Appendix D Packaging Waste Prevention Partnership Rejuvenation – Manufacturing and Order Fulfillment Operations Introduction Rejuvenation is America's largest manufacturer and a leading direct marketer of period-authentic lighting and house parts. Homeowners and design professionals alike order its products via mail order, online or through the company's retail stores in Portland and Seattle. Order fulfillment for both retail stores and direct-to-customer sales (mail order, Internet) is conducted at Rejuvenation’s facility in Northwest Portland. Order fulfillment is co-located with Rejuvenation’s inhouse manufacturing facility, where many of the fixtures that Rejuvenation sells are made. Products made by other vendors, such as plumbing fixtures, are also warehoused at the order fulfillment center. Rejuvenation has a solid and long-standing commitment to environmental values, including waste prevention and recycling. "It's part of who we are," says Alysa Rose, Rejuvenation General Manager. "We feel strongly that we have both an opportunity and an obligation to try to make things better through our actions." According to Rejuvenation’s web site, “The significance of the smallest change made by one store, one department or even one person at a time can be impressive. All told, these small changes create and maintain the momentum that pushes sustainability to the forefront of Rejuvenation's business practices.” Shipping and receiving everything from glass lamp shades to switch plates and highly-polished brass lamp fixtures, Rejuvenation is a major user of packaging, particularly corrugated boxes. Even though corrugated is highly recyclable and can be made with high levels of recycled content, its manufacture – like that of all packaging materials – still requires energy and creates pollution. This appendix describes an effort by DEQ to help Rejuvenation evaluate a box reuse program where spent boxes from the manufacturing and warehousing operations are used to ship products to customers. DEQ, with the assistance from Metro and the City of Portland, conducted a first-of-its-kind “box reuse” study, which evaluated the effectiveness of Rejuvenation’s pre-existing box reuse effort. The study demonstrated relatively small opportunities for improvement, because the box reuse effort was already highly successful. Box reuse has cut Rejuvenation’s purchase of new boxes by almost 25%, saving approximately $23,000 (net) and reducing waste generation by approximately 30 - 40 tons per year. No specific changes were made as a consequence of the box reuse study, although the data did form the basis for a case study that can be used to promote box reuse to other businesses. However, in the two years between when the box study was conducted and when the case study was developed, Rejuvenation underwent a period of significant growth. Along the way, floor space and staff time were at a premium, and the company’s box reuse efforts suffered. The baseline data coupled with follow-up and case study development two years later helped Rejuvenation to identify the need to re-invigorate, expand, and maintain its conservation efforts in this area. Business Recruitment DEQ recruited Rejuvenation based in part on the company’s reputation as an environmental leader and the presumption that the company, with both manufacturing and order fulfillment operations, was a large user of packaging. An initial meeting with Rejuvenation’s Vice President of Operations, John Klosterman, was used to explain the goals of the DEQ/Metro packaging waste prevention project and to D-1 explore Rejuvenation’s concerns and ideas. From this meeting, the two organizations agreed to collaborate on a study of Rejuvenation’s box reuse efforts, focusing on the potential to increase the reuse of corrugated boxes. A preliminary exploration was also made of the quantity of inner-pack (void fill and cushioning) used to ship fragile items to consumers. A conceptual framework that could be used to evaluate whether inner pack was sufficient and/or overly protective was discussed, but implementation of the framework was deferred due to methodological and data challenges as well as time and resource constraints. A separate partnership was also formed with Rejuvenation’s retail operations in Portland; for details, please refer to Appendix E. Partnership Activities The partnership between DEQ and Rejuvenation focused on one specific practice: the re-use of corrugated cartons for shipping products to customers. Rejuvenation already was reusing some boxes for this purpose, but did not know if its box reuse program had achieved its full potential or not. To answer this question, DEQ designed a study to estimate the quantity of potentially reusable boxes that were being recycled instead of reused. (Reuse is a higher priority than recycling, both for environmental and economic reasons.) The study was conducted between May 5 and May 12, 2003. The methodology for the study, as well as a discussion of results, is provided in an attachment to this appendix. To summarize, the study involved Rejuvenation locking down its corrugated baler for a period of one week, and accumulating all of the materials that normally would be sent for recycling. At the end of one week, a crew consisting of staff from Rejuvenation, DEQ, Metro, and Portland State University’s Community Environmental Services program (on behalf of the City of Portland) sorted through this large quantity of material. Potentially reusable boxes were further sorted and tallied based on size and level of vendor/product/delivery markings. Combined with estimates of current levels of box reuse, the study found a relatively small number of potentially reusable boxes that were not already being separated for reuse. At the time of the study, it appeared that Rejuvenation was in fact doing an excellent job at sorting boxes: between 90 and 97% of boxes that could be reused (given existing criteria) were already pulled out for reuse. A report by DEQ (see attachment) recommended four opportunities to increase reuse of boxes and save even more money through further reductions in the purchase of new boxes: • Improve sorting (a small number of boxes [estimated at 130 – 300 boxes/month] that met existing criteria for reusability were found in the recycling. • Increase use of boxes with markings for inter- and intra-company transfers. This would potentially free up higher quality reused boxes for direct-to-customer shipments and lead to a net reduction in new box purchases. • Consider relaxing aesthetic standards regarding the absence of markings on boxes allowed to be reused. • Boxes not reused by Rejuvenation may be reusable by others. After DEQ completed its report of findings, the company focused its attention on a major expansion of its business – an expansion that, unfortunately, drew floor space, staff time, and management attention away from the box reuse effort. As a result, Rejuvenation took no steps to implement these recommendations. D-2 Figure 1. Materials Accumulated for Sorting Figure 2. Sorting Underway by PSU Community Environmental Services D-3 Figure 3. Sample Reusable Boxes Instead, In the winter of 2005, when DEQ recontacted Rejuvenation to prepare a case study of its box reuse efforts, staff there estimated that the box reuse rate (“capture rate”) had fallen about 25%. The case study that was subsequently developed reflects the lower level of box reuse, even as Rejuvenation management identified a need and desire to refocus attention on the box reuse effort in order to regain the exceptionally high level of box reuse realized in previous years. Evaluation Outcomes Rejuvenation did not implement any of the recommendations contained in DEQ’s report regarding box reuse. In fact, over time, the level of box reuse in the order fulfillment center fell. The subsequent development of the case study (http://www.deq.state.or.us/wmc/packaging/cs/csrejuvenation.pdf) confirmed this decline and led Rejuvenation management to make plans to re-evaluate the box reuse effort with the goal of regaining, if not surpassing, its previous higher levels of reuse. One of the lessons learned from this change is that the reuse program does require some level of attention, particularly during times of rapid business expansion and transitions. Changes in the level of reuse reflect changes in the level of attention given to the effort. Regardless, even at the lower level of reuse, Rejuvenation has reduced its purchase of new boxes by approximately 25%, saving approximately $23,000 (net, after subtracting out added labor required for sorting) and reducing material use (and waste generation) by approximately 30 tons of material per year. Barriers to Change Initial recommendations made by DEQ were not pursued for a combination of factors, including relatively low savings potential (because the box reuse program was already largely maximized), coupled with management attention being diverted to the challenges of business expansion. Ironically, had D-4 Rejuvenation not already been such a leader in waste prevention, the potential for new financial savings would have been higher, potentially resulting in a greater likelihood of adoption of the recommendations. Suggestions for Replicability Working with a company that was already committed at all levels of the organization to environmental improvement offered many advantages. Throughout the larger DEQ/Metro waste prevention packaging project, Rejuvenation remained one of the most committed participants and demonstrated a high level of responsiveness to the goals of the project. Ironically, Rejuvenation had already nearly maximized its carton reuse effort prior to the partnership effort, so had relatively little opportunity for improvement. The box reuse study represented a creative and innovative attempt to estimate the potential financial and waste reduction benefit of increasing box reuse. Historically, activities involving the sorting of discards at businesses have focused on sorting garbage in order to identify the presence of potential recyclables. This study represented a move upward on the waste management hierarchy1, as it involved sorting recyclables in order to identify the presence of potential reusables. To our knowledge, this was the first time that this kind of study had been conducted. Businesses and waste prevention specialists interested in repeating this type of study elsewhere may find the study methodology and discussion of results (provided as an attachment to this appendix) to be useful. 1 Prevent waste, then reuse, then recycle, etc. D-5 Results of Rejuvenation Box Sort Prepared by David Allaway, Oregon DEQ with assistance from Marta McGuire, Metro August 19, 2003 Introduction While many businesses recycle their waste corrugated boxes, reuse can be even better for the environment – and the bottom line – than recycling. Rejuvenation’s Northwest Portland facility is currently conducts extensive reuse of corrugated boxes. In May 2003, a box sort study was conducted at Rejuvenation’s facility to identify additional opportunities for increased reuse of corrugated materials. For seven days beginning Monday, May 5, 2003, Rejuvenation’s Northwest Portland manufacturing and shipping facility locked down their corrugated baler and stockpiled all discarded corrugated boxes and other corrugated material. This material was sorted on May 12 by a group of individuals from Rejuvenation, the Oregon Department of Environmental Quality (DEQ), Metro, and Portland State University Community Environmental Solutions (representing the City of Portland). This report summarizes the key findings of the box sort. The methodology used during the sorting event is described in an appendix to this report. The box sort identified opportunities to increase reuse of boxes and save money through decreased purchased of new boxes. Recommendations are as follows: 1. Improve sorting. Currently, only the cleanest boxes, with no mailing information and minimal other markings, are pulled out for reuse as customer shipping boxes. A small number of boxes (estimated at 130 – 300 boxes/month) that meet these criteria were found in the recycling. 