Packaging reduction saves money: industry examples · 2019-05-09 · 2 Actions to reduce packaging...

Packaging reduction saves money:industry examples

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This Good Practice Guide was produced by

Envirowise

Prepared with assistance from:

Ashact Ltd

Packaging reduction saves money:industry examples

Summary

Companies that take a closer look at their packaging use and waste can reduce theiroperating costs, improve efficiency and develop good supply chain relationships. ThisGood Practice Guide uses industry examples to demonstrate how companies of all sizescan benefit from optimising the amount and type of packaging they use.

Effective management of your packaging waste can help your company to:

■ reduce its raw material, packaging, transport and waste disposal costs;

■ improve its environmental performance;

■ enhance its image;

■ comply with the packaging waste regulations.

To manage your packaging effectively, you need to have a good basic understanding of yourexisting packaging requirements. Measuring and monitoring programmes can help you toidentify areas where improvements can be made. Solutions need not be complex nor involvelarge capital outlay - as this Guide shows, significant savings can often be made through simple,low-cost measures.

The Guide considers various aspects of packaging, including:

■ elimination;

■ redesign;

■ reduction;

■ re-use;

■ recycling.

The Guide also covers different types of packaging and various packaging managementtechniques. As well as the industry examples, the Guide gives tips on how companies can savemoney by reducing packaging use.

Free advice on all aspects of packaging and packaging legislation can be obtained from theEnvironment and Energy Helpline on 0800 585794. Free Envirowise publications with detailedinformation about how to optimise packaging use and reduce packaging waste can be orderedthrough the Helpline or via the Envirowise website (www.envirowise.gov.uk).

Contents

Section Page

1 Introduction 11.1 Guide structure 2

2 Actions to reduce packaging waste 42.1 Elimination 42.2 Redesign 52.3 Reduction 62.4 Re-use 72.5 Recycle 82.6 Disposal 9

3 Packaging use 10

4 Packaging assessment 114.1 Cardboard 114.2 Plastic 124.3 Filler materials 124.4 Wrapping materials 124.5 Further ideas 13

5 What next? 145.1 Packaging management 145.2 Monitoring and analysis 145.3 Supply chain initiatives 155.4 Life-cycle assessment 15

6 Industry examples 161 Life-cycle assessment identifies best environmental option 172 Re-use of transit trays brings cost savings 193 Packer/filler company benefits from packaging waste minimisation 204 Ceramics company achieves substantial savings by improving internal and

transit packaging 215 Re-usable plastic trays save money and reduce waste 226 Computer manufacturer benefits from plastic-free packaging 237 Elimination of inner collation wraps saves packaging costs 248 Packaging rationalisation results in significant savings 259 Packaging redesign saves tonnes 2610 Re-usable packaging reduces waste throughout the supply chain 2711 Re-use initiative as part of an international packaging standard 28

7 The way forward 29

Appendix Useful contacts 30

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Introduction

This Good Practice Guide provides an overview of the many ways in which companiescan make cost savings by reducing packaging use and waste. The focus throughout theGuide is on companies that produce and package goods, ie packer/filler companies.

Effective management of your packaging waste can help your company to:

■ reduce costs;

■ improve its environmental performance;

■ enhance its image;

■ comply with the packaging waste regulations (see box).

Focusing on packaging management can improve profitability by:

■ reducing your direct packaging and material costs;

■ developing closer relationships with suppliers and customers through shared benefits andcost savings;

■ reducing levels of product damage and customer returns;

■ reducing your UK producer responsibility obligation and, therefore, the cost of compliance;

■ helping to minimise increasing waste disposal costs;

■ increasing revenue from the sale of packaging waste;

■ improving efficiency.

The regulations aim to encourage companies to reduce quantities of packaging andto re-use/recover packaging. The regulations affect companies that:

■ have an annual turnover of more than £2 million;

■ handle more than 50 tonnes/year of packaging.

Companies that meet these conditions must take responsibility for the recovery andrecycling of their ‘obligation’ for packaging waste. The following are taken intoaccount when calculating this obligation:

■ the amount of obligated packaging handled;

■ the obligation of particular activities (ie raw material manufacturer 6%,converter 9%, packer/filler 37%, seller/final retailer 48%);

■ UK recovery and recycling targets.

For free advice and information on these regulations and other environmentallegislation contact the Environment and Energy Helpline on 0800 585794.

*SI 1999/3447.

Producer Responsibility Obligations (Packaging Waste)(Amendment) (No. 2) Regulations 1999*

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To manage your packaging effectively, you need to have a good basic understanding of yourexisting packaging requirements. Measuring and monitoring programmes can help you toidentify areas where improvements can be made. Solutions need not be complex nor involvelarge capital outlay; significant savings can often be made through simple, low-cost measures.

This Guide provides tips on how companies can save money by reducing packaging use. Throughindustry examples, the Guide shows how companies of all sizes can achieve cost savings byoptimising the amount and type of packaging they use.

The industry examples in this Guide have been published in earlier Envirowise publications, buthave been updated (where possible) and brought together in this compendium for ease ofreference.

1.1 Guide structure

As well as industry examples, the Guide considers different aspects of packaging and presentssuggestions for action. Many of these ideas are illustrated in the industry examples.

You can find more information and learn more about an area of particular interest or relevanceby following the signposts in the Guide to other Envirowise publications and tools.

■ Section 2 describes a number of actions whereby packaging can be reduced, such aselimination, redesign, etc. Tips are provided on how to reduce packaging requirements.

■ Section 3 provides a short description of how packaging is used for different purposes (ieprimary, secondary or tertiary).

GG140 Cutting costs and waste by reducing packaging use

GG141 Choosing and managing re-usable transit packaging

GG157 Reducing the cost of packaging in the food and drink industry

EN250 Unpack those hidden savings: 120 tips on reducing packaging use and costs

GG360 Packaging design for the environment: reducing costs and quantities

These and other Envirowise publications and tools signposted in this Guide areavailable free of charge through the Environment and Energy Helpline on 0800585794 or via the Envirowise website (www.envirowise.gov.uk).

