Packaging Waste Reduction

Shipping and Distribution Case Studies

The case studies below were submitted to the CIWMB for the October 1997 workshop, "Saving Money and Improving Efficiency of Packaging in Distribution Systems."

Companies

• 3M
• Courtaulds Aerospace
• Cisco Systems
• Dole
• Dow Corning
• FP International (FPI)
• International Food Container Organization (IFCO)
• Tharco

Topics

• Corrugated waste reduction
• Steel drum recycling
• Steel drums, steel pails, and tinplate cans
• Packaging redesign
• Recycled content corrugated boxes
• Recycling pallets
• Recycling polystyrene loosefill (packing peanuts)
• Returnable/reusable produce containers
• Reusable packaging for videotapes
• Stretchable tape

Environmental Customer Focus With Reusable Packaging in
3M’s Audio and Video Products Division

Through packaging innovation, 3M’s Audio and Video Products Division has created enormous industry interest in it’s new bulk videotape logistical shipping container, the 3M Reusable Pak. This new container eliminates the cardboard, plastic, and foam waste associated with other packaging methods. The 3M Reusable Pak not only reduces waste and disposal fees, it has saved millions of dollars in material costs and eliminated over 1.4 million cubic feet of waste from entering area landfills and incinerators.

Background

As a leading producer of bulk videotape for the film duplication and packaging industry, 3M was looking into videotape packaging when the Audio Video Duplicator Association approached 3M and requested help in finding ways to reduce packaging waste. Previous shipments of videotape in the "pancake" format lead to the creation of 1 cubic foot of waste for every 8 pancakes shipped. The same waste stream inflated customer’s labor costs by increasing the handling expense for both incoming shipments and waste disposal. In addition the previous packaging involved 11 different components to create a standard package for the shipment of 8 pancakes. Because of the complexity of the packaging, 3M incurred increased expense for both labor and material. As the need to redesign the packaging became evident, a survey demonstrated that 3M customers rated recyclability, reusability, environmental impacts and low cost equally when considering package design. Creating a healthier environment and bottom line became the important fuel for the challenge of a better package design.

Solution

3M created an innovative patented solution that eliminates all dunnage, reduces the number of packaging components to 2, saves labor costs and eliminates any material from entering the waste stream. In this case, the annual 1.4 million cubic feet of waste is eliminated. The solution involves the use of two identical panels, blow molded out of HDPE in an interdigitated format that allows for interchangeability. Each panel collapses to create a stack ratio of 3 to 1 allowing for the return shipment and reuse by 3M to be economically feasible. Through the simplicity of the 2 piece design and use of non fiber material, customer’s handling costs were also significantly reduced by making the containers safe for transport directly into clean rooms. In some instances, all hand contact can be eliminated for additional customer productivity enhancement. The success created by the 3M Reusable Pak has created significant opportunities for a new system in logistical packaging. These systems will incorporate design efforts that begin with the customer’s design process and eliminate dunnage, create better unitized loads, add enhanced ergonomic designs and increase efficiency. All of which add money to the bottom line.

To connect with the future of logistical packaging call 1-888-805-1895

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3M Stretchable Tape

3M’s Scotch Brand TM Stretchable Tape (ST) is a 4 or 6 mil Linear Low Density PolyEthylene (LLDPE) backing with a solventless adhesive. ST is a load stabilization product which can provide reductions in raw materials and waste disposal costs while maintaining a stable, breathable load. ST utilizes 3M’s patented Stretch Release adhesive technology which will not damage high intensity graphic boxes.

3M’s Scotch Brand TM Stretchable Tape was tested and proven to conform, by an Independent Testing Facility, to ASTM D4169--Standard Practice for Performance Testing of Shipping Containers and Systems.

Background

A meat packing house was packing 48 to 50 lb. of hams into a 10" high box. These boxes were interlock stacked 7 layers high on a 40" x 48" pallet. They were using stretch film and corner boards to stabilize the load for transport to an off site blast freezer. At the blast freezer the stretch film and corner boards were removed to improve cold air flow to the hams and reduce freezing time. After the blast freezer, the pallet was rewrapped with stretch film and corner boards and sent to distribution warehousing.

The reason the meat packer is investigating ST is to reduce raw material cost, application cost, and waste disposal cost.

