When it comes to Plastic Packaging and Sustainability … are you leading fearlessly?
Successful businesses and business leaders most often achieve their greatest success by leading fearlessly. That’s what’s required if we are to achieve Plastic Packaging Sustainability!
Well-known packaging makers like Bemis, Pactiv, Berry, Dart, Sonoco and others are recognized as leaders in our plastics packaging industry but.. there are many innovative companies all throughout the supply chain from raw material, extrusion, thermoform, etc., that lead fearlessly making significant sustainable impact.
Many businesses in the plastic packaging space are involved in a variety of important sustainability initiatives that are helping to reduce our industries impact on our environment. Generally our plastics industry has lots to be excited about and thankful for!
But… If Plastics leaders intend to “Win The Sustainability Game”, they need more than the current efforts that solve “this problem” and “that problem”. They need to set one huge goal, a goal that’s inherent in their category, that solves a fundamental problem they and their industry competitors all share together, that once solved creates a whole new storyline for our industry, a new industry model everyone can follow, so when they solve it, they can achieve Dramatic Waste Enhancement, New Revenue, and Set their Brand apart in Circular Sustainability conversation.
If you’ve seen the sustainability statements from your favorite companies’ websites lately and checked out their goals and targets, you’ll notice they are all generally about the same. example – By 2020, reduce primary energy by 20%, greenhouse gas emissions by 50%, waste to landfill by 70%, water by 35%, 100% of products Cradle to Cradle Certified™.
All good goals but they will not make enough change in our plastics industry. We need to “design-out” plastic packaging waste!
At GearedforGreen, we help companies throughout the plastic industry to implement circular sustainability and connect innovation with eco supply chains to solve problems together that gain market advantages for our clients.
While there are many pieces of the plastics sustainability puzzle… the biggest piece of all is plastic packaging waste, helping tip plastics disposal rates above 90% in North America. Solving the Plastic Packaging Waste Problem represents the biggest Challenge in our plastics industry and the biggest Opportunity to Win!
As part of our sustainability initiatives at GearedforGreen, we help plastic packaging manufacturers and industry using plastic packaging to recycle their most challenging packaging waste materials. We focus on technology and circular supply chains.
Plastic Packaging that’s coated, layered, laminated, printed, colorized, metalized, etc., are especially challenging to recycle and much of this material, bazillions of pounds, are either unrecyclable, unmarketable, or uneconomically reusable, especially now that China has stopped accepting our plastic waste. The result for manufacturers is increased cost, lost revenue, and increased landfilling.
PET or BOPP or PS sheet laminated with Polyethylene or PVDC, Layered, metallic coated, nylon coated, covered in 75% color & print. These are just a few of the variations and challenges plastic packaging companies deal with that reduce value and prohibit recycling.
Yet the core polymers (thermoplastic) used to make these plastic packaging materials including polyester, polyethylene, polypropylene, polystyrene, etc., are intrinsically valuable, recyclable, and reusable as new raw materials again.. if these surface coatings on plastic packaging were cost effectively removed.
The good news.. now they are!
THE CHALLENGE TO SOLVE THE COATED PLASTIC PACKAGING CONUNDRUM AND TREAT PLASTIC PACKAGING WASTE NOT AS SCRAP BUT AS FUTURE RAW MATERIAL, PRESENTS THE OPPORTUNITY FOR PLASTIC PACKAGING LEADERS THROUGHOUT THE SUPPLY CHAIN TO LEAD FEARLESSLY.
TECHNOLOGY IS ONE PART OF THE EQUATION
To solve the technology issue, GearedforGreen Sustainable Supply Chain uses patented proprietary plastic de-coating technology that enables us to cost effectively remove almost all surface coatings from plastic packaging materials, bringing the materials back to their original clear and white origin, surface coatings removed, without causing additional heat history or polymer degradation. We provide plastic de-coating services including FDA compliancy, on a direct toll basis or circular toll basis connecting clients, receiving millions of pounds of coated challenging plastic packaging materials and returning back these plastics as clean clear raw material, now perfectly suitable to be reused back as sustainable raw material. Our goal is to partner with industry to scale our technologies and increase plastic packaging recycling & reuse throughout North America and globally.
A CONNECTED ECO SUPPLY CHAIN IS THE 2nd PART OF THE EQUATION
Individually we can make valuable strides toward a more sustainable plastics industry but … when we join and connect our efforts together along with our supply chain partners, we increase innovation and reduce cost exponentially. We see a plastics industry connected – with plastic raw material suppliers partnering up circularly and transparently with sheet extruders, thermoformers, packaging manufacturers, and recycling technology providers, all working connected, not only recycling plastic packaging waste but treating it as a valuable raw material stream…
For those individuals and businesses involved in Plastics Packaging, we welcome your collaboration to lead fearlessly and help Make Plastic Packaging Sustainable Together.
By Daniel Schrager, President at GearedforGreen 888-398 (GEAR) 4327 firstname.lastname@example.org, www.gearedforgreen.com
WE ALL KNOW DOING GOOD MAKES US FEELS GOOD. SO IN 2018 LETS ALL DOUBLE OUR EFFORTS TO ACHIEVE “ZERO PLASTICS WASTE” AND SHOW IT… SO WE CAN ALL FEEL GOOD!
