According to a report from ERNST & YOUNG (link) global packaging is a USD 400 billion industry, in which 34% is paper and board (USD136 billion). Most of the packaging in thrown away or is send to recycling in dedicated bins (municipality efforts to waste reduction). One of the key report insights is that process improvements (packaging creation and re-usability) are key to sustainable competitive advantage for packaging corporations. Furthermore, we observed that there are several cases (e.g. e-commerce products) packaging is only marginally destroyed and that are directly send for recycling and/or reused by the consumer. There are no incentives or processes (mechanism) for the end consumer to return the packaging.
The idea of Inner Packaging Solution with grind materials has two main components:
Use of NIKE grind materials to create inner packaging blocks. These inner packaging blocks are intended to protect goods and reused when returned to shipping/logistics corporations.
A subscription based inner packaging solution that allows “renting” the inner packaging blocks to corporations. The value proposition for shipping companies is that they can reuse the inner blocks and thus reducing the over cost of packaging. The value proposition for customers is that they can get a packaging discount for returning the package. Key hypothesis is that for in house appliances and high value consumer goods, makes financial sense (it is cost effective) to have the empty package shipped back to the sender.
Consider the following case studies (design cases)
Manufacturers and Third-party Logistics Companies
Manufacturers who handle their own delivery process: They usually handle bulk-quantity orders / shipments, which require sturdy but minimal packaging (inner & outer).
Logistics Companies: Their focus is to make sure the goods are delivered in the right condition, at the right time, to the right place and for the right cost. They need to handle many different types of product (general wholesale goods, food…) and their competitive advantage usually includes packaging service for the goods. However, packaging is a cost that they target to minimize.
The current common forms of inner packaging these companies use:
For inner stuffing protection (which are not easy to re-use):
Bubble-wrap / Air-cushion, which are made of plastics
For outer packaging (partly re-used):
Cardboard boxes for dry goods
Foam boxes for cold / thermal products
E-commerce SME (regional online shops that handle logistics and delivery of goods)
These businesses’ main target is the final consumers and more specifically, regular customers with recurring purchases. As a no-inventory e-commerce business (e.g: Lazada), their main value proposition is their delivery strategy (similar to logistics company).
As an e-commerce company that delivers its own products (stock-keeping / mix; e.g: IT / Household appliance retailers; Amazon), packaging is a significant cost that they plan to be able to reduce. They can benefit from the re-usability of packaging by taking them back with the next delivery to the customer.
The proposed idea targets to:
Maximise the re-usability of packaging, and in the end, actually reduce the cost & environmental impact
Support Sustainable branding of corporations through use of an subscription service that allows them to return used inner packaging items.
Our hypothesis is that the above corporations can use the inner packaging blocks, since they already using packaging material to protect their goods. In addition, introducing a subscription-based model of using these block, could result in engaging their customers to return the packaging.
Our hypothesis here is that:
Saving money form packaging could offset the cost of take back logistics
Corporations see value in engaging (providing inventive) to their customers to ship black they empty package.