packaging and logistic: a plea for a global view on the ... · colfridis offers specialized...

Packaging and logistic: A plea for a global view on the supply chain

LogPack project reveals great savings potential in

logistics and packaging. The LogPack project of the

Flemish Institute for Logistics (Vlaams Instituut voor

de Logistiek, VIL) mapped the supply chain of ten

Flemish companies and discovered that there is a con-

siderable savings potential. “In order to realize this

potential however, companies need to re-gain insight

into their entire supply chain. Optimization projects

can only be successful if their impact on the next steps

in the process is taken into account” , states Peter

Lagey, Project Officer at VIL.

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“What struck us very strongly is that most optimization efforts are restricted to a sublevel of the supply chain” , observes Peter Lagey. “Each department optimizes its own activities – the activities over which it has direct control or for which it has a profit and loss responsibility – but without taking into account the next step in the process. That is certainly the case when this next step takes place at another company, as often happens in today’s industry. This leads to optimization projects that deliver fewer results than

expected or even work in a counterproductive manner. What is good for transportation is not necessarily good for the warehouse and vice versa. And what seems to be efficient for the supplier may result in additional costs to the client. This kind of thinking leads to an accumulation of inefficiencies and costs throughout the supply chain. Companies would do well to take a step back and re-gain insight into the entire supply chain” .

“Companies also think too little about the consequences of product damage due to poor packaging” , notes Karel Gemmeke of VAL-I-PAC. “Protection of products – both during storage and during transport – is one of the primary functions of packaging. Companies that only look at this phenomenon from the product loss side, are bound to take the wrong decisions. There is much more at stake. There is not only the product cost, but also the environmental cost, the cost of the waste, return costs, and so on. These costs are seldom adequately taken into account. Moreover, there is a cost that simply cannot be quantified – that of dissatis-

fied customers and damage to the reputation of the company” .“This again suggests that logistics should not be an isolated ac-tivity within companies” , confirms Peter Lagey. “Well-organized logistics can create positive effects on every aspect of a com-pany’s performance – cost reduction, profitability, sustainability, customer satisfaction and brand image. The latter two are less easy to quantify and thus are generally not taken into account when evaluating logistics. In this sense, we believe that logistics should be looked at from a higher level within the organization” .

Gain insight into the entire supply

chain. Take a step back and try to get a clear view of inefficiencies

and unnecessary costs throughout the

supply chain.

Less is not always more. Often it pays to add

packaging at the beginning of the supply chain to avoid product damage at the end

of the ride.

Encourage cooperation and

consultation. Avoid optimizing sub-levels

of the supply chain and work together closely with colleagues, suppliers and

customers.

Lack of insight into the supply chain

Impact on customer satisfaction and brand image

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The LogPack project revealed many optimization opportunities for logistics and packaging. Some of the most

striking results and findings are presented below.

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Packaging in the supply chain: Where are the opportunities for your company?

Reduce the volume of shipments

Increase the load factor of transports

“Reducing the volume of packaging and shipments is nearly al-ways a good thing” , says Peter Lagey. “Transporting empty space makes little sense and only adds transport costs. Reducing the volume reduces the need for packaging and cushioning materials. Moreover, the products are actually better protected, and at the end of the day, there is less waste that needs to be treated. It also pays to analyze all levels of packaging – up until the product level.

Do not limit your approach to just the packaging around the product; there is also the secondary and tertiary packaging to be consid-ered and optimized. Always ensure your efforts are not compro-mised further down the chain. You can get as much empty space out of the packaging as you want to, if the trucks are not loaded optimally in the next stage, your efforts will make little sense and will simply not pay off. ”

“This is undoubtedly a great potential for savings throughout Flem-ish companies” , continues Peter Lagey. “Too many trucks are riding out insufficiently filled. Any optimization in the load factor of trucks leads to an almost linear cost reduction. Obviously, the potential depends in part on the type of product – fresh products cannot

always wait. But for many other products, arrangements can be made with customers regarding the frequency of shipments and deliveries, especially if you can offer financial incentives. Also con-sider the efficiency of the return transport: are there any items you can bring back? Here, too, we see much room for improvement. ”


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Optimize your warehouse for transport efficiency

Assess the impact of packaging on production processes

The way pallets are loaded is crucial for efficient transport. But this often requires the warehouse processes to be reassessed. “In one case, for example, we found that every order from a customer was immediately placed on the pallet as soon as it came in, resulting in much inefficiency. By postponing the loading of the pallet until

the final order is in and the complete shipment is ready to be sent, loading of the pallets can be fully optimized. The result was not only a spectacular decrease in volume, but also more stable and secure pallets” .

