Through a special arrangement, presented here for discussion is a summary of a current article from The Journal of Trading Partner Practices (JTPP), the official online publication of the Vendor Compliance Federation (VCF), Trade Promotion Management Associates (TPMA), and the Federation of Credit and Financial Professionals (FCFP).
Whether they buy into the warnings about climate change or dismiss it as a bunch of hot air, trading partners recognize that green initiatives offer a chance to build their brands and drive cost savings. As a result, new strategies aimed at reducing waste and conforming to environmental best practices in packaging are taking root.
At the VCF VisionSync 2009 Conference in Tampa, FL, June Anderson, partner at the Packaging Knowledge Group, said the business case for sustainability was given a major boost from the world's biggest retailer. Walmart is leading the way with its sustainable packaging initiative and its plans to develop eco-ratings for the products it sells, which she said will force other retailers to boost their sustainability efforts. "Walmart will be asking all of you to help it meet its packaging and sustainability goals."
Ms. Anderson said organizations should start by developing their vision and goals around sustainable packaging, gather data and identify key metrics that will help them measure and assess performance. Some of the metrics currently being measured in many organizations include reducing emissions and waste, cutting back on water and electricity consumption, and utilizing alternative resources in making products and packaging.
Ms. Anderson identified six steps to achieving sustainable packaging that makes sound financial sense.
- Eliminate Materials: Optimize the design of packaging that reduces space and eliminates unnecessary materials.
- Change Materials: Utilize virgin materials from renewable sources and design for recycling and re-use.
- Reduce Materials: Use only the amount of material necessary and optimize product design.
- Improve Cube Utilization: Redesign packaging for optimal cube utilization and easier transport.
- Change Energy Sources: Use renewable energy sources for manufacturing and distribution and participate in renewable energy credit programs to drive demand.
- Change the Product: Optimize product design for less packaging need.
Ms. Anderson also cited the case of Nike, which introduced the Nike Trash Talk line of basketball shoes made entirely from manufacturing waste. The upper shoe is pieced from leather and synthetic wastes from the factory floor and the mid-sole uses scrap-ground foam from factory production.
Today, Ms. Anderson noted, materials and converting processes are mostly fossil fuel based, although some cutting edge companies are making the conversion to renewable energy sources. "In the future, you will see more and more companies making the transition," she said. Ms. Anderson cited the examples of wind turbines on top of the exterior lighting at some Walmart stores. In determining carbon footprints, "it is a well known fact that nearly 75 percent of the impact comes from the supply chain and is unreported." Ultimately, many changes in business practices will be required.
Discussion Questions: To what degree do you see any momentum toward sustainable packaging gaining ground in 2010? What will support the trend? Which steps or solutions around sustainable packaging make the most sense for brands and retailers?