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Recap 2.5: Walmart Expo, revisited

Posted by Chandler Slavin on Oct 16, 2012 10:53:00 AM

Happy Monday Funday! I hope the weather is as beautiful for you as it is for me—sunny and 70, what more can a girl ask for?

SO where were we…that’s right, recapping the SPC spring meeting.

Oh, before I forget, there was one more thing I wanted to tell you about the Walmart Expo.

Prior to the Expo, in preparation for the Walmart SVN meeting (Sustainable Value Network), we were asked to do a little homework: this entailed going to a local Walmart and finding a package that needed a “sustainability makeover.” We were supposed to fill out a “packaging opportunities template,” which basically inquired into how one would redesign the package to increase its environmental profile while saving costs. This is what our team came up with:

PackagingOpportunitiesTemplate, FINAL

We decided to pick on a thermoformed package because we are thermoformers, although this one looks as though it was manufactured overseas, due to the perimeter sealing. Therefore, it’s not like we would be able to steal the business…I wonder what the sustainability profile is of an overseas manufacturer versus a domestic supplier…Ha!

Anywhoozy, it turns out that during the SVN meeting several of these “packaging opportunities” were to be presented to the entire conference—and guess what—I was one of the lucky four selected to present.

Basically I suggested that the package be right-sized and thermoformed out of RPET instead of PVC. The panel then inquired into how I would convey the same marketing presence with a reduced package AND prevent against pilferage. I was stumped. Perhaps include a recyclable paperboard backing, I offered? That totally stunk, however, because it suggested that paperboard is more “sustainable” than plastic, which I would not argue having performed extensive research on the topic. AND, according to the recent E.P.A. reports, the paperboard used in clamshell alternatives (labeled “other paperboard packaging” in the MSW report) HAS NO RECOVERY DATA—literally it is listed as neg., which means negligent. I wish I had known this during my presentation as it would have served our industry well. Rats!

Visit http://www.epa.gov/epawaste/nonhaz/municipal/pubs/msw2008data.pdf to see the break down of what is recycled and what is not in the paper world.

I guess my obsession with the recycle-ability of paperboard versus thermoforms can be summed up as follows:

I am at the Walmart Expo, working the booth. A prospect comes by, with whom I have had casual conversation in the past. Having seen his product at a competitor’s booth, I hassle him saying, “I saw your thermoformed trays at our competitor’s booth…and here you have been blowing me off all year…not very nice!” And he responds with, “we are getting out of thermoformed trays because they are not recycled.”

UG! What do you say to that? Prior to knowing that paperboard, which would be the alternative used for his packaging application, has no data for recovery post-consumer according to the E.P.A., I assumed that it was the more sustainable material because of its end-of-life recovery. But now that I know that in most cases, both thermoformed trays AND paperboard trays end up in landfills, I should have articulated a better argument for why thermoformed trays are still a wonderful packaging option.

It’s like when you have some kind of social confrontation and find yourself tongue-tied only to later come up with the best “come-back” ever! That’s what this was like; I needed a good come back, both for the “packaging opportunities” presentation and the fellow who thinks paperboard is better due to its end of life recovery. Next time…

A couple other points about the Walmart Expo:

As discussed in a previous post, the Walmart Scorecard has a “transport module,” which takes into account the inputs/outputs of shipping a package from the point of conversion/manufacture to the point of fulfillment. Supposedly the filled packages’ journey to the point of purchase is covered in another metric…

Anyway, I asked if the scorecard takes into account/intends to take into account the environmental ramifications of overseas manufacturers versus domestic manufactures. After all, long before my appointment at Dordan, we lost business to China because of the super duper low prices of labor and therefore commodities. And considering all this sustainability jazz, one would think that sourcing domestically would have some kind of impact on ones Score (think shipping, environmental regulations, labor regulations, etc. in China versus the States)…unfortunately, that is not the case. According to a member of the SVN, Walmart considered having a “point of origin” metric but determined that it was unquantifiable and would not resonate with their suppliers. Go figure!

