Tees Valley Resource Efficiency Club Half Day Workshop Packaging

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Tees Valley Resource Efficiency Club Half
Day Workshop Packaging
Andy Rogers Principal Consultant Atkins
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Domestics

• Toilets
• Fire escapes/exits
• Fire alarm test?
• Breaks tea/coffee
• Lunch

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Agenda

• Introductions
• Packaging
• Update on Resource Efficiency Club
• Any Other Business
• Fire Brigade Headquarters - Tour

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Introductions

• 1 minute Introductions
• Who are you?
• What do you do?
• Organisation and industry sector

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Packaging
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Definitions

• What is Packaging?

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Definitions

• Packaging may be involved at each stage of a
  process, from raw materials to processed goods.
  In common usage, the term is used to describe
  materials that contain and/or protect goods, help
  with handling and delivery, and identify
  products. A wide range of materials is used,
  including paper, cardboard, plastics, glass,
  metals, wood, ceramics and fabrics.

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Definitions

• There are three main categories of packaging
• Primary (sales) packaging around a product at the
  point of purchase by the user/consumer, e.g., a
  bottle, plastic bag or a band around a magazine
• Secondary (grouped) packaging, which groups a
  number of items together until the point of sale,
  e.g., a box or strapping around a number of items
• Tertiary (transport) packaging, which allows
  handling and transport of a number of grouped
  items as a unit, e.g., a pallet, banding or
  shrink wrap

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Definitions

• What is packaging waste?

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Definitions

• Packaging waste can be considered as waste
  arising from two main sources
• New packaging can be considered as being wasted
  if excessive packaging is used to secure,
  transfer, contain or market the product. For
  example, a double thickness of shrink-wrap, where
  one would have adequately contained the product,
  is waste
• Packaging that enters your business, is removed
  from the goods, and is then disposed of is waste
  and will incur a disposal cost. This can include
  packaging products that do not meet the
  appropriate specifications, excess transit
  packaging, or materials damaged in transit

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Packaging Waste Costs

• When looking for opportunities to reduce
  packaging waste costs, it is important to
  recognise the true cost of the waste
• Which consists of ........?
• Disposal costs
• Raw Material costs
• Processing costs
• Handling costs

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Why you should reduce packaging

• Seven good reasons
• Lower packaging costs higher profits good
  business sense
• Waste minimisation benefits you and the
  environment
• Minimising packaging waste at source helps to
  minimise the costs at source
• Companies rarely add up how much packaging and
  its associated waste is costing them
• Any elimination or re-use of packaging will
  reduce costs and obligations
• Packaging management provides wider benefits
• Time spent on packaging management is never wasted

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Why you should reduce packaging

• 1. Lower packaging costs higher profits good
  business sense
• True even for companies that have legal
  obligations for the packaging they handle
• Careful management of packaging use saves money
  and increases profit
• Example
• H R Johnson Tiles Ltd
• reduced its level of packaging through redesign
  and increased automation of its processes
• cost savings of approximately 250 000/year
• Reduced packaging use (140 tonnes/year cardboard
  and 17 tonnes/year plastic)
• Reduced landfill disposal

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Why you should reduce packaging

• 2. Waste minimisation benefits you and the
  environment
• Significant savings, as much as 1 of turnover,
  can be achieved through the introduction of a
  well-structured waste minimisation programme
• Rethinking your use of packaging is a good
  starting point
• Simple, low-cost changes are likely to yield
  substantial savings
• Dramatic reductions in your waste disposal levels
• Example
• Atmel Smart Card ICs Ltd
• Packaging waste reduction of 2.4 tonnes/year to
  landfill
• Packaging purchase cost savings of over
  3,500/year
• A 60 reduction in waste disposal costs saving
  5,000/year

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Why you should reduce packaging

• 3. Minimising packaging waste at source helps to
  minimise the costs at source
• Bear in mind the waste hierarchy as a focus for
  considering your options
• eliminate packaging waste at source
• reduce waste
• re-use it, i.e., use the packaging again in the
  same form as originally, so no costly
  re-processing
• recycle packaging waste outside your
  organisation, e.g., as shredded paper for animal
  bedding (dont forget incineration with energy
  recovery as an option)
• disposal ranks as the lowest option in the waste
  hierarchy - the last resort