Waste and Cost Savings

3M’s Stretchable Tape (ST), #8886, was used to stabilize the pallet loads of hams after final packaging. Because ST allowed air flow through the pallet load, it is not required to be removed during the blast freezer process. The average amount of stretch film per pallet load was 15.7 oz. Because each pallet was wrapped twice, the total amount of stretch film used was 31.4 oz. The same pallet configuration needed only an average of 3.3 oz. of ST for the entire freezing and shipping process. This was a reduction of 28.1 oz. of LLDPE that requires disposal. In addition the raw material cost savings for the customer was 42.5 percent per pallet load. By using ST, additional savings in labor were realized by elimination of the second application of stretch film.

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Case study: COURTAULDS AEROSPACE

Courtaulds Aerospace is a worldwide manufacturer of sealants and coatings for the aerospace industry. In the production and filling of our products we utilize 55-gallon steel drums, 5-gallon steel pails and tinplate cans. Our raw materials are supplied in these types of containers along with others.

Our finished products are supplied to a network of distributors whom are qualified to refill into the customer’s desired package. The products are shipped to the distributors in bulk quantities most often 55 gallon drums or 5 gallon pails. The cost of the finished products range from $2500.00 to $8000.00/drum. We find the most efficient way to move our products is in 55-gallon drums.

The facility in Mojave, California ships approximately 100-150 new drums of finished goods per week. The Glendale site ships approximately 60 new drums per week. The average cost of a new drum is $40.00 (NOTE: 30 percent of our shipments are considered hazardous materials).

We also use reconditioned drums within the sites. Mojave uses approximately 100 drums per week; Glendale approximately 50 drums per week. The average cost for a reconditioned drum is $18.00/drum.

We have recently begun using reconditioned UN approved hazardous waste drums. The Mojave site ships about 65 drums per week; Glendale about 20 drums per week. These drums cost about $18.00 each. This was an immediate cost savings once the waste pad was advised they could use a reconditioned drum for this purpose. Savings were 50 percent.

We pool all emptied raw material drums to be returned to our supplier for reconditioning. The average pick-up from Mojave is 300 drums per week; from Glendale 100 per week. We receive credit for all drums returned which actually lowers the total spent for our drums.

In conclusion, Courtaulds Aerospace makes efficient use of a new drum – one trip with new product to our distributors, but the best use of a reconditioned drum in that they have two lives. Once with a new raw material or finished product and secondly as an internal drum or very possibly a trip to the hazard waste yard.

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Cisco Systems, Inc. Implementation of Korrvu® Packaging
for SOHO Products.

Background

Cisco’s Small Office/Home Office (SOHO) products were traditionally shipped in a corrugated container with a combination of Polyethylene and Polyurethane foam cushioning. Not only was the pack composed of three different materials, it was also difficult and time consuming to assemble.

In March of 1995 a new product was added to the SOHO line. The new product did not fit into the existing package system. An opportunity arose to redesign the pack based on the following criteria:

1. The new pack would have to accommodate all 4 products
2. The new pack would have to be easier to assemble
3. The new pack should be less expensive
4. The new pack should use less material

Solution

By implementing the Korrvu Packaging system on the SOHO product line, all four criteria were met in the following manner:

• The new pack would have to accommodate all 4 products.
• The design of the package allows all 4 products to fit into the same Korrvu insert. This also allows for the same shipping carton and accessory kit carton to be used across products.
• The new pack would have to be easier to assemble.
• The old pack required a RELF mailer and corrugated accessory insert to be assembled. The accessories were difficult to place in the insert and the mailer was time consuming to close and tape. The foam inserts required removal of tear-outs to accommodate the various products. Total packout time was around 90 seconds.
• The new package is considerably easier to assemble. The products are now shipped in an RSC which is easier to assemble as compatible with automatic taping equipment. The accessory was changed to a RETT mailer. The mailer comes into Cisco pre-assembled and stuffed with the generic components of the accessory kits. The Korrvu insert is easy to fold and place in the RSC. Total packout time is now 35 seconds.
• The new pack should be less expensive.
• The old package system cost $4.48 per 10,000. The new systems costs $2.20 per 10,000. Cisco typically ships between 20,000 and 30,000 SOHO units per month for a monthly average cost savings of $57,000.
• The new pack should use less material.
• The old pack was made up of two corrugated components, one polyethylene component and one polyurethane component.
• The new pack is made up of three corrugated components. The Korrvu component has polyurethane film adhere to corrugated but is still curb-side recyclable and is RESY certified.
• Both packs weigh about 1100 grams each, but the new pack contains no foam, takes up less space volumetrically and is more easily recycled.

