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Tackling the Hottest Topic in Packaging – Sustainability

Sustainability

Tackling the Hottest Topic in Packaging – Sustainability

Almost every product needs a package. Whether that be a toilet shipping through UPS or a windshield shipping FTL into a vehicle assembly line. The world of packaging is full of trends, hot topics, and buzz words. One that has been a hot topic for the last 10 years is sustainability.

This article is going to look at the three pillars of package sustainability: Reduce – Reuse – Recycle. Let’s look at these three words through the BoldtSmith Packaging lens which focuses on creating optimized packaging solutions that lead to sustainable packaging practices.

Sustainability – Optimized Packaging

When seeking a sustainable packaging solution, it’s important to determine which R is applicable to your packaging goals.

Some products and supply chains are a great fit for recyclable/compostable materials. However, for those that are not, we focus on providing optimized packaging solutions that reduce the carbon footprint. This is where Reduce and Reuse come into play. Optimized packaging solutions lead to sustainable packaging practices because:

-Material: Selecting the best materials results in less material

-Freight: Eliminating air from master cartons leads to better freight efficiency which means less fuel burned

Is sustainability more than just a “feel good” marketing term that large corporations like proudly displaying on their websites and packaging? Keep reading and let’s find out.

Below are descriptions for what each of the three R’s are along with examples from projects we have completed in the past.

Optimized Packaging – Reduce

Reducing packaging materials has been a fundamental pillar in cost reduction. Reducing packaging materials also ties into package sustainability as this reduces the amount of trash being thrown away. This is relevant to all packaging materials whether that be corrugated, foam, aluminum, glass, etc. Eliminating materials that cannot be recycled is not always possible and open-loop supply chains will not allow for a returnable packaging system. This is where BoldtSmith Packaging looks to create optimized packaging designs that reduce the amount of materials used.

Read the below example on how we reduced the level of product damage while in parallel decreasing the amount of packaging material, costs, and freight.

Optimized Packaging Example – Reduce

A customer we have completed multiple projects for was having damage issues with their toilet’s shipping through a small parcel supply chain direct to consumer. They engaged us to develop a packaging solution that would reduce their damage from 12% to less than 1% while in parallel reducing material and freight costs.

Below is an overview of their current packaging vs our optimized solution.

Current Packaging

-Packaging Material Cost: $16.90 per unit

-Packaging Freight Cost: $383.76 via UPS Ground

-Annual Volume: 10,000 units

-Total Annual Cost: $4,006,000

-Damaged Units Annually: 1,200

Design #1: Non-Recyclable Packaging Solution

-Packaging Material Cost: $12.90 per unit

-Packaging Freight Cost: $310.08 via UPS Ground

-Annual Volume: 10,000 units

-Total Annual Cost: $3,222,800

Damaged Units Annually: 100

Cost Difference Annually: $783,200; Damage Difference Annually: 1,100 units

For this example, we designed an optimized packaging solution that dropped their damage rate by less than 1% while in parallel saving them just under $800,000 annually in packaging material and freight costs.

Sustainability variables to consider:

1. Elimination of 1,100 damaged units annually

-Repairs and adjustments

-Return shipment and reverse logistics

-Expedited shipments costs for new product

-New packaging for new product

2. Smaller master carton and interior dunnage reducing the amount of packaging material needed

3. Smaller master carton meaning less space taken up during shipping reducing carbon emissions

Optimized Packaging – Reuse

Closed-loop supply chains offer a great opportunity for utilizing a reusable packaging solution. A common scenario of reusable packaging solutions is manufacturing companies receiving sub-assembly components from a local company.

Common reusable packaging solutions can include:

-Plastic or heavy-duty wood pallets

-Plastic or wooden crates

-Bulk containers such as drums, and IBC’s

-Plastic totes and boxes

-Dunnage

Optimized Packaging Example – Reuse

A large door and window manufacturer reached out to BoldtSmith Packaging looking for us to optimize their packaging for all the inbound components they use to build the doors and windows. This included frames, glass, locks, jambs, etc. They receive these components from domestic manufacturing companies. Steps of the project are outlined below along with the findings.