Examples ....?
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Why you should reduce packaging

• 4. Companies rarely add up how much packaging and
  its associated waste is costing them
• If you are to reduce your packaging costs, you
  need a thorough understanding of the source of
  all costs relating to the production, use and
  disposal of packaging materials
• Many of these costs will be hidden
• material costs
• labour
• waste storage
• waste disposal
• compliance with legislation
• customer/supplier requirements

Ingredient packaging product packaging
process packaging transit packaging cost of
waste more than I thought........!!!
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Why you should reduce packaging

• 5. Any elimination or re-use of packaging will
  reduce costs and obligations
• Legislative pressure has been a key driver for
  addressing packaging use and waste
• Cutting the quantity of packaging used will
  reduce your companys obligations and cut the
  cost of compliance
• Example
• J Sainsbury plc
• Reduced obligation under the Packaging Waste
  Regulations (More later
  ................)
• Reduction in packaging waste to the consumer
• Net savings of 160 tonnes/year of packaging

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Why you should reduce packaging

• 6. Packaging management provides wider benefits
• Companies that optimise their packaging use save
  money
• direct packaging costs
• reduced product damage
• reduced waste disposal costs
• increased efficiency
• lower transport costs
• Other benefits
• improved company image
• contribution to compliance with legislation

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Why you should reduce packaging

• 7. Time spent on packaging management is never
  wasted
• An existing system can nearly always be improved
• Changes to packaging can significantly reduce
  material costs
• Changes to packaging can help to minimise
  component and product damage
• Example
• Nestlé Rowntree (confectionery division of
  Nestlé UK)
• Reduced polypropylene use by 100 tonnes/year
• Two-year payback period on new wrapping machine
• Eliminated one layer of packaging
• Reduced packaging disposal to landfill
• Reduced packaging and landfill costs

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Why you should reduce packaging

• Keep in mind what reduced packaging usage can do
  for your profits
• Waste minimisation savings
• Packaging Costs
• Profit per unit
• Example
• IBM
• Cost savings of 450 000/year
• 200 tonnes/year of plastics eliminated from the
  waste stream
• Other measures involving re-usable packaging
  brought total cost savings to over 2 million/year

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Legislation

• Weve mentioned obligations a couple of times
  .......
• The Packaging Waste Regulations
• The Producer Responsibility Obligations
  (Packaging Waste) Regulations 1997 (as amended)
• The Packaging (Essential Requirements)
  Regulations 1998
• Food Packaging Regulations
• Food Safety Act 1990
• Materials and Articles in Contact with Food
  Regulations 1987 (amended 1994)
• Plastic Materials and Articles in Contact with
  Food Regulations 1998 (amended 2000)
• The Control Of Hazardous Substances (usually
  COSHH)

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Legislation

• The Producer Responsibility Obligations
  (Packaging Waste) Regulations 1997 (as amended)
• The Regulations (PROR) require obligated
  companies to arrange for the recycling and/or
  energy recovery from an amount of packaging waste
  (by weight) in proportion to the amount of the
  packaging that they pass on down the supply chain
• The obligation is dependent on the amount of
  obligated packaging handled and the particular
  activity, e.g.,
• raw material manufacturer 6
• converter 9
• packer/filler 37
• seller/final retailer 48)

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Legislation

• Obligated companies are defined as those that
• produce raw materials, convert materials into
  packaging, fill packaging, sell packaging
  (indirectly as transit packaging or as a retailer
  of packaged goods) or import packaging and/or
  packaging materials
• AND
• own the packaging on which these activities are
  carried out
• AND
• supply to another stage in the packaging chain or
  to the final user
• AND
• have a UK turnover of at least 2 million
• AND
• handle at least 50 tonnes of packaging per year,
  including packaging around imports but excluding
  export packaging and packaging that has been
  previously used

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Legislation

• These companies are required to register with
  the Environment Agency in England and Wales, or
  the Scottish Environment Protection Agency (SEPA)
  in Scotland, or the Environment and Heritage
  Service in Northern Ireland. Alternatively, they
  may register with a compliance scheme and provide
  evidence that they are meeting their obligations,
  generally by obtaining Packaging Waste Recovery
  Notes (PRNs)