Conclusion

The successes achieved with the redesign of Cisco’s SOHO product line packaging show that companies can develop packaging systems that meet what appear to be a diverse set of criteria. In this particular case, the main objectives were to develop a single pack that could be used for a variety of products and simply the packout process. While pursuing these goals it became apparent that substantial cost savings could be realized along with a reduction in the amount of packaging materials used.

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Dole Fresh Vegetables, Inc.: A Pallet Recycling Success Story

Our company has been successful in continuing to find ways to reduce the amount of waste materials we send to the landfills. Here is a story of just one of our recycling efforts.

Background

Since 1943, Dole Fresh Vegetables (DOLE) and its subsidiaries have been leaders and innovators in agriculture, and are credited with developing many technological advances in the industry. Dole markets more than 40 fresh vegetables, shipping throughout North America and the world. A division of Dole Food Co., Inc. Dole Fresh Vegetables has approximately 4,000 employees.

As a leader in the community, DOLE is very proud of its recycling accomplishments, having won the WRAP Award four times, in 1993, 1994, 1996, 1997. In 1996 the company earned a special WRAP of the Year Award given for its outstanding achievements in waste prevention, recycling, buying recycled products, and promoting waste reduction awareness. In 1992 DOLE won the Salinas Business Recycling Award commendation for waste reduction.

Success story

Dole purchases over 1.2 million pallets per year (1,165,296) for use in shipping various commodities. DOLE operates year round, shipping from the Salinas Valley in the summer and from Yuma, Arizona in the winter. Over the last few years DOLE has saved thousands of dollars by recycling pallets. In just the past 12 months DOLE has saved over $226,800 by recycling more than 100,000 pallets.

Dole and the Valley Pallet Company have developed an excellent working relationship. Valley Pallet handles all of Doles' pallet recycling, including standard or odd-sized pallets, and even including the broken pieces of wood. This year Valley Pallet is coming out with a new product made from some of these broken pieces of wood. They chip the wood and are turning it into garden ground cover and erosion protection. The finished product can be colored with an environmentally friendly substance to resemble redwood bark. The larger size wood chips are burned for electricity in the Mendoda area.

This is a great success story! But success stories don't happen overnight. They can only happen with the persistent and creative efforts of a company as a whole, no matter what size.

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Dole Fresh Vegetables, Inc.: Reduce or Reuse or Recycle or, Even Better, Eliminate

I would like to talk about two areas of corrugated waste reduction: outbound and inbound shipping containers.

Outbound

Our product, fresh produce, is packed, cooled and shipped to our customers in corrugated shipping containers. These shipping cartons must protect the product from the field, where it is packed to the customer's dock, a 3- to 5-day journey over the Rockies and eastward.

We have aggressively analyzed the transportation and arrival conditions to determine how the fiber content of the cartons could be reduced without sacrificing the strength and protection components. To date we have reduced the fiber in the carton by 13 percent and have maintained arrivals in good condition.

An additional fact: The cartons we use are composed of 34 percent postconsumer waste! Many carton customers are demanding to know the percent of post consumer waste used in their cartons. This has strengthened the demand for old corrugated cartons. This demand has increased beyond what the recycling stream is providing. There is good money to be made as a reward for recycling cartons--which shows that for corrugated, the demand exceeds supply. Carton recycling will continue to reward the practitioners.

Wax Cartons

We use wax cartons to pack, cool, and ship iced and wet products, such as broccoli, celery, mixed leaf lettuces, and asparagus.

It would be great if the waste containers were recyclable. Since they are not, what we do is "recycle" to trading partners, such as the Monterey County Food Bank and the Food Bank of Santa Cruz.

Another innovation for obsolete boxes has been to ask our suppliers to use them for shipping containers for the products they make for us! This idea came from a Dole employee in charge of disposing of obsolete wax boxes.

Inbound

We have a great project which totally eliminated the corrugated waste for inbound products partnering with one of our small, nimble innovative suppliers. Imaging eliminate 545 tons of corrugated per year! And 13,444 pallets per year eliminated.

