In a Recent Partnership, Chainalytics Provides Packaging Solution to Reduce Frozen Pizza Manufacturer’s Carbon Footprint
While many consumers may not realize it, most manufacturers seek to get their product to their customer base at the lowest cost possible so they can offer shoppers the lowest available price. Manufacturers are constantly looking for ways to lower their costs without affecting the quality and service their customers have come to know. Furthermore, with the need for manufacturers to remain increasingly environmentally conscious, changes in supply chain operations must be carefully evaluated to ensure goals are achieved without increasing carbon emissions. Capitalizing on lowering costs and reducing environmental impacts is a major win, win!
Recently, a major frozen pizza manufacturer sought to reduce their carbon footprint across their overall supply chain network. While this organization wanted to incorporate a larger sustainability strategy, they were having trouble determining where to begin. That’s when they decided to partner with Chainalytics for a value chain assessment that would identify areas where sustainability efforts could see immediate growth and impact, all while adding the benefits of lowered costs.
To begin the project, Chainalytics consultants investigated changes that would have the largest impact on materials, costs, and environmental factors. Upon evaluation of current packaging design, the team determined changes could be made to the primary packaging that would allow for substantial improvements across the entire supply chain. They informed the client stakeholder team that this change would also improve secondary packaging usage, increase storage ability, and reduce wasted space in transportation and handling operations.
Part of the challenge was to incorporate significant changes to the packaging without creating a negative effect on any marketing or operational speeds the organization desired to maintain. Primary packaging must be appealing to consumers, and organizations spend a great deal of time and energy making sure the proper message is conveyed. To alleviate concerns and collaboratively determine a solution, Chainalytics consultants worked closely with the marketing team and demonstrated how the packaging design would be implemented without sacrificing the product message or graphical billboard space.
Furthermore, a large amount of focus and effort was placed on finding the perfect balance point between operational efficiency preservation, maintaining the marketing billboard while maximizing supply chain gains. Upon completion of the data analysis, the team determined this would prove the area that would have an immediate impact across the supply chain. The team employed a “visual indifference” strategy that reduced the amount of space of the carton itself without compromising the marketing components and with little to no consumer awareness. Although there was a minimal change on the size and materials, the warehousing and shipping savings were very substantial.
The final solution implemented included a reduction in carton length and width by a total of .125 inches as well as a reduction in carton depth by .03125 inches. The changes in carton size allowed for 1.4M square footreduction in paperboard, requiring fewer trees to be cut down annually. Additionally, the new package design allowed for a 25% pallet density increase, allowing for more product per pallet while simultaneously reducing storage volume by 721K cubic feet.
The subtle reduction in packaging materials produced an immediate impact across the cost of operations as well as a major step in the organization’s sustainability initiative. The financial results of the aforementioned solutions demonstrated a total cost saving totaling over $600K. However, the greatest impact included a 22% reduction in annual trailer loads and a reduction in diesel usage by 17,300 gallons. This, combined with a decrease in total pallet handling by over 9400 touches, reduced the C02 carbon emissions by 192 total tons.
By partnering with Chainalytics for a value chain assessment, the client successfully implemented a new packaging solution that provided positive improvements across all areas of the supply chain. The experience and expertise of Chainalytics, as well as their collaborative approach, made the project run smoothly and yielded the desired business results.
For more information on how Chainalytics can help with all your packaging challenges, please contact us at Packaging@Chainalytics.com.