2. Increase use of boxes with markings for inter- and intra- company transfers (if possible). A larger number of boxes sent to recycling are not reused because of mailing information and other markings on the boxes. Rejuvenation currently does not want to ship items to customers in these boxes. However, some of these boxes would be appropriate for use in inter- and intra-company transfers, where aesthetic and delivery considerations are less demanding. All of the boxes used for inter- and intra-company transfers are already reused. If the current inter- and intracompany boxes are the same premier quality (unmarked) also used for customer shipments, then Rejuvenation could save on box Key Findings and Recommendations At Rejuvenation’s Northwest Portland facility, boxes are reused to ship parts to offsite suppliers, to ship products to Rejuvenation’s retail store, and to ship products directly to customers who order from Rejuvenation’s catalog. Customer shipments account for the largest use (and reuse) of boxes at Rejuvenation. Given Results of Rejuvenation Box Sort.doc existing criteria for selecting boxes for reuse, Rejuvenation employees are doing an excellent job at sorting boxes: between 90 97 percent of boxes that could be reused (given existing criteria) are already pulled out for reuse. Page 1 August 19, 2003 purchases as follows: marked but still reusable boxes would be used for inter- and intra-company transfers, thus freeing up more premier-quality boxes for customer shipments. Background: Current Reuse and Use of New Boxes Rejuvenation staff estimated the quantities of boxes used and reused as follows: 3. Consider relaxing aesthetic standards. By relaxing aesthetic standards, Rejuvenation would be able to draw on a larger number of boxes for reuse in customer shipments. This would further reduce the number of new boxes purchased (by an estimated 200 boxes/month). 4. Boxes not reused by Rejuvenation may be reusable by others. After Rejuvenation makes any changes desired to maximize its internal utilization of reused boxes, DEQ and Metro will help to identify some opportunities for external reuse. Background: Corrugated Box Use Rejuvenation’s Northwest Portland facility conducts several activities that involve the receipt and use of corrugated boxes. Component parts are received from suppliers in boxes for use in on-site manufacturing. Certain manufacturing steps (specifically, plating) occur off-site and boxes are used to transport partially-finished product between Rejuvenation and the plating site. Rejuvenation’s catalog, internet and telephone orders are also fulfilled from this site. Items shipped to customers from Northwest Portland include products made and/or assembled on-site by Rejuvenation, as well as already-finished products that are purchased from other companies. The Northwest Portland facility also ships some items to the company’s retail store in Southeast Portland, and also processes returns. The flow of corrugated boxes through the facility’s processes is detailed in the diagram below. Results of Rejuvenation Box Sort.doc Page 2 • Intracompany (Will Call, retail stock replenishment): approximately 760 boxes/month (175 boxes/week) are sent from the Northwest Portland site to the Southeast Portland retail store. 100% of these boxes are reused vendor boxes (boxes that vendors have shipped parts in). The retail store reuses or recycles the boxes once they receive them. • Inter-company (Inventory Control, shipments of unplated parts and assemblies to Eastside Plating, other vendors): approximately 320 boxes/month (75 boxes/week). Again, 100% of these boxes are reused vendor boxes. • Outer boxes for direct shipment to customers (via UPS, etc.): approximately 7,800 small parcel shipments/month (1,800/week). Each “small parcel shipment” consists of an outer box with product(s) and void fill inside. If the product(s) was manufactured off-site (by a third party), such as a switch plate, it is typically packaged inside an inner (vendor-provided) box as well. Of the 7,800 outer boxes, approximately 4,000/month are purchased new. This means that the remaining 3,800/month are reused boxes, and that 49% of all outbound outer boxes (sent to customers) are new.* Purchase of new boxes for outbound shipments are detailed in the table at the end of this report. August 19, 2003 *(Note: the 7,800/month total was estimated by Staci Govi in a 4/21 e-mail; the 4,000/month new box total was estimated from data provided by Staci in an e-mail dated 8/4, and the number of reused boxes was estimated by subtracting new boxes [4,000/month] from total boxes [7,800/month]. An alternative calculation yields different results, as follows: Staci also estimated in her 4/21 e-mail that Rejuvenation reuses approximately 700 vendor boxes/week for outbound shipments, or 3,031/month, which is lower than the 3,800 estimated above. Combined with the estimate of 4,000/month purchased new, this would result in approximately 7,030 boxes used/month, and that 43% of all outbound outer boxes [sent to customers] are new.) • Of the 374 boxes sorted into Group A, most of them were smaller than 9” x 9” x 9”. The smallest box currently purchased new for outbound shipments by Rejuvenation is 12” x 12” x 12”. Only 31 of the 374 boxes in Group A could be used to replace an existing box that is purchased new. Assuming this represents a typical week, this means that approximately 130 boxes/month that are currently recycled are readily reusable by Rejuvenation (for outbound shipments to customers). Given that somewhere between 3,000 and 3,800 boxes are currently pulled each month for this purpose, if only 130 boxes/month are missed, then we can conclude that Rejuvenation employees are doing an excellent job at pulling out boxes targeted for reuse (96 – 97 percent of boxes targeted are sorted out for reuse). Results of Box Sort Approximately 30 – 50 percent (by weight) of the material separated for corrugated recycling was not sorted. This material consisted mainly of items such as very small boxes, inserts, dividers, tubes, and some chipboard. The remaining material was sorted into three categories: Group A (374 boxes): Potentially reusable by Rejuvenation. Group B (476 boxes): Boxes Rejuvenation was unwilling to reuse at the time of the sort, but others might be willing to reuse. Group C (126 boxes): Boxes that were damaged or structurally unsound, and not likely to be reused by anyone. To be classified in Group A (“potentially reusable by Rejuvenation”), a box needed to: • • • • be free of staples, be structurally sound, be larger than 5” x 5” x 5”, be free of postage, address labels, tracking codes, bill-of-lading packets, Results of Rejuvenation Box Sort.doc or other markings that could cause confusion in the mailing process, and have no or only a very small amount of other markings on the box (tags, vendor names, writing, etc.) Another 39 boxes in Group A might be usable to replace existing boxes (purchased new) but are slightly smaller than the smallest box currently purchased by Rejuvenation (12” x 12” x 12”). These boxes may be larger than the 12” box on one or two sides but somewhere between 10” and 12” on at least one side (and may be as small as 10” x 10” x 10”). Including these boxes in the total above means that roughly 300 readily reusable boxes/month (31/week + 39/week, multiplied by 4.33 weeks/month) are currently being recycled rather than reused. If these boxes are reusable, then between 90 – 92 percent of boxes targeted are sorted out for reuse, still an excellent accomplishment. Among the Group B boxes, DEQ has analyzed the various features that make them currently non-reusable by Rejuvenation, given Page 3 August 19, 2003 larger than the 12” box on one or two sides but somewhere between 10” and 12” on at least one side (and may be as small as 10” x 10” x 10”). Rejuvenation’s current standards. Of the 476 boxes sorted into Group B, only 46 were free from staples (staples make boxes difficult to flatten and reuse) and were also free of markings that could cause confusion in the remailing process (address labels, routing bar codes, bill of lading pouches, and postage). The only reason these 46 boxes were put into Group B as opposed to Group A was because of vendor markings or other box markings that make the box appear to be reused (some of the boxes are heavily marked with tags, labels, and other markings). Thus, these 46 boxes (200/month) are not reusable for outbound shipments for purely aesthetic reasons. It is possible that these boxes could be used for inter- and intra-company shipments. If boxes currently re-used for inter- and intracompany shipments are currently “Group A” quality (free of external markings), then using these “Group B” (marked) boxes for interand intra-company shipments could free up as many as 250 reused boxes/week for use in external (customer) shipments. Numbers of new boxes currently purchased per month, and estimates of the number of potentially reusable boxes tossed out (recycled) each month, are shown by box size in the following table. Of these 46 boxes, 32 are larger than the smallest box purchased by Rejuvenation (12” x 12” x 12”) and the other 14 boxes may be “Group A” Number Purchased New/Mo. 10x10x50 50 12x12x12 500 20x20x40 150 14x14x68 50 14x14x20 650 15x15x18 700 18x18x20 900 19x19x8.5 100 22x22x15 300 24x24x18 150 26x26x20 100 10x10x40 350 Total 4000 Size Right Size1 126 Almost Right Size2 0 294 0 0 0 4 4 0 0 0 0 0 303 169 4 4 134 Subtotal 169 “Group B” – printing and markings only Almost Right Right Subtotal Size1 2 Size 4 4 35 61 95 0 0 9 4 13 13 9 22 9 22 30 9 9 17 9 9 4 4 0 0 82 113 195 1 Boxes that are at least the same size as the purchased box, in all three dimensions. Boxes are smaller than the purchased box by no more than 2” in one or two dimensions. Boxes may be larger in other dimensions. For example, a box that is 16” x 30” x 16” would be classified as “almost right size” for a 15” x 15” x 18” box. 2 Results of Rejuvenation Box Sort.doc Page 4 August 19, 2003 Simplified Process Flow Diagram* Cardboard Box Use at Rejuvenation, Inc. New boxes Other supplies, process chemicals, etc. Parts in boxes ~4000 boxes/month Boxes returned from plater Component parts received from suppliers Products in boxes Internal manufacturing activities Parts Unfinished product (unplated) Products in boxes in outer boxes Products in boxes (some double-boxed) Shipping to retail store (restock, will call) Products in boxes (some double-boxed) Finished products ~320 boxes/month Outer corrugated boxes Box sorting Shipping to customers Unfinished product (plated) Plating (off-site) Finished products received from suppliers Corrugated boxes Finished products Other packaging materials ~760 boxes/month ~3000-3800 boxes/month Boxes Rejuvenation wants to reuse Boxes Rejuvenation doesn’t want to reuse Box recycling ~4300 boxes/month 8/15/2003 9:30 AM *Note: *Note:Only Onlyparts, parts,products, products,and andboxes boxesare arefully fully shown. Other material flows (not fully shown) shown. Other material flows (not fully shown)include include process inputs, process wastes, on-size shredding process inputs, process wastes, on-size shredding ofofpaper paperfor forbox boxfill, fill,other otherpackaging packagingmaterials, materials,etc. etc. Appendix “Box Sort” Study Protocol for Rejuvenation Inc. David Allaway, Oregon DEQ Goal of Study: Inventory the sizes, types, and reusability of corrugated boxes currently discarded (recycled) by Rejuvenation’s factory in Northwest Portland, for the purposes of increasing reuse of these boxes. Rejuvenation is already reusing a significant number of boxes; almost all other boxes are recycled. A box weighing 0.5 pounds might generate $0.02 in recycling revenue (if Rejuvenation were paid $80/ton for old corrugated containers). The same box, if reused, might save $0.25 to $0.40 in avoided purchasing costs. While recycling of the boxes is environmentally preferable to disposing of them, reuse has even lower environmental impacts. Overview: • Create an inventory of boxes currently discarded at Rejuvenation’s factory in Northwest Portland; • Compare this inventory against current quantities and types of new boxes purchased for outbound shipping; • Help Rejuvenation to save money and further reduce resource consumption and pollution by reusing boxes rather than recycling them; and • For those boxes which Rejuvenation doesn’t want to re-use in-house, but are potentially reusable by someone else, make it easier for Rejuvenation to find organizations to reuse the boxes by categorizing the numbers, types and sizes of boxes available. Box Sorting Protocol: 1. Rejuvenation has identified the week of May 5, 2003 as a “typical” week in which generation of waste corrugated boxes is expected to be close to average. 2. During this week, the recycling compactor will be disabled. Rejuvenation will continue to pull out boxes for reuse as normal; all other boxes (that would normally be discarded and recycled) will be set aside in the warehouse. Boxes can be flattened if necessary due to storage space constraints. 3. Following seven days of accumulation, a box sort will be conducted on May 12 by David Allaway (DEQ), Marta McGuire (Metro), Jonathan Budner (a volunteer with the Master Recyclers) and two students (Darren Nichols and Isaac Castellano) from the PSU Community Environmental Services program - (hereafter referred to as “the sort team”). On-site assistance will be provided by Stacy Govi (Rejuvenation Shipping Supervisor). 