Among our GearedforGreen missions is helping clients make and use plastic products more sustainably from inside-out, and show them ways to leverage their sustainability in their markets to build more sustainable purposeful brands, to educate stakeholders, and to share the “feel good” with their employees, customers & supply chain partners. Showing your sustainability matters!
In 2017 our clients made great internal sustainable strides! Some achieving zero plastic waste in their operations ♻ others achieving 100% use of recycled plastic resins as replacements instead of prime virgin materials in their products ♻. This year we had clients participate in new “Social Partnerships” using ocean collected plastic resins in their products ♻ and we had clients optimize & reuse their plastics packaging materials to use less raw material and recover what they wasted. ♻ In 2017 we had clients and supply chain partners connect in closed Loop plastic recycling programs and in GearedforGreen Toll Reuse circular supply chains to reuse their own plastic waste materials back into their own products. ♻ This year our clients implemented end-of-use take-back programs to re-collect, recycle, and repurpose their own plastics products after use in the market, and many of our clients started using sustainable American made industrial products and corporate branded eco apparel and uniforms for their own everyday operations.
Looking back .. In 2017 our clients made a difference!
We hear from clients all the time, how sustainability has added a common purpose & pride shared between their employees and helped strengthen their corporate culture.
People feel good doing good!
We cannot say it enough… “There is a significant difference between internal sustainability in our products, packaging, and operations, versus external sustainability that touches, teaches & inspires our customers and employees”. You can’t preach external sustainability without doing the work internally, but … external sustainability matters a lot if you want to educate & inspire employees and customers and build a more socially purposeful brand.
“We must never underestimate the importance of inspiration”
To help make sustainability more impactful for our clients, to help move the needle with respect to top line revenue and brand value, we focus on helping clients implement programs that share our clients sustainability stories with those that matter most to them, to connect their sustainability efforts from inside-out. “Sharing our Sustainability isn’t about self-promotion… it’s about connecting and creating bonds with people that care and matter”.
It’s been well documented by industry leading brands including Unilever, Proctor and Gamble, and many others … that Communicating your Sustainability helps build stronger bonds between businesses, brands, supply chain partners, and customers, and has a positive impact on sales and revenue.
So in 2018 let’s all double efforts together to connect sustainability from inside-out and SHARE THE ❤♻
By Daniel Schrager, President at GearedforGreen 888-398 (GEAR) 4327, email@example.com, www.gearedforgreen.com
Why China Plastics Ban can lead to greater innovation, investment, and sustainable manufacturing in the USAby gearedforgreen October 23, 2017 ACC cardboard box reuse cardboard boxes Dow eco apparel eco supply chain gearedforgreen packaging plastic raw materials plastic recycling plastic resins Proctor & Gamble recycling social partnerships sustainableshopping
Some see the China plastics ban as a huge problem, others see it more as a long term opportunity. We see the proverbial pet bottle as 1/2 full.
1st came the Green Fence… a warning shot. Now the National Sword. Both cool names btw… kudos to China. The China policies (limiting) imports of plastic scrap materials is having a profound change to the plastics recycling eco system here in the USA and around the world. The question is equally WHY and WHAT NOW?
WHY? – We’ve all heard lots of complaints, confusion, and disagreement to the new China National Sword policy, some related to short notice of these new scrap import restrictions, others related to lack of clarity about what recyclables are banned or allowed and for how long. Truth be told, we all saw it coming or should have because it was kind of … “Wild West”.
Irrespective of the impacts the “Sword” is having on our scrap and recycling markets here in the USA, it seems clear the Chinese government is concerned that (garbage) is being willfully sent to their country disguised as recyclables. An official of the Ministry of Environmental Protection told the press in July that “the problem of foreign garbage is loathed by everyone in China.” And the press reports also indicate that a recent documentary, PLASTIC CHINA, alleging the health and environmental harms of imported plastics for recycling, spurred Chinese officials to take action.
SO WHAT NOW ?- The world is very much a connected marketplace and still represents enormous opportunity to trade recyclables and sustainables on a global basis, but what we trade .. where we trade.. how we trade .. are changing along with population growth and environmental issues. More people = more consumption = more products = more waste.
America for the most part has maintained status quo continuing to make products with poor end of use options and exporting much of our plastic waste around the world thinking cheaper labor is a solution. It isn’t. Today 90% + of all plastic products used in the USA find their way to landfills or worse, oceans, beaches, etc. Obviously we haven’t yet implemented a strong solution.
It’s important (we) see the forest through the trees, and adapt. When we say (we) we mean product and packaging manufacturers, and consumer brands, retailers, and consumers, along with solid waste, recycling, and raw material professionals.
Everyone in the USA supply chain involved in making, selling, using, and recycling plastic products have good reason to be concerned. China imports about 30 percent of the plastic waste collected for recycling in America. When China stops buying plastic scrap from America and across the world, it creates a glut here in the USA and as supply-demand dictates, commodity prices drop, leading to reduced recycling rates, increased landfill disposal, and more companies leaving the industry because they can’t make money.
