In recent years, there has been a move towards light-weighting and right-weighting packaging in the FMCG sector. Driven by sustainability and cost, some manufacturers have managed to more than half the weight of the packaging keeping their products safe. However, this light-weighting frenzy is having some unforeseen effects.
Reducing the amount of packaging used across all sectors can bring significant environmental, supply chain and financial benefits. Indeed, the Courtauld Commitment in the UK – a voluntary agreement towards resource efficiency in the retail sector – has seen significant reductions on both supply chain and packaging waste over recent years.
Of course, supply chains have been designed to ensure that journeys are optimised, road miles are reduced and transport equipment is as sustainable as possible. Indeed, LPR was the first pallet pool operator to ensure all of its timber was PEFC accredited, meaning it all came from a responsible source.
However, the light-weighting of sales packaging and the focus on packaging that can then be immediately displayed on shop shelves, although delivering benefits to both manufacturer and retailer, is ultimately testing how well that packaging stays together.
As an example, fragile products in paper-based packaging must be kept away from moisture and potential sources of contamination, as well as pressure and the weight of other products. To this end, the boxes have historically been relatively sturdy, while the secondary packaging has been designed to prevent crushing and moisture ingress.
The move in recent years to ensure that more of the primary packaging is recycled and recyclable, while reducing its overall weight and ensuring that it looks attractive, means that greater stress is put onto the transport packaging, such as a pallet, to ensure that the goods arrive in-store intact.
It is important to realise that you can only go so far in limiting packaging before the product is exposed to the elements. If the sole protection for a product comes from the pallet and its shrink-wrap then, what was a simple element, ceases to be so.
While primary packaging costs may be reduced through light-weighting innovations, the overall cost of shipping the product could go up. There is a business balancing act to be done here, ensuring that both the integrity of the packaging and the risk of potential wastage are considered.
It is up to all parties within the industry to work together to ensure that all parts of the packaging are optimised so that the goods reach store in the best possible condition and with minimum cost and environmental impact.
The humble pallet is still the best way of transporting most FMCG goods, but it needs to be used effectively in conjunction with all other components.
About the author
Jane Gorick has worked in the logistics supply chain for more than 25 years in a number of different roles, currently as managing director of LPR UK.
Her career started with a leading pallet business where she quickly climbed the ladder from field service representative to business development manager. She then moved to a competitor as general manager and formulated a strategy to develop and launch a new ’equipment pooling’ business, before joining LPR in 2003.
One of the major pallet-pooling operators for the fast moving consumer goods (FMCG) manufacturing sector, LPR has more than 100 depots and handles more than 50 million pallet movements a year across Europe.
