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), firstname.lastname@example.org, 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 “polyolefin’s”. Polyolefin plastics 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.