Toy manufacturer Hasbro is launching a sustainable packaging initiative that aims to reduce its environmental impact and improve operational performance through a variety of Lean practices. Officials estimate the program will result in a 15 percent improvement in the average product-to-package ratio for participating brands and products. The more environmentally efficient packaging will reach retailers later this year.
The effort reflects an industry trend toward sustainability and operational efficiency not only in manufacturing, but in supply chain management as well. Japanese automobile giant Toyota pioneered the Lean manufacturing approach to great success in the 1980s.
“Improving Hasbro's product-to-package ratio underscores our long-standing commitment to environmental sustainability,” said Duncan Billing, Hasbro's global chief development officer. “This initiative is designed to streamline our manufacturing processes and reduces our use of natural resources, providing consumers with more manageable and environmentally responsible packaging for our products.”
Retailers and consumers will begin to note a broader range of packaging efficiencies over the next two years, some of which include redesigned disposable boxes and blister packs that use less material.
Hasbro has successfully pushed a number of sustainability efforts in recent years, focusing on both environmental stewardship and bottom-line performance. Some of these programs include:
1.) The gradual phasing-out of PVC in packaging – Last year, Hasbro announced plans to eliminate PVC from all new packaging beginning in 2013.
2.) Enhanced recycling efforts – Last year the global manufacturer achieved its goal of deriving at least three-quarters of paper and board packaging from recycled materials.
3.) Elimination of wire ties – Hasbro successfully cut some 34,000 miles of wire ties from its packages, using ties from bamboo and paper rattan instead.
4.) More sustainable paper sourcing – The company's new paper sourcing policy provides guidelines for suppliers regarding environmentally responsible procurement of paper products, including the expectation that suppliers source paper with as much post-consumer recycled content as practical.
These efforts, coupled with various process improvement programs, have helped Hasbro lessen its impact on the environment while also enhancing its operational and financial performance. Manufacturers worldwide are adopting similar strategies to remain competitive in the 21st century business landscape.