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Legislation

• The Packaging (Essential Requirements)
  Regulations 1998
• The Packaging (Essential Requirements)
  Regulations 1998 are, in effect, the UKs first
  eco-design regulations
• Design for the environment, or eco-design, can be
  defined as
• The incorporation of environmental
  considerations into product and packaging design
  so as to reduce overall life-cycle impacts whilst
  maintaining or improving performance and value
  for money.
• Like PROR, which they complement, their basis is
  the EU Packaging and Packaging Waste Directive of
  1994

Example the average weight of glass containers
has been reduced by about 30 since 1980
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Legislation

• Their requirements are as follows
• packaging must be so manufactured that the
  packaging volume and weight be limited to the
  minimum adequate amount to maintain the necessary
  level of safety, hygiene and acceptance for the
  packed product and the consumer
• packaging shall be designed, produced and
  commercialised in such a way as to permit its
  re-use or recovery, including recycling, and to
  minimise its impact on the environment when
  packaging waste or residues are disposed
• packaging shall be so manufactured that the
  presence of noxious and other hazardous
  substances and materials as constituents is
  minimised in emissions, ash or leachate when
  packaging or residues are incinerated or
  landfilled
• the content of heavy metals (mercury, lead,
  cadmium and hexavalent chromium combined) shall
  be limited to 100 parts per million from June 2001

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Legislation

• The obligation to fulfil these requirements lies
  with the packer/filler, brand owner, or the
  importer of the packaging, and the regulations
  are enforced by local authority Trading Standards
  Officers.
• BSI/CEN standards have now been developed which
  further explain the requirements.

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Legislation

• Food Safety Act 1990
• Materials and Articles in Contact with Food
  Regulations 1987 (amended 1994)
• Plastic Materials and Articles in Contact with
  Food Regulations 1998 (amended 2000)
• The 1987 Regs apply to all materials and articles
  that (in their finished state) are intended to
  come into contact with food.
• There is a general requirement that
• such material shall be manufactured in such a
  way that in normal or foreseeable conditions of
  use they do not transfer their constituents to
  foods in quantities which could endanger human
  health or bring about an unacceptable change in
  its nature, substance or quality

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Legislation

• The materials covered by these regulations
  include regenerated cellulose film
• Under the Plastic Materials Regulations, a
  material does not meet the standards if
• it is manufactured using a prohibited monomer or
  additive
• residual quantities or Specific Migration Limits
  (SML) are breached
• For example, the SML for vinyl chloride monomer
  (VCM - found in PVC) is 0.01mg per kg of food
• There is no law in the UK that precludes the use
  of recycled material per se in food contact
  applications. There are, in fact, several good
  examples of its use.

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Actions to Reduce Packaging Waste

• This may include redesign

1. Can you eliminate packaging at source?
Yes
No
2. Can you reduce the amount of packaging used?
No
3. Can you re-use any packaging?
No
4. Can you recycle/recover packaging?
No
Calculate the cost of disposal
Implement waste minimisation
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Actions to Reduce Packaging Waste

• Elimination
• Elimination is a form of reduction that tackles
  the root cause of material wastage by removing an
  unnecessary layer or component of packaging. This
  is normally a low-cost option with immediate
  payback.
• Can you alter the product or its primary
  packaging?
• More robust primary packaging can eliminate the
  need for a further level of packaging
• Can you improve handling practices or equipment?
• Automation could reduce damage during packaging
  or in transit

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Actions to Reduce Packaging Waste

• Redesign
• Packaging redesign includes a range of actions
  leading to a variety of results, e.g.,
  elimination of certain materials and a decrease
  in packaging size or weight (leading to increased
  storage space and more efficient transport).
• Are you using the optimum type of packaging?
• e.g., shrink-wrap instead of cardboard cartons
• Are you using the best packaging materials?
• e.g., materials that can be more easily re-used
  or recycled without increasing purchasing costs?
• Could you use a lighter grade of material?
• e.g., could you reduce stretch wrap gauge from 40
  µm to 20 µm?