4. Boxes will be sorted into three categories, as follows: A. Boxes that are potentially reusable by Rejuvenation as outer shipping cartons. B. Boxes not reusable by Rejuvenation, but still potentially reusable by others. C. All others (boxes not reusable by anyone). These three categories reflect a preferred hierarchy of reuse. Boxes in categories A that Rejuvenation chooses not to reuse in-house may be reusable for others (Category B). Rejuvenation has identified criteria for what types of boxes are potentially reusable in-house. All boxes potentially reusable by Rejuvenation must meet the following criteria: Rejuvenation box sort appendix.doc 1 May 7, 2003 • Structurally sound, rigid, all flaps intact (ignoring damage caused when the boxes were opened in-house). • No staples; easily flattened for storage. • Edge Crush Test (ECT) at least 32 or Bursting Strength (BS) at least 200#. (See the table at the end of this document for a correlation between ECT, BS, and recommended maximum product weights. However, most packages received from other countries will not have an ECT or BS label.) • Within a certain size range. Rejuvenation ships via UPS and maximum carton size for UPS is a carton where length + girth = 130 inches. In this formula, length = the longest dimension of the box, and girth equals two multiplied by the second and third longest dimensions added together. If the dimensions of a box are D1, D2, and D3, and D1> D2 > D3, then we measure D1 + 2 x (D2 + D3). (The term “length” has a different meaning when recording the size of boxes; see below.) • No postage, address labels, UPS scan code labels, etc. that might cause confusion in the remailing process if not removed/covered. • No bill-of-lading pouch (stuck to the outside of the box). • No printing that indicates that the box originally was used for shipping substances that are hazardous (poisonous, reactive, explosive, flammable, etc.). • Minimal vendor or product markings (“no more than a few words”). • Minimal other aesthetic blemishes. Once boxes that are potentially reusable by Rejuvenation have been pulled out, a simpler set of criteria is used to determine whether or not boxes are reusable by others, or have no reuse potential. Boxes are potentially reusable by others if they are: • Structurally sound, rigid, all flaps intact (ignoring damage caused when the boxes were opened in-house). For reuse by other organizations, boxes may be reused for an application other than direct-tocustomer shipping, where exterior marking/printing is not as much of an issue. 5. For boxes sorted as potentially reusable by Rejuvenation (Category A), count/tally them using the tally sheet (attached). 6. For boxes sorted as potentially reusable by others (Category B), count/tally them using the tally sheet (attached). This tally sheet records all of the information in Category A, plus: • The presence (or lack) of staples. • Whether or not there is a bill-of-lading pouch (and if so, how removable it is). • Whether or not there are address labels (and if so, how removable they are, and their size). • Whether or not there is other postage or tracking information (and if so, how removable they are, and their size). • Whether or not there is any other printing on the box (company names, hazard warning labels, etc.), and if so, its size. • Whether or not there are any other marks or blemishes. In all cases, when recording carton sizes, sizes are measured in terms of three dimensions. These dimensions are expressed in inches of Length x Width x Height. In this case, Length (L) is the longer Rejuvenation box sort appendix.doc 2 May 7, 2003 side of the opening and Width (W) is the shorter. Dimensions may be obtained from printing on the outside of the box; however, if the box has been sized down (scored), use the actual measured void height, not what’s printed on the box. 7. Non-reusable boxes will be counted. 8. Once all boxes have been accounted for, photographs will be taken of the three piles. Any boxes that Rejuvenation is ready to re-use can be removed for re-use; all other boxes will be recycled. Analysis: Tallies will be tabulated. Results for boxes “potentially reusable by Rejuvenation” will be compared against lists and quantities of new boxes currently purchased. Barriers to increased box reuse will be determined at that time, along with strategies to overcome those barriers. A rough estimate of percentage of boxes currently recycled that are potentially reusable by Rejuvenation (and potentially reusable by others) will be calculated. After Rejuvenation has maximized its reuse of boxes (at a level to be determined by Rejuvenation), we can begin seeking users of those reusable boxes that are not wanted by Rejuvenation. Increased box reuse as well as results of this study and a description of the process approach will be written up as a case study for the purposes of educating other businesses about the potential of box reuse. This case study would also include current levels of box reuse by Rejuvenation. Rejuvenation box sort appendix.doc 3 May 7, 2003 Addendum: Bursting Strength, Weight Limits, and Edge Crush Test The following table could be used to define sorting criteria and/or categories. ECT cartons will typically have lower properties then BS cartons so the following table is for comparison only and should not be considered exact. CORRUGATED BOARD STRENGTH CHART (US) Single Wall Corrugated Bursting Strength Max Weight Limit (lbs) Edge Crush Test 125# 20 23 ECT 150# 35 26 ECT 175# 50 29 ECT 200# 65 32 ECT 275# 95 44 ECT 350# 120 55 ECT Double Wall Corrugated Bursting Strength Max Weight Limit (lbs) Edge Crush Test 200# 80 42 ECT 275# 100 48 ECT 350# 120 51 ECT 400# 140 61 ECT 500# 160 71 ECT 600# 180 82 ECT Rejuvenation box sort appendix.doc 4 May 7, 2003 Appendix E Packaging Waste Prevention Partnership Rejuvenation – Portland Retail Store Introduction Rejuvenation is America's largest manufacturer and a leading direct marketer of period-authentic lighting and house parts. Homeowners and design professionals alike order its products via mail order, online, or through the company's retail stores in Portland and Seattle. The Portland retail store, which started in 1977 at 900 square feet in size, now occupies 38,000 sq. feet on the first and second floors of the historic Neustadter Building, near downtown Portland. The store combines period-authentic reproduction lighting manufactured by Rejuvenation, with period furniture, hardware, plumbing, decorative accessories, millwork, and architectural salvage. Rejuvenation has a solid and long-standing commitment to environmental values, including waste prevention and recycling. "It's part of who we are," says Alysa Rose, Rejuvenation General Manager. "We feel strongly that we have both an opportunity and an obligation to try to make things better through our actions." According to Rejuvenation’s web site, “The significance of the smallest change made by one store, one department or even one person at a time can be impressive. All told, these small changes create and maintain the momentum that pushes sustainability to the forefront of Rejuvenation's business practices.” This appendix describes an effort by DEQ to help Rejuvenation’s Portland retail store communicate environmental concerns to one of its suppliers, Sunrise Specialties. (DEQ’s work with Rejuvenation’s manufacturing facility is described in a separate document, Appendix D.) After DEQ completed its initial work with Rejuvenation’s retail staff, the company reorganized its purchasing department and several key staff left. This employee turnover posed a challenge to program evaluation, although Rejuvenation did recontact Sunrise and learned that a major packaging change was, in fact, implemented. However, the change made by the supplier was not the change recommended by Rejuvenation. The new package is more readily recyclable and also contains more recycled content than the original package. But it also uses more material overall, and thus runs contrary to the waste prevention goals of this project as well as the state’s statutory waste generation goals. Business Recruitment Rejuvenation’s retail store was one of the easiest participants to recruit for the DEQ/Metro project. In some regards, they recruited themselves when an employee contacted Metro’s Recycling Information with an information request. As part of their retail environmental management system, Rejuvenation was working on a sustainable purchasing plan and had an employee task force examining the kinds of packing materials that vendors use to ship products. Rejuvenation asked Metro for “someone . . . who has expertise on the environmental impacts of various types of packing material from Styrofoam to cardboard . . . [and who] would be willing to do some training for us.” Metro forwarded Rejuvenation’s request to DEQ, and DEQ promptly contacted Rejuvenation. After a few telephone conversations, DEQ and Metro were asked to attend the store’s next sustainable purchasing committee meeting. E-1 Partnership Activities At this meeting, DEQ provided a summary overview of environmental considerations of different common packaging materials and the complications involved in comparing materials, such as polystyrene and corrugated, for their environmental impact. This was the information that Rejuvenation had originally requested. However, DEQ and Metro had recently been provided with a simplified packaging life cycle analysis software called MERGE. Developed by the Alliance for Environmental Innovation, in conjunction with SC Johnson, Clairol, and Mead Johnson Nutritionals, MERGE is a PC-based software application that uses basic input data available to any designer to quickly generate environmental profiles of products or product design alternatives. MERGE allows users to readily compare these profiles to each other or to other product groups. DEQ offered to make MERGE available to Rejuvenation through the evaluation of one or more vendor packages, and Rejuvenation accepted. Several members of the store’s sustainable purchasing committee then presented examples of vendor packaging that they thought might have good redesign potential and also were from vendors that staff thought Rejuvenation might be able to influence. Among these options, one stood out as having the highest potential for improvement, and became the focus for the duration of the project. The product was a plumbing assembly set for claw-foot tubs. Produced by Sunrise Specialties of Oakland, California, the set included piping and fixtures (handles, showerhead) associated with the shower. The plumbing set also included an optional large metal shower curtain ring. Because some customers want the ring while others do not, Rejuvenation ordered the set from Sunrise in two different forms: with and without the ring. The shower curtain ring was the largest of the items in the set. Sets containing the curtain ring thus required more packaging. Rejuvenation ordered more sets without the shower ring than with. Regardless, Sunrise was using the same large packaging for both sets. Figure 1 illustrates the baseline package used by Sunrise for both types of plumbing sets. The package consisted of a large tray made of expanded polystyrene foam with cavities cut to fit the various parts, the parts were also wrapped in polyethylene film. The tray was covered with a sheet of expanded polystyrene and then placed into a bleached corrugated box. After measurement and evaluation of the existing (baseline) package, and some evaluation of alternatives, DEQ presented several different options to Rejuvenation. All options involved the introduction of a smaller tray. Two different materials were evaluated for the tray: expanded polystyrene and hexacomb (paper). For both of these materials, DEQ presented two different options: • A smaller tray and smaller carton for orders without the curtain ring; a larger tray and carton for orders with the curtain ring. • A smaller tray and smaller carton for all parts; a second corrugated carton, without the tray for the optional curtain ring. Engineering drawings of the baseline system and alternatives were prepared by Pack Edge Development and provided to Rejuvenation. These are included as an attachment. E-2 Figure 1. Baseline Shower Fixture Packaging (Without Shower Curtain Ring) MERGE analysis and comparison of likely costs were also conducted. The MERGE analysis involved different variations of the major systems. For each system involving expanded polystyrene, DEQ used MERGE to evaluate four different options: • 30% post-consumer bleached corrugated with 0% post-consumer polystyrene. • 30% post-consumer bleached corrugated with 30% post-consumer polystyrene. • 80% post-consumer unbleached corrugated with 0% post-consumer polystyrene. • 80% post-consumer unbleached corrugated with 30% post-consumer polystyrene. For hexacomb options, since MERGE did not have