1. Visit the assembly facility to review all packaging material and processes associated with unloading, handling, and storing the components.

2. Brainstorm potential packaging solutions and develop 3D concepts with budgetary pricing

3. Present concepts to our customer and all component suppliers

4. Create packaging designs and specifications and send for pricing from packaging suppliers

5. Create financial analysis comparing current packaging to returnable solutions

6. Create packaging samples for line trials, lab tests and ship tests

7. Adjust design based on testing findings

8. Implement!

At the end of the project, it was determined that 10 of the 12 component suppliers would be transitioned into a returnable packaging solution. This transition saved the customer costs associated with the packaging materials and labor efficiencies were gained while in parallel eliminating expendable packaging solutions from the supply chain.

Optimized Packaging – Recycle

Utilizing recyclable packaging materials is great and we love presenting recyclable packaging options to our customers. Recycling plays a crucial role in minimizing waste and preserving the natural resources of the earth. They are a great fit depending on the product, supply chain, customer base, and most importantly, budget. When outlining our projects, we like to obtain the customer’s goals of the project and so often are we given the below objectives ranked by priority.

-Decrease packaging material costs

-Decrease freight costs

-Decrease labor costs

-Decrease product damage

– “Oh and make it recyclable”

Transitioning from non-recyclable packaging materials that are effective and cheap to 100% recyclable materials can be a cost-effective change depending on the product and packaging. However, there are situations where these recyclable materials are not a great fit. This can be based on who the customer base is, the product type, the supply chain, budget for packaging, etc.

Optimized Packaging Example – Recycle

A large knockdown furniture company reached out to BoldtSmith Packaging looking to transition away from non-recyclable foam in their products. The furniture items are manufactured domestically and ship through both small parcel and palletized supply chains.

We developed packaging designs with and without non-recyclable foam, completed transit testing and created a financial analysis comparing the various solutions. What we determined is that for small parcel shipping, we were not able to cost-effectively transition away from foam. However, we were able to utilize 100% recycled materials for their palletized furniture products.

This was a great balance between remaining cost-effective while exploring sustainable packaging materials. Click the below link to learn more about optimizing furniture packaging.

Contact BoldtSmith Packaging to discuss what we can do for you.

transportation

7 STATES WITH COMPREHENSIVE FACILITIES FOR THE MULTIMODAL TRANSPORTATION OF GOODS

Thankfully, with COVID-19 vaccination programs in full swing, it appears that we are emerging out of the worst of the pandemic which has blighted the lives of so many people and caused so much devastation to businesses across all industries. 

Major parts of the U.S. economy, quite literally, were brought to a standstill with enforced closures and restrictions on the movement of people.

However, despite the disruption caused by the coronavirus pandemic, goods were still shifted in enormous volume during the course of 2020, the value of such activity in the U.S. and Canada estimated to have surpassed $6.8 billion. 

This figure should steadily rise given how increasingly dependent intermodal transport activity is on the consumer economy’s demand. It is also supported by well-developed hubs across all states that help to facilitate the movement of goods as seamlessly as possible. 

Here, we take a look at just some of the U.S. states with the most favorable logistics infrastructure. 

Illinois

The midwestern state is extremely well served by an array of transport hubs, the most significant being situated in and around its primary city of Chicago. 

Staggeringly, around a quarter of all rail freight calls into the city either as a final destination or stop on a journey to another terminus. Meanwhile, O’Hare International Airport processes around 2 million metric tons of cargo at a value of approximately $200 billion every year.

The state is also indebted to what is North America’s largest inland port in the form of CenterPoint Intermodal Center. Situated in the Joilet and Elwood area, around 40 miles southwest of Chicago, it is a 6,400-acre master-planned intermodal development that sees 3 million TEUs pass through it every year. It is currently home to more than 30 tenant companies that, between them, occupy more than 14 million square feet of space.

CenterPoint Intermodal Center is also built with heavyweight roads able to withstand massive pressure and contains several other useful features such as water and utility systems, public bus service connections, no restrictions on trailer parking ratios and 24/7 on-site fire and police protection.  