It may also be worthwhile to think about the impact packaging can have on production processes. “For example, many elec-tronic components are supplied in an individual packaging” , explains Peter Lagey. “However, this also means they will need to be unpacked for use in the production process further down the chain – a time-consuming and labor-intensive activity. By elimi-nating individual packaging of components and delivering them in trays, for example, considerable labor costs and packaging waste can be avoided” .


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Flemish Institute for Logistics (Vlaams Instituut voor de Logistiek, VIL)

Innovation platform for the logistics sectorThe Flemish Institute for Logistics (Vlaams Instituut voor de Logistiek, VIL) is the innovation platform for the logistics sector. The organization assists the sector in the implementation of sustainable and innovative concepts and technologies and offers financial support and advice. VIL also undertakes collective research projects such as LogPack and connects various players through

networking activities. The aim is to increase the competitiveness of the Flemish logistics sector and ultimately turn Flanders into a sustainable and innovative top region for logistics in Europe. In this sense, VIL contributes to the realization of one of the great ambitions of the Flanders in Action (Vlaanderen in Actie, ViA) program of the Flemish government.

LogPack

Smart and innovative packagingThe Flemish Institute for Logistics (Vlaams Instituut voor de Logistiek, VIL) initiated the LogPack project to determine how Flemish companies can save costs by using smart and innovative packaging. Among the areas investigated were the filling of trucks, the loading of pallets and the influence of packaging on the supply chain.The first phase of the project started in late 2012 and mapped the logistical processes at each of the participating companies, along with optimization opportunities. The findings will be compiled in a

white paper that will help other Flemish companies make the right choices.Participating companies included Colruyt, Daikin Europe, DHL Supply Chain, DuPont, Eurobrokers, Hubo Belgium, Mopal, Renson and Scania. The project was carried out in cooperation with the Belgian Packaging Institute, Katholieke Hogeschool Sint-Lieven (Ghent) and VAL-I-PAC.

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Packaging optimization does not always have to be rocket science

Example Colfridis Case story

Colfridis uses 72 tons of plastic film a year for wrapping goods pallets. “This not only represents a significant cost to the compa-ny – about 200,000 euros on a yearly basis – but also a major en-vironmental burden” , says Hugo Vandermeiren, Facility Manager. “Every kilogram of film causes 3.5 kilograms of CO

2 emissions.

This means there are plenty of good reasons to use the film spar-ingly and look for optimization opportunities” .The first step in the optimization project was a thorough obser-vation of the workplace. “We had to get a good view of the ex-isting packaging processes” , says Hugo Vandermeiren. “We soon realized that a considerable amount of unused film ended up in the trash and that employees lacked a systematic approach in

the packing of pallets. And that we could book great results with some relatively simple interventions. Compared to other efforts that we delivered in the Lean and Green program, such as the installation of solar panels, the investments needed in this case were very modest indeed” .The results came fast. Film consumption has already been re-duced by 15%, representing an annual CO

2 reduction of approx-

imately 38 tons, along with a considerable cost saving for the company. “The project has taught us that packaging optimiza-tion does not necessarily have to be rocket science” , concludes Tom Lokermans. “Sometimes you can achieve outstanding re-sults with modest means and some common sense” .

Minor investments, remarkable results

15% less packaging film with simple measures

Achieve considerable savings with limited investments. That is

the ultimate goal of every company in these difficult economic

times. Logistics company Colfridis proves that it can be done. An

optimization of the packaging processes in its warehouses has

already reduced consumption of plastic film by 15% in just the initial

phase.“ These results did not require large-scale investments or

long-term research and development projects” , emphasizes Finance

Manager Tom Lokermans. “ Rather it was about observing the

workplace, seeing what processes could be improved, and finding

simple, feasible solutions.”

Packaging optimization enables logistic companies to save costs, work more

efficiently and reduce CO

2 emissions.

Start with a thorough observation

of the workspace and find feasible solutions for

practical problems.

An optimization project does not always require

large investments.