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Actions to Reduce Packaging Waste

• Redesign, ctd. ....
• Could you improve the structural design of the
  packaging?
• e.g., changing the direction of flutes in
  corrugated containers may make packaging more
  robust and eliminate the need for further
  packaging
• Is packaging of the optimum shape and size, or is
  volume being wasted?
• e.g., use smaller boxes to reduce headspace, thus
  reducing material costs and increasing stacking
  capacity
• Is your packaging too standardised for your
  products?
• Bespoke designs can reduce material costs and
  increase stacking capacity
• Is your packaging too varied for your products?
• Rationalise the number of packaging types

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Actions to Reduce Packaging Waste

• Redesign, ctd. ....
• Are collation trays really necessary?
• Redesign or strengthening of the outer packaging
  layer can remove the need for inner collation
  layers
• Could you use larger denomination packs?
• This may eliminate the need for another level of
  packaging

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Actions to Reduce Packaging Waste

• Reduction
• Prevention at source should be a high priority as
  it can save on material, transport, storage and
  processing costs. Reducing the volume or weight
  of packaging can be easily achieved, e.g., by
  reducing box size or reducing the thickness of a
  particular packaging material.
• Could you use less filler?
• Using a different sized box or a wrap-around
  carton can reduce or eliminate filler materials
• Could you use alternative filler materials?
• e.g., could you use shredded waste paper?
• Are you using tape efficiently?
• Excessive or unnecessary banding on products
  increases your packaging costs and increases
  disposal costs for your customers

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Actions to Reduce Packaging Waste

• Reduction, ctd. ........
• Are pallets really necessary?
• e.g., could you use a different system such as
  tote crates or slip-sheets?
• Are pallets of the optimum design for the
  purpose?
• e.g., evaluate one-trip versus multi-trip pallets
• Are you utilising the pallet area fully?
• e.g., change the size of pallets or change your
  product stacking to reduce transport runs
• Are you using too much stretch-wrap?
• e.g., using layer pads to stabilise the load may
  eliminate the need for stretch-wrap
• Would strapping/banding be more efficient?
• e.g., can packaging be held together with banding
  or strapping, eliminating the need for
  shrink-wrap or stretch-wrap?

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Actions to Reduce Packaging Waste

• Re-use
• Most packaging can be re-used, either within a
  company or by another organisation. The use of
  specifically designed, durable, re-usable
  containers - although expensive to purchase - can
  save costs in the long run. In some cases,
  one-trip packaging may be sturdy enough to be
  used again, for either its original purpose or
  other packaging purposes such as on-site
  transportation.
• Can you re-use packaging in a closed loop system?
• e.g., consider setting up a partnership with your
  suppliers and customers
• Can packaging be re-used in-house or by local
  companies?
• This will reduce the costs associated with
  disposal to landfill

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Actions to Reduce Packaging Waste

• Re-use, ctd. .......
• Could your packaging be multi-purpose?
• e.g., could transit packaging also be used for
  display purposes?
• Is your used packaging segregated at source to
  encourage re-use?
• Segregating waste makes re-use and recycling
  easier
• Does your packaging design or your suppliers
  packaging design inhibit re-use or recycling?
• staples can cause damage when removed and
  composite packaging is hard to recycle
• Can you reduce contamination of packaging to
  facilitate re-use?
• Could you buy used packaging, e.g., refurbished
  pallets?

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Actions to Reduce Packaging Waste

• Re-use, ctd. .......
• Could you sell packaging for re-use instead of
  recycling?
• Waste exchange initiatives are becoming more
  popular
• Could you give away your packaging for re-use?
• This would reduce your waste disposal costs

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Actions to Reduce Packaging Waste

• Recycle
• If re-use is not possible, then sending packaging
  to a specialist waste merchant for recycling may
  be the best solution.
• Could you use more recycled packaging?
• e.g., investigate the costs of recycled cardboard
  packaging, etc.
• Is your packaging designed to make recycling
  easier?
• e.g., use single-material designs
• Is your packaging segregated at source?
• This makes recycling easier
• Can your waste materials be kept unmixed and
  uncontaminated?
• This makes re-use and recycling easier

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Actions to Reduce Packaging Waste

• Recycle, ctd. ....
• Can your waste materials be disposed of more
  cheaply?
• e.g., other companies may have a use for your
  waste materials
• Could you justify an on-site compactor, baler,
  shredder or drum crusher (to reduce the frequency
  of waste collection and associated transport
  costs)?
• If not, could you purchase/operate high value
  equipment jointly with other local companies?