Key Envirowise publications

Free advice on cleaner technology, resource efficiency, waste minimisation,environmental issues and environmental legislation is available from Envirowiseexperts through the Environment and Energy Helpline. This service is available to UKcompanies and organisations of all sizes and from all sectors of industry.

Envirowise provides confidential, on-site waste reviews (known as FastTrack visits)that include up to a day’s free advice on resource efficiency from an environmentaladvisor. The aim of the visits is to turn waste into profit by improving resourceefficiency and reducing associated costs. This service is available to UK companieswith fewer than 250 employees.

Environment and Energy Helpline 0800 585794 www.envirowise.gov.uk

Free advice from Envirowise

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■ Section 4 will help you to start thinking about your current packaging use and to askquestions that will help you identify where best to take action. The section includes examplesof simple changes that companies have made for packaging materials such as cardboard,plastic, filler materials and wrapping materials.

■ Section 5 provides information and signposting for companies with complex packagingrequirements or those wishing to take a more detailed approach to packaging management.

■ Section 6 contains industry examples describing how companies have achieved significantcost savings and other benefits by managing their packaging more effectively. Fig 1 showsthe layout of the industry examples. The keywords at the top highlight the main areas relatingto that particular industry example.

Keywords

Signpost torelevantEnvirowisepublications

Aids to waste minimisation suchas monitoring, supply chaininitiatives and life-cycle assessment.Discussed in section 5

Discussed in section 4



Fig 1 The layout of the industry examples in this guide

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Actions to reduce packaging waste

The various methods by which packaging use can be optimised follow the principles ofthe waste hierarchy and are outlined below. Those actions further up the hierarchy arenot only better environmental options but, more often than not, they provide the mostcost-effective solutions. Follow the flow chart in Fig 2 for each packaging type currentlyused at your site.

This section outlines some of the areas where packaging can be reduced and savings achieved.

2.1 Elimination

Elimination is a form of reduction that tackles the root cause of material wastage by removingan unnecessary layer or component of packaging. This is normally a low-cost option withimmediate payback.

1. Can you eliminate* packaging at source?

2. Can you reduce* the amount of packaging used?

3. Can you re-use* any packaging?

4. Can you recycle/recover packaging?

Calculate the cost of disposal

NoYes

No

No

No

Implement waste minimisation

*This may include redesign

Fig 2 Flow chart for reducing waste

A major healthcare retailer set up a project team to develop a transit packagingsystem for its range of medicinal liquids. The brief was to rationalise the existingrange of transit outers and trays, and to investigate new packaging concepts. Twoproduct ranges were converted to trayless packaging that only used shrink-wrap.

Saving money through elimination of a packaging layer

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2.2 Redesign

Packaging redesign includes a range of actions leading to a variety of results, eg elimination ofcertain materials and a decrease in packaging size or weight (leading to increased storage spaceand more efficient transport).

A small spinning/weaving company in Lancashire used to pack a number ofindividually wrapped cloth ‘pieces’ in a single polypropylene bale. Pieces are nowonly wrapped individually in polyethylene. The benefits of this change include:

■ polypropylene is no longer purchased and has been eliminated as a waste stream;

■ wrapped pieces can now be carried by hand (the bales had to be moved using acrane);

■ bales do not have to be sewn, thus reducing both labour costs and expenditureon bale hooks;

■ more efficient use is made of container and aircraft hold space, reducingtransport costs and permitting a lower export price.

The reduction in packaging material purchase and waste disposal costs alone hassaved the company several hundred pounds per year. Thousands of pounds each yearare being saved through better use of labour and lower transport costs.

More efficient packaging of cloth pieces

action■ Can you alter the product or its primary packaging? More robust primarypackaging can eliminate the need for a further level of packaging.

■ Can you improve handling practices or equipment? Automation could reducedamage during packaging or in transit.

Eliminating the need for packaging

A household cleaning products manufacturer found that occasional promotionswithin the UK required product to be modified and repacked. In the past, this meantdestroying the original wrap-around cases and repacking products in new (0201-style) cases. The company adopted a new corrugated wrap-around case thatincorporates perforations along the top panel. This effectively converts the case intoa pseudo-0201 case and allows it to be opened for repacking and then resealed usingtape. This design change halves the amount of packaging required.

Designing for re-use reduces corrugated case requirements

More information on packaging design can be found in GG360 Packaging design forthe environment: reducing costs and quantities.

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2.3 Reduction

Prevention at source should be a high priority as it can save on material, transport, storage andprocessing costs. Reducing the volume or weight of packaging can be easily achieved, eg byreducing box size or reducing the thickness of a particular packaging material.

■ Are you using the optimum type of packaging? Could you use shrink-wrapinstead of cardboard cartons?

■ Are you using the best packaging materials? Could you use materials that can bemore easily re-used or recycled without increasing purchasing costs?

■ Could you use a lighter grade of material? For example, could you reduce stretch-wrap gauge from 40 µm to 20 µm?

■ Could you improve the structural design of the packaging? Changing thedirection of flutes in corrugated containers may make packaging more robustand eliminate the need for further packaging.

■ Is packaging of the optimum shape and size, or is volume being wasted? Usesmaller boxes to reduce headspace, thus reducing material costs and increasingstacking capacity.

■ Is your packaging too standardised for your products? Bespoke designs canreduce material costs and increase stacking capacity.

■ Is your packaging too varied for your products? Rationalise the number ofpackaging types.

■ Are collation trays really necessary? Redesign or strengthening of the outerpackaging layer can remove the need for inner collation layers.

■ Could you use larger denomination packs? This may eliminate the need foranother level of packaging.

Optimising the level of packaging

action

Discussions with its customers led one company to introduce an on-line bandingmachine, which has reduced its use of shrink-wrap for packaging by 50% andrealised savings of £12 000/year. Five product units are now held together by 2.5 cmbanding, thus reducing shrink-wrap use by 5 tonnes/year.

