IndustryWeek : Sustainable Packaging Initiatives Are a Viable Cost-Reduction Solution in a Downward Economy
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Home : Operations : Sustainable Packaging Initiatives Are a Viable Cost-Reduction Solution in a Downward Economy

Sustainable Packaging Initiatives Are a Viable Cost-Reduction Solution in a Downward Economy

A key misconception is the belief that higher costs are intrinsically associated with sustainability efforts.

By Ryan Humphrey, Director of Professional Services, ModusLink

Feb. 16, 2009

The environment was a very hot topic last year. In fact "going green" and "carbon footprint" were two of the 10 most overused words of 2008, according to Lake Superior State University's annual list. No industry or business sector is immune to the demand by consumers for products and services that are more eco-friendly, environmentally free and biodegradable.  With the recent emphasis on climate change and the affects of human activities on the environment, combined with the resulting regulations and requirements, sustainability has become an intrinsic component of operational strategies. However, while sustainability remains a key market driver, it exists amidst a myriad of meaningless catchphrases and jargon that have no measurable definition, driving manufacturers to ask themselves; what does it REALLY mean to be green? 

Credible participants in the sustainability movement take a holistic approach to the process, follow the cradle-to-cradle concept and dismiss trendy words like green and eco-friendly. This holistic methodology focuses on reducing all greenhouse gases (GHG), rather than just the dominant element of carbon. Today, most companies focus on carbon, primarily because CO2 makes up approximately 93% of all GHG emissions in the U.S., according to the EPA. However, over time carbon's prominence as an industry focus in the movement is likely to dwindle, making it important to understand the difference. 

It is clear that sustainability is top of mind across all industries and that packaging is a key driver.  According to a recent study by AMR Research, 76% of sustainability efforts are focused on reducing packaging waste.

In the world of sustainable packaging, there is no more respected expert than the Sustainable Packaging Coalition (SPC). In a 2007 survey by the SPC and Packaging Digest magazine, 73% of 1,255 respondents who are involved in packaging reported that their companies had increased the emphasis on sustainable packaging with most of the attention on minimizing the carbon footprint through creative transportation, alternative fuels, and sustainable packaging efforts.

A key misconception is the belief that higher costs are intrinsically associated with sustainability efforts. The holistic approach affords visibility into the entire product lifecycle, from manufacturing and packaging, to delivery, recycling or disposition. When sustainable improvements are considered from this perspective, most organizations will realize a cost savings and positive impact on the bottom line.

In fact, a global leader in computer hardware and accessories was able to realize a savings of more than $500,000 in packaging and eliminated 99,183 pounds of packaging on 4.3 million products shipped. 

The first step in an overall sustainable program is to analyze product packaging and supply chain processes to develop a model that reduces packaging size and minimizes operational and logistics activities that contribute to GHG emissions.

Packaging Design Assessment

As a rule, quality packaging design follows a 4D Methodology of Ergonomics, Cost, Sustainability and Logistics. When embarking on a redesign, manufacturers should first assess the sustainability of their current packaging to use as a baseline. Packaging-specific software programs such as Cape, ArtiosCAD, and Solidworks, can be used to design the most efficient package. Tools such as the Wal-Mart Packaging Modeling tool, the still-beta SPC Comparative Packaging Assessment (COMPASS) and other industry standard tools, further measure and analyze the amount of impact the packaging has on the environment.

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