Smart and Sustainable Packaging in the Warehouse

Bio-Based & Biodegradable Industries Association (BBIA) reports that 65% of UK consumers would put off buying products if the packaging wasn’t sustainable1. On top of that, the UK Department for Environment, Food, and Rural Affairs (DEFRA) has launched a second consultation on the introduction of UK-wide Extended Producer Responsibility (EPR) in 20212 for packaging shifting the full net cost of managing packaging waste to producers, packers, sellers and warehouse operators. Businesses have turned to sustainable packaging not just to decrease packaging waste and retain market share but also to comply with government regulations. However, replacing the packaging with sustainable material is not enough. Warehouse operators can achieve a full transformation of their packaging by using smart packaging solutions that ensure the proper quality and condition of the products during the time of storage and transportation inside their sustainable packaging.

What is smart and sustainable packaging?

Sustainable packaging refers to the development, sourcing, and use of packaging that facilitates recycling and ensures increased use of life cycle inventory(LCI) while meeting the market criteria for performance and cost at the same time, reducing the environmental impact and ecological footprint. Smart packaging uses embedded IoT sensors, data indicators, and data carriers labeled with barcodes, QR codes, and RFID tags to increase the transparency, integrity, control, and safety of the products that are shipped or stored in the packaging.

Smart and Sustainable packaging in Warehouses

Warehouse operators can choose from a variety of sustainable packaging materials that can not only deliver quality packaging but also achieve the goal of reduction, reuse, and recycling. Corrugated cardboard and other forms of paper-based packaging are made of box fibers sourced from trees, old corrugated containers, and wood products harvested from managed forests. Corrugated cardboard is regarded as the most environmentally friendly and sustainable because the recovery rate for the packaging is very high. For food packaging, Bioplastics like PLA(polylactic acid) that are generally produced from sugar found in food crops like cornstarch, sugarcane, or cassava can replace regular plastics such as polystyrene, polyethylene, and polypropylene.

To make these packaging smart, warehouse operators can enable the packaging itself to monitor the product inside their sustainable packaging. Sensors can detect and log the temperature, humidity, bacterial growth, gas compositions, or shocks to the package. The data indicators and data carriers utilize product data to make it visible to the management and the workers throughout the warehouse and even outside the warehouse tracing the product journey till it reaches the consumers. The GPS components can even provide traceability to the products enabling their seamless integration into the wireless network of the warehouse operator.

Impacts of smart and sustainable packaging in Warehouses

Sustainable packaging reduces the carbon footprint of the warehouses and boosts the brand image creating an opportunity for unique positioning by giving the customers access to reusable and recyclable containers. Warehouses can cut costs for packaging because of the automated nature of smart packaging and the circular recycling properties of sustainable packaging materials. Smart packaging also ensures the quality control and end-to-end traceability of the product which is beneficial for stock maintenance and predictive planning inside the warehouse. But most of all, smart and sustainable packaging makes businesses stand out from their competition while cultivating a holistic and tangible brand experience for their customers.

References:

https://consult.defra.gov.uk/extended-producer-responsibility/extended-producer-responsibility-for-packaging/supporting_documents/23.03.21%20EPR%20Consultation.pdf