Company rethinks plastic packaging

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2.4 Re-use

Most packaging can be re-used, either within a company or by another organisation. The use ofspecifically designed, durable, re-usable containers - although expensive to purchase - can savecosts in the long run. In some cases, one-trip packaging may be sturdy enough to be used again,for either its original purpose or other packaging purposes such as on-site transportation.

action

■ Could you use less filler? Using a different sized box or a wrap-around carton canreduce or eliminate filler materials.

■ Could you use alternative filler materials? For example, could you use shreddedwaste paper?

■ Are you using tape efficiently? Excessive or unnecessary banding on productsincreases your packaging costs and increases disposal costs for your customers.

■ Are pallets really necessary? Could you use a different system such as tote cratesor slip-sheets?

■ Are pallets of the optimum design for the purpose? Evaluate one-trip versusmulti-trip pallets.

■ Are you utilising the pallet area fully? Change the size of pallets or change yourproduct stacking to reduce transport runs.

■ Are you using too much stretch-wrap? Using layer pads to stabilise the load mayeliminate the need for stretch-wrap.

■ Would strapping/banding be more efficient? Can packaging be held together withbanding or strapping, thus eliminating the need for shrink-wrap or stretch-wrap?

Reducing the need for packaging

A supermarket chain initiated a packaging re-use scheme in association with its freshproduce suppliers. This has involved the introduction of a ‘pool’ of standard re-usableplastic containers which are transported between the different suppliers and customersites. The scheme is managed by a specialist packaging management company.

Supply chain packaging re-use scheme

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2.5 Recycle

If re-use is not possible, then sending packaging to a specialist waste merchant for recycling maybe the best solution.

action

■ Can you re-use packaging in a closed loop system? Consider setting up apartnership with your suppliers and customers.

■ Can packaging be re-used in-house or by local companies? This will reduce thecosts associated with disposal to landfill.

■ Could your packaging be multi-purpose? Could transit packaging also be used fordisplay purposes?

■ Is your used packaging segregated at source to encourage re-use? Segregatingwaste makes re-use and recycling easier.

■ Does your packaging design or your suppliers’ packaging design inhibit re-use orrecycling? For example, staples can cause damage when removed and compositepackaging is hard to recycle.

■ Can you reduce contamination of packaging to facilitate re-use?

■ Could you buy used packaging, eg refurbished pallets?

■ Could you sell packaging for re-use instead of recycling? Waste exchangeinitiatives are becoming more popular.

■ Could you give away your packaging for re-use? This would reduce your wastedisposal costs.

Re-use of one-trip packaging

A contract packaging company for UK food companies investigated all aspects of itspackaging, including waste disposal. The company realised that, while corrugatedtransit cases were kept separate for disposal, all other packaging wastes were beingthrown into a general waste skip. It immediately began to segregate these wastes,replacing the single large skip with three smaller units for cardboard, plastic andgeneral waste, respectively. Waste removal costs have since fallen by 45%.

Segregation significantly reduces disposal costs

■ Could you use more recycled packaging? Investigate the costs of recycledcardboard packaging, etc.

■ Is your packaging designed to make recycling easier? Use single-material designs.

■ Is your packaging segregated at source? This makes recycling easier.

■ Can your waste materials be kept unmixed and uncontaminated? This makes re-use and recycling easier.

■ Can your waste materials be disposed of more cheaply? Other companies mayhave a use for your waste materials.

■ Could you justify an on-site compactor, baler, shredder or drum crusher (to reducethe frequency of waste collection and associated transport costs)? If not, couldyou purchase/operate high value equipment jointly with other local companies?

Recycling packaging and reducing the cost of disposal

action

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2.6 Disposal

Costs incurred through the landfill tax and landfill disposal charges mean that sending yourpackaging waste to landfill can be an expensive option. It is also the least favourable option interms of environmental impact. Consequently, it should be regarded as a last resort when noneof the above methods offer a feasible solution.

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Packaging use

Packaging has a number of different purposes, including:

■ containment;

■ protection;

■ handling;

■ delivery;

■ presentation of goods.

There are three main categories of packaging: primary, secondary and tertiary (see Table 1).

Category Description Example

Primary The packaging around a product at the A bottle of lemonade.point of purchase by the user/consumer is described as primary or sales packaging.

Secondary Packaging that groups a certain number of A box containing aitems together until the point of sale is number of bottles oftermed secondary or grouped packaging. lemonade.

Tertiary Packaging which allows handling and A pallet on whichtransport of a number of sales units or boxes of lemonadegrouped packaging is termed tertiary or bottles are stacked. transit packaging. Examples include pallets,banding and shrink-wrap.

Table 1 Categories of packaging

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Packaging assessment

With so many different ways of optimising packaging, it can be difficult to know whereto start. Look closely at how you currently use packaging and question why you use thematerials and methods you do. This can help you to identify areas where effectivechanges could be made and cost savings achieved.

Your current packaging may perform well in terms of product presentation, containment,protection and/or product identification, but how does it fare in terms of cost and environmentalimpact? Rethinking packaging requirements could reduce costs and improve environmentalperformance without compromising packaging performance.

There is no such thing as the ‘best’ packaging material. When selecting packaging materials, youneed to consider both fitness for purpose and environmental impact. To help you identify areaswhere effective changes could be made, you need to assess your current packaging use.

■ Why do you use a certain type of packaging? Is it because you always have done or becausethat particular material affords a certain quality, eg strength or durability?

■ Could the same standard of packaging be achieved with less material, eg by reducing thethickness of cardboard or shrink-wrap?

■ Could an alternative material produce a more environmentally sound option withoutincreasing the costs, eg choosing material that may be re-used or replacing a non-recyclablematerial with a recyclable one.

■ Are you using more packaging than your product requires? Could you eliminate a layer ofpackaging without compromising product quality?

