Packaging in the Automobile Industry Gunilla Jönson e-mail: gunilla.jonson@plog.lth.se

1. Packaging in the Automobile IndustryGunilla Jönsone-mail: gunilla.jonson@plog.lth.se Experience LTH! – www.lth.se – www.plog.lth.se

2. Hypothesis…. “Packaging and Logistics contribute to a sustainable society when there is an integration of product/packaging development and supply chain management in economic, technical and environmental life cycle perspectives” Experience LTH! – www.lth.se – www.plog.lth.se

3. Packaging, logistics and sustainability Some perspectives Source: Tetra Pak Experience LTH! – www.lth.se – www.plog.lth.se

4. Environmentally driven logistics The possibilities are to be found in three areas • external transports • internal material handling systems and • packaging systems The transfer of freight transport systems to better sustainability must actually include actions in all areas Experience LTH! – www.lth.se – www.plog.lth.se

5. and even better is to take one step further ….. To minimise carbon foot prints and provide sustainable goods transport systems • it is necessary to analyse which packaging to use both from an environmental and an economic point of view Experience LTH! – www.lth.se – www.plog.lth.se

6. Convenience Simplicity Flexibiilty Safety Speed Higher price and added value Low price and good enough Sustainability Service Increased complexity needs to be addressed Demands Technology insight Societalinsight Societalinsight Technology insight Do not get caught in the middle!!! Higher price and added value Degree of need Source: B Järrehult, LTH

7. and integrate where possible Source: C Bramklev, LTH Experience LTH! – www.lth.se – www.plog.lth.se

8. as it happens at the intersections Societal Insight Technology Insight Source: B Järrehult. LTH 8 Experience LTH! – www.lth.se – www.plog.lth.se

9. We know that IKEA does it.. Old New Source: IKEA Experience LTH! – www.lth.se – www.plog.lth.se

10. We know that Tesco does it Source: D. Smith, DLG Logistics, UK Experience LTH! – www.lth.se – www.plog.lth.se

11. They consider product/packaging/logistics….. One recent study shows that a company that purchased • packaging and packaging materials for 100 MSEK • influenced in-bound and production logistics costs to an amount of 1,500 MSEK (actually 15 times the packaging and packaging material cost) • still excluding external environmental impact and costs Experience LTH! – www.lth.se – www.plog.lth.se

12. Innovation Renewable energy GHG/CO2 per ton 5% 5% 15% Recovery value 10% Material value 15% Recycled content 10% Transportation Product/package ratio 10% 15% Cube utilisation 15% Another example: Packaging score card Source: Wal Mart Experience LTH! – www.lth.se – www.plog.lth.se

13. Laws and regulations Source: Vistrand and Willart, LU Experience LTH! – www.lth.se – www.plog.lth.se

14. And to add to this…… • Wrong packaging • generates damaged products during transport • affects the level of environmental impact of the freight transport system. • Right packaging • may deliver undamaged products to the customer with high utilization of freight transport volume • aids in the accomplishment of better sustainability for freight transports. Experience LTH! – www.lth.se – www.plog.lth.se

15. One way or reusable packaging • We will develop, test and implement economic/environmental model/s that make it possible to evaluate the lowest possible foot print using one way alternatively returnable packaging • Together with Volvo Logistics, Schenker and VINNOVA Experience LTH! – www.lth.se – www.plog.lth.se

16. Including…. • The interfaces between returnable and one-way must be developed considering factors involved in making choice-decisions concerning issues like • stable development, • available alternatives, • economy including all logistic costs, • economy vs. environment, • attitudes etc. Experience LTH! – www.lth.se – www.plog.lth.se

17. Why models… There is a recognition that it is only through presentations of cases and benchmarking it is possible to aid industry in the transfer of goods transports towards sustainability Experience LTH! – www.lth.se – www.plog.lth.se

18. no studies have been found........... • comparing one way and returnable transport packaging and when to use them Experience LTH! – www.lth.se – www.plog.lth.se

19. Is it myth or reality?.... • Returnable packaging systems generate • an increased packaging weight because the package must be more robust to stand the handling. • transports of empty packages that are returned Experience LTH! – www.lth.se – www.plog.lth.se

20. While… • One-way packages generate • transports from production of packages to the facility where they are used and • transports of waste packaging material for recycling. • designs that may influence the transport mode fill rate Experience LTH! – www.lth.se – www.plog.lth.se

21. The answer is….. • that logistics and packaging must be viewed as a totality • and locking attitudes to chosen systems must be removed • Therefore decision support is essential Experience LTH! – www.lth.se – www.plog.lth.se

22. Another perspective: Packaging materials.. Experience LTH! – www.lth.se – www.plog.lth.se

23. Another myth about local production…. A case – fish from North Sea to Sweden • Fishing • Preparation including packaging • Middleman • Store • Household • Transports to store • Transports to home • A CO2 emissions F Ziegler, SIK, 1999 Experience LTH! – www.lth.se – www.plog.lth.se

24. New shopping patterns C Wallin et al, LTH,1999 Experience LTH! – www.lth.se – www.plog.lth.se

25. What drives the development………… • War and natural disasters • That give social changes and relocations • Globalisation • That changes the asics for most people • Competition • Environment, attitudes … • Knowledge • Environment, attitudes • Al Gore • New technology • New laws Experience LTH! – www.lth.se – www.plog.lth.se

26. What/Who drives in reality…………. • Politics • trade, EFTA/EU, farming, building infrastructure, education , taxes… • Social and cultural changes • urbanisation, movements, incomes, immigration, environment, consumer information… • Technology • Innovations such as electricity, micro wave ovens..... • “Prime movers” • Companies or individuals that take the lead … Experience LTH! – www.lth.se – www.plog.lth.se

27. See the totality Sustainable and innovative solutions They grow in dynamic systems that are innovative. Experience LTH! – www.lth.se – www.plog.lth.se

28. Summary • We have evidence • That the hypothesis is correct • But we hope to prove it within three years • So, please, use the packaging as a carrier of change - it pays “Packaging and Logistics contribute to a sustainable society when there is an integration of product/packaging development and supply chain management in economic, technical and environmental life cycle perspectives”