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Actions to Reduce Packaging Waste

• Disposal
• Costs incurred through the landfill tax and
  landfill disposal charges mean that sending your
  packaging waste to landfill can be an expensive
  option. It is also the least favourable option in
  terms of environmental impact. Consequently, it
  should be regarded as a last resort when none of
  the above methods offer a feasible solution.

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Actions to Reduce Packaging Waste

• Packaging Assessment
• With so many different ways of optimising
  packaging, it can be difficult to know where to
  start
• Look closely at how you currently use packaging
  and question why you use the materials and
  methods you do
• This can help you to identify areas where
  effective changes could be made and cost savings
  achieved.

Useful Tool Life Cycle Analysis
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Actions to Reduce Packaging Waste

• Packaging Assessment
• Your current packaging may perform well in terms
  of product presentation, containment, protection
  and/or product identification, but how does it
  fare in terms of cost and environmental impact?
• Rethinking packaging requirements can reduce
  costs and improve environmental performance
  without compromising packaging performance.

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Actions to Reduce Packaging Waste

• Packaging Assessment
• There is no such thing as the best packaging
  material
• When selecting packaging materials, you need to
  consider both fitness for purpose and
  environmental impact
• To help you identify areas where effective
  changes could be made, you need to assess your
  current packaging use.

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Actions to Reduce Packaging Waste

• Packaging Assessment
• Why do you use a certain type of packaging? Is it
  because you always have done or because that
  particular material affords a certain quality,
  e.g., strength or durability?
• Could the same standard of packaging be achieved
  with less material, e.g., by reducing the
  thickness of cardboard or shrink-wrap?
• Could an alternative material produce a more
  environmentally sound option without increasing
  the costs, e.g., choosing material that may be
  re-used or replacing a non-recyclable material
  with a recyclable one.
• Are you using more packaging than your product
  requires? Could you eliminate a layer of
  packaging without compromising product quality?

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Actions to Reduce Packaging Waste

• Packaging Assessment
• We mentioned Fitness for Purpose ......
• protect, contain and preserve the product while
  at the same time allowing efficient
  manufacturing, handling and distribution methods
• provide commercial and consumer information
• present and market the product
• ensure tamper evidence and to facilitate product
  use (ergonomics)
• ensure safe use and handling by consumers

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Actions to Reduce Packaging Waste

• Packaging Assessment - What Next?
• The approach you take to rethinking your
  packaging will
• depend on the nature of your company and the
  amount of time and resources that can be
  allocated to the task.
• Establish Packaging Management Team - key staff
  with direct involvement
• Conduct monitoring and analysis - if you dont
  measure it you cant manage it!
• Investigate Supply Chain Initiatives - what can
  suppliers do?
• Apply Life Cycle Assessment - ultimate fate of
  packaging?

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Actions to Reduce Packaging Waste

• Dont forget the continuous improvement cycle

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Actions to Reduce Packaging Waste

• Packaging Assessment - What Next?
• There are ready-made checklists and assessment
  tools available
• See Envirowise Guides the Further Help slide.
• www.envirowise.gov.uk

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Actions to Reduce Packaging Waste

• Packaging Assessment - Examples
• Cardboard
• Cardboard is a common packaging material and is
  used for boxes and cartons as well as wraparound
  packaging
• Simply lowering the sides of cardboard transit
  trays has saved a pet food company100 000/year.
  Previously, cat food cartons were packed into a
  high-walled cardboard tray. Laboratory
  compression testing and travel trials showed that
  increasing the strength of the carton would allow
  the use of a low-walled tray. This produced a
  considerable reduction in material use and
  significant cost savings.