■ Can you re-use your existing packaging? So-called ‘one-trip’ packaging can often be re-used.

Sections 4.1 to 4.4 describe simple changes that can be made to a number of differentpackaging types.

4.1 Cardboard

Cardboard is a common packaging material and is used for boxes and cartons as well as wrap-around packaging.

Has the quantity or gauge of cardboard been optimised? For example, is the correct size of boxbeing used or are filler materials required to hold the product in place? Simple redesign can oftenimprove performance and reduce direct packaging costs.

Simply lowering the sides of cardboard transit trays has saved a pet food company£100 000/year. Previously, cat food cartons were packed into a ‘high-walled’cardboard tray. Laboratory compression testing and travel trials showed thatincreasing the strength of the carton would allow the use of a ‘low-walled’ tray. Thisproduced a considerable reduction in material use and significant cost savings.

Optimisation of cardboard trays reduces packaging use

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4.2 Plastic

Plastic is used in packaging for a range of purposes from outer sleeves, plastic packets and traysto re-usable tote boxes. The box below gives one example of how plastic packaging can be usedto improve environmental performance.

4.3 Filler materials

Filler materials are used to secure goods in their packaging and to prevent damage. A variety ofmaterials are used for this purpose, eg expanded polystyrene (EPS) blocks or beads, crumpled orshredded paper, and plastic airbags.

Changing the type of filler you use or even eliminating it altogether may save your companymoney.

4.4 Wrapping materials

Wrapping materials such as shrink-wrap and stretch-wrap are used to group a number ofproducts together.

However, a higher than necessary gauge of film is often used. By testing a variety of gauges, youcan identify the optimum thickness of film for your product in terms of performance and reducedcosts and environmental impact.

The packaging for a perfume gift set originally consisted of a cardboard tray, a vacuumformed plastic tray moulded to the shape of the perfume bottles, and a clear plasticsleeve (made from a different type of plastic from the vacuum-formed tray). Despitepresenting the perfume in an attractive layout, the company realised that the threedifferent types of packaging were unnecessary and could pose problems for recycling.The packaging was redesigned and is now made from a single type of plastic. The newdesign facilitates recycling without compromising product presentation.

Packaging redesign improves environmental performance

In February 1997, an electronics company near Manchester replaced its polystyrenebead product packaging with crushed paper. The company now purchases rolls ofinexpensive recycled paper, which are crushed into a concertina ruffle by a smalldedicated machine. The machine cost a few thousand pounds, but the savings inmaterial costs resulted in a payback period of only seven months. In addition, thepaper ruffle is able to withstand several trips.

Re-usable paper filler materials eliminate the use of polystyrene beads

A major healthcare retailer carried out a review of collation shrink-film packaging.Associated trials of different grades of material resulted in a reduction in filmthickness of about 22% with no adverse effect on either product or pack handlingproperties. Use of a more lightweight shrink-film reduced consumption by around24 tonnes/year, with an associated cost saving of some £27 000/year.

Changing the gauge of shrink-film saves money

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4.5 Further ideas

The industry examples in section 6 should provide you with even more ideas about how andwhere you can make effective changes to your packaging. The Envirowise CD-ROM IT313WasteWise: increased profits at your fingertips may also be useful. It is designed to helpcompanies benefit from waste minimisation, but many of the topics also apply to packagingevaluation.

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What next?

The industry examples in section 6 describe various ways in which companies can improvetheir packaging management. The approach you take to rethinking your packaging willdepend on the nature of your company and the amount of time and resources that canbe allocated to the task. Tips on different approaches are given below.

5.1 Packaging management

The key to successful waste minimisation is often found through the development of amanagement team. This allows you to develop a systematic approach to:

■ assessing packaging requirements;

■ identifying opportunities for minimisation of packaging and packaging waste;

■ reducing raw material and disposal costs.

For more information, see GG140 Cutting costs and waste by reducing packaging use and GG27Saving money through waste minimisation: teams and champions.

5.2 Monitoring and analysis

If you don’t monitor your packaging quantities and costs, you can’t manage them. Guidance onhow to identify and quantify packaging is provided by the Envirowise software package, IT96Waste minimisation interactive tools.

It is usually easier and more effective to encourage evolution rather than revolution byintroducing changes gradually and keeping things simple. EN250 Unpack those hidden savings:120 tips on reducing packaging use and costs identifies many good housekeeping measures (no-cost or low-cost) that are relatively easy to implement and have an immediate payback.

Monitoring your packaging use will enable you to understand your packaging flows andassociated waste streams. This will help you identify opportunities to make savings and to targetyour efforts towards priority areas. Assessing packaging requirements should not be a one-offoccurrence; regular monitoring provides a good way of achieving or resetting targets to reducethe overall cost and impact of packaging.

Companies vary in their approach to collection of data. A ceramics company hasrecently spent 18 months collecting data from packaging suppliers and weighingempty packaging accurately. The company has now entered all the data into aspreadsheet for reporting and analysis purposes.

A major healthcare retailer has developed a database that automaticallyincorporates all packaging specifications, bills of materials, sales and weightinformation to allow detailed analyses to be performed. The database can even dealseparately with different types of plastic and composites. The database is seen as along-term investment which will optimise packaging management and meet allfuture reporting and analysis needs.

Different approaches to monitoring and analysis

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5.3 Supply chain initiatives

Take one step further and look at involving companies throughout the supply chain. Workingwith your supplier(s) or customer(s) is likely to result in shared benefits and cost savings.

The benefits of supply chain partnerships are discussed in GG317 Cost and environmentalbenefits from supply chain partnerships: mentor guide and GG318 Cost and environmentalbenefits from supply chain partnerships: supplier guide.

5.4 Life-cycle assessment

Use of life-cycle assessment (LCA) can help you to make more fundamental changes to yourpackaging. LCA can be used to identify the material, energy and waste flows associated with aproduct over its entire life-cycle, thus allowing the environmental impacts to be determined. Thisenables LCA to be used as a comparative tool for assessing the environmental performance of anumber of possible solutions to a packaging problem.