The China National Sword policy is no doubt a problem today… but the important discussion we need to have is … what effect will it have long term and will it ultimately drive innovation, investment, and sustainable manufacturing here in the USA ?
THE PROBLEM ISN’T JUST A USA PLASTICS RECYCLING PROBLEM… IT’S A USA INDUSTRY SUPPLY CHAIN PROBLEM!
It impacts us all up & down the supply chain, including plastic products and packaging manufacturers that create all the plastic products that are causing all this waste, major brands using plastics to make & package their products, retailers selling all this stuff, and consumers buying all this stuff. It also includes the solid waste management, recycling, and raw material companies that collect and recycle plastic waste after it is all used and that supply sustainable or non sustainable raw material to make plastic products.
We are all part of the circular economy (the eco supply chain) and we are all part of the circular solution! We ourselves have the ability to solve the problem of plastic waste … if we work together!
For those interested in going circular to collaborate to find better ways to make plastic products & packaging more sustainably and to take better responsibility together for these products at end of use, we’d ❤ to talk and find ways to collaborate together.
By Daniel Schrager, President at GearedforGreen 888-398 (GEAR) 4327, firstname.lastname@example.org, www.gearedforgreen.com
WE ALL KNOW DOING GOOD MAKES US FEELS GOOD. WE NEED TO “SHARE OUR SUSTAINABILITY” SO OUR CUSTOMERS FEEL GOOD TOO!
One of our 5 primary missions at GearedforGreen is helping clients that manufacture plastic products to operate more sustainably from inside-out, and show them ways to leverage that sustainability in their market in order to build more sustainable purposeful brands and share the “feel good” with their customers.
Our clients have made tremendous internal sustainable strides… achieving zero plastic waste in their operations, using recycled plastic resins & other sustainable raw materials instead of all prime plastics, participating in “Social Partnerships ” using ocean collected plastic resins in their products and packaging, optimizing, reducing & reusing their packaging, implementing closed Loop Circular Collaborations within our eco supply chain, measuring their carbon footprints, implementing take-back programs to recycle and re-purpose their products after use in the market, and using sustainably made products and corporate logo eco apparel and uniforms in their own everyday operations. Our clients are making a difference! We here it from them all the time, how sustainability has added a common purpose & pride shared between employees and how it’s helped strengthen corporate culture. They feel good doing good!
To make sustainability even more impactful for our clients, moving the needle on top line revenue and brand value, we must find ways to share our sustainability stories with our customers in the market, to connect our internal sustainability efforts with our customers. We must “Share our Sustainability” !
It’s been well documented by the industry leaders such as Unilever, Proctor and Gamble, and many many other manufacturers and brands… that Communicating our sustainability effectively helps build stronger bonds between our businesses & brands, supply chain partners, and our customers, and positively impact sales and revenue.
For those who dare to make a difference and want to SHARE THE ❤ ♻, please contact GearedforGreen.
4. Reusing used cardboard boxes is not only more sustainable than recycling … it can be more profitable too.by gearedforgreen July 13, 2017 ACC cardboard box reuse cardboard boxes Dow eco apparel eco brand marketing eco supply chain gearedforgreen packaging plastic raw materials plastic resins recycling social partnerships sustainability
For years recycling cardboard boxes has been a centerpiece for corporate recycling programs. Cardboard is widely recyclable and for years there has been relatively strong domestic & international markets for corrugated material. Corrugated cardboard scrap also known as OCC (old corrugated cardboard) is generated by many local, regional, national businesses across industries. In 2016 more than 40 million tons of paper related scrap was recycled, much of which was cardboard.
While cardboard box recycling is an excellent approach to handling used boxes, cardboard box reuse, when applicable, offers even better improved (economic, environmental, and productivity) benefits up & down the supply chain.
As a sustainability company involved in circular eco-supply chains, GearedforGreen looks for ways to improve ROI in REDUCE, REUSE, RECYCLE ♻ programs for clients. Cardboard box reuse is a great approach to improved ROI.
We work with many companies generating good quality 1x used cardboard boxes perfectly capable of reuse, and with many businesses concurrently looking to find good quality suppliers of 1x used cardboard boxes as alternative to having to pay up & buy new boxes.
As part of our eco supply chain sustainability program, our GearedforGreen network connects companies and industries matching used cardboard box suppliers and buyers, helping everyone in the supply chain improve economic, environmental, and productivity ROI.
Many companies involved in manufacturing receive parts and components delivered in cardboard boxes they use just 1x. Many other companies including retailers and distributors use huge amounts of cardboard boxes to send products inter-company between facilities and to trading partners. There is a substantial reuse marketplace for all these 1x used cardboard boxes. Managing the connection between the two is no easy task however, so we partnered with industry to maximize box reuse ROI making cardboard box 📦 reuse valuable and mainstream.
In terms of environmental benefit and ROI, reusing cardboard boxes versus recycling reduces carbon footprint 👣 CO2 substantially and requires far less resources including water and energy consumption. Clients participating in GearedforGreen “Pack Share” box reuse programs also get monthly environmental reports including Life Cycle Assessment documentation showing carbon savings, which are helpful to sustainability score cards. For those businesses looking to reduce their carbon footprint, cardboard box reuse is a great option.