data specific to hexacomb, DEQ simplified the analysis by merely comparing a bleached 30% post-consumer outer corrugated carton(s) against an unbleached 80% post-consumer counterpart, and used the category of “other paper” (assuming no postconsumer content) to profile the hexacomb tray. Thus, the MERGE analysis could be used to compare not only different packaging designs against each other (polystyrene vs. hexacomb; small/large tray vs. small tray for all shipments plus second box for curtain rings), but also the benefit of increasing recycled content (and replacing bleached corrugated with unbleached corrugated) within any given packaging system. The cost analysis involved estimating material costs (costs to the fabricator including labor, but not including storage, mark-up, printing, or costs for materials common to all systems such as polybags and tape) as well as freight costs to a hypothetical end customer, since the majority of these fixtures sold by Rejuvenation are sold via catalog or internet sales to customers not located in Portland. To simplify the E-3 cost analysis, cost differentials were not estimated for higher vs. lower levels of post-consumer content, allowing the discussion of costs to focus on differences in packaging systems as opposed to levels of recycled material. This was consistent with the project’s focus on waste prevention and avoided the challenges inherent in surveying material costs for different levels of post-consumer content. Following an additional meeting with Rejuvenation staff to present and discuss the results, Rejuvenation asked DEQ to simplify the analysis by eliminating the larger tray option. This reduced the analysis to a comparison of the following three basic systems: • Baseline system: large polystyrene tray in large corrugated carton used for all products. • Smaller polystyrene tray in small corrugated carton used for all products. Optional curtain ring shipped separately without tray in a second corrugated carton. • Smaller hexacomb tray in small corrugated carton used for all products. Optional curtain ring shipped separately without tray in a second corrugated carton. As before, cost estimates were provided for each of these three basic systems, and MERGE results were reported for a larger number of variations (in recycled content and bleached vs. unbleached corrugated) in these systems. Rejuvenation’s buyer for Sunrise also agreed that he would share the redesign concepts and discuss the benefits of redesign in a few months when he met with Sunrise (at a national convention). The buyer also mentioned that Rejuvenation may eventually start manufacturing a competing product itself, and in this case, would be sourcing packaging materials directly. So the design engineering and evaluation may eventually help Rejuvenation, if it pursues that course of action. DEQ offered assistance in whatever areas Rejuvenation may need help with. The resulting MERGE and cost evaluation, including descriptive notes, are provided as an attachment to this appendix. All analyses were made using an assumption (provided by Rejuvenation) that the company purchases 12 shower sets per month, 8 of which do not include a curtain ring. Summary Results of Cost and MERGE Analysis The cost comparison demonstrated likely cost savings for both redesigned systems (smaller polystyrene tray and smaller hexacomb tray), when compared against the existing design. Cost savings were projected in both materials/labor, as well as outbound freight, as the new packages would be smaller on average. Details are provided in the attachment to this appendix. The MERGE analysis also demonstrated the potential for environmental benefits, in almost all categories, for all of the options evaluated. Full details are attached, and are summarized below. DEQ reported MERGE scores in six categories: non-recyclable material, packaging resource consumption, packaging energy consumption, virgin materials content, packaging “bad actors”, and packaging greenhouse gases. (These are defined in the attachment). To allow for an easy comparison of options, DEQ normalized all MERGE scores for the (assumed) baseline package (30% post-consumer content bleached corrugated, 0% post-consumer content polystyrene tray; large tray and carton used for all shipments) so that they all equaled 100. Scores less than 100 would indicate an environmental improvement, while scores greater than 100 would indicate the opposite. Comparing the large polystyrene tray against the smaller polystyrene tray with the curtain ring shipped separately in a second carton, and holding recycled content/bleaching constant, the redesigned smaller tray reduced MERGE scores an average of 44% (MERGE scores range from 45 in “bad actors” to 66 in resource consumption, compared to baseline scores of 100). For the smaller hexacomb tray, results were much more variable, averaging a 27% reduction from the baseline (but ranging from 2 for “bad actors” to 135 for resource consumption). Hexacomb results are potentially less reliable since this was evaluated using a broadly defined “other paper” category in MERGE. E-4 MERGE also reported significant benefits to be realized by increasing post-consumer content. Interestingly, however, the analysis also showed that these benefits tend to be comparable to or less than the benefits of changing to the smaller polystyrene tray (and maintaining lower levels of post-consumer content). This is illustrated in Figure 2. Put differently, in this example, redesigning the package to use less material has greater environmental benefits (according to MERGE) than keeping the existing (inefficient) design but increasing recycled content (and switching from bleached to unbleached corrugated). Interesting, the packaging redesign (smaller tray) also offers a clear potential for cost savings (both in materials and freight), whereas the same can’t be said as easily regarding increasing postconsumer content. Of course, the greatest environmental benefits results from implementing both of these strategies: redesigning the package to use less material (waste prevention) and increasing the postconsumer content. Figure 2. Selected MERGE Results Packaging System Baseline: All shipments use large polystyrene tray and corrugated carton Carton: 30% post-consumer content; bleached. 80% post-consumer content; unbleached. Polystyrene Tray: 0% post-consumer content. 30% post-consumer content. All shipments use small polystyrene tray and corrugated carton; optional curtain ring shipped in second carton 30% post-consumer content; bleached. 0% post-consumer content. MERGE Scores*: Non-recyclable 100 100 55 material Packaging resource 100 65 66 consumption Packaging energy 100 77 51 consumption Virgin materials 100 59 58 content Packaging “bad 100 84 45 actors” Packaging greenhouse 100 71 62 gases *Baseline is defined to equal 100. Lower scores indicate environmental improvements. Evaluation Results More than 20 months after DEQ completed this analysis, an attempt was made to recontact Rejuvenation staff to learn what, if any, outcomes had resulted from this project. Unfortunately, the previous buyer, who had been DEQ’s primary point-of-contact, had left Rejuvenation. Further, the company had reorganized, moving all purchasing functions to the company’s corporate offices. DEQ contacted Rejuvenation’s new buyer for Sunrise Specialties, and had to explain the project from scratch and attempt to enlist her help. Fortunately, upon seeing the packaging drawings and analysis, the buyer concluded E-5 that DEQ had, in fact, made a significant effort to assist Rejuvenation. Better yet, the buyer and the company’s purchasing manager (who was also unfamiliar with the project) agreed to re-contact Sunrise to find out if any changes had been made as a result of the earlier buyer’s requests. After talking with Sunrise, Rejuvenation reported: 1. Sunrise claims that in 2004, with the help of packaging and logistics experts, they changed packaging for many products they sell. They did not, however, implement the recommendations from Rejuvenation/DEQ. 2. The new package design for all faucet and shower sets uses molded pulp as interior material. They have eliminated the use of foam in these packages and significantly decreased the usage of foam company-wide. 3. Sunrise claims that since 2003, they have used substantially less packaging material overall. Rejuvenation confirmed that the shower assembly is now packaged in a tray made from molded pulp. The new packaging is illustrated in Figure 3. Figure 3. New Molded Pulp Shower Fixture Packaging (Curtain Ring Included) E-6 The new packaging consists of two custom-molded trays and a die-cut scored corrugated sheet. The die cut corrugated scored sheet is used to hold the parts into the molded pulp tray while loading and provides an extra layer of protection while shipping. The trays and sheet are placed into the same size and style of box that was used previously. From a waste and environmental perspective, Sunrise’s change has mixed results. For this package, Sunrise eliminated its use of expanded polystyrene foam by replacing it with a two molded pulp trays and a corrugated sheet. From a recycling perspective, this may be viewed as a positive change because the polystyrene foam had very limited recycling opportunities. In contrast, the corrugated layer is widely recyclable, and the molded pulp trays can be recycled in communities with mixed paper programs (although it is not considered to be a particularly high value grade of paper, and it has to be cut or torn into smaller pieces to fit into most recycling containers). From a weight-based waste generation perspective, however, the change is not a positive one. The outer carton remains unchanged, and an expanded polystyrene tray and assembly weighing 1.9 pounds (with a pre-manufactured polystyrene weight of 2.2 pounds) has been replaced with molded pulp trays weighing 2.8 pounds and a corrugated insert weighing an additional 1.9 pounds. On a pound-for-pound basis, the weight of packaging used for a complete assembly (including corrugated box and cut scrap from the polystyrene tray) has increased from 4.8 pounds to 7.3 pounds,; a 54% increase. And what of broader environmental considerations, such as those evaluated by MERGE? Unfortunately, MERGE does not contain data specific to molded pulp production, so MERGE cannot be used to compare the new package against the baseline and DEQ proposals evaluated earlier. The new design would likely score better than the original design in the areas of “non-recyclable material” (the new design is easier to recycle) and “virgin materials content” (the new design uses fewer pounds of virgin materials). However, the Franklin Associates study commissioned by DEQ does contain data on production of expanded polystyrene (both virgin and 100% post-consumer content) and molded pulp (100% postconsumer content). Figure 4 shows the results of a simple comparison of cradle-to-production resources and emissions using data from Chapter 2 of the Franklin Associates study, applied to the weights of the inner materials only (not the corrugated carton, and not including the polyethylene wrap that surrounds individual pieces). This analysis does not include energy and emissions associated with transporting the packaging from the manufacturer to Sunrise, or transporting the packaged product from Sunrise to Rejuvenation and then on to the final customer. However, experience elsewhere suggests that the marginal difference in transportation-related emissions and resources between these two options may be small relative to the cradle-to-production emissions and resources reported in Figure 4. The result of this evaluation shows that the new package reduces energy use (from both total and nonrenewable sources) and is comparable to the previous package in greenhouse gases. On the negative side, it results in higher levels of wastes and emissions (except greenhouse gases) in all categories evaluated. In conclusion, the recommendations made by Rejuvenation (co-developed by DEQ) to Sunrise were not implemented, although Sunrise did make a significant packaging change. It is impossible to claim direct causality between Rejuvenation’s communications of packaging concerns to Sunrise and Sunrise’s packaging change. At a minimum, it is probably safe to say this communication contributed to Sunrise’s interest in evaluating packaging options. Sunrise did reduce its use of expanded polystyrene foam, which was one of Rejuvenation’s concerns and an objective of the DEQ/Rejuvenation redesign proposal. Where the DEQ project wasn’t successful was in Sunrise incorporating waste prevention considerations. The new package is neither smaller nor more efficient than the old package, and its weight is actually 54% higher. E-7 Figure 4. Simplified Comparison of Cradle-to-Production Resources