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Tackling the Hottest Topic in Packaging – Sustainability

Sustainability
Archives, Commentary, Global Logistics, Global Trade Daily

Tackling the Hottest Topic in Packaging – Sustainability

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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.

cameron's coffee
Archives, Global Logistics, Global Trade Daily, Warehousing

How Cameron’s Coffee Tracks Their Products from Bean to Carton with a WMS

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Cameron’s Specialty Coffee and their Mission:

A smooth cup: Part of Cameron’s mission is to provide a smooth cup of coffee by handpicking the best beans in the world. However, their mission goes beyond that.

All around the world: Cameron’s Specialty Coffee is directly involved with the farmers supplying them with their coffee beans. Members of their team go around the world to meet farmers and their families to build a relationship based on social responsibility. Cameron’s is therefore dedicated to help their farmers grow in a healthy environment.

A Green Company: Cameron’s feels responsible not only for its partners but for the environment. Therefore, they strive for eco-friendly processes. They are dedicated to minimizing their footprint through big and small actions such as minimizing water consumption and using recyclable materials.

 

Cameron’s Specialty Coffee’s Supply Chain Needs

 

To accomplish their goals, Cameron’s Coffee had to overcome three challenges, all of which required a change to their inventory management.

-Responding to growing eCommerce demand

-Responding to growing expectations for traceability in the Food and Beverage industry

-Replacing their paper-based processes

By first replacing their paper-based process to an electronic one, we can simultaneously resolve their other challenges.  Adapting inventory processes enables employees to be more efficient, and the reduction in error would equip Cameron’s Specialty Coffee with the right strategy to satisfy their online customers. The same goes for satisfying visibility standards by tracing all ingredients, where use of real-time data instead of paper processes would yield greater inventory visibility and traceability.

Sustaining growth: Cameron’s saw much growth in the last few years. eCommerce grew particularly fast during the Covid-19 pandemic. Additionally, Cameron’s was purchased by a larger Colombian company, which also increased the scale of their operations.

 

Using a WMS

 

Cameron’s Coffee turned to Generix to automate their processes and implemented WMS Solochain.

Managing growth: As a result of a 50% growth in demand, they had to enlarge their warehouse space by more than 25% between 2018 and 2020. Switching from paper-based processes to a WMS and automation made sure that Cameron’s could absorb all this growth without being overwhelmed by it. The implementation of the WMS also enabled them to do more with less: they did not have to increase the headcount of their finance department. They simply made it more efficient.

 

Attracting the New Generation of Warehouse Employees

 

Opting for the WMS solution also allowed smooth integration of the new processes with the warehouse employees as well as with those from finance. Employees prefer using tablets and computers to stacks of paper because they are polyvalent and interactive. It also relieves them from having to carry around a lot of material such as pens, notepads, and clipboards and all while operating warehouse equipment such as forklifts. The tablet replaces all those objects and are easy to carry.

To maximize efficiency, the system also needs to be user-friendly. The employees from Cameron’s Specialty Coffee reported that they adjusted quickly and easily to their new tool. Learning the ways of the warehouse was also made easier on new employees since processes are clearer in the WMS display than learning every corner of the warehouse by heart.

Warehouse automation also made work easier for people in the finance team since they could easily understand all the warehouse workflows and processes. Gone are the times of having to read people’s handwriting on sheets of paper.

In the end, automating the processes by making everyone’s job easier, eliminated most errors, whether they be found in the production chain, inventory count, or in shipping.

 

Optimized Processes

 

Thanks to the visibility offered by the WMS, Cameron’s Coffee is now able to reduce waste in its production chain by repurposing coffee beans. For example, if by mistake a batch is over-roasted, it can be easily re-routed to be utilized in the production of a darker roast. The WMS helps ensure that the correct type of bean and roasting degree is respected.

Amy Fitzgerald spoke to us about the implementation process and how enthusiastic the end-users were about switching to a more automated process: “Everyone likes to use electronics, it’s just exciting”, she said. The switch to high tech was also welcomed by end-users since it provided more accuracy for their tasks, leading them directly to locations and preventing errors. This made everyone’s day brighter.