The site contains a massive 785-acre Union Pacific Railroad complex just south of Joliet, while another enormous rail complex measuring 770 acres that is operated by BNSF lies farther to the southwest.

When all of this is taken into consideration, CenterPoint can rightly be referred to as Illinois’ intermodal epicenter.  

The state is also making waves in the port scene, with officials recently announcing a $110 million fund to modernize public ports across the territory. Illinois is home to a network of waterways that includes 19 public port districts and more than 400 private terminals along the Illinois, Kaskaskia, Ohio and Mississippi rivers.

Texas

The Lone Star State is also no stranger to port-based trade. 

Texas has no fewer than 11 deep-draft ports, eight shallow-draft ports and two recreational ports that combine to make a critical contribution to the economic growth of the state, and represent key components of the region’s transportation system. 

The southern state’s ports are backed up by some of the country’s largest interstate highways and an enormous network of railroads. 

According to figures released by the Association of American Railroads, Texas received 208.1 million tons of rail freight in 2019, the most of any state. To put that in context, Illinois, the second-ranked state, received 107.4 million terminated rail tons. Texas also, unsurprisingly, has by far the largest network of rail infrastructure in terms of outright length, measuring at 10,460 miles compared to second-placed Illinois, which has 6,883 miles of track.   

Over in Dallas, a fairly recent addition to the city’s intermodal transport infrastructure (opening in 2015) is the Wylie Intermodal Terminal. It is a $64 million development owned by Kansas City Southern Railway (KCS), and is set to capitalize on significant opportunities in cross-border activity with Mexico. 

Wylie itself is a city and northeastern suburb of Dallas, with the KCS terminal sprawling across 500 acres of land and servicing 12 gulf ports and one Pacific Ocean port, as well as more than 140 transload centers and 11 intermodal ramps. KCS also provides 181 interchange points with other railroads, including all U.S. and Mexico Class 1 railroads.

Michigan

In a typical year, one without the disruptions caused by the pandemic, U.S. freight railroads move around 1.7 billion tons across nearly 140,000 miles of privately-owned infrastructure that run through 49 states.

Michigan is home to 28 such railroads and ranks 14th in terms of total rail miles, with 3,465 miles of track at its disposal. In 2019, it received 31.4 million tons of rail-based cargo and sent 21.2 million tons on its way to other parts of the country or abroad. 

The Detroit region offers extensive logistics options for businesses, including world-leading warehousing and what is often cited as the nation’s best undergraduate and graduate supply chain and logistics university courses.

Furthermore, the region’s strategic location on the Canadian border grants prime access to the wider U.S. and Canadian markets, with more than 47 million people within just a five-hour drive.

Detroit also contains more than 2,000 miles of interstates and highways, four Class 1 railroads, seven cargo ports and 15 airports. In total, the region moves $44 billion of goods evert year. 

According to the Michigan Freight Plan devised in 2017, the state has “an extensive transportation infrastructure system that supports more than $862 billion in economic activity on an annual basis, from ports to rail and highways to runways.”

California 

Over on the West Coast, California boasts some of the most comprehensive logistics infrastructure in the country, especially when it comes to ports and railroads. 

Indeed, California is the third most popular destination for rail freight in the United States, receiving 94.9 million tons in 2019 – the state is also fifth in terms of total tail miles, with 4,971 miles of track spanning over two Class 1 railroads and 26 short-line railroads.  

Los Angeles is home to the West Coast’s busiest seafaring trade hub thanks to the adjoining ports of Los Angeles and Long Beach. In total, California has one private and 11 public deep seaports and numerous private port and terminal facilities. These handle more than 40% of the total containerized cargo entering the U.S., and almost a third of the nation’s exports. 

Such formidable infrastructure is even further bolstered by 5,800 commercial miles of high traffic volume interstate and state highways, and 12 airports with major cargo facilities. 

All of this combines to present California as one of America’s most extensive, complex and interconnected freight hubs, a system which, according to the Californian government, employs 5 million people. 

Washington 

In the Pacific Northwest, Washington boasts an extraordinary number of ports–some 75 that are found in 33 of the region’s 39 counties. These are supported by 465 miles of navigable waterways for barge traffic on the Columbia and Snake rivers.   

