Manufacturers & Distributors ARTICLE -
Sustainable Packaging Can Boost Bottom Line Results
Target Audience: Manufacturing and Distributing Companies, M&D Industry
The shift toward implementing environmentally friendly business practices is nothing new among manufacturers. During the past few years, many have scrutinized their internal operations, adopting energy saving practices and eliminating toxic byproducts. And now, they’re turning to sustainable packaging as the latest way to go green — not only because it reduces waste, but also because customers are demanding it.
The continuing consumer quest for earth-friendly products has led market research firm Global Industry Analysts to forecast that the global market for sustainable packaging will hit $142.42 billion by 2015. Public demand for recyclable and biodegradable packaging has propelled manufacturers to innovate, finding more efficient ways to package products. This new practice has led to benefits for manufacturers as well.
A reduction in packaging not only can lower your materials costs, but also can reduce labor costs because your employees have less to assemble. Smaller packages can reduce your freight and warehouse storage costs. And another green packaging strategy — sourcing locally made materials — cuts down on supply chain expenses.
The first step in implementing environmentally friendly packaging is to work with your packaging vendor to update current designs and materials. Creating sustainable packaging typically involves reducing packaging size, choosing recyclable materials and developing an end product that will break down in a landfill. Many vendors and packaging designers now have access to software that provides environmental impact data for a specific design — a helpful tool in understanding the long-term effects of a packaging change.
When making a change to sustainable packaging, educate your sales and marketing departments on the positive environmental effects of the new packaging by providing qualitative and quantitative data. From a marketing perspective, leveraging this data will alert the public to your environmentally friendly efforts and serve as a differentiator in the buying process.
Find out how our M&D accountants can add value to your business. Email us or call us at 1 (888) 875-9770.
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