Further information about LCA can be found in ET257 Life-cycle assessment - an introduction forindustry.

A food and drink company reduced the amount of shrink-wrap it sent to landfill bytwo skip loads per year through discussions with a supplier and subsequentelimination of shrink-wrap around received goods.

Working with suppliers can lead to significant cost savings

In response to problems it was experiencing with its new re-usable cosmeticspackaging, a major healthcare retailer decided to use LCA to compare a number ofpossible packaging solutions. The factors considered were energy consumption,resource use and releases to air, water and land. Contrary to the expected outcome,one-use plastic bags were identified as having the lowest environmental impact. Themajority of products previously packaged in re-usable packaging are nowautomatically packed into plastic bags.

LCA identifies packaging solution

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Industry examples

Industry Company Titleexample

1 The Boots Group Life-cycle assessment identifies bestenvironmental option

2 The Boots Group Re-use of transit trays brings cost savings

3 CCL Custom Manufacturing Packer/filler company benefits frompackaging waste minimisation

4 H & R Johnson Tiles Ltd Ceramics company achieves substantialsavings by improving internal andtransit packaging

5 Herman Miller Re-usable plastic trays save money andreduce waste

6 IBM Computer manufacturer benefits fromplastic-free packaging

7 Nestlé Rowntree Elimination of inner collation wrapssaves packaging costs

8 Pentos Office Furniture plc Packaging rationalisation results insignificant savings

9 J Sainsbury plc Packaging redesign saves tonnes

10 Securicor Omega Express Re-usable packaging reduces waste and Waterstones throughout the supply chain

11 Xerox Re-use initiative as part of aninternational packaging standard

Table 2 Quick reference table

Life-cycle assessment identifies bestenvironmental option

Action Use Material Other issues

Redesign Tertiary Re-usable packs Life-cycle assessment

Reduce Plastic bags

Re-use Re-usable totes

Through continual reassessment of its packaging options, The Boots Group was able toimprove its environmental performance and reduce costs.

■ Potential cost savings of £214 000/year

■ Reduced PVC use of 30 tonnes/year

■ Reduced environmental impact

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About The Boots Group

The Boots Group strives continually toreduce the environmental impact of theproducts it manufactures and has madechanges to the packaging for a wide varietyof products. This industry example focuseson action taken to improve transitpackaging for cosmetics.

Action taken

Cosmetics used to be packaged in smallboard cartons and one-trip corrugatedouters. Due to the large amount of wastegenerated from this system, The BootsGroup switched to a re-usable packagingsystem; the inner cartons were replaced withPVC ‘clampacks’ and the outer cases withcorrugated plastic boxes. Unfortunately,recovery of the clampacks for re-use wasoften poor. The different styles of clampackcaused sorting problems and productcontamination of clampacks causedsubsequent product damage throughscuffing and scratching when the clampackwas re-used. This meant that clampackswere often used on a one-trip basis.

Boots reassessed the packaging, this timeusing LCA to compare a number of differentoptions, including:

■ the existing clampack system;

■ existing clampacks used once and thensent for recycling;

■ lighter weight one-trip clampacks (sentfor recycling);

■ an ‘autobagging’ system.

LCA showed autobagging to have thelowest environmental impact. The systeminvolves products being packagedautomatically into a lightweightpolyethylene bag when they reach the endof the production line. Following theintroduction of the autobagging system, thecompany replaced the corrugated plasticboxes with rigid plastic tote trays that werealready in use for the distribution of otherproducts. The switch was made because thetote trays have a life expectancy of fiveyears, whereas the corrugated boxestypically lasted around 30 trips. Most of theproducts that were previously packaged inclampacks are now autobagged.

Cost benefits

■ Reduced packaging costs.

Environmental benefits

■ Reduction in PVC use.

■ Reduced environmental impact.

Further information

GG141 Choosing andmanaging re-usable transitpackaging

GG360 Packagingdesign for theenvironment:reducing costs andquantities

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About The Boots Group

The Boots Group owns the largest chain ofretail chemists in the UK and is one of thelargest retailers of sandwiches. The companyhas implemented a number of environmentalinitiatives, many of them in the area ofpackaging. This is just one example of anumber of schemes implemented by thecompany.

Action taken

Following a packaging audit, one-use traysused for the transportation and display ofsandwiches were targeted for reduction, re-use or recycling. A company-wide re-usescheme was introduced which involved:

■ removal of the front label from the traysso that the trays could be re-used for anyfilled sandwiches;

■ daily collection of empty trays from storesby a logistics company, which returnsthem to the sandwich supplier.

The system’s success is due to the partnershipbetween Boots, the logistics company andthe sandwich supplier.

Cost benefits


■ Reduced landfill costs.


■ Plastic use reduced by 200 tonnes/year.

■ Reduced packaging disposal to landfill.

Further information

GG157 Reducing thecost of packaging inthe food and drinkindustry

Re-use of transit trays brings costsavings


Reduce Secondary Plastic Supply chain

Re-use

The Boots Group now re-uses transit trays for the delivery and display of sandwiches.The trays are no longer used only once, but are re-used about three times.

■ Cost savings of £125 000/year

■ Immediate payback

■ Reduced obligation under the packaging waste regulations

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Packer/filler company benefits frompackaging waste minimisation

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About CCL CustomManufacturing

CCL Custom Manufacturing providessolutions to the outsourcing needs of majormultinational marketers of personal care,household, over-the-counter pharmaceuticals,oral care and speciality food products. TheScunthorpe site packages personal careaerosols and liquids.

Action taken

The management team recognised that itwas necessary to gain a clear understandingof existing packaging use. Sinceimplementing a monitoring system, CCL hasmade the following changes:

■ elimination of plastic trays frompackaging;

■ re-specification of shrink-wrap andchanged suppliers to optimise the gradeof the film and to replace plastic coreswith recyclable cardboard ones;

■ replacement of re-usable plastic layerpads with one-use cardboard layer pads(following difficulties with recovery);

■ implementation of recovery schemes forwooden pallets, and plastic and steeldrums;

■ installation of a compactor to reduce thenumber of skip lifts for scrap cardboard.

