Packaging Waste Reduction

Workshop Notes: Panel Discussion

This panel discussion shows the complexity of choosing the right system to package and distribute a product. The panel represented the diversity of stakeholders in shipping and distribution systems: product manufacturers, packaging manufacturers (both paper and plastic), retailers, transporters, and recycling/garbage haulers.

Each panelist received a hypothetical problem in advance of the workshop (see Box 1 at the end of this section). Steve Jones played the role of a new, small manufacturer with a new product. He plans on shipping it in a box, by truck, and needs help determining the best way to package, ship, and distribute his product. The panel of experts and audience participants offered advice. Below are key themes from this discussion.

Panelists: Terry Bedell, Clorox; Jim Nolan, Fiber Box Association; Ron Perkins, American Plastics Council; Kathleen Tschogl, Raley's; Bob Hanelt, American Consolidation Services; Evan Edgar, California Resource Recovery Council.

Below are questions, comments, and suggestions that came from panelists and members of the audience. These are in a format so you can see various perspectives.

I. Start off with a solid business plan that integrates the design of the package, design of the product, and marketing. Consider each link in the supply chain and how you can effectively meet the challenges presented at each stage.

Questions identified by product manufacturer:

1. How can the package add value? Can it perform marketing? Enhance the way the product is used?
2. How does it break? No doubt, people will treat the product rudely.
3. Can the product carry some compression to withstand stress from handling and stacking?
4. Can we change the dimensions?
5. What can you afford to spend? You want to spend less than the cost of the product.
6. Can you reconfigure your box so more will fit on a standard pallet? For example, a box size of 20"x24" or 16"x20" will fit on a standard pallet.

Questions and suggestions identified by packaging manufacturers:

1. Look for opportunities to source reduce at the design stage.
2. Develop a marketing strategy in the early stages.
3. How can the container be used in marketing? A box, with color images, can be very important for marketing.
4. Is it possible to create a permanent display space at store and then just have the display case without packaging?
5. What are your competitors doing?
6. Have the product tested. Hook up with a national association to get endorsement of the product.
7. If weight is not an issue, is a box even needed?
8. Will a combination of materials best meet your needs?
9. Could the item go in a reusable container?
10. Could it be shrink wrapped?
11. Do you need instructions for consumers?
12. Does the product have hazardous materials? If so, labeling is an issue.
13. Do you need a floor display?
14. What equipment is needed? Will you have hand or machine boxing?
15. What is the delivery time and process?
16. Is storage needed?
17. Can warehousing be reduced or eliminated?
18. Is the product safe? Consumers like products in sealed containers.
19. Does the container meet the needs of Superstores? They are changing the way packaging is done.
20. How will the product be repaired? Will consumers send the product to a parts distribution center for repairs?
21. Do you need to redesign the product or package?
22. It might be possible that, by reconfiguring the box to open on the side with a smaller surface area, there could be a twenty percent material savings.
23. Packaging, shipping and warehousing arrangements are best evaluated early in the product design phase so that overall costs can be minimized.
24. The package must be designed to accommodate all potential modes of transportation.
25. The package must be pre-tested to determine the amount of cushion and dunnage needed to protect the product.

Questions identified by logistics professionals:

1. Where are the consolidation points?
2. What inventory control will be used? Buyers need a continuous supply. They need to have the right package at the right place at the right time.
3. Should the product be manufactured in the USA or abroad? Consider the costs of manufacturing the product in Asia versus the US along with the changes in packaging costs. In Asia, the manufacturing is cheaper but the packaging is more expensive. Ocean transport is relatively expensive and a tough environment, consequently, more packaging is needed.

Concerns identified by a grocery retailer:

1. What labor is needed to get the product on the shelf? We want to get it there without too much trouble.
2. Can the package fall off the shelf and look OK?
3. Is the container reusable or recyclable?
4. Can the package use less shelf space? Buyers are starting to look at packaging reduction in terms of shelf space. Keep in mind you must also sell to user, not just retailer.
5. Does the container give consumers an good environmental choice? For example, can the packaging serve another purpose such as reusable storage box. Consumers want an environmental choice.

Questions identified by recycling and garbage haulers:

1. Is the container recyclable?
2. Is there a market for the material? Shrink wrap and foam do not move well in the secondary material markets. It is better to use materials with recycling markets.

II.  A lot of information is available, one just needs to know where to look.

Suggestions:

1. Contact the Institute of Packaging Professional for names of packaging engineers to consult. This person should work with marketing. You could also convene a meeting with a group of key people from product design, packaging design, logistics, and marketing to find the most efficient product/packaging/distribution system.
2. Packaging and product designers can contact recycling agencies and organization for information about recycling markets. Examples include the California Integrated Waste Management Board, Market Analysis Section; California Resource Recovery Association; and Northern California Recovery Association.
3. Check the internet for Web sites of packaging material trade associations.
4. Check the Yellow Pages.
5. Check with libraries.

III. Competition between packaging manufacturers leads to efficient and minimal use of material and consequently, waste minimization. The competitive market drives success because doing more for less increases sales. Consequently, we do not need regulations. We could, however, do a better job of providing information to smaller firms.

---

Box 1: Situation presented to panel by Steven R. Jones

• I am the manufacturer of a new, superior product that will compete with two similar products for market share.
• I have personally designed this product which contains 6 parts.
• I have set up two service centers for repairs.
• I have not looked into packaging, shipping, and warehousing costs yet.
• I'm new at this manufacturing business. I have a great product that, if priced right, it will make everyone an incredible amount of money. In order to get my product to market, I will need to put it in a box and get it on a truck. No big deal! I can do that next week.
• Oh yeah, I need to look into replacement parts.

Product Facts

• Market size: 20 million households.
• Product dimensions: 29"x28"x16" high
• Product weight: 31 pounds.
• Cost to produce: $32

Next Week: (in a conversation between a local packaging company and myself)

• "What kind of box do you have that this product will fit in?"
• "How much will it cost me?
• "Will this box protect my product?"
• "Why should I do business with your packaging company?"

Later that Same Day: (in a conversation between a trucking company and myself)

• "What kind of freight rate will you offer my company to move our boxed product to the 15 western states?"
• "I don't know the dimensions yet, but the packaging company is finding a box for us."
• "Why do the dimensions of the box matter to you?"
• "How would you ensure that our freight is not damaged while it's in your care?

---

These notes are from the workshop titled "Saving Money and Improving Efficiency of Packaging in Distribution Systems" held on October 9, 1997 at San Jose State University. This document is a compilation of notes taken by several different people, such as student volunteers and CIWMB staff, who attended the workshop.

These notes are not intended to be direct quotes. Participating panelists were given the opportunity to review these notes for clarification. The identification of individuals, companies, and products in this document does not constitute endorsement by the Integrated Waste Management Board and is provided for informational purposes only.

Return to Workshop Notes