and Emissions for Production of Internal Packaging/Trays Sunrise Specialties Shower Fixture, Before vs. After – Per 1,000 Packages* Metric “Before”: Expanded Polystyrene (Assume 0% postconsumer content) “After”: Molded Pulp (assume 100% post-consumer content) and corrugated (assume 38% post-consumer content) 71 Total Energy (MM BTU) 134 Non-Renewable Energy (MM BTU) 132 59 Production Solid Wastes (pounds) 966 1,339 Particulate (pounds) 6 13 Nitrogen Oxides (pounds) 36 51 Sulfur Oxides (pounds) 48 101 CO (pounds) 20 45 Greenhouse gases** (pounds CO2 equivalent) 10,589 10,341 Waterborne Suspended Solids (pounds) 5 10 Waterborne BOD (pounds) 1 5 Waterborne COD (pounds) 4 19 *Polyethylene film used to wrap products and outer corrugated carton are not included as these materials are common to both systems. **Excludes forestry and waste management related emissions. The packaging change made by Sunrise has advantages for recycling, but increases total waste generation. Other environmental considerations (energy use, global warming, atmospheric and waterborne emissions) are mixed. On the positive side, if Rejuvenation does decide to manufacture this product directly, then it has several packaging designs available. Barriers to Change Barriers included the following: • Insufficient influence in supply chain management. Rejuvenation is not Sunrise’s largest customer and so had limited leverage to bring about change. • Confusion regarding the environmental benefits of easy-to-recycle vs. difficult-to-recycle materials. Sunrise changed to a package which it felt was an environmental improvement because it eliminated polystyrene and improved the recyclability of the package. The idea that easy-to-recycle materials are inherently environmentally “superior” is a popular concept in the United States, but isn’t necessarily true. Sunrise may have been less interested in evaluating the solution that optimized waste prevention (smaller tray for orders without the ring) because of confusion over environmental benefits, and a belief that a solution that maximized recyclability was inherently preferred. • Staff turnover. The departure of Rejuvenation’s buyer and the reorganization of Rejuvenation’s purchasing operations disrupted the project. In the final analysis, this posed a relatively small problem, as the new purchasing staff was quick to pick up where her predecessor had left off. E-8 Suggestions for Replicability Providing the analysis of environmental burdens of different packaging scenarios proved to be a valuable resource that was appreciated by Rejuvenation, and shed valuable light on the trade-offs between the sometimes competing goals of optimizing recyclability, recycled content, and waste prevention. The use of MERGE and/or other life cycle analysis tools can help packaging users and specifiers make better informed decisions. The attempt to influence change through supply chain management was challenging but valuable. Particularly if a user of packaging is a major customer of a product supplier, the user may be able to leverage a much larger, system-wide change by attempting to exert influence over upstream packaging decisions. Even if these efforts are unsuccessful in the short-term, they can help set the stage for increased awareness and packaging improvements at a later date. E-9 Results of MERGE Environmental Analysis for Shower/Tub Fixtures Set for Rejuvenation, Inc. Revised 3/14/2003 Parts only (no ring): assume 8 shipments/month Large polystyrene tray in corrugated shipping carton (no change) Smaller polystyrene tray (redesigned) in smaller corrugated shipping carton Smaller hexacomb tray (redesigned) in smaller corrugated shipping carton Parts + Ring: assume 4 shipments/month Large polystyrene tray in corrugated shipping carton (no change) Parts: smaller polystyrene tray (redesigned) in smaller corrugated shipping carton Ring: separate corrugated shipping carton Parts: smaller hexacomb tray (redesigned) in smaller corrugated shipping carton Ring: separate corrugated shipping carton Shipping carton(s) bleached (B)/unbleached (UB) % post-consumer content B 30% UB 80% B 30% UB 80% B 30% UB 80% B 30% UB 80% B 30% UB 80% Polystyrene tray(s) % post-consumer content 0% 0% 30% 30% 0% 0% 30% 30% N/A N/A Hexacomb tray bleached/unbleached % post-consumer content N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A UB 0% UB 0% 100 66 86 68 99 74 100 99 90 92 85 97 100 65 77 59 84 71 55 66 51 58 45 62 55 41 41 34 44 43 55 65 47 54 38 60 55 40 37 30 37 42 62 135 38 96 2 106 62 110 28 73 1 87 BASELINE Relative MERGE scores (see note 3) (baseline = 100; lower is better) Non-recyclable material Packaging resource consumption Packaging energy consumption Virgin materials content Packaging "bad actors" Packaging greenhouse gases 100 100 100 100 100 100 Estimated material cost, 12/month (see note 1) Savings (cost), relative to baseline <--------<--------- $186.84 $0.00 ---------> ---------> <--------<--------- $97.32 $89.52 ---------> ---------> $143.28 $43.56 Cost of freight to retail customer, 12/month (see note 2) Savings (cost), relative to baseline <--------<--------- $301.32 $0.00 ---------> ---------> <--------<--------- $218.68 $82.64 ---------> ---------> $224.36 $76.96 Material + freight cost Material + freight savings (cost), relative to baseline Reference column (for discussion purposes): $488.16 $0.00 A B $367.64 $120.52 $316.00 $172.16 C D E F G H I J NOTES (February 19, 2003) 1. Assumes relatively large orders at a time (120 – 144 pieces). Costs are materials cost to the fabricator and fabrication labor only, and do not include freight, storage, fabricator’s mark-up, printing, or costs for other materials not shown (poly bags, tape, etc.). Costs are higher if smaller quantities of packaging are purchased, as illustrated in the following table: Quantity 30 60 120 Current Shower Pack $23.09 $17.78 $15.57 Current Ring-Only Box $7.85 $4.72 $3.15 Redesigned Expanded Polystyrene (EPS) Shower Pack $12.78 $8.92 $7.06 Redesigned Hexacomb Shower Pack 144 $2.89 $10.89 For the sake of simplicity, the table assumes that higher levels of recycled content are available at roughly the same cost as the lower levels of recycled content. This is more likely to be true for the corrugated boxes than for the polystyrene trays. For both materials, certain minimum order sizes may be needed. 2. Freight costs assume UPS ground shipments from Portland to a residential address in the Chicago area (chosen because it is a major metropolitan area relatively near the geographic center of the U.S. population). Unit freight costs are as follows: 3. Existing Package without Ring (29 x 4 x 40, 18#) Existing Package with Ring Inside (29 x 4 x 40, 28#) Ring Package Only (24 x 2 x 31.5, 10#) Redesigned EPS Package Only (17 x 4 x 35, 15#) Redesigned Hexacomb Package Only (17 x 4 x 35, 16#) $25.11 $25.11 $11.19 $14.78 $15.49 Existing Package without Ring + Ring Carton (banded together) (29 x 6 x 40, 28#) Redesigned EPS Package + Ring Carton (banded together) (24 x 6 x 35, 25#) Redesigned Hexacomb Package + Ring Carton (banded together) (24 x 6 x 35, 26#) $44.70 $25.11 $25.11 “MERGE scores” refer to the weighted results from the MERGE software. Each packaging assembly (carton + tray) was scored individually, and then results were weighted together for different combinations of assemblies (for example, 8 parts-only/month in the redesigned polystyrene tray and 4 parts+ring orders/month in the existing polystyrene tray). The MERGE scores use information from publicly-available data sets on environmental burdens. DEQ makes no guarantees regarding the accuracy of this data. The six environmental criteria are defined in MERGE as follows: A. Packaging Resource Consumption A measure of the quantity (weight) of material inputs required to produce the product's packaging and delivery system. Material quantity includes materials consumed in the acquisition and processing of raw materials used in the packaging and delivery system and in their manufacture. This metric includes the weight of all of the inputs required to obtain raw materials for and manufacture each component material (which hence includes the weight of these components themselves). B. Packaging Energy Consumption A measure of the quantity of energy consumed to produce the packaging and delivery system of the product. Energy includes that used in the acquisition and processing of raw materials used in the packaging (primary and secondary) and delivery system and in their manufacture. The metric does include the energy required to obtain and process raw materials for and to manufacture each component material used in the delivery system and packaging. C. Virgin Materials Content A measure of the weight of the components of the product's delivery system and primary and secondary packaging comprised of materials that are not derived from post-consumer recycled materials. D. Non-recyclable Materials Content A measure of the weight of the components of the product's delivery system and primary and secondary packaging not comprised of readily recyclable materials, based on actual current U.S. recycling rates for each material. While many materials may be technically recyclable, this metric uses actual U.S. recycling rates as a direct means of assessing what amount of the materials used in a product’s delivery system and packaging can reasonably be expected to be recycled after use. E. Packaging "Bad Actors" A measure of the extent to which MERGE-defined "bad actor" chemicals are feedstocks or serve as intermediates in the production of packaging materials, summed across the components of the packaging system using the weight of each per product unit. “Bad actor" chemicals are those that appear on a designated set of external, widely-used lists of chemicals known or suspected to pose risks to human health or the environment: 1. Toxic Air Contaminants designated under California AB 1807 2. Priority Pollutants designated under the Federal Clean Water Act 3. Chemicals with Permissible Exposure Limits designated under the Federal Occupational Safety and Health Act 4. Toxic Release Inventory Chemicals designated under Section 313 of the Federal Superfund Amendments and Reauthorization Act of 1986 5. Maximum Contaminant Levels designated under the Federal Safe Drinking Water Act 6. Hazardous Constituents designated in the Code of Federal Regulations, Title 40, Part 261, Appendix VIII pursuant to the Federal Resource Conservation and Recovery Act 7. Carcinogens and Reproductive Toxins designated under California Proposition 65 8. Greenhouse Gases designated by the International Panel on Climate Change 9. Persistent, Bioaccumulative and Toxic Chemicals designated by USEPA 10. Ozone Depleting Substances designated under the Federal Clean Air Act Amendments of 1990 The weight, per ton of final material, of each "bad actor" feedstock or intermediate is multiplied by the number of "bad actor" lists on which the "bad actor" appears. These weighted quantities for each of the "bad actors" involved in the production of a given material are then summed. The final metric score is calculated by: (1) multiplying the weighted sum for a given material by the weight of the packaging component using that material; (2) adding up these values across all of the packaging components, (3) converting units from pounds per ton to grams per kilogram of final material, and (4) normalizing the summed value based on amount of the product used per week, so as to allow its comparison to other products on an equivalent-use basis. Although the score is nominally expressed in units of grams per week of use, these units are meaningless. The final score should be considered unitless, but in relation to a score for another formulation still reflects the relative amount of packaging "bad actors." F. Packaging Greenhouse Gases A measure of the quantity of greenhouse gases (GHGs) released across the lifecycle of the materials used in the packaging and delivery system of the product. GHG emissions include those resulting from the acquisition and processing of raw materials used in the packaging (primary and secondary) and delivery system, from the manufacture of the packaging materials, and from their recycling or disposal after use. These gases and the major activities associated with packaging that generate them are as follows: • Carbon dioxide: emissions from production and use of energy (involving combustion of fossil fuels or waste materials such as landfill gas or municipal waste) expended in acquiring and processing fuels and raw materials, in manufacturing, in transport and in recycling or disposal; manufacturing process emissions, especially in the conversion of limestone to lime. • Methane: emissions from the acquisition and use of natural gas and from the production of oil and coal; emissions from waste decomposition in landfills. • Nitrous