CASE STUDY No. 9502
KEY WORDS= PACKAGING MATERIALS, RECYCLED PAPER, REUSE
Modine Midwest, Inc.
5721 Progress Drive
Indianapolis, IN 46241
Contact: Dewitt Fleming, Manager. Tel: 317-243-9449 Fax: 317-240-0767
Summary
A packaging product invented by this company consists of shredded used paper enclosed in a 3- ft-long polyethylene sleeve, like a large sausage. Packaging materials costs have been cut 30%, shipping damage claims are down 75%, and the packaging is reusable.
Action
The company manufactures, warehouses, and ships radiators for cars, trucks, farm implements, etc. It ships radiator cores by truck in corrugated containers. The products are made of comparatively soft metals, are heavy for their size, and must be packed in cushioning material top, bottom, and sides. Previously, the company manufactured this material from virgin feedstock of 3-ply kraft paper fed by hand into a crimping-folding machine, leased at $60 a month.
The impetus to find a new kind of cushioning material came from two sources: (1) claims from customers about radiators damaged in transit and (2) piles of computer print-out and other paper generated in the company front office. The manager saw an opportunity to avoid outside purchase of packaging materials by shredding the office-generated paper. He purchased a shredder for $1,500, and the new shipping method was established. But customers were unhappy about disposing of loose shredded paper on the receiving end. A Modine employee then suggested improving the process by forming "sausages" made of clear plastic sleeves, sealed at both ends. This configuration has been tested by a carton vendor and found to perform as well as or better than 3-ply paper in the same application.
Modine now has 4 years of experience shipping radiators in its shredded-paper, plastic sausages. Damage claims from customers have dropped on an annual basis from approximately 100 a year to 25 a year.
Payback
The company says there has been no change in the amount of labor required to produce packaging material. Savings have resulted primarily from reduced packaging materials costs and reduced damage claims. The latter have not been calculated but are believed to be significant. Exclusive of labor, the company calculates its cost to produce the unique packaging sausages is 10¢ a pound, or 30% less the former method using kraft paper. Plastic sleeves are purchased in rolls from Florida Tape & Packaging Co., Ft. Lauderdale (305-764-8273) in two sizes, 14" and 16". As needed, sleeves are manually filled with shredded paper and heat-sealed at both ends. The sealer, manufactured by TEW Co., Model 450, was purchased in 1994 for $66 and has a life expectancy of 20 years. In 1991, the payback period was estimated by the company at 6 months.
Additional Waste Prevented