Cost benefits


■ Revenue from the sale of recyclablematerials.

■ Reduced landfill costs through re-use andrecycling initiatives.


■ Reduced cardboard packaging.

■ Reduced volume of waste sent to landfill.

Furtherinformation

GG140 Cutting costs andwaste by reducingpackaging use


Eliminate Secondary Shrink-wrap Supply chain

Reduce, re-use Tertiary Cardboard layer pads Monitoring/analysis

Recycle Pallets Management team

By working closely with its major customers and suppliers, CCL Custom Manufacturinggenerated significant savings through changes in its packaging use.


■ Elimination of 14 tonnes/year of plastic trays

■ Packing efficiency increased by investment in high-speed shrink-wrapping machines

Ceramics company achievessubstantial savings by improvinginternal and transit packaging

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About H & R JohnsonTiles Ltd

H & R Johnson Tiles Ltd, part of the NorcrosGroup, is a leading ceramic tile manufacturerproducing wall and floor tiles. The companysupplies both consumer and contractsmarkets.

Action taken

Tracking packaging consumption revealedthe true cost of packaging. The company setout to drive down this cost by exploringvarious packaging elimination andoptimisation opportunities. The followinginitiatives were implemented:

■ Internal packaging for transporting tilesfrom one stage of production to anotherwas eliminated by installing anautomated conveyor system. Following achange to a single process system, theconveyor became redundant. However,the new system is fully automated andrequires no internal packaging.

■ Replacement of manually packed, smallcorrugated boxes with expandedpolystyrene fillers to automated wrap-around cardboard packaging producedsavings in the cost of packaging materialsand labour. The automated system iscurrently used to process and pack 90%of all products.

Cost benefits


■ Increased labour/process efficiency.



■ Reduced plastic packaging.


Furtherinformation

GG140 Cutting costsand waste by reducingpackaging use


Redesign Primary Cardboard pallets Monitoring/analysis

Reduce Tertiary Shrink-wrap

H & R Johnson Tiles Ltd reduced its level of packaging through redesign and increasedautomation of its processes.

■ Total cost savings of approximately £250 000/year

■ Reduced packaging use (140 tonnes/year cardboard and 17 tonnes/year plastic)

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Re-usable plastic trays save moneyand reduce waste

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About Herman Miller

Herman Miller, an American company,produces up-market office furniture.

Action taken

Originally, bases for one model of chair werewrapped in plastic bags, sandwichedbetween layers of corrugated card andpacked into cardboard boxes. Herman Millerdecided that packaging redesign wasnecessary for two reasons. First, the shape ofthe bases meant that the volume availablewithin each box was used inefficiently.Secondly, despite being recyclable, the boxeswere not re-usable. The old packaging wasreplaced with re-usable plastic trays with thefollowing features and benefits:

■ The trays are vacuum-formed from 100%recycled polyethylene and each hascavities for four bases with a hand-sizedopening for ease of removal.

■ The trays are lightweight and compact,making it easier both to pack and toremove the chair bases.

■ The trays stack with no wasted spacebetween them, thus improving handlingduring transport and storage.

Cost benefits


■ Reduced transport costs through increasedcapacity from improved stacking.



■ Switched from one-use to re-usablepackaging.

■ Increased efficiency in transport andstorage.


Furtherinformation

GG141 Choosing andmanaging re-usabletransit packaging


Re-use Tertiary Re-usable plastic trays

Redesign Use of recycled

materials

A furniture company introduced re-usable packaging for transporting chair bases, thussaving money on conventional packaging and reducing the amount of waste disposedof to landfill.

■ Packaging waste reduced by around 27 tonnes/year

■ 40% increase in productivity in transport and storage

Computer manufacturer benefitsfrom plastic-free packaging

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About IBM

IBM’s UK packaging team carries out certaindesign work, provides input for the USdesign team and oversees the testing of newpackaging.

Action taken

IBM used to package keyboards in corrugatedboxes with expanded polystyrene (EPS) end-caps for keyboard protection and additionalEPS to keep the keys firmly in place. The UKpackaging team reassessed the use of EPSand the containers used for deliveries, andevaluated various new systems.

■ The new keyboard box provides adequateprotection and support through cleverlyworked folds and cut-outs in thecorrugated board.

■ The new slimline box costs 50 pencecompared with around £1.40 for theprevious design.

■ The new design allows 104 keyboards tobe loaded onto a pallet - a 190% increaseon the original loading.

■ One-trip corrugated cases have beenreplaced with returnable corrugatedplastic tri-wall pallets.

Cost benefits


■ Reduced transport costs through increasedcapacity due to the smaller box size.



■ Eliminated plastic packaging.

■ Reduced transport runs.


Furtherinformation

GG140 Cutting costsand waste by reducingpackaging use

IBM regularly reviews all aspects of its product packaging and initiates many improvementseach year. The redesign of one keyboard box has eliminated the use of plastics.


■ 200 tonnes/year of plastics eliminated from the waste stream

■ Other measures involving re-usable packaging brought total costsavings to over £2 million/year


Eliminate Tertiary Plastic pallet Management team

Redesign Primary Corrugated board Monitoring/analysis

Re-use

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Elimination of inner collation wrapssaves packaging costs

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About Nestlé Rowntree

Nestlé Rowntree is the confectionery divisionof Nestlé UK Ltd, which is part of Nestlé SA,the world’s biggest food manufacturer, basedin Switzerland. Nestlé has an on-going policyof packaging minimisation and continuallyanalyses the environmental impact of all itsactivities. Every effort is made to reduce thisimpact year-on-year.