A SVN member then articulated the following inquiry, which tickled me pink: Is the Scorecard going to take into account the inks, laminates, and sealants used on paperboard packaging? The member who voiced this inquiry qualified this question with some data, specifically, that even the tiny amounts of hazardous material in these various substances can have a high toxicity on the social and environmental environments.

This inquiry was answered as follows: Again, they considered adding this metric into the Scorecard but did not because they didn’t believe that these factors had a large enough effect on the overall “environmental profile” of a package. Supposedly, if we prove otherwise, they will consider adding this metric into the scorecard…

Lastly, Walmart is rolling out their Scorecard to other countries. I asked if each Scorecard used different recovery rates depending on the country it was being utilized for. In other words, Canada has a better recovery rate for most packaging materials that the U.S.; therefore, is their Scorecard going to use Canadian recovery data or American? According to the SVN, each Scorecard will be country specific, using recovery data from the country considered.

Wow, another marathon of an email. I’m sorry to keep rambling, I just have so many thoughts! I will continue tomorrow with the SPC recap and quickly move into resuming my clamshell recycling initiative.

Go packaging!

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Recap # 2: Walmart Expo

Posted by Chandler Slavin on Oct 16, 2012 10:45:00 AM

Greetings world! I feel like a million bucks—finally cleaned my office and organized all the information I gathered the last several weeks traveling. I will now resume my diligent blogging!

Soooo, where did I leave off? That’s right, I still need to fill you all in on the Walmart Expo in Arkansas.

Well, first of all, Arkansas is really nice! The drive from the airport to Bentonville was beautiful—very lush and it smelled so good! It appears as though the entire town of Rogers-Bentonville has been created to sustain the Walmart community, which is crazy! All the main buyers and movers and shakers for and to Walmart live around the headquarters, which must make company outings easy and enjoyable! Everyone we met was super duper nice and the whole “dry county” thing didn’t really apply because every restaurant we went to suggested you “sign in” thereby giving the establishment the status of a “club” and consequentially allowing them to serve us booze!

The Expo itself was really exciting! It being my first time “working the booth” I was thrilled to get in front of the packaging community and talk about Dordan and all our exciting new happenings! All the passerbyers were, again, super awesome and polite and all in all it was a good show! I got to see some old packaging buddies from the SPC and meet more people within the industry. Because I have only been to one or two other conferences, I was surprised to run into people that I had met previously—I didn’t realize what a small community the sustainable packaging realm was!

Check out our beaut of a booth:



AND all the Walmarters are really, really nice. Some of the top guys came by our booth and asked how the show went and thanked us for coming. We couldn’t believe the hospitality of the entire event and look forward to participating next year! If any of you Walmarters are reading, thanks again, we had a blast!

It was really cool too because our engineers had JUST finished running our samples that we designed for the Expo literally hours before we flew out of Chicago, which gave us the ammo we needed to initiate conversations with anyone. They looked great and showcased our thermoforming capabilities; and, demonstrated the different materials we were now offering! Basically it is a fancy business card holder with cool engravings and what not and the tray is made out of a bio-based, certified compostable resin and the lid is made from supplier-certified 100% PCR PET, which derives its feedstock entirely out of bottles post-consumer. We found that having something tangible to give to passerbyers really helped initiate discussion and we got a lot of attention because of the clarity of the PCR PET. For those of you not familiar, high concentrations of post-consumer content in PET often times give the resin a sort of orangy-brown tint; our source for 100% PCR PET, however, ensures a level of clarity that we have not been able to find elsewhere. In a nut shell: Good times all around.

This is a sort of poopy picture of our sample offer; but you get the idea:



During the Expo there were education sessions, too. I found the content of these sessions very interesting and compiled my notes to debrief our sales and marketing departments upon my return. I have included these notes below, FYI.

Walmart Expo Summary:
    • Scorecard seminar, misc.

