Although bioplastics are becoming cost competitive in packaging and durable applications, they're often more expensive than petrochemical-based polymers. So it can be surprising to find out that, in at least one instance, they can be cheaper than cardboard.
The key is in the reusability of plastic packaging, which pushes down the overall cost. But it's also in a closed-loop/reverse logistics setup between Ecospan, the manufacturer of bioplastic shipping containers, and its customer, a very large consumer electronics manufacturer. This setup reclaims and recycles bioplastic material and puts it back into the manufacturing loop.
Originally, the electronics manufacturer sent cardboard shipping containers to its customers so they could send back small electronics, such as smartphones, for repair or exchange. Typically, the cardboard boxes can't be reused, Jeff White, Ecospan's president, told us. "Due to wear and tear and the amount of relabeling when the box is packaged and unpackaged several times in a repair instance, it can't structurally withstand multiple repair instances."
Bioplastic shipping containers used for consumer electronics repair may cost more per unit, but they can be cheaper overall because they're reusable and can be recycled back into the supply chain in a closed-loop/reverse logistics setup. (Source: Ecospan)
Under Ecospan's closed-loop reuse and recycling model, its BioFlow plastic containers can be reused through six complete repair instances. Even though the bioplastic-based box might cost twice as much to purchase as a cardboard box, its cost of ownership is several times cheaper. At the end of its lifespan, the container's material is reclaimed, reground, and turned into a new container, keeping these materials within the supply chain.
In the closed-loop system, on the front end of the cycle Ecospan provides customized design of bio-based plastics for both durable goods products and product packaging. On the back end, the company makes bioplastic shipping containers and manages reverse logistics operations that incorporate reuse and regrinding of both containers and products made from its plastics.
"We make the material, and we certify third-party mold makers and others that process the material, run the molds, and make the parts for the customer," said White. "Or we can help guide the customer to do all this themselves as the general contractor. We have centers around the world where used products are picked up, cleaned, and sorted for processing, so they can be reclaimed and reused."
The consumer electronics company's annual repair volume is 10 million units. The company was spending about $27.5 million per year on cardboard packaging, labeling, and transporting the cardboard, including buffer stocks and fallout from damage. After implementing the closed-loop/reverse logistics cycle and switching to a bioplastic shipping container, the company figured it would spend $6.6 million, saving $20.9 million.
"The cost of our container and cleaning, labels, etc. was higher per piece, but because we could get at least six full repair instances per Ecospan box, we could provide an enormous annual ROI," said White. "The actual savings is higher because they're getting more than six."
BioFlow is 100 percent petroleum-free and can be blended with other petroleum-free ingredients or with petroleum-based polymers. In January, the US Department of Agriculture (USDA) certified BioFlow as 94 percent biobased, under the agency's BioPreferred program. The remaining 6 percent represents carbon that's not petroleum-based.
Great story, Ann. Shows there is a lot more to sustainability that simple materials replacement and new technology. Re-engineering key business processes is central to any initiative and this closed-loop, reverse logistics setup is a perfect example. Hope it inspires others to rethink their processes and look at the bigger picture.
Thanks, Beth. Several bioplastics companies I've spoken with, including this one, have mentioned the need for a complete closed-loop system. That idea has been around for awhile, but is probably more likely to become a possibility with bioplastics than with petro-based ones. It's an opportunity to build a whole new infrastructure.
Nice, eco-friendly system spelled out in this article, Ann. It's good to see a company looking beyond the ship-and-forget-about-it mentality that goes into most consumer products.
Good point Beth. By applying some smarts to the whole process, and the technology of the packaging, they have been able to come up with a great savings. These savings go beyond the basic use of the container, since these are more environmentally friendly materials. This is a great engineering design story.
Cradle to cradle design has been around for a few years now. It's always good to see more examples.
How does Ecospan address the degradation of materials in the recycling process? Generally, products made from post-consumer recycled material isn't as strong/durable as the original without using some new material.
Why is the customer un-named? Wouldn't a company want to brag about this? But, if getting box use for six full repair instances per item is needed, maybe they shouldn't be named.
I can easily see why so much money is saved. Consider how people tear open boxes containing electronics. It's usually pretty careless. The flaps get torn and the main part of box itself gets damaged. I would be surprised if the cardboard boxes were getting more than one reuse. Great story, Ann.
Mydesign, answering that question would require a detailed lifecycle analysis comparison, which Ecospan did not discuss. Not turning trees into cardboard shipping containers and retaining their C02 sequestration function is more ecological than the reverse; beyond that we don't have data. Ecospan's website might have some answers.
Nadine, the customer is truly huge and does not want to be identified. This is pretty typical in many industries. especially with public companies always worrying about their stock price. Regarding degradation, with plastics it all depends on the recycling process. This is mechanical not chemical so there will be degradation over time. But since bioplastics are essentially all custom formulations, that doesn't have to affect quality. The point here is reclamation instead of none, and not letting the end-of-life material go to landfill.
Nice article, Ann. There is such a large shift away from paper these days (especially with books), I would think it would begin to affect the paper industry. We joke about saving trees by reading electronic books, but at some point, that becomes a reality.
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