In terms of man hour productivity benefits and ROI, reusing cardboard boxes versus recycling reduces man hours by $30.00 per ton on average associated with reduced labor and handling not having to bale cardboard boxes, and reduced movement from 3 touch points down to 1 touch point, not having to triple handle boxes from generation point to baler to trailer.
In terms of economic benefits and ROI, reusing cardboard boxes versus recycling increases revenue for suppliers in our network 40%-60% on average over the last 5 years, reduces customer cost of boxes in our network by 25%-30% on average over the last 5 years, and provides a far more consistent dependable market as a result of getting fixed annual prices for box reuse instead of fluctuating OBM prices for recycling. Box reuse programs also reduce transportation cost, reduce labor cost, and reduce equipment cost associated with baling.
The infrastructure and client base to support large expansion
in the cardboard box reuse market is significant.
To serve the growing box reuse market, GearedforGreen eco-supply chain network focuses on four (4) areas; warehousing collection sortation, logistics transportation service, environmental CSR compliance documentation, and circular supply chain partner expansion.
- Today we host 30+ regional sorting collection facilities throughout the United States providing local warehouse collection / sortation / quality control resources for suppliers and customers in our “Pack Share” box reuse network.
- We provide full transportation logistics services including drop trailer programs at more than 250 facilities across America.
- We provide monthly CSR environmental reports documenting carbon footprint saving.
- To support the growing demand for reliable box reuse nationwide, GearedforGreen eco supply chain partnerships include the largest network of collection, sortation, quality control providers, and end user customers making us the largest network for 1x used cardboard boxes in America.
It is widely known that sustainability and circular supply chain initiatives can reduce cost, add efficiency, increase innovation, and strengthen and improve supply chain partnerships. Leading businesses worldwide are incorporating circular sustainable supply chains into their operations quickly.
Less known yet equally important, sustainability can significantly improve customer-consumer relationships leading to improved brand value and top line revenue. By effectively communicating your sustainability initiatives, businesses can leverage their sustainability in the market to gain significant advantages. We urge all our clients to engage in consumer facing eco brand initiatives that connect with consumers.
To learn more about our GearedforGreen eco-supply chain sustainability services and how our “Pack Share” Cardboard Box Reuse program increases your economic, environmental, and productivity ROI, please contact us at 888-398-GEAR (4327), email@example.com, or visit us at www.gearedforgreen.com.
If your sustainability strategy isn’t making profound improvement to your business, helping grow top line revenue, build a more valuable purposeful brand, and operate your business with less waste & greater efficiency … you may want to consider a divorce.
We aren’t obligated to stay married to supply chain partners if they aren’t continually helping us profoundly grow a more successful sustainable business. Yet, by partnering stronger and collaborating on circular sustainable initiatives that benefit everyone within the supply chain, we can all grow smarter, stronger, and more sustainable together.
WE ARE STRONGER SMARTER & MORE SUSTAINABLE WHEN WE CONNECT AND PARTNER WITH OUR SUPPLY CHAIN!
Coming from a plastics background myself, there are some things everyone in our plastics industry supply chain should consider:
- Is receiving $.25 (x amt) per pound from selling off our plastic scrap to recyclers really the best way to maximize economic value from our recycling initiatives? Plastic scrap may have even greater environmental, strategic, and social purpose value than simply treating it solely as a commodity.
2. Is using 25% (or x%) recycled plastic resins back in our products & packaging, instead of prime, the best way to set us apart from our competitors? Can we use strategically sourced plastic scrap better, to create market advantages?
3. Is reusing packaging & optimizing the size of our packaging the most effective way for us to gain shelf space? Savings in raw material cost and transportation are excellent, but can we also utilize sustainable packaging initiatives to strengthen our customer and consumer relationships?
“The correlation between sustainability and commercial success is like proper nutrition is to victories for athletes, or reading and travel is to lyrics for musicians.”
There is a correlation between our company’s sustainability strategies and our commercial success in the market. Isn’t commercial success why we are all in business in the first place? Aren’t we all pushing relentlessly to add the greatest possible “value” to our businesses, differentiate and sell over our competitors, and continue to grow more sales with new & existing customers?
Neglecting benefit is the same as neglecting opportunity to win! Yes.. we recycle our plastic waste because it’s good for our environment and helps offset our costs associated with production loss. BUT … when plastic recycling also helps us increase revenue, gain over our competition, grow sales and shelf space, and build a more valuable brand, our ROI escalates profoundly.
Sustainability has the power to profoundly impact and improve our businesses. We shouldn’t be asking our supply chain partners to come to us with better ideas. Our supply chain partners should be relentlessly pursuing better ideas and helping us create circular eco supply chains that not only enhance our environmental initiatives, but connect us and improve our economic and brand initiatives too.
Big Brands should consider buying plastic scrap themselves. Here’s why.. Here’s how..
It’s a debate worth having. A great way to significantly expand plastic recycling is by expanding circular economies with circular supply chains that include Big Brands focusing on economic and environmental sustainability.