oxide: emissions from use of fertilizers; emissions from combustion of fossil fuels or waste materials. • Perfluorcarbons: emissions during primary aluminum smelting. In addition, carbon-containing materials such as wood or paper can serve as "carbon sinks" rather than sources. This metric accounts for such "carbon sequestration" in two situations: trees left standing in a forest (for example, as a result of reducing tree harvests by increased use of recycled paper); and the portion of paper deposited in landfills that does not degrade. Appendix F Packaging Waste Prevention Partnership Williams-Sonoma/Pottery Barn Introduction Williams-Sonoma, Inc. is a major retailer of house wares with several different retail formats, the best known including Williams-Sonoma and Pottery Barn. The company has more than 500 retail stores and also conducts a major catalog and Internet sales operation. The corporation is headquartered in San Francisco and had revenues of $2.75 billion in 2003. As of February 1, 2004, the company had approximately 36,000 employees. Of the businesses involved in this project, Williams-Sonoma’s participation was one of the most complex and multi-faceted. DEQ worked directly with two stores in Oregon, but most of our work was conducted with corporate staff. Almost all of DEQ’s work with corporate staff was performed in conjunction with an internal waste prevention “champion”, Nancy Himmelfarb. Nancy was a Vice President in Williams-Sonoma’s main office where she served as associate general counsel and the Secretary to the corporation. Among her many other responsibilities, Nancy served as the company’s unofficial environmental coordinator and was active in advocating environmental improvements in a number of fronts. Unfortunately, when Nancy left Williams-Sonoma in October of 2003, DEQ lost much of its access to Williams-Sonoma, and the company lost a leading advocate for change. Despite this, the company made a number of packaging changes during the course of the DEQ packaging project. Resulting savings have not been fully evaluated. Two changes alone – reinforcing one style of shopping bag (to reduce doublebagging) and adding a smaller box for outbound shipments from stores – have savings estimated at more than $250,000/year. Total savings from all changes are potentially many times higher. Business Recruitment DEQ recruited Williams-Sonoma as a result of work conducted by Washington County under the Metrofunded CTAP (Commercial Technical Assistance Program) service. While at Washington County conducting business waste reduction technical assistance visits, Cindy Tatham visited the Pottery Barn store at Washington Square and made the acquaintance of Nancy Himmelfarb, who was involved in a coalition of large retailers working together on improving recycling programs in shopping malls. When DEQ began recruiting business participants and asked regional CTAP staff about possible business partners, Cindy mentioned Pottery Barn and connected Nancy with DEQ staff. DEQ spoke with Nancy in March of 2002 and subsequently submitted a letter outlining the goals of DEQ’s project and a first “”rough draft” list of possible packaging waste prevention opportunities. (Interestingly, few of the specific ideas in this first list were pursued; most of the partnership work involved other ideas for packaging improvement that were discovered in subsequent discussions.) Nancy agreed to work with DEQ on refining this list and implementing cost-saving packaging measures and a strong partnership was formed. Through Nancy, DEQ gained access to several key employees and different business units within Williams-Sonoma. And in DEQ and its contractor, Nancy and her coworkers gained access to knowledge and analysis that helped them to more effectively identify and advocate for packaging changes. F-1 Partnership Activities DEQ’s assistance to Williams-Sonoma was both proactive and reactive in nature. On the reactive side, DEQ served as an “on call” technical resource and answered multiple questions from Williams-Sonoma. On many occasions, Nancy asked DEQ to provide information on alternatives being discussed internally. Proactively, DEQ also suggested a number of alternatives, and, when supported by Williams-Sonoma, conducted additional research and evaluation of selected alternatives. This proactive work represented packaging initiatives that Williams-Sonoma might not have undertaken on its own. Core work performed by DEQ in support of Williams-Sonoma can be broadly categorized into two areas: packaging improvements in the distribution system (including order fulfillment for catalog/Internet sales), and retail store operations. Several initiatives were undertaken in both areas, oftentimes concurrent with each other. To simplify discussion, these two areas are discussed separately. Distribution System Williams-Sonoma’s distribution system includes large distribution centers in Memphis, Tennessee and Olive Branch, Mississippi. These facilities handle all in-bound products from vendors; in fiscal year 2003, approximately 61% of merchandise purchases were foreign sourced, from a total of 41 different countries. Merchandise is shipped from the distribution centers to the retail stores. The distribution centers also fulfill orders from Williams-Sonoma’s growing direct-to-customer catalog and Internet sales. First Discussions. DEQ’s first substantial discussions regarding packaging waste in the distribution system were in a June 2002 conference call involving Nancy Himmelfarb, Darryl Sudduth (Vice President of Purchasing), Tom Whalen (Vice President of Quality), Scott Kopacek (Pack Edge Development) and David Allaway (DEQ). In this meeting, the following problem areas and other potential areas of improvement were identified: • Damage to products due to inadequate packaging. Damage rates are tracked by SKU and according to Williams-Sonoma are “way too high” in most categories. Many products are not repackaged and so Williams-Sonoma is not aware of product damage until the customer receives it. This makes it difficult to know if the damage occurred in transit to Williams-Sonoma’s distribution centers, at the distribution centers, or in transit to the customer. Regardless, original vendor packaging is clearly inadequate in some cases. Problems cross all countries and heavier items (such as tables) are more likely to be damaged. Although Williams-Sonoma specifies packaging requirements (including shipping and drop testing protocols), this continues to be a problem. Some countries do not manufacture corrugated that is sufficiently strong for heavy items and so are importing their corrugated from other countries to meet Williams-Sonoma’s requirements. • Overpackaging. With five different retail formats, each with 3 – 4,000 SKUs per season, the distribution centers have to manage around 100,000 SKUs per year. Williams-Sonoma identified that some overpackaging occurs with mixed orders where items are repacked into custom cartons (this primarily occurs in the direct-to-customer catalog/Internet order fulfillment area). • Dunnage alternatives. At the time of this discussion, Williams-Sonoma was primarily using expanded polystyrene peanuts as a multi-purpose void fill at its distribution centers. Staff identified peanuts as “a hassle”. An earlier experiment with corn starch peanuts backfired as the corn starch peanuts “melted” in the high humidity and clogged up the pneumatic distribution system. The distribution center had also tried using bubble wrap and found it to be more expensive both for materials and labor. • Carton alternatives. The direct-to-customer order fulfillment operation was using about nine different sizes of cartons. While many products are breakable and must be shipped in a rigid carton, the company does sell some soft goods (towels, linens, tablecloths) that could be shipped F-2 in shipping bags. Williams-Sonoma expressed some concerns over shipping bags because of the automated conveyor system with rollers, noting that bags might need to be placed in trays prior to being shipped out. At the end of this conference call, the group agreed to look further at vendor packaging, dunnage alternatives, and carton alternatives. On vendor packaging, the group agreed to start with WilliamsSonoma’s dining chair packaging requirements. Unfortunately, despite several requests, WilliamsSonoma never sent Pack Edge Development its then-current specifications, so no further work was performed in this area. Subsequently, Nancy shared with Tom Whalen a complaint from a store about excessive packaging for products coming from India; Tom noted that overpackaging is likely occurring because India can’t achieve U.S. corrugation standards. Tom asked for details from Nancy but DEQ does not know how this discussion was concluded. Similarly, Williams-Sonoma did not identify evaluation criteria for dunnage options, so DEQ was unable to conduct any meaningful evaluation of options. Focus Area: Shipping Bags. In contrast, changes were attempted involving shipping bags. Nancy Himmelfarb and Dan Gaw (an active member of Williams-Sonoma’s “Green Team” in Memphis) developed support to pilot test shipping bags for non-breakable items. In December 2002, DEQ sent to Dan Gaw seven different bag samples (a combination of padded and unpadded, and all-paper, all-plastic, and paper-plastic blends) along with a table summarizing suppliers, sizes, and distributor costs. Due to other problems, including the installation of a new warehouse management software system, testing of the shipping bags was delayed. In the meantime, Dan Gaw passed the bag samples on to Ken Dunaj (Vice President of Distribution Operations) who started a pilot test in August of 2003. According to Dan Gaw, the bags had “limited success” and the company chose not to continue their use. Dan was not aware of the specific reasons, but speculated that challenges with the bags may have included incompatibility with the existing conveyor system (small bags might get stuck and/or labels might not be read properly by optical scanning equipment) and the relatively small number of orders that are wholly comprised of non-breakable items (and thus don’t need to be put in a box). DEQ was ultimately not successful at obtaining a definitive explanation of the decision not to continue with bags, despite repeated efforts. Focus Area: Corrugated Reduction. A second area where DEQ was able to provide some substantial assistance involved box sizing and selection. Early in the partnership, DEQ identified several potential opportunities involving corrugated shipping boxes: increasing recycled content, assuring that boxes are not “over built”, and assuring that the selection of box sizes is optimized for the product mix, and that distribution center staff are choosing the right sized box for each order. At first, none of these ideas appeared to develop much traction. But in the months that followed, staff at the Olive Branch Distribution Center organized a Green Team that began evaluating alternatives. Several of DEQ’s initial proposals resurfaced in the Green Team’s meetings, and Williams-Sonoma commissioned a study of options to reduce fiber in corrugated packaging. The study was conducted by Box USA, a large box producer (Box USA was acquired by International Paper in 2004). The Box USA study concluded that a reduction in board grade would result in greater shipping damage to products. Box USA also conducted a packaging study over two days that included all operational packing stations at the Olive Branch Distribution Center. Each employee was given a box chart that listed all the current boxes being used by part number and size. As they packed each box, employees were asked to identify the box part number and list whether the box was full, ¾ full, or ½ full. After reviewing the tallied (and somewhat unscientific) results, Box USA concluded “. . . the current packaging being used at F-3 the Olive Branch DC is meeting the current requirements and should not be changed.” Box USA noted that of the 12 box sizes “being used”, three were never used, then concluded “Those items that had zero usage during the two day study could be reviewed over a longer period of time to determine whether or not they needed (sic). If its (sic) determined that these boxes are not needed then the Green Team has accomplished its goal of fibre reduction.” Upon request by Nancy Himmelfarb, DEQ reviewed the Box USA study and issued a short report. DEQ agreed with Box USA that reductions in board grade could increase product damage and the potential for fiber reduction (waste prevention) was likely small. However, DEQ disagreed with Box USA’s findings regarding box sizes. First, DEQ noted that eliminating from inventory boxes that aren’t being used would not result in any fiber reduction. Rather, DEQ recommended that Williams-Sonoma