Cameron’s Specialty Coffee had goal-specific challenges which were solved by streamlining processes and optimizing their warehousing operations and production by implementing the WMS and MES.

Generix Group North America provides a series of solutions within our Supply Chain Hub product suite to create efficiencies across an entire supply chain. From Warehouse Management Systems (WMS), Transportation Management Systems (TMS) to Manufacturing Execution Systems (MES), such platforms can deliver a wide range of benefits that ultimately flow to the warehouse operator’s bottom line. Our solutions are in use around the world and our experience is second-to-none. We invite you to contact us to learn more. 

environment
Archives, Global Trade Daily, International Trade

Does Your Company Care About The Environment As Much As Consumers Do?

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It’s not just a product’s quality that compels consumers to purchase it. More people today care about how the item was manufactured and whether the company is harming the environment.

Studies show sustainability is a factor driving customers’ buying decisions. Recent research by IBM revealed that nearly six in 10 consumers surveyed are willing to change their shopping habits to reduce environmental impact, and nearly eight in 10 indicated sustainability is important to them.

That’s why companies can’t afford to pay only lip service to sustainability issues, says David Radlo (www.davidradlo.com), best-selling author of Principles of Cartel Disruption: Accelerate and Maximize Performance, and an internationally recognized expert on corporate innovation and leadership.

“Organizations are under increasing pressure from customers, investors, employees, banks, legislators and insurance companies to embrace social and environmental concerns,” Radlo says. “Studies increasingly show that the business benefits of sustainable strategies can be quantified and are real. There is a significant amount of money to be made and saved in the area of sustainability. It can give you a competitive advantage and improve your brand image, and it can also spur innovation.”

Radlo offers these points on how companies can prioritize and improve sustainability while turning it into a win-win for the environment and their business:

Assess your company’s sustainability level. “Most companies don’t know where to start,” Radlo says. “You start with a complete assessment. As it is conducted, link your sustainability efforts to the strategic plan and how it will impact your stakeholders. Determine your current status and what improvements you’d like to make.”

Identify ways to reduce waste and emissions. “Waste and pollution are indicators of inefficiencies, which tend to generate unneeded costs and environmental problems,” Radlo says. “The goal is to achieve breakthroughs that would lead to manufacturing without any form of waste and no carbon equivalent emissions. Waste elimination is achieved at the source through product design, producer responsibility, and waste reduction strategies down the supply chain. Some concepts to eliminate waste include cleaner production, product dismantling, recycling, reuse, and composting.”

Create an implementation plan and operationalize. “Develop your people for this important transition,” Radlo says. “Along the way, improve your processes and focus on the outcomes you wish to achieve. What measurement can you put into place concerning your customers, employees, stakeholders, and shareholder loyalty?”

Permeate the work culture, in addition to financial sustainability, with a go-green mentality. “The more that overall sustainability is ingrained and practiced in your culture, the stronger the company’s commitment is, and the message spreads organically and authentically,” Radlo says. “When your organization becomes a steward of the environment, and you fully integrate sustainability into your culture, the company now has a long-term vision and the processes in place to continue it.”

“Sustainability works for the greater good of any organization,” Rado says, “and it creates progress toward environmental and social improvement.”

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David Radlo (www.davidradlo.com), best-selling author of Principles of Cartel Disruption: Accelerate and Maximize Performance, is an internationally-recognized expert in leadership, innovation, and growth. He is a partner with RB Markets-Achievemost, a Masters professional outside director, a growth coach, and an International Fortune 500 speaker. He is experienced in the U.S. and globally, building sustainable consumer food brands such as Born Free, Farmer’s Best, and Egg-Land’s Best, and has personally negotiated agreements with Fidel Castro. He works with senior executives, venture firms, private, public, family, and college entities. His accomplishments in his 28 years as a CEO include delivering a six-fold increase in earnings before interest, taxes, depreciation, and amortization (EBITDA), and a 30-fold increase in enterprise value. He is a graduate of Tufts University and NYU’s Stern School of Business.