A circular economy will help ensure plastic scrap materials maintain economic value, have consistent markets, and importantly, a recollection process for used plastic products and packaging once they reach end of use in the market.
GearedforGreen works with many private and public recyclers across the country who want to get more involved in stronger circular collaboration with end user markets. In an eco-supply chain, recyclers collect consumer and industrial plastic scrap materials on a local level, which get sold to regional processors and compounders who convert scrap into hi-quality plastic resins (sustainable raw materials), then sold to national manufacturers making all kinds of new plastic products, looped back again to recyclers at end of use. From start to end everyone involved in the circular eco supply chain is connected.
Eco-supply chains enable local, regional and national businesses involved in recycling and sustainability to collaborate stronger and transparently working together rowing in the same direction. Scrap is connected to raw material, connected to new products, connected to consumers, looped back connected to recyclers in a continuous process.
Without circularity, companies involved in collection, processing and compounding “go it alone”, struggling with up and down plastic scrap prices, lack of markets for many kinds of plastic materials, and an over reliance on export markets. Circularity gets everyone in the supply chain teaming up together and helps maintain pricing and cost transparency which benefits the supply chain as a whole.
We can minimize these challenges and increase & improve plastics recycling markets when Big Brands take lead, connecting in circular eco supply chains. Big Brands are themselves the biggest consumers of plastic raw material. Big Brands across markets like Unilever, Procter & Gamble, Ford, Nike, Budweiser, L’oreal, Gillette, and so on, should stop selling off their own plastic scrap they generate in their own operations, and instead do an about face, connecting in circular eco-supply chains and becoming significant plastic scrap buyers instead.
Why ??? Big Brands make lots of plastic products and use lots of plastic packaging, hence they buy lots of plastic resins to make products. Big Brands consume hundreds of millions of pounds of new virgin plastic resins including polyethylene, polypropylene, polyester, and other grades, purchased through non sustainable supply chains from producers like Dow Chemical, Exxon Mobil, Sabic, BASF, Chevron Phillips, and so on, made from petroleum and natural gas.
By shifting to buying plastic scrap and participating in a more sustainable circular eco supply chain, scrap becomes a more prominent part of the plastic raw material stream for Big Brands.
Here’s how.. Instead of paying Exxon Mobil etc. for virgin resin, Big Brands buy plastic scrap direct in the open market and pay Processors and Compounders to produce recycled grade plastic resins. Today recycled plastic resins can be made to many specifications, even FDA compliant. By approaching plastic scrap and raw material sourcing from the top down, Big Brands can help increase plastic recycling rates, manage raw material cost, and take greater responsibility for products they make by creating closed loop circularity.
Big Brands carry big leverage because of supply demand. Supply demand dictates the more plastic products we make and sell, the more demand there is for virgin or recycled plastic resins. It’s a matter of choice which kind of raw materials we buy.
A modest shift reducing virgin resin consumption and increasing recycled resin consumption can make a tremendous sustainability shift for several reasons.
1st, it creates larger more consistent markets for recycled plastic resins which creates demand, which helps moderate pricing and adds more pricing transparency down the line which ultimately helps increase recycling rates.
2nd, it creates an environment ripe for innovation and investment. As Big Brands get more involved in circular eco supply chains collaborating with recyclers, processors and compounders, everyone will invest more resources which leads to greater innovation, improved processes, higher quality, etc.
3rd, it creates the closed loop infrastructure necessary for Big Brands to ultimately take greater responsibility for products they make once they reach end of use in the market. It also facilitates increased consumer engagement and participation in recycling contributing to increase recycling rates. When Big Brands integrate consumer sustainability incentives with education, consumers start to take ownership of their sustainability efforts which creates even stronger bonds between Big Brands and consumers, which can also equate to increased sales.
It’s a debate worth having, but from our perspective, circularity and eco supply chains will enhance sustainability and increase plastic recycling rates down the line.
Why not utilize your plastic scrap for something incredibly INSPIRATIONAL with “Social Partnerships”. There’s tremendous value to be gained by doing good.
Most people are aware of the economic value of plastic scrap. Many kinds of plastic scrap materials get recycled, turned into all kinds of new plastic products. GearedforGreen helps clients recycle millions of pounds of plastic scrap every year. Recyclability is one of the wonderful aspects of plastics. For those “in the know”, that’s what’s called “thermoplastics”. Thermoplastics unlike thermosets can be re-melted over and over again, formed into all kinds of new things.
Old “pet” polyester soda bottles get recycled into new carpet & apparel products. Used HDPE detergent bottles get recycled into new decking products & park benches. Used polyethylene plastic grocery bags get recycled into brand new trash bags. We help recycle more than 150 different types of plastic materials.
The good news for industry generating plastic waste is, many plastic scrap materials maintain retainable “economic” value. In our circular eco supply chains, we connect plastic waste generators with “compounders” in our network that convert plastic scrap into sustainable raw material “resins” made to molders specifications, then connect those resins to manufacturers in our network that want to make their products more sustainably using recycled resins in replace of buying more costly virgin resin made from petrochemicals.