should evaluate why the three boxes were not used during the study. A subsequent discussion revealed that none of these three box sizes were in inventory at the time of the study, and thus, had not been available to the packers! Using Box USA’s data, DEQ also demonstrated that of the nine box types actually used at the Olive Branch packing stations, four of them were being shipped out half full (or less) at least 25% of the time. DEQ suggested that these and two other box sizes be further evaluated for either behavior changes (employees need to use smaller boxes for smaller products) or procedural changes (packing stations need to be stocked with smaller boxes). The advantages of adding smaller boxes include: • Reduced fiber use and box costs. For many common box geometries, reducing box volume in half while maintaining the proportion between length, width, and height results in a fiber reduction of approximately 35%. • Reduced dunnage (void fill) use and costs. • Reduced freight costs (outbound). • Improved customer satisfaction. Potential disadvantages include potentially more complicated inventory management and packing station set-up and potential increases in per-box prices. In a subsequent telephone conference call between staff at Olive Branch, Nancy Himmelfarb, and DEQ, Olive Branch staff agreed to try some changes, including: • Providing individual packing stations with a few of each box size. At the time of the study, packing stations were not provided with box options. Rather, each order was shipped to a packing station in a tray. Someone on the conveyor line would look at the volume of each order, choose a box, and add it to the tray. A strong incentive existed to oversize boxes, because if the picker chose a box that was too small, the packer would not be able to proceed. Thus, to avoid work stoppages, the box picker learned to consistently choose larger boxes. Supplying each packing station with a small inventory of boxes and retraining the box picking staff would help to eliminate this problem. • Train box packers regarding box options. • Consider adding smaller boxes if needed. Subsequently, the Olive Branch DC rolled out a new inventory management system, called PKMS. PKMS can be used to optimize box selection by recommending the “best sized” box for any combination of SKUs. According to Dan Gaw, “a review was performed of the box sizing process instituted by PKMS. Process issues were identified that were driving systematic selection of boxes that were too large. Modifications have been implemented to correct the problem.” Despite repeated requests by DEQ, Williams-Sonoma did not elaborate further on what kinds of process changes were made, or what the resulting savings were, although they were likely quite large. F-4 Other Assistance. DEQ provided assistance to Williams-Sonoma’s distribution system in two other areas: • In the 1990s, Williams-Sonoma had included in outbound shipments to customers a “dear customer” letter that provided the phone number of the Plastic Loose Fill Council’s “Peanut Hotline”. Green Team members were interested in reinstating this practice; DEQ provided a critical review of the letter. Subsequently, Williams-Sonoma decided to eliminate the letter and now prints information about the Peanut Hotline on the inside top flap of corrugated cartons (“PACKING PEANUTS CAN BE RECYCLED CALL 1 800 828 2214 FOR A RECYCLING CENTER NEAR YOU”). • The Green Team also wanted to increase the level of post-consumer content in corrugated boxes used by the Distribution Centers. At the time, the average level of post-consumer content was 24%, which is below the U.S. average. One of Williams-Sonoma’s existing box suppliers informed the company that higher levels of post-consumer content would cause the boxes to become structurally deficient, particularly given the high humidity of the Memphis area. DEQ was able to obtain a written opinion from technical staff at Weyerhaeuser to debunk this statement (and also noting that Weyerhaeuser’s company-wide average for corrugated is 63% post-consumer content). Follow-up research in 2005 revealed that the only change in this area is that the post-consumer content is now printed on the cartons. Retail Stores A few months into the partnership, discussion turned to packaging waste originating at retail stores. Stores generate packaging waste in several areas: • Packaging of products that customers take with them (walk-in traffic). Many products are wrapped in tissue and then placed in retail bags. The stores also offer gift boxes and gift wrapping. • Mail/shipping packaging, for example, when a customer comes into a store and orders a product to be shipped elsewhere as a gift, or if a product is on back-order. Materials used included tissue, gift boxes, and gift wrapping, and then outer shipping cartons (corrugated), bubble wrap, newsprint, and flowable expanded polystyrene loosefill. • Waste is also generated from the unpacking of products shipped from the distribution centers. Work began with Nancy Himmelfarb confirming that there were no formal policies or packaging standards for retail stores. Nancy introduced the project to store managers of the Pottery Barn at Washington Square and the Williams-Sonoma store in downtown Portland, and staff from DEQ and Pack Edge Development visited both stores in August 2002 to observe packaging practices. These initial visits gave DEQ a solid understanding of the packaging issues faced by the retail stores. DEQ learned that the retail stores purchase packaging materials (and other store supplies) from a thirdparty supplier, Schwarz. DEQ also spoke with several store associates at each store and heard their ideas for packaging waste prevention. For example, at one store, associates identified that they “routinely” double-bagged certain sizes of retail bags. DEQ also observed several packaging waste prevention (or reuse) practices already in place, most notably, the reuse of corrugated boxes and bubble wrap, and production of shredded paper void fill from old office and bridal registry papers at the Pottery Barn store, and box scoring and reuse of expanded polystyrene loosefill at the Williams Sonoma store. (Box scoring involves taking an outbound shipping carton with extra head space, cutting down along the corners, and folding the sides inwards on top of each other; it reduces the final height of the shipment and the associated use of void fill.) Preliminary estimates were that the Pottery Barn store was saving more than $6,000 per year in packaging reuse. (This estimate was later revised to over $10,000 per year.) This finding led to an interesting F-5 internal discussion which DEQ was only party to a portion of. Nancy featured the local Pottery Barn example in a story about sustainability in an internal employee newsletter. She was also excited about the savings potential for the company as a whole, and promoted the case study to other senior managers. She then learned that the company had a policy against the reuse of vendor boxes for customer shipments. Discussions with other staff revealed that the primary justification was a concern over aesthetics. DEQ pointed out that the Pottery Barn store in Beaverton only used the cleanest and newest-looking boxes for reuse (the vast majority of boxes are recycled, since the store ships out only a very small fraction of what it receives). DEQ also pointed out that even the newest box can be damaged, scuffed, and marked during transit, so once the parcel arrives at their home, customers may not be able to tell the difference between a product shipped in a box that was unused at the time of shipping as opposed to a box that had been very lightly used previously. Rather than put the local Pottery Barn’s reuse initiative at risk, Nancy felt that the timing wasn’t right to push hard in this area, so discussion was put on the back burner, where it stayed for the remainder of her tenure. Wanting to document the savings from the box scoring, DEQ returned to the downtown WilliamsSonoma store in October 2002 and conducted a special “box scoring” study. On that day, staff were informed to pack all outbound boxes “as normal” but to avoid taping them shut. In the afternoon, DEQ reviewed all twenty outbound boxes, measured the dimension of the boxes both prior to and after scoring, and measured (or in a few cases, estimated) the volume of the products inside the boxes. DEQ found that all but one of the twenty boxes had been scored, and that the total amount of void space in the 20 boxes was reduced by 39% through scoring. This translated (roughly) into a 39% reduction in expanded polystyrene loosefill. The store was also reusing polystyrene loosefill from inbound shipments but supplementing it with purchased loosefill. (Put differently, any reductions in loosefill use were reductions in new, as opposed to reused, loosefill.) Assuming that box scoring reduces the purchase of new loosefill, and that the day in October was typical, annual savings were estimated at $1,700. DEQ then turned its attention to company-wide retail issues, starting with bag, box and void fill use at stores. The store visits had identified potential opportunities involving double-bagging of retail bags by store associates, retail bag sizes, box sizes, and methods to reduce the purchase of polystyrene void fill. DEQ was uncomfortable making company-wide recommendations based on limited observations at only two retail stores, and in particular was uncertain as to the scope and causes of the practice of doublebagging (were the bags actually insufficient for their contents, or were associates being overly protective?). To better evaluate these issues, DEQ asked for data on the number of retail transactions as well as procurement of selected packaging materials for a representative sample of Williams-Sonoma stores. After a significant effort to analyze the data, DEQ was able to quantitatively demonstrate the potential for several improvements. Later in the partnership, DEQ conducted a similar analysis for a sample of Pottery Barn stores. In total, procurement data (Schwarz) was reviewed for a three-month period at 47 WilliamsSonoma stores and for a 12-month period at 49 Pottery Barn stores. Examples of findings from this analysis include: • In both retail formats, we observed a few stores that did not purchase shipping cartons, suggesting a scattered and relatively small level of box reuse (and significant potential to expand that practice). • Again in both retail formats, among stores who did purchase cartons, we found a few stores (10 Williams-Sonoma and 3 Pottery Barn) who purchased no expanded polystyrene, again suggesting some reuse of vendor loosefill (and also suggestion potential for expansion). • Comparing volumes of cartons purchased to volumes of loosefill purchased, DEQ found that the Pottery Barn stores purchased enough loosefill to fill 21% of purchased carton capacity, and Williams Sonoma stores purchased enough to fill 17% of purchased carton capacity. However, F-6 • • there was considerable variation among stores, suggesting that some might be doing a better job than others at loosefill and/or carton reuse. While most stores purchase a variety of box sizes for outbound shipments, many were not taking advantage of all six or seven box sizes available to them. Having fewer boxes in stock simplifies inventory management slightly, but it increases the likelihood that some products are shipped in boxes that are excessively large. One size of Williams-Sonoma retail bags had a supplemental “bag bottom” that could be purchased separately. The “bag bottom” is a rectangular piece of chipboard that fits into the bottom of the bag and provides additional support and reinforcement. It appeared to reduce the need for double-bagging. DEQ found that bag bottoms were not available for other bag sizes in both the Williams-Sonoma and Pottery Barn retail formats. Further, when the bag bottoms were used for this one bag size, use was very inconsistent. Half of the 47 stores evaluated were not purchasing any, and usage rates for other stores averaged 11% but went as high as 52%. Specific to retail bags, DEQ was unable to demonstrate a meaningful correlation between purchase of bags and number of retail transactions. Based on the experience of the two Oregon stores, a significant waste prevention opportunity likely existed involving retail bags and double-bagging, but the data from the larger number of stores was inconclusive. Between March and August of 2003, DEQ worked on several drafts of a report of recommendations for store operations. Periodic review by Nancy Himmelfarb helped to shape this report into a final version that was released in August. The report used a combination of DEQ observations and Schwarz data to list twelve recommendations, five of which were classified as “easy to implement”. Potential