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Cut packaging, cut costs

shopOn the subject of packaging, it seems Wal-Mart has woken up to the message of cutting waste–on the fine principle that it also happens to be good business. Last year, the company announced plans to cut packaging by 5% by 2013, trimming a nice $3.4bn from the bottom line.

But others are following suit, and the growing demand for smaller and more eco-friendly packaging is causing box-makers and chemical firms to react. A lot of it is driven by new legislation, but the bottom line is increasingly a benefit too. This from ENN:

A reduction in the volume of packaging has interesting ramifications said Robert Anstine, vice president of marketing at International Paper Co’s Shorewood packaging unit, which is working with Wal-Mart on its packaging reduction program.

“If you go to a smaller package, it means you can put more of them in a shipping container, which means you can get more product on a truck; it lowers the amount of energy and fuel used to transport the product,” Anstine said.

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