Actually, getting involved in a circular eco supply chain can create many economic advantages down the line. For businesses generating plastic scrap, circular supply chains enable you to offset some of your costs and gain some level of economic value. CFO’s seem happy with these financial off sets but... ask yourself a question. Is that the best “value” you can achieve for your business by selling plastic scrap materials as a commodity? For some yes, others no.
Here’s a thought we want you to consider. Ask yourself these 2 questions … “Why are you in business in the first place? And what is the actual impact (gain) your business achieves by selling recycled plastic scrap materials?”
Here’s a value analysis for manufacturers to consider. You generate plastic waste in your operations, and you sell off 40,000 pounds of plastic scrap per month as a commodity. You originally paid $.44 per pound for your widespec plastic resin, you generated 5% scrap rate in production, and you sold your scrap for $.21 per pound, so in effect you have a net raw material loss of around $.23 per pound times 2,000 pounds = around $460.00 loss recovery. I recognize there’s many ways to analyze this revenue loss recovery, and I welcome any market economic feedback on this analysis, but for the sake of this topic, let’s assume for argument sake your scrap sale value helped recover a relatively small portion of the actual loss associated with your production scrap.
Back to the original question. “Why are you in business in the first place? And what is the actual impact (gain) your business incurred selling recycled plastic materials?”
Most business owners we talk with agree, businesses are in business to make and sell product, generate profit for shareholders, create fulfilling environments for employees, and build valuable lasting brands. If you think about value that way, the actual economic benefit you receive by selling off your scrap plastic is small in relation to your company’s economic, employee, and brand goals.
When treating plastic scrap only as a commodity, the revenue generation or loss reduction associated with it isn’t remotely enough to move the needle up or down to make any significant impact on your business. But wait …”A💡moment “. Value can be achieved in many different ways. Plastic scrap may have far greater value beyond just “price per pound” economic value gained selling it as a commodity.
Your plastic scrap has environmental value! Sustainability value! Saving our earth value! Doing good for mankind value! Bonding with your customer value! In other words … it has “Social Purpose” value. Plastic scrap and recycling, when leveraged properly, can indeed move your needle!
Plastics can be used to make many different products used for all kinds of wonderful applications. Think about all the great socially positive humanitarian impacting products that can be made (if you partnered together) in the right eco supply chain that uses your plastic scrap, turned into products like – plastic water filtration systems that generate clean drinking water in third world countries, mosquito nets and blankets that protect people from disease, and many other plastic products that save and impact lives around the world.
For plastics businesses and brands looking to do good, there are great opportunities to connect “Social Partnerships” using plastic scrap to make socially purposeful products connected with causes that impact and unite people around the world. Social Partnerships can become incredibly inspirational to your stakeholders, employees, and customers and serve as a powerful connection that impacts your business & brand, adding value that’s far more valuable than $460.00 loss recovery.
In a highly resource-constrained world, there’s little room for waste! For all us in the plastics manufacturing space whether we make, use, or sell plastic products, getting creative with the way we obtain, use, and dispose of plastic materials will be KEY for a long term healthy and sustainable plastics industry.
We all understand that unless we change what we do and how we do it, we cannot expect different or improved results. Business and sustainability experts globally are making the shift to “go circular,” implementing smarter processes for sustainable inputs, improved product design, more efficient delivery methods, and close loop initiatives for materials in manufacturing and after use. For us in the plastics world… This is the basis of our circular economy and it’s one of the biggest growth opportunities for plastics businesses and brands!
The circular economy itself is a $4.5 trillion opportunity, according to Accenture. Who in our plastics industry wouldn’t want to get circular? For companies making, using, distributing, and selling plastic products, it is important for us to understand the distinction between a linear supply chain versus a circular supply chain, and how that can improve our businesses and environment.
Today’s status quo in our plastics industry is linear. We use inputs to make our plastic products, our plastic products get used, and then we dispose of our plastic waste. This linear model poses serious long term risks for each of our businesses and our whole industry! Aside from the obvious procurement issues associated with diminishing and costly resources and growing demand for sustainability, plastics companies should consider the wider financial, reputational and regulatory concerns too.
Here’s a liner risk/waste example: We make polyester plastic water bottles and polyethylene plastic grocery bags for consumers to use, the plastic products get used and discarded by consumers, some of which wind up in the ocean. As we all know, plastic marine debris has been news worthy for some time and is a real serious problem for plastics companies who care about their brands. Branded trash is literally crowding our oceans. Every year, 800 million tons of plastics leak into our oceans, equivalent to one full garbage truck every single minute! Assuming this trend continues, we’ll have more plastic in our oceans than fish by weight in 2050. Bad news for companies that care about their reputations because much of this plastic trash is easily traced back to its origin company through brands and logos.
In tomorrow’s status quo, our plastics industry will operate circularly. We make and package our products using more sustainable materials and processes and design them in advance for reuse and/or recycle at end of use, we create recycle/reuse collaborations upfront with other industry providers and manufacturers, and we connect stronger with our customer / consumer so they understand how/why to reuse/recycle our products and packaging once they are used, and we collect our plastic scrap to use as new raw materials to make new products or be used in new reuse applications. This circular model creates long term collaborative shared opportunities for our businesses and our whole industry! By connecting circularly, we share and use less raw material resources and harness the economic value intrinsic in plastic materials, we connect closer with our customers through shared sustainability, operate proactively in terms of regulatory mandates, and open new doors of innovation for our businesses.