cost savings were estimated for seven of these twelve recommendations. Recommendations were summarized as follows: Fairly Easy to Implement A. Reintroduce a small retail bag at Williams-Sonoma stores (estimated savings $56,000/year). B. Re-educate Williams-Sonoma stores about the benefit of using (and availability of) the Downtown Bag Bottom (estimated savings: $9,000 - $51,000/year). C. Consider providing a comparable Bag Bottom for other large bag sizes in the Pottery Barn and Williams-Sonoma stores (estimated savings: $15,000 - $90,000/year). D. Consider introducing two new corrugated box sizes (estimated savings $22,000 $61,000/year). E. Educate store associates on methods to reduce the purchase of new polystyrene void fill, including reuse, making void fill from waste paper, and carton scoring (estimated savings: $34,000 - $259,000/year). Other Recommendations F/G. Determine the extent of double-bagging and the causes (potential gross savings: $47,000 - $297,000/year). H. Research a stronger plastic bag. I. Provide a larger linens gift box. J. Consider reducing the height of three shipping cartons by 2 inches each, if stores are not already routinely scoring outbound cartons. K. At an appropriate time, reconsider the policy discouraging stores from shipping in reused cartons. L. Assure that shipping cartons contain at least 30% post-consumer content. F-7 Annual savings for the five “easy” measures were estimated to range from $137,000 - $516,000. The two “other” measures with savings estimates (both of which addressed double-bagging) added $47,000 $297,000 in estimated annual savings. Savings from relaxing the policy regarding reuse of cartons were not estimated but would likely add significantly to these numbers.1 Nancy Himmelfarb presented the report to a senior manager in store operations in September of 2003 and reported to DEQ that the manager was very interested in the potential benefits. Additional discussions were planned, but DEQ’s involvement ended when Nancy left Williams-Sonoma the following month. In 2005 DEQ attempted to learn what changes had resulted from the earlier analysis. After repeated requests, Williams-Sonoma staff eventually provided DEQ with an update on the status of the recommendations. DEQ also re-visited the Portland Williams-Sonoma store to observe some of the changes. As it turned out, Williams-Sonoma had made a number of changes to retail packaging, several of which were very consistent with (although not exactly the same as) DEQ’s 2003 recommendations: • Stores have been provided with equipment for Geämi, a perforated paper wrapping, to use instead of expanded polystyrene. (However, the Portland store at least is continuing to use expanded polystyrene – all of it reused – as a supplement to Geämi for particularly fragile items, as well as for return-to-vendor shipments.) • Bag Bottoms for the Williams-Sonoma “Downtowner” bags are now provided automatically – every delivery to a store of Downtowner bags includes the same number of bag bottoms. This change actually creates some waste of bag bottoms, as not every Downtowner bag needs a bottom, so extras are tossed out. However, it also has the potential to significantly reduce doublebagging. Staff at the Portland Williams-Sonoma store estimate (anecdotally) that only 25% of customers leaving with a Downtowner bag have it double-bagged, as opposed to 75% before (when bag bottoms were not always available). This results in a reduction in packaging production of roughly 5 pounds – and financial savings to the store of about $8 – for every 100 times a customer leaves the store with a Downtowner bag (even when the weight and cost of the extra, unused bag bottoms is factored in). A bag bottom costs 84% less than a bag, so each time a bag bottom eliminates the need for double-bagging, money is saved. The same is true from a waste and materials perspective: the bottom weighs 66% less, and is mostly unbleached (with a thin bleached layer), whereas the bag itself is made from bleached kraft. The benefits of this strategy have not been formally evaluated, in part because of the difficulty of tracking the frequency of double-bagging. If all Williams-Sonoma stores have experienced the same reduction in double-bagging as the downtown Portland store, potential savings are more than $230,000/year with reductions of 50 tons of packaging material/year. • Educational materials are currently being developed to further reduce double-bagging in stores. • At the time of DEQ’s assessment, six different sizes of corrugated boxes were made available to Williams-Sonoma stores. Now, nine different sizes are provided, including two boxes that are considerably smaller, and a box that is sized for long, narrow items. Box selection has also been improved for Pottery-Barn stores. This change allows for better optimization of carton sizes. Smaller boxes tend to cost less, require less void fill, and can contribute to lower outbound freight costs. Insufficient data make the savings from this change difficult to estimate. The introduction of the smallest box alone is estimated to reduce procurement and shipping costs (across all stores in the Williams-Sonoma format) by $31,000 - $78,000 annually. • Box scoring has also been made more convenient as many of the boxes are now pre-scored. For example, at the time of DEQ’s first assessment, only two out of six carton styles at Williams1 All estimates of cost savings were based on extrapolations from data provided by Williams-Sonoma and were not confirmed by Williams-Sonoma staff; thus, they should be viewed as preliminary, rough estimates. Actual potential savings could be higher, or lower, than estimated. F-8 Sonoma stores were pre-scored (although the Portland store managed to score all sizes of boxes); now, seven of the nine carton styles are pre-scored. The impact of this change upon store operations and procurement costs has not been evaluated due to insufficient data. Several of DEQ’s recommendations were not implemented, including the following: • Reintroduce a smaller bag at Williams-Sonoma stores (recommendation A): Not sufficient need to warrant use. • Introduce a bag bottom for larger Pottery Barn bags (recommendation C): Not implemented because it wasn’t budgeted for. • Allow stores to reuse clean corrugated for outbound shipments (recommendation K): the benefits of this practice had been demonstrated by the Washington Square Pottery Barn store in 2002. Regrettably, when DEQ recontacted that store in 2005 for a status update, a retail associate informed DEQ that only new boxes are used, which is “a lot better because we don’t have to find boxes and deal with torn, damaged boxes” (although upon further questioning, he revealed that he was new and had no direct experience with the reused boxes). DEQ provided assistance in a few other areas related to retail operations. In May of 2003, Nancy asked for a survey that she could pilot test at a few retail stores. DEQ designed a survey that asked questions about the frequency and possible causes of double-bagging, the size of existing gift boxes, use of box scoring, interest in purchasing smaller shipping cartons, and reuse of loosefill. Nancy pilot tested the survey with one store manager in June and this identified some potential improvements. Had Nancy remained at Williams-Sonoma the survey would have been revised, and administering it to a larger number of store managers would have provided additional data that could have supported many of the recommendations in DEQ’s report. Evaluation Results To summarize, Williams-Sonoma implemented the following changes: • Tested shipping bags for direct-to-customer order fulfillment of non breakable items. • Reviewed box sizes in the direct-to-customer order fulfillment center, identified process issues that were driving systematic selection of boxes that were too large, and made modifications to correct the problem. • Began printing a message promoting the reuse of expanded polystyrene peanuts on the inside top flap of corrugated cartons used in direct-to-customer order fulfillment. The level of postconsumer content is also printed on these boxes. • Provided retail stores with a perforated paper wrapping to use instead of expanded polystyrene in direct-to-customer shipments. • All Williams-Sonoma retail stores are now provided with bag bottoms for the popular “Downtowner” retail bag. This change significantly reduced double-bagging at the downtown Portland store and may reduce double-bagging in other stores as well. If all stores experienced the same reduction in double-bagging as Portland, potential savings across the company are more than $230,000/year with reductions of 50 tons of packaging material per year. • Educational materials are currently being developed to further reduce double-bagging in stores. • A greater variety of box sizes have been made available to both Williams-Sonoma and Pottery Barn stores for retail-to-customer order fulfillment. Smaller boxes tend to cost less, require less void fill, and can contribute to lower outbound freight costs. The introduction of the smallest box alone is estimated to reduce procurement and shipping costs by $31,000 - $78,000 annually. • Box scoring has also been made more convenient as many of the boxes are now pre-scored. F-9 Many of these changes were identified and recommended by the Oregon DEQ and in some cases, DEQ provided a significant level of assistance to evaluate the potential benefits of these recommended changes. In addition to the changes that were implemented, the assistance provided by DEQ to Williams-Sonoma helped to educate several corporate staff regarding recycled content and waste prevention. Hopefully, this education will help staff to make better decisions and implement more waste prevention ideas in the future. Finally, the data collected at the downtown Portland Williams-Sonoma store regarding box scoring and void fills helped to inform part of the life cycle inventory analysis for e-commerce packaging that was conducted as part of the larger DEQ/Metro packaging waste prevention project. Barriers to Change There were several barriers to implementing waste prevention changes in packaging within WilliamsSonoma. Key barriers include the following: • Complexity and size of the organization. • Staff turnover. Specifically, the departure of Nancy Himmelfarb, the corporation’s internal environmental “champion” was a major (although not fatal) set-back to the momentum of the project. • Concerns over aesthetics. Williams-Sonoma and Pottery Barn formats are considered to be “high end” retail, and this was a key reason in the decision not to expand the reuse of shipping cartons for retail-to-customer shipments. In reality, this concern is misplaced; the earlier experience of the Oregon Pottery Barn store was that with so many inbound boxes to choose from, the store was able to meet all of its carton needs with reused boxes that were in excellent condition and with a minimal amount of markings. • Incorrect or misleading information from suppliers. On two separate occasions (described in detail above - the Box USA study of box sizes and the evaluation of recycled content in corrugated for the distribution centers), vendors or suppliers of Williams-Sonoma provided staff there with information that was misleading or factually incorrect. • Budget cycles. At least one decision (whether to provide “bag bottoms” for the larger Pottery Barn bags) was deferred for the next budget cycle. Suggestions for Replicability Despite the many challenges during this partnership, several successes were realized. One of the reasons for these successes was the groundwork established by Nancy Himmelfarb. Well placed within the corporation, Nancy was successful at establishing a structure (green teams), as well as high-level support, for packaging waste prevention and other environmental initiatives. The relationship between Nancy and DEQ benefited both organizations. Nancy and her co-workers gained access to information, analysis, and the credibility of third-party review that helped them to more effectively identify and advocate for packaging changes, while DEQ gained access to several key employees and different business units within Williams-Sonoma. Without this access, the partnership would not have been successful. The cost/benefit analysis of retail packaging options conducted by DEQ was likely also a key factor that contributed to the success of the project. Using data from Williams-Sonoma itself, coupled with observations and measurements taken at local area stores, DEQ was successful at building a compelling case for certain packaging changes. Without these estimates of company-wide cost savings, it is unlikely that the changes involving box sizes, scoring, and bag bottoms would have been implemented. F-10
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