Case study Reusable sofa bag for home deliveries protects the product and builds brand perception Reusable packaging for upholstered furniture is fit for purpose, improves packaging and product presentation, reduces packaging and lowers the risk of damage to products in transit. Customers also like it. Key Facts O ver 10 million items of upholstered furniture are sold each year, using an estimated 30,000 tonnes of packaging. W RAP worked with Argos and consultants Acona Ltd to design and trial a reusable packaging system – the sofa bag – for upholstered furniture. 3,000 sofa bags were used during the trials. The Significant levels of packaging are required to deliver high value products to a customer’s home. Inadequate packaging can leave goods unprotected during transit and prone to damage. This has implications for customer satisfaction, the quantity of goods discarded as waste, the level of returns and, ultimately, cost to the business. This research project aimed to develop, test and trial a suitable reusable packaging system – the sofa bag – for the distribution and delivery of upholstered furniture. Such a packaging system aimed to: a more robust way of packaging upholstered furniture than the current single-trip plastic and cardboard packaging; improve the consistency and presentation of packaging used by suppliers; reduce the likelihood of damage to the products during distribution; reduce use of packaging ; eliminate the need for customers to dispose of packaging material themselves; and improve brand perception through reduced material consumption and offering customers an improved service. trial demonstrated that the sofa bag concept worked, delivering product from manufacturer through a distribution centre to the customer at home, and that sofa bags could be returned and reused through the system. Return rates were reduced for sofas delivered in sofa bags during the trial and feedback from suppliers, distribution operatives and customers was positive. If adopted for all Argos UK and European-supplied upholstered products, the multi-trip packaging could reduce packaging by 1,560 tonnes per annum. offer Making it happen Argos identified a need to improve packaging performance and investigated other ways of packing furniture that could also reduce the amount of packaging used. As no ‘off the shelf’ solution was available, Argos approached two packaging suppliers (All Purpose Packaging Ltd and Sansetsu UK Ltd) to develop a bespoke reusable sofa bag. Three-seater sofas were selected for the trial. After initial testing of the concept by Argos and logistics specialist DHL from distribution centre to customers’ homes, Reusable sofa bag for home deliveries protects the product and builds brand perception the next stage was a trial involving two furniture manufacturers (The Quality Furniture Company Ltd and The Furniture Company Ltd), with sofas packed into the reusable sofa bags at the manufacturers, delivered to the distribution centre and on to customers’ homes before being returned through the system for reuse. Cory Environmental Recycling Services became a project partner as the scale of the trial grew to provide the cleaning and repair service for used sofa bags. The design of the sofa bag went through a number of iterations during the project, but is essentially an envelope of reinforced bubble wrap material with a protective outer covering of low density polyethylene (LDPE) and an inner lining of non-woven polypropylene tissue. One of the most challenging aspects of the project was the development of a continuous distribution flow – a so-called ‘closed loop’ – to move the sofa bag from the supplier through the distribution network to the customer and back again. Sofa bag shown to be fit for purpose During the trial, 5,762 sofas were delivered in sofa bags and the reusable packaging was shown to be capable of at least seven uses. The sofa bag eliminated the use of over 17 tonnes of cardboard and plastic packaging during the trial. Customers benefited from not having to dispose of any packaging materials and no complaints about the sofa bag were received. Benefits of reusable packaging Cost benefits: lower packaging costs through reduced raw material and waste disposal costs; reduced cost of buying Packaging Recovery Notes (PRNs) since packaging that is reused is exempt after its first use; reduced cost of returns and rejects; and reduced product damage during transit. Consumer benefits: increased customer satisfaction; no bulky packaging waste for the customer to recycle or dispose of; and improved product presentation to the customer. Company and employee benefits: reduced risk of personal injury to packing and delivery teams; improved customer service; improved company image; and marketing opportunities (e.g. branding on packaging). Environmental benefits: less packaging waste entering the domestic waste stream; and reduced product damage thereby reducing the carbon footprint. Reusable sofa bag for home deliveries protects the product and builds brand perception The rate of returns was lower for sofas packed in sofa bags during the trial, compared to those packed in single-trip packaging. Project partners representing both the supply chain and logistics operations agreed that the trial demonstrated clearly that the sofa bag concept worked and was fit for purpose. The packaging added no extra time to the distribution process and improved product presentation and customer service. Roger Panton-Kent, head of quality assurance for Argos said: “The reusable sofa bag has the potential to offer several advantages. It protects furniture for customers. It reduces the need for disposable packaging and it improves how we present our goods when they are delivered. These three benefits mean that the implementation of the sofa bag concept is something we are looking to explore going forward.” Factors affecting the cost-effectiveness of the bag The final cost for a three-seater reusable sofa bag during the trial was £15.99. This equated to a cost per trip of £2.28 per bag (assuming seven trips). However, the cost-benefit of using the bag also needs to taken into account a number of operational variables: number of reuses of the sofa bag that can be achieved; time and resources required for packing and handling using single-trip packaging versus sofa bags; loss rate of sofa bags per delivery cycle; cost of product damaged in sofa bags versus single trip packaging; cost of inspecting and possible cleaning and repair after each delivery cycle; proportion of sofa bags that need cleaning or repair after each cycle; specification of the sofa bag; and length of time for taken for the sofa bag to complete each distribution and return cycle. The trial highlighted the need to reduce loss rates, cleaning costs and increase the percentage of bags returned. Improvements are possible with appropriate management and contractual arrangements. There may also be a significant additional benefit if the reusable packaging system is able to reduce product damage in transit. Further, the sofa bags can provide a packaging solution for returns that ensures any returned furniture is kept in pristine condition for resale. This would increase customer satisfaction and reduce wasted manufacturing costs, shipping costs and disposal costs for unsaleable products. Benefits for business The reusable sofa bag offers real potential for environmental and cost savings for manufacturers and retailers of upholstered furniture. The concept could also be applied to other bulky home delivery product ranges such as beds. The key to success is how the closed loop system is managed to control operational variables. Moving forward WRAP’s project with Argos proves that the reusable sofa bag is a feasible way of packaging upholstered furniture for home deliveries. WRAP is keen to assist other manufacturers and retailers supplying upholstered furniture to develop similar packaging solutions that are cost-efficient and reduce use of packaging. More detail on the sofa bag, including a full technical report, is available from www.wrap.org/retail. For more information, or technical advice, contact the retail team at WRAP. Tel: 01295 819686; email: [email protected] The WRAP Retail Innovation team works with retailers and their supply chains to reduce the amount of packaging and food that households throw away. While steps have been taken to ensure its accuracy, WRAP cannot accept responsibility or be held liable to any person for any loss or damage arising out of or in connection with this information being accurate, incomplete or misleading. 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