First year savings were $6,150, not counting the added productivity of the two people.

Old	New	Annual Savings
100 pieces per box ($.75)	1800 pieces per tote ($120)	($120,000)
900 boxes per truck	82 notes per truck
90,000 pieces per truck	147,600 pieces per truck, 64% more product in truck	13,940
22 pallets per truck	0 pallets per truck	8,296
2 people handle box recycling internally	same 2 people doing value added work	4160 hours productivity returned to the business
611 trucks per year	362 trucks per year	$87,150
13,442 pallets per year	0 pallets per year	$40-60K
	pick up totes for reuse 3 to 1 ration collapsed 362/3=120 backhauls	($21,000)

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Dow Corning Drum Recycling Program

Summary

Although much attention is paid to the energy and environmental efficiencies, as well as potential cost savings, associated with the use of packagings that are recyclable, in fact, recyclability ranks behind reuse and source reduction in both the EPA and CIWMB integrated waste management hierarchies. The Dow Corning Drum Recycling Program, which is co-sponsored with Van Leer Containers, Inc., utilizes reusable steel drums for the transport of silicones and other products. This program, which has been in place since January 1992, has reduced packaging costs and resulted in environmental benefits for the company.

Case Study

In June 1991, Fred Honerkamp, Manger of Corporate Packaging for Dow Corning, the world’s largest manufacturer of silicone products, was asked by his President to get the company out of steel drums within two years. After doing substantial research, Mr. Honerkamp determined that a shift to other packaging would be problematic. IBC’s require significant up-front expense, about 95 percent of fiber drums are disposed of in landfills and generally do not degrade, and plastic drums occasionally have compatibility and reuse problems.

Mr. Honerkamp concluded that the apparent problem with steel drums was the lack of a coherent, company-wide program to guarantee the collection, transport, cleaning and reuse or recycling of the firm’s steel drums.

In January 1992, Dow Corning teamed up with a large manufacturer of steel drums, Van Leer Containers, to establish the Dow Corning Steel Drum Recycling Program. The program utilizes a network of about 15 reconditioning firms located throughout the United States, all of which are audited annually by Van Leer or Dow Corning. The tens of thousands of steel drums (all of which are 18 gauge, i.e., 1.2 mm, steel throughout) shipped annually by the firm are collected by a participating reconditioner. The drums, which must be RCRA-empty prior to collection (i.e., "drip dry), are then cleaned, refurbished as needed, painted, tested and reused. Drums that are not capable of being reused are cleaned, crushed and recycled into new steel products.

According to Mr. Honerkamp, the program has been extremely successful. It diverts drums from landfills, thus avoiding solid waste problems; conserves substantial amounts of energy and natural resources by using containers that are capable of making multiple trips prior to recycling; reduces potential environmental liability for the company by insuring that all of the firm’s silicon drums are handled by reliable reconditioning companies; and, raises considerably customer satisfaction by guaranteeing that emptied industrial containers are handled efficiently.

Most importantly, the program saves money for Dow Corning and its customers. Firms can specify a single drum design type, new or reconditioned, which is commonly available in the market. Handling and storage problems are, therefore, greatly reduced. Customers share in the savings because they can be certain the drums are collected at little or no cost, and handled in an environmentally sound manner.

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Waste Polystyrene Packaging Collected from California Businesses and Recycled into New Packaging by FP International

FP International (FPI) manufactures polystyrene loosefill (packing peanuts) from 100 percent waste polystyrene. The company purchased polystyrene industrial scrap until 1990 when it designed and installed equipment to recycle expanded polystyrene (EPS) packaging. FPI has two polystyrene recycling operations in California, in Redwood City since 1990 and since 1994, in Los Angeles.

FPI recycles waste polystyrene packaging from California companies such as electronics manufacturers, video rental companies, agri-business and foam drink cup manufacturers. Until 1990, these companies discarded incoming packaging and cup rejects.

FPI started its recycling by contacting electronic manufacturers in nearby Silicon Valley asking for clean, source-separated EPS packaging waste. At first there was strong resistance from the Silicon Valley companies to source-separating the EPS, but after analyzing the potential savings from reduced garbage hauling and dumpster costs, many companies agreed. FPI arranged to pick up the EPS in their empty trucks returning from product deliveries.