The packaging optimization project at Colfridis was partly in-spired by the company’s participation in the Lean and Green pro-gram of the Flemish Institute for Logistics (Vlaams Instituut voor de Logistiek, VIL). “We drew up a plan to reduce CO

2 emissions

from our operations by 20% over a five-year period” , explains Tom Lokermans. “Sustainable transport and reduced use of energy

were obviously the main points of interest in the project, given the nature of our business. However, we quickly noted that there was also room for improvement in our packaging – specifically with the plastic film we use to pack our pallets. The packaging optimization now represents 3% of the total CO

2 reduction we

aim to achieve within the Lean and Green project” .

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Packaging optimization does not always have to be rocket science

Colfridis offers specialized logistics services tailored to the retail sector. The company supplies goods to retail outlets throughout Belgium and provides retailers with a complete service: storage of products, order picking, delivery to the final destination, inventory monitoring and reverse logistics. The company also specializes in the fine distribution of tempera-ture-sensitive products. Due to its central location in Londerzeel, Colfridis can deliver goods to any outlet in Belgium from a single distribution center.

Example Colfridis Case story

ColfridisLogistics expertise for the retail sector

Lean and Green is a program that encourages and supports companies to drastically reduce CO

2 emissions from transport

and logistics activities. The program was launched in 2007 in the Netherlands. The Flemish Institute for Logistics (Vlaams Instituut voor de Logistiek, VIL) is responsible for the rollout of the program in Flanders. Participating companies commit themselves to im-prove their energy efficiency and reduce their CO

2 emissions by

at least 20% over a five-year period.In January 2013, the first twelve companies in Flanders received the

Lean and Green Award. In May 2013 another twenty companies, including Colfridis, followed them. “Care for the environment and cost savings go hand in hand within the Lean and Green program” , says Tom Lokermans, Finance Manager at Colfridis. “Electricity and diesel alone represent a yearly cost of more than 2 million euro for Colfridis. Reducing these costs has a direct and positive effect on our profitability. But Lean and Green is also an added value to our customers, which include almost all of the major retailers in Belgium. They of course attach an increasing importance to sustainability” .

Lean and Green Sustainable solutions, reduced costs, better image

Optimizing your packaging - Step by step

Identify: acknowledge the problem and put it on the agenda

Remediate: think of feasible solutions and provide support

Observe: visit the workplace and see where it goes wrong

“We have always suspected that the quality of our pallet packaging could be better” , says Tom Lokermans. ”But only by quantifying the problem and realizing that our company annually spends about 200,000 euros on plastic films can a business case be made. Suddenly, an optimization project is

higher on the agenda” . The participation in the Lean and Green program further acted as a catalyst. ”Every kilogram of plastic film that we use causes 3.5 kilograms of CO

2 emissions. This

means that optimizing our packaging can also improve our environmental performance” .

Colfridis chose to tackle each one of the three problem areas. “Firstly, the film rolls are now distributed centrally. You can only get a new roll when you return the empty shell of the last one you used. In addition, after each shift employees must return the used rolls. This ensures partially used film rolls are no longer left around the workplace and employees become more conscious of their use. Secondly, we introduced a consistent approach to packing the pallets. We worked out a standard

procedure for manual packing and invested in a number of packing machines. This not only makes the packing of pallets much easier for employees, it also reduces waste to an absolute minimum. Finally, we chose to purchase higher quality film. It is true that it is more expensive than what we used previously, but it has a better ductility so less film is needed to adequately pack the pallets” .

A thorough observation and analysis of the workplace and associated processes immediately made it clear that a huge amount of plastic film was wasted. An initial visit suggested that about a quarter of the hand wrap film was discarded unused. During a second visit, this went up to almost half. The reasons proved quite diverse. ” We noticed immediately that many employees left behind partially used rolls of film all over the workplace. The result was that many of these rolls became damaged and eventually ended up in the trash.

We also saw that many employees prefer to start with a new film roll because it is easier to remove the film from a new roll than from a used one. A second problem lay in a lack of systematic approach in the packing of the pallets. Each employee had their own method. Some employees used considerably more film to pack the pallets than others did. Thirdly, we also observed that the quality of the film plays an important role—the strength and ductility of the film strongly influences consumption” , says Hugo Vandermeiren.

Greener Packaging Award

Packaging deserves our attention


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In each of the four categories – Reduction in weight and volume, Origin of materials, End-of-life and Avoiding product waste – an award goes to an SME and a large company. There are also special prices for students and professional designers.