Here’s a circular opportunity / sustainability example: We make polyester plastic water bottles and polyethylene plastic grocery bags for consumers to use, recycle and reuse programs have been developed in advance circularly / collaboratively by supply chain partners including plastic resin producers and resin distributors, product manufacturers, packaging manufacturers, recyclable material collectors and recycling companies, and manufacturers that make new products using recycled plastic as their raw materials. The plastic products get used and more conveniently collected for recycle / reuse from consumers who have been taught / incentivized to participate in the circular economy. More of the Branded recyclable plastic bags and plastic bottles are collected through the supply chain while less is discarded, recycled back into more sustainable plastic resins, and used by collaborating supply chain partners to make new plastic products like automotive parts, consumer electronics packaging, footwear, or reused clothing for those in need around the world. Through circularity, more recycling / reuse programs develop, consumer education, participation, and pride increases, participating brands engage stronger with consumers and their brands gain value, less plastic waste gets discarded as trash, and plastic resources are used more efficiently and sustainably.
An effective circular supply chain needs to focus on both internal and external sustainability.
A circular economy and supply chain will enable us to operate our businesses more efficiently and sustainably by connecting our supply chain and collaborating closer with our supply chain partners on shared goals. To get circular, we need to recognize differences between internal sustainability in our operations and external sustainability in the market, because both are essential to a circular economy.
Internal sustainability is the implementation of sustainable manufacturing and operational initiatives, how we make and deliver products, better waste management and recycling / reuse practices, etc. Circular supply chains will help connect new value, more value, and more effective ways to gain value. As examples, major brands can become huge purchasing organizations to buy scrap plastic waste which can be recycled and used back by them in countless new products and packaging. Manufacturers making plastic products can develop more efficient ways to buy recycle grade plastic resins created from specific and strategic sources like ocean plastics, adding strategic & brand value beyond price per pound.
External sustainability is implementing sustainable connections between industry and the consumer marketplace. Plastics companies need to look externally to implement initiatives that educate and collaborate, to connect stronger with consumers for a shared purposeful cause. We need to leverage our sustainability in the market to enhance sustainability and to create stronger more sustainable valuable brands for our businesses. External sustainability includes finding ways to logistically collect plastic waste that’s already (or) will eventually be “out there”, at end of use, partnering with retailers as example, to implement more resourceful ways to promote and sell sustainable plastic products and provide consumers with more efficient recycling drop off collection programs at their retail locations that give incentive and educate consumers as part of a circular supply chain. We see many companies finding new and creative uses, including using plastic waste as raw materials to make humanitarian products. We need to connect stronger with consumers so they understand how / why they should participate in a circular economy and circular supply chain. Remember, one man’s plastic waste literally becomes another’s plastic raw material.
Circular supply chains and circular economies sound big and confusing? How can businesses start getting circular???
It’s understandable why business owners and managers may have concern to jump in to a circular supply chain ocean. So instead of jumping, let’s dip a toe in the water and let circularity evolve over time? Understanding how effective circular strategies can benefit our business and industry up and down the supply chain is the key to implementing circular supply chains on a mainstream basis. Circularity doesn’t just benefit manufacturers making plastic products, it benefits everyone up and down the supply chain including plastic resin manufacturers, resin distributors, compounders, plastic recyclers, logistics providers, distribution and retail, and most certainly, consumers and our environment.
These are a two steps I suggest to our clients for them to take in order to begin the process of getting circular.
1st establish a soft sustainability plan (you can add to it down the road) that outlines your goals and time lines to grow circularly. Plans need to include how we make, package, deliver, sell our plastic products more sustainably, and how we communicate (education) our sustainability and end-of-product use (recycling and reuse) resources to our customers and consumers.
2nd is to begin connecting your sustainability goals with your supply chain partners and their goals, to form solutions together. That connection (connect the dots…) and teamwork within your supply chain is the KEY to Success and will lead to even more innovation and efficiency! For us in the plastics world, our supply chain include our plastic resin suppliers, packaging suppliers, mold and tooling suppliers, recycling vendors and/or sustainability vendors, logistics providers, sales, distribution, and marketing communications vendors that connect sustainability more broadly with consumers. Many businesses involved in circular supply chains and circular economies utilize the services of a Supply Chain Advisor to assist in connecting eco supply chains, to ensure everyone is rowing in the same direction and providing feedback and resources towards a shared sustainability goal.
Some questions we should consider:
- What % of recycle plastic resin can we effectively use in making our plastic products? How can we get access to high quality consistent recycle grade plastic resins?
- How can we design our plastic products so they can be recycled/reused more effectively at their end of use in a circular economy?
- How can we develop a zero plastic waste program for plastic scrap we generate in our own factories, offices, and distribution processes and how can we use these valuable plastic scrap materials ourselves or sell them to other manufacturers in our circular economy to maximize value?