One high tech company saved over $80,000 a year by source-separating their EPS packaging and giving it to FPI. FPI does not pay for EPS delivered to its plants. FPI assists with logistics and picks up full truckloads (over 1,200 pounds) of EPS at no charge and charges a nominal fee for partial truckloads.

At its two California facilities, FPI annually recycles about four million pounds of EPS packaging, material that used to go into state landfills. The volume of EPS kept out of the state’s landfills would fill a football field, goal post to goal post, over 200 feet deep.

FPI uses the recycled polystyrene to make its FLO-PAK® loosefill packaging products. FPI’s loosefill is manufactured from 100 percent waste, approximately 40 percent recycled post-consumer material and 60 percent industrial scrap.

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International Food Container Organization (IFCO)

IFCO is the leading manufacture/service company for returnable/reusable packaging for Produce shipments worldwide. In addition to Landfill savings, the IFCO Fresh Produce Packaging System generates an 11 percent* system savings versus cardboard packaging when measuring labor, energy, damage, storage and transportation at the grower, retailer distribution center and at store level.

California Supermarket Industry Statistics

• 1911 major supermarkets**
• $13,273 per store, per year cost for trash collection at major supermarkets
• Produce departments are 75 percent of total trash collection/per store, avg. amount $9,955
• Major items being taken to landfill from produce departments include: spoiled produce, trimmings, wood, plastic, foam, waxed corrugated cardboard
• 149 million cases of produce are received by major supermarkets each year
• Per case expense is 12.77 cents

By using the IFCO returnable/reusable packaging for produce, shipments could generate the following savings in landfill costs versus current .1277 per case expense:

Savings	Per Case Savings	Annual Industry Savings	Annual Savings Per Store
15%	1.9 cents	$2,831,000	$1,481
20%	2.6 cents	$3,874,000	$2,027
25%	3.2 cents	$4,768,000	$2,495
30%	3.8 cents	$5,662,000	$2,963
35%	4.5 cents	$6,705,000	$3,509

*Cost Benefit analysis from growers and retailers in Europe, South America and the United States.

**Albertsons, Hughes, Lucky Stores, Raleys, Ralphs, Safeway, SaveMart, Stater Brothers, and Vons.

All numbers are estimated.

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Case Study: THARCO's 100 percent recycled stock box line

In 1991 THARCO, a manufacturer of corrugated boxes, released a new line of stock boxes designated as the "R" line. At the time, this was the first line of 100 percent recycled boxes in the United States. The boxes have proven successful and have been a great addition to the stock product lines as well as offer alternative recycled packaging to all corrugated box users.

Source Reduction

THARCO's recycled line is manufactured according to the new Edge Crush Test "ECT" standards as established by alternate Rule 41 and Item 222. These standards were set by the Railroad's Uniform Freight Classification (Rule 41) and the trucking industry's National Freight classification (Item222). A positive aspect of the "ECT" specification is that 17 percent less fiber is used to achieve these standards due to advanced paper making techniques.

Recycled Fiber

No virgin fibers are used in the manufacture of the THARCO "R" box line. Originally the fibers used came from post industrial waste as well as post consumer waste. Post industrial waste can be defined as scrap from the paper making process or corrugated converting process. Currently THARCO is using 100 percent post consumer waste to manufacture this line of recycled boxes.

Landfill Reduction

By using 100 percent post consumer waste in the manufacturing of the "R" box line, THARCO is substantially reducing the amount of corrugated and paper contribution to the landfill problem. Also by using 17 percent less fiber in manufacturing boxes to the "ECT" standards, we are creating less waste going to landfills.

Inks

All of the inks used to print our symbols ( box makers certificate, part numbers, etc.) have been recycled from our other machinery and processes. The inks are collected as wash up or left over from other jobs in house and through a recovery process are mixed with extender if necessary and reused as black to print on our recycled line of boxes.

The recycled "R" box has allowed all companies, small or large, to make a choice in what kinds of packaging they use. This now gives an opportunity to even the smallest of users to "recycle" and use the "R" stock box line and help reduce landfill growth.

These case studies were submitted by workshop participants. The identification of individuals, companies, and products does not constitute endorsement by the Integrated Waste Management Board and is provided for informational purposes only. This information is distributed in an effort to increase public awareness and knowledge about these important topics.