This year, two companies received the Grand Prize for their sustainable packaging policies: Colruyt (industrial packaging) and Procter & Gamble (household packaging).

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On 18 november 2013, Fost Plus, VAL-I-PAC and Gondola have organized the second edition of the Greener Packaging

Awards. With the awards, they want to reward companies that have delivered exceptional efforts to reduce the

environmental impact of their packaging, whether they be household or industrial packaging. More than 50 packaging

innovations were filed for the 2013 edition.

ALLBOX

Customizable cardboard pallet

ALPRO

Yogurt drink carton

BARK INNOVATIONS

Dosing cap

Nominated Nominated

In this document you will find an overview of all the packaging innovations that were filed, as well as the nominees.A more detailed description can be found in the Greener Packaging Award brochure on the Preventpack website.

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BEFRE

Reusable bag

CARREFOUR BELGIUM PET blister for pastry

CARREFOUR BELGIUM

Film for potato sacks

COLRUYT

Fixed display racks

DELHAIZE

Egg carton

BEL&BO

Reusable bag

CARREFOUR BELGIUM

Film and pot for fresh herbs

DELHAIZE

Bag of mini peppers

DELHAIZE

Hair accessories

CARDIFF

Barrel with double bag system

CARREFOUR BELGIUM

Metal cookie box

COLRUYT

Bag-in-box for wine

DELHAIZE

Range of extra fresh meats

DELHAIZE

Meats in thermoform packaging

Nominated Nominated

Nominated

Nominated

Nominated

CILE SCRL

10-liter water bottles with cardboard support



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ECOLAB

Professional dishwashing product

ETHIQUABLE

Rice box

INTERBERGCO ECOPLAS BENELUX

Reusable bag

LES CADAVRES EXQUIS

Shopping bag

L’OREAL

Tube for cosmetics

EFARMZ

Delivery systems for products of local farmers

FRIESLANDCAMPINA BELGIUM

Milk carton

JAM&RY

Angle brackets

L’OREAL

Bottle for coloring products

L’OREAL

Re-sealable pouch

ESTEE LAUDER COMPANIES-AVEDA

Bottle for body lotion

INNOCAN / PVG LIQUIDS

Jerry can

LABORATOIRES EXPANSCIENCES

Mustela bottles

L’OREAL

Perfume bottle

L’OREAL

Bulk packaging

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Nominated

Nominated

Nominated

Nominated

Nominated Nominated



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L’OREAL

Reusable plastic tray

OVOTHERM

Egg carton

SABERT EUROPE

Disposable plates

THE BODY SHOP

Tube cap

WERNER & MERTZ BENELUX CONSUMER

Flasks for cleaning product

MONALISA

Expandable bottle for beverages

OWENS-ILLINOIS

Wine bottle

SCHÜTZ

Plastic pallet

THE BODY SHOP

Perfume bottle

MOONEN PACKAGING

Tableware for festivals

PROCTER & GAMBLE

Bottle for Mr. Proper

TELENET

Decoder box

TOTAL

Plastic bag for wood pellets

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WANT TO KNOW MORE?

Download the Greener Packaging Award brochure on the Preventpack website to discover more details about all the award-winning packagings or go to www.greenerpackaging.be

Nominated

Nominated

NominatedNominated

Greener Packaging Award5

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Greener Packaging Awards 2013 Grand Prize Industrial Packaging

Logistical nightmare becomes a win-win for all parties involved

Logistical nightmare

From disposable to reusable

“The promo displays of national brand suppliers have always been a problem in our view” , observes Vic De Meester. “They were delivered at our central warehouse by the suppliers, fully stocked with products and ready to bring to the shops. However, logistics did not always proceed smoothly. The size of the displays was always highly variable and did not fit into our standardized pallet

system. As a result, they took up too much space everywhere – in the trucks, in the central warehouse and in our stores. In addition, the loading and unloading of the displays inevitably resulted in wasted time and a considerable degree of product damage. In short, these displays had become a logistical nightmare” .

All of this meant it was high time to rethink the entire system. Colruyt decided to design a new system of standardized displays. They get a permanent place in the store and are filled with products from existing stocks at the store. “Now all suppliers have to do is send us their promotional materials such as placards and markings, and we do the rest” , says Vic De Meester. “The new

system saves substantially on transport and waste. The displays no longer need to be transported, there is no need for secondary and tertiary packaging, and the displays are continuously reused. Thanks to its permanent place in the store, they are also commercially more interesting for the suppliers. It is a win-win for all parties concerned” .