        • ECRM created the software for the Walmart Scorecard

            • “Efficient collaborative retail marketing”

        • Direct suppliers are REQUIRED to enter packages into scorecard

            • Via “retail link” i.e. per vendor number and item number

            • Allows you to compare with packages in same product category i.e. dairy. ECRM is working to narrow the categories down so you are only compared with direct competitors.

        • Indirect suppliers do not have access to retail link.

        • Focus of Score: Material type, material weight, material distance, packaging efficiency

            • Distance: the point the package travels from point of conversion to point of fulfillment.

        • Completion rate of Scores:

            • Each item sold in Walmart has its own number. Suppliers are required to fill out a Score for each item number. Currently, COMPLETION of scores is the easiest way to influence purchasing decisions. In other words, suppliers that have more than 85% of their Scores completed receive an “A” in the Walmart world; suppliers that have 55% complete receive a “B;” everything below comes up as a “red flag” in Walmart-internal.?

        • Package modeling software: Different than the Score card but formatted the same way; this is what we subscribe to.

            • Intended for indirect suppliers to utilize the modeling software in such a way that they can approach their customers (direct suppliers to Walmart) and explain how by doing X you can improve your score and here is the proof.

            • “Reversed engineering;” encouraged doing this on competitor’s packages, too.
    • Paperboard Packaging Council seminar, misc:

        • Fiber-based packaging is a by-product of the lumber industry? I need to look into this…

        • I asked why the recovery rates for corrugated were higher than paperboard…

            • Answer: Difference is attributed to post-industrial collection (corrugate) vs. post-consumer (paperboard). I need to examine this further.

        • Fibers can be recycled 6-8 times before the fibers become too small to reprocess

        • China currently buys most of our post-consumer mixed paper and reprocesses it; we need to find a domestic source for recycled fibers.

        • All corrugated has 46% post-industrial content in the U.S.

        • SBS is almost ALWAYS virgin fiber, with the omission of MWV’s Natralock.

        • I asked what the difference in energy demands are for virgin vs. recycled paper; I received a very ambiguous answer?apparently a controversial topic.
    • Plastic fundamentals seminar:

        • Discussed the benefits of plastic such as:

            • Keeps food fresher for longer;

            • Lightweight;

            • Didn’t address fossil fuel consumption;

            • Didn’t discuss MSW rates;

            • Did say that recycling for non bottle-PET has grown from 7.5% to 11% in the last year;
        • ACC supports re-writing the Toxics Control Act, which we referenced in our first Newsletter.

        • The ACC released LCI data on RPET and recycled HDPE. HURRAY!
    • SVN meeting:

        • There are a ton of different organizations that Walmart has its involvement in; I will try to explain the various relationships as follows:

            • ISTA—transit assessment; I don’t know what this is.

            • Global Packaging Project: Walmart funds this but is not the only CPG company on the board; this looks for a GLOBAL metric for assessing the sustainability of packages and product; this is bigger than the Scorecard, as the Scorecard will be a component of these metrics; the metrics used will be country-specific. This grew out of the CONSUMER GOODS FORUM, which was originally called the GLOBAL CEO FORUM. The GPP metrics look to take into account the Scorecard metrics, COMPASS, and other existing and legitimate metrics. If one wants the inclusion of another metric, it must be reviewed for application prior to being incorporated into the GPP metrics.

            • ISO project for Sustainable Packaging: I don’t know.

            • Scorecard: For packaging only; scores based on ITEM level.

            • Supplier Sustainability Assessment: Consists of 15 questions, which are asked of all product suppliers to Walmart; “scores” based on CORPORATE level.

            • Sustainability Index: the Assessment is part of the Sustainability Index, which is a project of the Sustainability Consortium. Again, Walmart funds this organization but is not the only CPGs company that participates.
    • Points of discussion:

        • “Sustainable material” metric: What does this mean? What are the limitations?

            • Should everyone get the same “score” until clarified?

            • Should we remove the metric?

            • Is Recovery taken into consideration?