Action taken

Owing to limitations of the packagingmachinery previously used by Nestlé, the twolayers in bumper packs of Kit Kat biscuits hadto be wrapped individually before beingcollated in a single bumper pack. Promptedby feedback from customers and thePackaging Council, Nestlé made thefollowing changes:

■ A machine was developed which wascapable of wrapping without the needfor the inner collation wrap.

■ A phased introduction of the machine wasundertaken at the company’s York site.

Cost benefits




■ Eliminated one layer of packaging.


Furtherinformation


Through development of a new wrapping machine, a chocolate manufacturer wasable to eliminate a layer of packaging from bumper packs of one of its best sellingchocolate biscuits.

■ Reduced polypropylene use by 100 tonnes/year

■ Two-year payback period on new wrapping machine


Eliminate Primary Plastic

Reduce

Packaging rationalisation resultsin significant savings

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About Pentos OfficeFurniture plc

Pentos Office Furniture plc is based at Ripleyin Derbyshire and employs 400 people in thedesign and manufacture of high-qualityoffice furniture and partitioning.

Action taken

Products were previously packaged in over400 different box sizes. This was identified asan area where standardisation wouldincrease efficiency, decrease the number ofdamaged goods and improve environmentalperformance. The new, semi-automatedsystem affords numerous benefits:

■ a reduction in the variety and quantity ofpackaging types;

■ elimination of a box with polystyrene andchipboard inserts;

■ increased throughput of units;

■ a reduction in the number of returns dueto damage in transit;

■ more efficient use of space in thewarehouse and delivery vans.

Cost benefits


■ Reduced transport costs.



■ Increased transportation efficiency.


Furtherinformation

GG360 Packagingdesign for theenvironment:reducing costs andquantities

A furniture manufacturer gained many benefits as a result of switching from a manualpackaging system to a new, semi-automated system.

■ Net cost savings of £596 000/year

■ Overall payback period of approximately six weeks


Eliminate Tertiary Cardboard

Reduce Plastic film

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Packaging redesign saves tonnesin

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A supermarket chain has made significant cost savings through redesigning thepackaging of one of its own-brand products.

■ Net savings of 160 tonnes/year of packaging

■ Reduction in packaging waste to the consumer

■ Reduced obligation under the packaging waste regulations

About Sainsbury’s

J Sainsbury plc operates three separate storechains and a bank in the UK, and a storechain in the USA. The company was the firstUK food retailer to publish an environmentalreport. The redesign of the garlic breadpackaging is just one example of manysimilar environmental initiatives undertakenby Sainsbury’s.

Action taken

Sainbury’s garlic bread was previously packedin a plastic inner sleeve and an outercardboard box (total weight 37 g). The breadis now packaged in a single plastic(polypropylene and polyester) sleeve (weight5.9 g). This change in packaging designresulted in a number of benefits, including:

■ elimination of a layer of packaging;

■ estimated net savings in packagingmaterial of 160 tonnes/year;

■ optimisation in transport due to increasedload capacity.

Cost benefits


■ Reduced transport costs.



■ Increased efficiency in transport.


Further information



Eliminate/ Primary PlasticRedesign

Reduce

Re-usable packaging reduces wastethroughout the supply chain

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About Securicor OmegaExpress

Securicor Omega Express is a leading carrierof parcels, consignments and freight forbusiness customers in the UK and Ireland.

Action taken

Securicor Omega Express, in partnership witha book distribution company andWaterstone’s, a book retailer, designed acustom-built, re-usable tote box to replacethe need for cardboard cartons. The newdistribution scheme had a number ofadvantages over the previous system:

■ 21 720 cardboard cartons were replacedby 3 000 totes (in a pilot scheme);

■ increased speed of handling goods;

■ reduction in stock rejected on deliverythrough transit damage;

■ waste storage and disposal costseliminated.

The scheme has since expanded; 103 000plastic totes are now in circulation in thebook, music and fashion jewellery industries.

Cost benefits


■ Increased efficiency.

■ Reduced cost of compliance with thepackaging waste regulations.


■ Reduced packaging waste.

Furtherinformation

EN336 Reducingwaste and utility usein managedshopping centres

GG141 Choosingand managing re-usable transitpackaging

This industry example demonstrates the economic and environmental benefits ofimproving the packaging and handling efficiency of goods from warehouse to store.

■ Cost savings achieved through successful business partnerships

■ New packaging suitable for the delivery of products from avariety of retail sectors


Eliminate Tertiary Re-usable plastic totes Supply chain

Re-use

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Re-use initiative as part of aninternational packaging standard

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About Xerox

Xerox manufactures and distributes a widerange of document processing equipmentthroughout the world and, in 1997, hadmore than 500 component suppliers.

Action taken

The company used to use packaging on aone-trip basis. After a major review ofpackaging requirements, Xerox designed anddeveloped a worldwide ‘packaging standard’for its operations. This has provided anumber of benefits:

■ The number of pallet types was reducedfrom 25 to two.

■ Pallets are re-used around 20 times.

■ Eight types of re-usable container thatcan be re-used between three and eighttimes have replaced 8 000 different stylesof corrugated cardboard box.

■ The use of re-usable steel totes and cratesfor European trade and returnedequipment are part of Xerox’s end-of-lifepolicy. A clamping mechanism on the

steel tote and straps within the crate allowthe products to be held in place securelywithout the need for additional packing.

Cost benefits


■ Reduced transport costs through improvedstacking and increased capacity per run.

■ Reduced labour requirement for packing,unpacking and storage.



■ Reduced cardboard and filler packaging.

■ Reduced transport runs.


Furtherinformation

GG141 Choosing andmanaging re-usabletransit packaging

Xerox has achieved significant cost savings by designing and developing a packagingstandard that incorporates packaging re-use.