Hassle-free promo displays

Colruyt developed a completely new display system for its suppliers’ promotions. The Group

replaced the one-way displays that were delivered by the suppliers to its central warehouse

with a system of reusable displays that have a permanent place in the store. It is a simple idea,

which not only saves transport and waste, but also proved to be a good commercial move. It also earned Colruyt the Grand

Prize for Industrial Packaging at the 2013 edition of the Greener Packaging Awards.

Do more with less. That summarizes the philosophy of the Colruyt Group. It also perfectly encapsulates the Group’s attitude regarding sustainability. “We intend to achieve our growth with minimal impact on the environment” , states Vic De Meester, environmental coordinator for the Group. “Our economy drive ensures that we use our resources as efficiently as possible. We are both conscious of and frugal with energy and raw materials. We systematically avoid any waste, both in our own operations and in consumers’ homes” .

Function determines everythingOf course, packaging plays an important role in this. “Our packaging policy takes the function of the packaging as its starting point” , emphasizes Vic De Meester. Form does indeed follow function at Colruyt. “However we recognize that the very nature of function is very diverse: optimally protecting and conserving the product, making transportation and consumption

easier for our customers, providing information to consumers, storing and safer stacking in the warehouse, etc. Based on these criteria, we search for the most appropriate packaging material and determine how much packaging is really needed. We always look at the impact over the entire life cycle: production, transport, storage, preservation, consumption and final disposal” .

Annual savings of:• 77 tons of cardboard• 26 tons of plastic• 11,000 km of transport

Colruyt’s new promo displays in figures:

Greener Packaging Award6

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Greener Packaging Awards 2013 Grand Prize Industrial Packaging

New dosing cap avoids over-consumption of concentrated Mr. Proper

Battling over-consumptionOver-consumption is always a big risk with concentrated products, especially for products like Mr. Proper which people have known and used for years. A specially developed dosing cap offers a perfect solution in this case. A single squeeze triggers the release of the exact dose for a bucket of water – and not a drop more. “The dosing cap includes a timer-like mechanism which is activated by squeezing the bottle. Once the correct dose is reached, the liquid is completely shut off in the bottle” , explains Gian De Belder. “During development, we also paid careful attention to the material we used for the cap. It is not only super compact, it is made from a single material, making it fully and more easily recyclable” .

The new Mr. Proper was launched in several markets with great success. “The product perfectly meets the expectations of a growing number of environmentally conscious consumers, without having to pay a premium or sacrificing quality. They also appreciate the new compact look of the bottle, which takes up less space in the cupboard” , adds Gian De Belder.

Not a drop is wasted

The new Mr. Proper is concentrated 2.5 times, enabling substantial savings in transport, water and

packaging. To avoid over-consumption by consumers – a major risk in concentrated products –

Procter & Gamble also developed a new advanced dosing cap. This proved to be a combination

that appealed to the Jury of the 2013 Greener Packaging Awards as the company received the Grand Prize for

Household Packaging.

Touch and improve lives, now and for generations to come. The mission of Procter & Gamble clearly indicates that sustainability is central to the company. But it’s not just words. The mission statement is translated into concrete objectives. For example, the company wants to use 30% renewable energy, consume 20% less energy, produce 20% less CO

2 and reduce transport by 20%, all by 2020. There

are equally clear targets at the level of its products, including the use of 25% renewable materials and 20% less packaging.

Holistic approach“We adopt a holistic approach for our packaging optimization efforts” , stresses Gian De Belder at the Packaging Development (Bottle Blowing Capability) in the Brussels Innovation Center of Procter & Gamble. “Developing lighter weight packaging is a good thing, but is not an end in itself. The new packaging for

Mr. Proper is a good example. By concentrating the product, the plastic flask has become 2.5 times smaller, enabling savings in transportation, materials and water. At the same time, we realized that our efforts would not make a lot of sense if we could not eliminate wastage at the consumer’s home” .

• 2.5 x concentration• 64% less water per bottle• From 78g HDPE to 33g PET per bottle• Dosing cap made of pure polypropylene

rather than a multi material

The new Mr. Proper in figures:Annual savings of:• 50,000 tons of water• 11,000 tons of plastic• 1,125 transport journeys

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