For companies needing logistics infrastructure for accessing the Pacific sea lanes, Washington represents the prudent choice, with many of the 75 ports a day’s sail closer to Asian markets than any others on the West Coast. 

Washington also has the second-largest concentration of distribution centers on the Left Coast, well supplied by 30 railroads (including the Union Pacific and BNSF) which, between them, account for 2,891 miles of track. This allows the state to rank seventh in the U.S. in terms of rail cargo received (65.8 million tons a year). 

Washington’s roads network is also well developed, with 7,000 miles of state highways and more than 39,000 miles of country roads that help reach the most remote parts of the region. In terms of air transportation, Seattle-Tacoma International Airport is the state’s largest international airport and the ninth busiest in the country.

Much of this infrastructure has been subject to improvements and expansions as part of the $70 billion Connecting Washington program, a bill voted for in 2015 that supports several major projects on the state’s roads, railways, ferry terminals and more.

Pennsylvania 

The Keystone State boasts of 61 railroads in operation, the most of any state in the country. These transport around 150 million tons of freight in and out of the region annually. 

The railroads feed a host of other important logistics infrastructure hubs, which include international airports at Erie, Harrisburg, the Lehigh Valley, Philadelphia, Pittsburgh and Wilkes-Barre/Scranton. Along with nine other scheduled-service, domestic passenger airports, they move 560,000 tons of material every year. 

Pennsylvania’s three major ports are also extremely successful, exploiting their strategic position between the northeast and Mid-Atlantic and providing deep water, inland and Great Lakes access for convenient international importing and exporting. Indeed, the state’s foreign trade zone program has levelled the playing field and boosts U.S. competitiveness by reducing operational costs for businesses. 

Joining all the logistical dots are more than 120,000 miles of state and local highways which, along with airports and railroads, are part of the Act 89 transportation plan–a commitment to improve numerous transit passages and hubs to the tune of more than $60 billion. 

Wyoming 

Our final stop is landlocked Wyoming, nestled in the Mountain West subregion of the western United States.

Despite being home to just six railroads spanning 1,877 miles, it tops the charts on originated rail tons by a long way. In 2019, 273.2 million tons of goods were sent from the state, more than double that of Illinois in second (125.9 tons). 

Wyoming’s location means it relies heavily on road transportation to move goods from points A to B and onwards to other parts of the country. Here, it is well catered for, with Wyoming motorists collectively traveling 10.2 billion miles annually and moving a large proportion of the $66 billion of commodities shipped to and from the state each year. 

The design, construction and maintenance of transportation infrastructure supports around 13,000 full-time jobs across all sectors of the economy, including tourism, retail, agriculture and manufacturing. 

Wyoming’s airports also play an important supporting role. There are nine in total, the most significant being Jackson Hole Airport, located in the spectacular Grand Teton National Park. 

NTG

NTG Slides Between Old Guard and Freight-Forwarding Disruptors

If there is one common theme among newish freight-forwarding disruptors, it is that they seek to replace an old guard that relies on paper, clipboards, and telephones with a brave new world that relies on cloud software, analytics platforms, and smartphones.

The stakes are high: tracking and handling freight is a $1 trillion industry. And so, the business media falls all over itself to profile the likes of Qwyk, Flexport and Zencargo. It’s a small wonder that established players have moved into the freight forwarding “startup” space, as evidenced by Twill, a so-called “Maersk innovation.” Amazon is also breaking into the freight-forwarding market, as is another well-known disruptor, Uber, which launched Uber Freight in 2017 and expanded into Europe last year.

Falling somewhere between the newbies and the established players is Nolan Transportation Group (NTG), a multimodal freight brokerage firm that was founded in Atlanta in 2005. Featuring parcel, truckload, less-than-truckload and intermodal transportation services for more than 7,000 customers across the U.S., Canada, and Mexico—as well as a carrier base with over 30,000 independent transportation/trucking companies that aid in facilitating the movement of clients’ products—NTG has mostly been in the news lately due to industry consolidation.

