Sealed Air Corporation – September 2019

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THE SEAL OF APPROVAL

Distribution Centres omated warehouse

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SIGNED,SEALED & DELIVERED WITH SEALED AIR WRITTEN BY

DAN BRIGHTMORE PRODUCED BY

STUART IRVING

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S E A L E D A I R C O R P O R AT I O N

HOW SEALED AIR IS AIMING TO BALANCE ITS USE OF TECHNOLOGY TO INCORPORATE SUSTAINABILITY, COST EFFECTIVENESS, SPEED AND PROTECTION FROM WAREHOUSE TO DOORSTEP

S

ealed Air’s genesis came in a moment of accidental innovation back in 1957.

Two engineers, Alfred Fielding and Marc

Chavannes, in Hawthorne, New Jersey, attempted to create a new wall covering by laminating 04

two plastic sheets with air bubbles in between.

Although their invention never caught on as interior decoration, it was later discovered as the perfect material for protecting items, starting the pop culture legacy commonly known as bubble wrap.

Fast forward to the present day, and Sealed Air’s mission has grown to help businesses succeed across the packaging space in both the food and brand protection markets.

“The underlying theme for Sealed Air today is to pick up on the sustainability pillars within the industries we serve,” explains Michael Basagre, NZ 3PL and Fulfilment Sector Leader. Our team specialises in reducing damages, cube optimisation, fulfilment velocity and enhancing the overall customer experience through better packaging design. Our innovation has always been driven

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$4.5bn+ Approximate revenue

1960

Year founded

15,000

Approximate number of employees w w w.se a l e da ir. com

S E A L E D A I R C O R P O R AT I O N

“ THE UNDERLYING THEME FOR SEALED AIR TODAY IS TO PICK UP ON THE SUSTAINABILITY PILLARS WITHIN THE INDUSTRIES WE SERVE”

by the market and the customers.

As a result, today’s technology has evolved around those key drivers, challenging us to re-invent how we interact with packaging, whether that be ensuring products of all shapes and sizes arrive safely to its destination or reducing food waste such as meat, fish and produce to achieve a longer shelf life.” Basagre says these innovations range from tabletop devices capable of making packaging on demand such as bubblewrap, to large, fully automated, IoT-enabled machines that require little to no human interaction. “It’s a wide

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Michael Basagre, NZ 3PL and Fulfilment Sector Leader

spectrum, depending on the industry and the particular customer that it might be appealing to,” he adds.

The big challenge for Sealed Air is to continue to meet the changing needs of customers. “With the continued rise of e-commerce, the consumer is now demanding, if not already conditioned to more convenience, such as same day delivery, free shipping and more eco-friendly or sustainable packaging,” says Basagre. “That wave of customer influence is driving us back to the heart of the supply chain to reinvent how retailers and warehouses package their orders with the customer in mind.

CLICK TO WATCH : ‘NEW AIR I.B .® NANO PACKING APPLICATIONS’ 07 We’re trying to break the traditional

share the same forward-thinking ethos.

mentality of the warehousing and

“In particular, the solutions we are

fulfilment centres we deal with. There

seeing today, that are really taking off

has been a focus on traditional

are in that sustainability area.” he says.

processes when it comes to packag-

“Businesses choose Sealed Air

ing, especially in the logistics industry

because our solutions match their

here in New Zealand. However, as the

values as a company. My role has

demands of customers increase such

traditionally been focused on the

as same day delivery, so too does the

backend of that supply chain where

pressure to fulfil those orders, which

packaging meets a person packing an

means non-value-added activity in the

order, but with the rise of sustainability,

supply chain must be carefully reviewed

e-commerce and enhanced customer

with a more customer centric approach.”

experience, my role has very much

Basagre believes customers are now choosing retailers and brands who

shifted towards a more holistic view, a view that connects the person packing w w w.se a l e da ir. com

S E A L E D A I R C O R P O R AT I O N

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the order with the customer receiving

wrap. The process may look like this:

the order.

the packer goes to a bulky storage

“I now focus on ensuring that the

area to cut and collect this traditional

packaging benefits everyone across

bubble wrap before taking it back to

the supply chain process, and that

the pack bench to wrap around three

means being responsible for communi-

to four times around the fragile order

cating all the health and safety benefits

before taping and placing into a carton.