            • Is it a LCA approach?

            • Does it consider conversion or primary production?

            • What about toxics?

            • Sourcing certificates?
        • Determined that it would be helpful to have a health and safety metric AND a sustainable sourcing metric.
  • Should inks/adhesives be included in GPP and Scorecard?
    • Not until proof that it has an impact?I have proof and will see that it gets into the right person’s hands.
Sorry if the format of my notes are a little confusing. Please let me know if you would like me to expand on any of these points or provide clarification.

AND I met a gentleman that gave me a PLETHORA of information about non-bottle plastic recycling and I am forever indebted to him. Seriously, good stuff and AMAZING feedback in regard to the various approaches I was considering for our clamshell recycling initiative. Once I get through recapping my recent travels, I will resume my clamshell recycling narrative. I think we are getting somewhere

Stay tuned!

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Recap # 1: Toronto

Posted by Chandler Slavin on Oct 16, 2012 10:34:00 AM

Hello world!

It’s been so long since my last post, I almost don’t know where to begin!

Well, Toronto was awesome!


The Canadian retailer has a very nice facility with even nicer employees. The? Committee I will be working with basically looks to increase the recycling rates of several hard-to-place materials; those of specific focus where PS/EPS, PET (thermo-grade and bottle-grade) and bio-based resins.

When the meeting began we went around and introduced ourselves. I was super nervous because, as I am reminded again and again, I am young and considerably new to the “business world.” Being surrounded by really accomplished people in the industry was very intimidating, motivating me to keep my mouth shut, observe and learn.

The pre-reading material for the Committee described the current plastic packaging waste generation in Canada. It is broken down as follows:
    • Plastics represent 7-8% of the residential waste stream;
    • Plastic packaging represents 81% of total plastics found in the residential waste stream;
    • Plastic bottles account for 31% of the total plastics packaging generation. This is followed by:
    • Non-recyclable film at 29%,
    • Recyclable film at 19%,
    • Polystyrene at 10%,
    • Wide mouth tubs at 6%
    • Other rigid plastics 5%.
WOW I thought to myself as I read over the statistics…only 5% of the 7-8% of plastic packaging that is in the residential waste stream is attributed to thermoforms i.e. other rigid plastics? Is that even enough material to reach the “critical mass” necessary to find an “end-of-life” market for thermoforms? The reason I ask is because if there is not enough quantity of these materials/packages types in Canada to create the critical mass necessary to find a buyer post-consumer, is my clamshell recycling initiative going to DIE? UG, I hope not!

And then consider the following:

I was reading good old Plastics News and came across an article about a new plastics recovery plant opening later this year in England, which looks to reprocess plastic from automotive shredder residue.

Author Esposito writes, “The slow journey of recycling in the U.S. is a bit frustrating…since the country generates THE MOST ELECTRONIC WASTE IN THE WORLD—more than 21 million pounds per year.”

Founder and President of this recovery facility explains: “One of the issues in the U.S. is that there’s no electronic collection infrastructure…And some that we do gather is sold overseas. The U.S. has more mines of plastic than any other country—it’s amazing that we don’t use it” (Michael Biddle, MBA Polymers Inc.).

For the full article, please visit: http://plasticsnews.com/headlines2.html?id=10031501901&q=MBA+moves+toward+being+global+recycler.

Several things jumped out at me while reading this article: First, is how misplaced the current anxiety of waste management is on single-use disposable packaging when trendy consumer electronics go unnoticed, although from a pure quantity standpoint, they blow plastic packaging out of the water in the context of waste generation. I am not trying to point the finger at any industry, product, or what not; what I am trying to imply, although not very discreetly, is that plastic packaging is being targeted as a manifestation of our over-consumptive society while other products, specifically, consumer electronics, are marketed as innovative, young, and anything but environmentally malevolent. Hmmmm…

So this got me a’thinkin…I am sorry to run on this tangent but a girl has got to do what I girl has got to do:

Perhaps the best way to go about this recycling initiative is to work with a large consumer electronics company that buys a lot of clamshell packaging. If they have implemented any product stewardship initiatives, like Dell ink with their shipping envelopes, then perhaps they would be interested in working with their packaging suppliers to “close the loop,” per se.

