts the number of delivery trips needed by 50%.

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