After Gryphon Investors injected capital into third party logistics company Transportation Insight in September, the private equity firm and the 3PL together acquired NTG three months later. Then, in January, NTG announced it had acquired Eagle Transportation LLC, a Mississippi-based freight brokerage specializing in temperature-controlled shipping. Out of the deal, NTG added Eagle’s expertise in cold-chain logistics and brokerage of refrigerated equipment, and Eagle received access to NTG’s vast pool of carrier representatives.

But NTG Freight is now seeking to turn industry heads with its new portal for carriers and shipping customers that went live for the public on Jan. 18, after months of beta testing. Those who log in 24/7 get real-time access “to every available shipment we have as a company,” says Garrett McDaniel, NTG’s vice president of Software Project Management. “Carriers like it because available loads are not on public boards where you have to beat out the competition to find lanes you are interested in running. The second a shipment is created, it shows up on our system as available.”

Previously, NTG communicated with its more than 8,000 companies and 100,000 trucking companies via fax, email, and phone. The portal makes that process communications and booking loads faster and easier, with bidding and rate confirmation handled automatically—and via a smartphone.

“We have created a few access levels for our preferred carriers, who not only see the loads available but the offer rate for that load as well,” McDaniel explains. “It’s created a bidding system that is pretty different than the eBay-style bidding that our competitors are doing.” With the latter, a bid amount is entered and after other bids are made, a “winning bid” is selected. But with the NTG portal, a carrier submits a couple of different amounts and is automatically chosen without having to debate.

Asked whether the new portal came about based on what customers were seeking or what NTG saw needed refinement, McDaniel answered, “A little bit of both. The platform was originally created based on some specific needs of carriers.”

You might assume here that NTG’s answer to those needs came in June 2019, when the 3PL deployed Descartes Systems Group’s MacroPoint, a cloud-based freight visibility solution. After all, Perry Falk, senior vice president of NTG’s Carrier Operations, said at the time: “Our customers can opt to get real-time visibility on every shipment we move. The drivers for our carriers can provide location updates with minimal interactions while in-transit, leaving us with happier carriers who can focus on driving safely.”

However, McDaniel corrects that the new portal’s inception actually stretches back a couple of years before that, when carriers were telling NTG as far back as 2017 that they needed online access to their payment information. “One thing they wanted was access to payments in real-time. Paperwork was missing on some loads, and they wanted to see information on available loads. Over time, as we grew as a development team, along with the experience of the users, things were refined internally.

“One of the very first versions that rolled out showed the payment status. You’d log in to see when you were being paid if you were paid already what the check number was and when it was mailed. Really within the last year, we rolled out a lot more core functionality, including bidding on loads, rate confirmation, as well as some of the customer-focused functionality as well.”

McDaniel considers all of this to be part of NTG’s mission “to improve the carrier partnership.” Relationships with loyal carriers and customers were already in place during the NTG portal’s beta phase. “We’ve received a ton of positive feedback, especially among the smaller carriers that have one to five trucks,” McDaniel says. “It’s been a great tool for them to be able to keep their trucks completely filled with loads purely by using the system.” Carriers “with thousands of trucks” also participated in the beta phase, he adds. “They were able to get in, play around with it and give us their feedback. We’ve taken a lot of the feedback and been able to implement changes.”

The live version features a redesigned front end, more user-friendliness and a more modern-feeling than the beta tester, according to McDaniel, who credits Gryphon Investors with steadfastly supporting his company’s high-tech vision. “They have been a really incredible partner in developing this application,” he says.

However, while new freight forwarding disruptors scramble to build new customer bases, McDaniel is also quick to applaud the NTG network with continuing to push his company to refine with the digital times.

“We have been around for 15 years,” he notes. “In that amount of time, we’ve grown a deep network of carriers and shipper partners. These were not acquired overnight as a tech startup disruptor.”

Which, McDaniel believes, gives NTG a competitive edge over the upstarts. “We have a pretty dedicated group of users. This is something we view as an enhancement for our carrier partners. You don’t ever want to replace human relationships. Rather, this is something that quite frankly helps strengthen that relationship with us.”