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Actions to Reduce Packaging Waste

• Packaging Assessment - Examples
• Plastic
• Plastic is used in packaging for a range of
  purposes from outer sleeves, plastic packets and
  trays to re-usable tote boxes.
• The packaging for a perfume gift set originally
  consisted of a cardboard tray, a vacuum formed
  plastic tray moulded to the shape of the perfume
  bottles, and a clear plastic sleeve (made from a
  different type of plastic from the vacuum-formed
  tray). Despite presenting the perfume in an
  attractive layout, the company realised that the
  three different types of packaging were
  unnecessary and could pose problems for
  recycling. The packaging was redesigned and is
  now made from a single type of plastic. The new
  design facilitates recycling without compromising
  product presentation.

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Actions to Reduce Packaging Waste

• Packaging Assessment - Examples
• Filler materials
• Filler materials are used to secure goods in
  their packaging and to prevent damage. A variety
  of materials are used for this purpose, e.g.,
  expanded polystyrene (EPS) blocks or beads,
  crumpled or shredded paper, and plastic airbags.
• An electronics company near Manchester replaced
  its polystyrene bead product packaging with
  crushed paper. The company now purchases rolls of
  inexpensive recycled paper, which are crushed
  into a concertina ruffle by a small dedicated
  machine. The machine cost a few thousand pounds,
  but the savings in material costs resulted in a
  payback period of only seven months. In addition,
  the paper ruffle is able to withstand several
  trips.

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Actions to Reduce Packaging Waste

• Packaging Assessment - Examples
• Wrapping materials
• Wrapping materials such as shrink-wrap and
  stretch-wrap are used to group a number of
  products together.
• A major healthcare retailer carried out a review
  of collation shrink-film packaging. Associated
  trials of different grades of material resulted
  in a reduction in film thickness of about 22
  with no adverse effect on either product or pack
  handling properties. Use of a more lightweight
  shrink-film reduced consumption by around 24
  tonnes/year, with an associated cost saving of
  some 27 000/year.

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Conclusions

• It is possible to significantly reduce your
  packaging costs and cut your waste levels by
  implementing relatively simple measures, many
  with low or no associated cost
• Taking action today could give you the edge over
  your competitors
• You can nearly always improve an existing system
• The cost of implementing any packaging changes
  that reduce packaging use and waste is likely to
  pay you back many times over

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Conclusions

• Taking action to improve your packaging
  management will help you to
• increase overall profitability
• increase staff awareness of environmental and
  cost-saving issues
• develop closer relationships with suppliers and
  customers through shared benefits and cost
  savings
• reduce your use of finite resources
• reduce the volume of waste going to landfill
• reduce the chance of product damage
• enhance environmental performance
• promote a better company image
• meet current or future obligations under the
  packaging waste regulations, at the least
  possible cost

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Further Help

• Envirowise Guides www.envirowise.gov.uk
• EN250 Unpack those hidden savings 120 Tips on
  reducing packaging use and costs
• GG411 Packaging reduction saves money industry
  examples
• GG360 Packaging Design For The Environment
  Reducing Costs And Quantities
• CS723 Packaging Re-use Secures Cost Savings And
  Environmental Benefits
• CS435 Packaging Redesign Unwraps Opportunities
  For Cost Savings
• CS436 Wine Company Reduces Packaging And Tastes
  Success

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Update on Resource Efficiency Club
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Update on Resource Efficiency Club

• DEFRA has significantly reduced the Envirowise
  budget for 2008 - 2009
• Strategic decision on allocation of funds and how
  they should be used for the future support of
  business
• No reflection on past performance and the
  significant resource efficiency achievements of
  RECs
• Envirowise is therefore regrettably unable to
  continue funding of RECs in England
• Funding for remaining TVREC programme has already
  been received by the Environment Agency

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Update on Resource Efficiency Club

• Final Workshop programmed for Tuesday 3 June
• Waste Management
• Volunteer Host?
• Then what?
• Initiate discussion within the Club
• How best to utilise remaining funding?
• Alternative sources of funding?
• What would Club Members like to do?
• Thoughts and/or proposals for discussion at the
  next Workshop

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Any Other Business
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Contact Details

• Andy Rogers
• Principal Consultant
• 01332 225740/ 07803 260767
• Andy.Rogers_at_atkinsglobal.com