| Source
newsletter fall 1997 |
|
 |
Financial Returns with Returnable Shipping
Packaging
Looking at your
cardboard baler, you might see waste that you're diverting
from a landfill; it's going to be recycled—a good thing
to do. Now look at the baled cardboard and see bundles of
dollar bills—the money your company is spending on packaging
material that is being shipped out as a waste. Hmm, not so
good.
That's what Tennant Company's waste reduction
team did when they looked for ways to reduce waste.
Tennant
Company
Tennant Company, located in Minneapolis,
Minnesota, manufactures commercial floor maintenance equipment,
like sweepers and scrubbers. The company employs 950 people
at the Minneapolis headquarters.
Tennant purchases 60 percent of the parts
that go on their machines. Most of these parts are delivered
in single-use cardboard boxes, generating almost 10 tons of
cardboard waste per week. A few vendors supply products in
containers that are reusable for a few trips.
This summer a MnTAP
intern worked at Tennant to reduce or eliminate some
of the transport packaging received from suppliers.
The intern evaluated all packaging from
parts coming into the facility. Maintenance workers and employees
on the shop floor were asked what parts they thought generated
the most waste. By also working with Tennant's purchasing
agents, the intern decided to focus on assembly parts because
they are generally used in bulk quantities.
New,
Reusable Packaging
Even before the end
of the 3-month intern project, Tennant began to implement
one of the intern's suggestions. Two vendors that supply kits,
for building tanks, are going to deliver them to Tennant in
durable, reusable packaging constructed of plastic pallets
and sleeve-like boxes.
One company is located in Iowa and ships
via their own trucks; the other is in Minneapolis and Tennant
trucks pick up their parts. Tennant is investing $43,800 in
reusable shipping packaging to use with these two companies.
The company will save $54,200 per year after an 8.5 month
payback. Tennant will eliminate 32 tons of cardboard and 52.8
tons of wood waste per year.
MnTAP
Intern Recommendations
Tennant is considering
four additional reusable transport packaging applications.
If all of the interns suggestions are implemented at an
initial investment cost of $81,200, then Tennant would: |
| • |
Save $88,400 annually. |
| • |
Reduce cardboard waste by 42 tons per
year. |
| • |
Reduce wood waste by 59 tons per year. |
For more information on MnTAP's intern program,
contact Deb McKinley
at 612/624-4697.
|