I envision the relationship like this:

Company X makes a ton of cell phones for the American market; they buy Y amount of clamshells yearly, all of which end up in a landfill. Because of the increased pressure on producers to consider the end-of-life management of their products/packages, perhaps we could develop a partnership where Dordan would provide all the clamshell packages to company X under the agreement that if returned to our facility, we would regrind them and reprocess them into next generation clamshells. The only logistical problems would be enticing the consumer to bring the packages back to a store or drop-off location (perhaps company X could offer a point-rewarding system similar to Recycle Bank) and then funding the shipment back to our plant…

So, if any CEOs of super-powerful consumer electronic companies are reading this blog, we should get lunch!

Ha!

Ok, where was I before my thought-baby…OH the Committee in Ontario:???

Below are my notes from the meeting. Enjoy!
    • Background: The Committee focuses on increasing the recovery rates of several hard-to-place materials in Canada. In Canada, Stewardship Ontario requires “producers” to fund 50% of the packaging waste management of the products they sell. The Committee is the first time a powerful retailer has gathered people from along the supply chain to honestly investigate the obstacles keeping some materials out of the recovery stream: This retailer has the power to influence the packaging sold in Canada via purchasing power.
    • We spent a lot of time discussing the “scope” of the Committee's goals (increase diversion rate to X% by Y date):
    • All of Canada?
    • Province-specific?
    • Retailer in-house waste only?
    • This retailer?has over an 80% waste diversion rate of in-house waste management. This ROCKS!
    • Post-consumer, post-industrial, or both?
    • Determined scope/goal:
    • Scope: RESIDENTIAL and NATIONAL
    • Goal: Harmonize products on shelf with recovery infrastructure
    • Material 1, PS:
    • PS is 98% air 2% resin?because of its density there is no economical way to COLLECT the material for recovery (shipping a truck of air exceeds value of resin).
    • Demand is for DENSIFIED PS.
    • Purchase a densifier for each municipality
    • Cold densifier: Don’t need an air omissions certificate;
    • Thermal densifer: Do need an air omissions certificate;
    • Drawbacks: Expensive and pay back depends on QUANITY.
    • Material 2, PET
    • “Thermoformers can use bottle-grade PET but bottles can NOT use thermo-grade PET.”
    • Why: Different IV’s and fear of contamination
    • Carbonated soda drinks use one IV, water bottles use another, thermos use something else, etc. AND one PVC clam in a bale of bottle-grade PET contaminates the entire feedstock for reprocessing.
    • Also, a chicken and egg syndrome?there is no end-market for thermo-grade PET because the quantity isn’t there; but the quantity isn’t there because it is not collected because there is no end-market.
    • Solution: Identify end market FIRST; collect thermoforms and conduct pilot to determine the quality of mixed material.
    • Mimic the corrugated recovery specs: Corrugated council conducted testing on alternatives to OCC compliance and determined that 21 alternatives to corrugated can be recycled along with corrugated.
We actually didn’t spend much time on bio-based resins, aside from discussing the appropriate vernacular for describing this new family of agriculturally-based resins. For the record, the proper language is “bio-based” polymers as cellulous is a bio polymer of a different sort and therefore the distinction should be advocated to eliminate confusion in the market. Good times.

I met two girls from the Ministry of the Environment; they were super cool and gave me a ride back to the city, thereby saving me some 90 odd dollars. They were both policy girls, which means they spend a lot of time on issues of waste management and product stewardship. We hit it off because shared interests and because they sat next to me and I am a chatty Cathy, especially when nervous and out of my element.

That’s all for now. Tomorrow’s post will describe my experiences at the Walmart Expo in Arkansas.

Thanks for listening! And thanks Canada!

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