- How can we ourselves use recycled plastic or recycled fiber in our own packaging? How can we optimize our packaging to use less raw material and get more product on our trucks and shelfs to reduce shipping cost and carbon footprint? How can we help our customer to recycle our used packaging?
- Are we operating our facility at 100% capacity and if not, how can we use (share) our production capacity to produce products for other businesses?
- How can we effectively communicate our sustainability (and educate consumers to reuse/recycle) our products and packaging, and to promote a circular economy?
- How can we help our customers to recycle or reuse our plastic products once they reach end of use in the markets, to avoid disposal?
How do we track and measure our sustainability and economic advantages in a circular economy and supply chain?
Many people react skeptically to circular economy / supply chain model because they see obstacles that can prohibit circularity, including economics and consumer participation. That said, I know many business leaders in our plastics industry who are incredibly innovative business managers and great capitalists, and we should be the ones to tackle this opportunity to close our own loop on plastics, not environmentalist! We cannot sit on our hands and stay comfortable. We should be the ones to try new strategies and develop shared measurement.
Plastics has economic value when we purchase resin and it has economic value when we buy & sell plastic as scrap. We all recognize there’s economic value to be harnessed, and we should be the ones to hold onto this value throughout the supply chain instead of dumping it in our oceans.
We all care about our environment and understand the importance of sustainability, especially when we think about our kids and about our future generations. As business manager’s we also have bottom line and top line economic goals to meet, otherwise we may not be in business to worry about sustainability. The logical longer term question for business owners and managers in our plastics industry is … how can we tell if we are implementing circular supply chain and economy principles successfully to yield both improved sustainability / profitability results?
Long term answer. For circularity to go mainstream in our plastics industry it will require open collaboration from our supply chains on metrics and measurements we all can use together to gauge effectiveness. Understanding and communicating the economic, social and environmental benefits of going circular will go a long way in helping businesses integrate circular principles across their supply chains. There’s a lot of work to be done on this, but I believe plastics companies that take leadership roles now will lead and gain competitive advantages.
When it comes to corporate recycling and sustainability, who’s the best person in your organization to lead the way?by gearedforgreen May 26, 2017 gearedforgreen packaging plastic raw materials plastic recycling plastic resins recycling sustainability sustainable packaging sustainableshopping
When it comes to corporate recycling and sustainability, who’s the best person in your organization to lead the way?
CEO’s set the stage for the primary business model, goals and objectives but … the command-control of “leading from the top,” is the reason many businesses sustainability initiatives ultimately fail.
When it comes to sustainable innovation and execution, business’s must distribute leadership. Part of that is encouraging employees at every level to take part in creating the company’s sustainable culture.
Having spent considerable time talking with CEO’s and C-Level business leaders, as well as managers and those in operations and administration, we learned very clearly that effective leaders know they don’t have all the big ideas. Most great ideas come from within the organization, from hands on employees as a result of their passion and commitment to add innovation and sustainability into the business.
Ask yourself? Do you have an aspiration that’s bigger than simply making money and product? Those aspirations lead to greatness!
Creativity, innovation and compassion remain the key drivers to sustainability. But creativity sits in the middle of aspiration and resources so when companies let the gap shrink between the two, that’s when they are in danger. As innovators, we need to provide resources and corporate culture that enables employees to move forward with their sustainable initiatives to grow in an unpredictable world.
Ask? How are you treating your recycling and sustainability initiatives today? How can you change practices to increase sustainability and add economic – environmental – socially purposeful value – for your business and importantly for your customer?
The world today is changing quickly! We all need to be red hot in pursuit of our own disruption and continually search for what obsoletes our business today. Sustainability or the lack thereof will obsolete many businesses in the coming years. The way we operate today will certainly not ensure success in the future.
The first most important steps to successful sustainability is asking these questions below, then “collaborating” with our supply chain partners to find answers, resources, and solutions “together”. Working in a vacuum gets us dirty and clogged. Working in a circular supply chain collaborating with our supply chain partners and involving our customers to create circular economies adds innovation, resources and energy.
- Is there a better different approach to handling our plastic scrap materials that’s touches on and adds economic,strategic, and humanitarian value beyond “price per pound”?
- Are their alternative cost effective plastic and polymer raw materials or better ways of using raw materials to make our products more sustainable?
- Can we create real partnerships within our supply chains that help us and our supply chain partners to all succeed better?
- Are we using sustainably made products in our own operations?Why should we and how does that benefit our company culturally and economically?
- Can we optimize and reduce our packaging to use less material but deliver more product in trucks and on shelves? Can we use more sustainable packaging and is there a way to help our customers to recycle our packaging after it’s used?
- Are we taking responsibility for our products in the market once they reach end of use? Can they be reused or recycled? How can that benefit us and our customers?
- Do our customers care about sustainability and if our company has a purpose beyond making a product and profit? If so, can we better communicate our sustainability and social purpose to our customers to strengthen relationships?
Ask.. Who better to lead the way for your businesses sustainability growth to add purpose to your product and better impact your bottom line, top line, and brand value THAN YOU?