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Steps to sustainability begin with packaging optimization

Environmental, social, and economic concerns keep sustainability at the forefront of business operations.

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Although much is being said about sustainability, companies still grapple with what sustainability means to them, and they look for ways to apply its principles to their business. There are many different paths to attain sustainability, but one often-overlooked area can yield significant results: packaging optimization.

A key misconception is that packaging sustainability improvements increase cost. This is not necessarily true. New-generation packaging materials developed for biodegradability and compostability may indeed have higher prices. However, packaging optimization combined with the use of the latest eco-friendly materials will ultimately lead to improved packaging sustainability and cost reduction.

Initiatives such as the Wal-Mart Sustainability Scorecard drive attention towards ways to reduce the environmental impact of packaging and the energy consumed to move goods. Based on the Wal-Mart scorecard, 40% of the value is related to structural packaging. The key solution for better structural packaging is better cube utilization. This results in optimized shipping and containerization.

If finished goods can be shipped more densely or with less packaging, fewer transports are required to move the same amount of goods. Less fuel is consumed, fewer emissions are generated, and improved ratios of packaging to product are achieved.

So, how do you take steps to operate a more sustainable and cost-effective business? Begin with analyzing your packaging.

Identify the right packaging size and structure

 A small dimensional change in packaging can make a significant impact on logistics and freight costs. For example, a consumer goods company with offshore manufacturing had corrugated shippers measuring 40”x18”x18”. After an analysis of their supply chain, they change their shipper case to 39.5”x18”x16”. As a result, they were able to increase the number of units per ocean container by 18%. Most important, since much of their product was distributed via small parcel, the dimensional size was reduced sufficiently to qualify for regular parcel rates instead of oversized rates. That meant a 45% reduction in the domestic delivery cost.

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New e-book on Flexible Packaging
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New e-book on Flexible Packaging