■ Estimated packaging cost savings to Xerox and its supply chainof £900 000/year

■ Potential delivery cost savings of £600 000/year

■ Reduction in the number of packaging types

■ Reduction in the number of pallet types


Redesign Secondary Cardboard and pallet Supply chain

Re-use Primary Steel tote and crate

Reduce

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The way forward

Having read how other companies have benefited from optimising the amount and typeof packaging they use, now consider if your company could improve its packagingmanagement and reduce costs. If you require help and advice, the Environment andEnergy Helpline on 0800 585794 can put you in touch with a technical expert - free ofcharge. The Helpline can also:

■ provide free, up-to-date advice on environmental issues;

■ tell you about relevant environmental and other legislation that could affect your business;

■ send you copies of free, relevant Envirowise publications;

■ suggest other sources of information;

■ arrange for an on-site packaging design review (known as a designtrack visit) by anEnvirowise advisor.

All Envirowise's free information and advice can also be accessed via its website(www.envirowise.gov.uk).

7.1 Free designtrack visit

If your site has 250 employees or less, you can request a free, confidential visit from a packagingadvisor. The advisor will spend up to a full day on site to analyse your packaging, identify cost-effective redesign improvements and develop a practical action plan. The benefits from adesigntrack visit include:

■ innovative packaging design and material use;

■ reduction in packaging materials and costs;

■ reduction in time used in packaging products;

■ improved customer/supplier relationship;

■ compliance with packaging regulations;

■ improved company image through demonstrating commitment to environmentalimprovements;

■ improved packaging performance.

To book an on-site packaging design review, phone the Environment and Energy Helpline on0800 585794 and ask for a designtrack visit.

7.2 Free publications

The following key Envirowise publications are available free of charge through the Environmentand Energy Helpline on 0800 585794 or via the Envirowise website (www.envirowise.gov.uk).

GG140 Cutting costs and waste by reducing packaging useGG141 Choosing and managing re-usable transit packagingGG157 Reducing the cost of packaging in the food and drink industryEN250 Unpack those hidden savings: 120 tips on reducing packaging use and costsGG360 Packaging design for the environment: reducing costs and quantities

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Useful contacts

Type of service Organisation

Regulatory advice Environment AgencyRio House, Waterside Drive, Aztec West, Almondsbury, Bristol BS32 4UDTel: 0845 933 3111www.environment-agency.gov.uk

Scottish Environment Protection Agency (SEPA)Erskine Court, Castle Business Park, Stirling FK9 4TRTel: 01786 457700 Fax: 01786 446885www.sepa.org.uk

Department of the Environment (Northern Ireland)Environment and Heritage Service, Commonwealth House, Castle Place, Belfast BT1 1DXTel: 028 9025 4754 Fax: 028 9025 4700www.ehsni.gov.uk

Advice on packaging Department for Environment, Food and Rural Affairswaste regulations (DEFRA)

Nobel House, 17 Smith Square, London SW1P 3JRTel: 020 7238 6000 Fax: 020 7238 6591Helpline: 0845 933 5577www.defra.gov.uk

Advice on all aspects The Industry Council for Packaging and the of packaging Environment (INCPEN)

6-8 Market Place, Reading RG1 2EGTel: 0118 925 5991 Fax: 0118 925 5993E-mail: [email protected]

Advice on all aspects of Pira Internationalpaper/board packaging Randalls Road, Leatherhead, Surrey KT22 7RULaboratory services Tel: 01372 802000 Fax: 01372 802238Helpdesk for SME www.piranet.compackaging operations

Advice on cardboard Corrugated Sector of Confederation of Paper Industriespackaging 1 Rivenhall Road, Swindon, Wiltshire SN5 7BD

Tel: 01793 889600 Fax: 01793 878700www.paper.org.uk

Advice on plastic packaging The British Plastics Federation (BPF)6 Bath Place, Rivington Street, London EC2A 3JETel: 020 7457 5000 Fax: 020 7457 5045www.bpf.co.uk

Advice on wooden packaging Timber Packaging and Pallet Confederation (TIMCON)840 Melton Road, Thurmaston, Leicester LE4 8BNTel: 0116 264 0579 Fax: 0116 264 0141E-mail: [email protected]

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Advice on drums and IBCs Association of Drum ManufacturersSt John’s House, 4 London Road, Crowborough, East Sussex TN6 2TTTel: 01892 654414 Fax: 01892 654981E-mail: [email protected]

Advice on packaging and Institute of Grocery Distributiondistribution Grange Lane, Letchmore Heath, Watford,

Hertfordshire WD25 8GDTel: 01923 857141 Fax: 01923 852531E-mail: [email protected]

Promotion of the UK The Packaging Federationpackaging manufacturing London Office, Suite No 2.9, Vigilant House,industry 120 Wilton Road, London SW1V 1JZ

Tel: 020 7808 7217 Fax: 020 7808 7218E-mail: [email protected]

Envirowise - Practical Environmental Advice for Business - is a Government programmethat offers free, independent and practical advice to UK businesses to reduce waste atsource and increase profits. It is managed by Momenta, an operating division ofAEA Technology plc, and Technology Transfer and Innovation Ltd.

Envirowise offers a range of free services including:

Free advice from Envirowise experts through the Environment and EnergyHelpline.

A variety of publications that provide up-to-date information on wasteminimisation issues, methods and successes.

Free, on-site waste reviews from Envirowise advisors, called FastTrack visits, thathelp businesses identify and realise savings.

Guidance on waste minimisation clubs across the UK that provide a chance forlocal companies to meet regularly and share best practices in waste minimisation.

Best practice seminars and practical workshops that offer an ideal way toexamine waste minimisation issues and discuss opportunities and methodologies.

For further informationplease contact the

Environmentand EnergyHelpline0800 585794© Crown copyright. First printed April 2004. Printed on paper containing a minimum of 75% post-consumer waste.

This material may be freely reproduced in its original form except for sale or advertising purposes.

Harwell International Business Centre | Didcot | Oxfordshire | OX11 0QJE-mail: [email protected] Internet: www.envirowise.gov.uk

Practical Environmental Advice for Business

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Packaging reduction saves money: industry examples · 2019-05-09 · 2 Actions to reduce packaging...

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