November 12, 2013
The Connection Between Packaging and Sustainability
Packsize CEO Hanko Kiessner recently submitted an article to Distribution Business Management Journal (DBMJ) titled “Judge By Its Cover: The Connection Between Packaging and Sustainability.” In it, he argues that the way the world currently does packaging is unsustainable.
Almost every business is currently using corrugated cardboard as the main shipping product. This is a good thing because corrugated is cost-effective, versatile, highly customizable, 100% recyclable, and environmentally friendly. However, as you may know from reading this blog regularly, not having enough box sizes leads to a lot of empty space and a lot of waste in packaging. This is one of the problems that Packsize addresses.
The article talks about three specific companies that use On Demand Packaging® and how they have been able to reduce the amount of waste they have had.
Newegg Vice President of Operations Kunal Thakkar says “Newegg is constantly exploring new cutting-edge technologies within our logistics operations that reduce cost and improve customer satisfaction.” Thakkar continues, “By implementing Packsize’s On Demand Packaging® system, we were able to reduce the cost of cartons, void fill, and freight. Our customers are also happier about receiving perfectly fitted boxes for their products.”
Bongo International also experienced savings from On Demand Packaging®. “With over 160,000 global consumers utilizing our service, we recognized the need to find a more efficient packaging system for international deliveries,” said Bongo International CEO Craig Turnbull. According to Turnbull, the company has seen a 20 to 30 percent savings in packaging costs since implementing Packsize.
Staples has also seen a huge amount of waste reduction. Before partnering with Packsize, the number-one customer complaint they received was excessive packaging in their orders. Since switching to On Demand Packaging®, Staples has seen a large reduction in the number of complaints they’ve received online. As of September 2013, Packsize has been implemented in 70% of Staples’ fulfillment centers. Here are some of the key accomplishments that have happened since Packsize has been implemented:
- Average corrugated usage has dropped 15%
- Air pillow (or void fill) usage has been reduced by 60%
- Staples has had a 50% reduction in storage space for their corrugated inventory
- Once fully implemented, Packsize’s solutions will reduce Staples’ carbon footprint by 25,000 metric tons
And this is all for just one customer. Packsize has the goal of helping the entire world have a sustainable packaging system.