of our solutions as well as how it will

However, this process can be im-

help drive brand awareness and loyalty

proved by one of our machines that

for a retailer,� Basagre continues. “For

produces bubble wrap on demand,

example, say a customer orders a

called New Air iB. This means it can

fragile item that is prone to getting

easily eliminate the unnecessary

damaged, a packer will aim to protect

process of walking to cut and collect

that order by using traditional bubble

bulky bubble wrap, and because our

film is perforated there is no need for

sufficient for the product it is protect-

a knife, add to the fact that this

ing, meaning it’s not over packed. And,

on-demand Bubblewrap is much

because it was packed much more

stronger than traditional bubble wrap

quickly, the customer has a better

meaning less layers are required to

chance of getting their order in time,

achieve the same amount of protection.

enhancing the unboxing experience

“Overall this improved process

and the overall customer experience

reduces the manual aspect found in

with the retailer.” Such streamlining

traditional bubble wrap, by improving

strikes the right note for sustainability

the packer’s performance and

targets as, from a purely packaging

eliminating the potential health and

perspective, Sealed Air’s innovation is

safety risks such as knife cuts or

focused on helping businesses reduce

fatigue,” says Basagre. “Now, when the

the amount of packaging they use

customer receives their order, they are

without compromising on integrity as

now receiving packaging that is

per the example provided by Basagre.

E XE CU T I VE PRO FI LE

Michael Basagre Michael Basagre prides himself on being able to help others succeed. “Packaging is just a by-product of that conversation,” he says. “If I can have a conversation with a person that allows them to become better versions of themselves, whether that’s using our packaging more efficiently, or providing insights to a better approach to recycling, then that’s what success looks like in this space. If you are genuinely interested in helping others succeed by enabling them to unearth their potential, then the chances that you will succeed becomes greater.”

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S E A L E D A I R C O R P O R AT I O N

Sealed Air’s approach to reverse logistics is also addressing the waste hierarchy, while keeping the company on target to meet its sustainability goals with materials used on demand.

“Many of our protective packaging materials can be reused,” confirms Basagre, highlighting the ability to use the same packaging for product returns via the supply chain or re-forwarding orders to other destinations.

“What we’re also seeing in the B2B supply chain is this active awareness to reuse our packaging materials

It’s how businesses get along.

Leading the revolution in Distribution Centres to create world class automated warehouse conveyor systems.

11 instead of disposing them. Most of

“ I’VE EXPERIENCED THAT PEOPLE ARE MOTIVATED TO DO THE RIGHT THING, IF ITS ACCESSIBLE AND EASY TO DO”

these solutions are strong enough to be used multiple times in that supply chain whether that is return logistics or reusing for new order.”

This commitment to reuse is echoed in Sealed Air’s partnership with Soft Plastics, a New Zealand recycling initiative. “We provide financial assistance around drop-off points so that they can recycle a lot of our soft plastics – our clear mailer bags, bubble

Michael Basagre, NZ 3PL and Fulfilment Sector Leader

wrap bags and protective packaging plastics can be put back through the system to be regrinded, reprocessed, w w w.se a l e da ir. com

S E A L E D A I R C O R P O R AT I O N

and reused to make other plastics.

In this particular case, here in New Zealand, it’s being transformed into plastic fence posts by an innovative company called Future Post” says Basagre. “Future post in particular is aiming to replace traditional timber fence posts found in the agriculture industry by converting the plastics into post, which means they minimise plastics ending up in landfill.” Sealed Air also works with Astron Plastics, which regrinds plastic material for much of the New Zealand market. “We send our 12

off cuts to Astron and they reprocess it for us to purchase back, in which we are then able to re-use in our own processing plant here in Auckland,” he says. “We’re trying to ensure we have that closed-loop process as we aim for a more circular economy.”

Sealed Air carried out a survey back in 2014 around ecommerce and online orders, and found that 58% of consumers are more conscious about packaging materials than they were five years previously. Meanwhile, 77% of consumers believe that packaging should reflect a retailer’s environmental values.

Basagre says the study’s insights drove many back-of-house changes.

“Part of my role is to link, the front-ofhouse with the back-of-house operations and make sure retailers are aware of what their packaging is reflecting to their customers and market. I’m finding more and more that retailers are looking for environmentally friendly or more sustainable packaging to meet the growing concern of their customers and the market they serve. Along with helping connect packaging with people, my role is to also help educate and ensure that decisions on packaging materials or processes involving packaging are made with as much information as possible, and that often includes advising decision makers on the trade-offs such as any extra costs, changes to packing process, performance of the packaging materials and of course the environmental impact.

I believe it is equally important to understand these trade-offs as much as it is about choosing the right packaging material. What I am finding more and more of is - if the packaging material is too hard to recycle, or the packaging is perceived to not be environmentally friendly, then the chances of it being put through the correct recycling system becomes less w w w.se a l e da ir. com

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S E A L E D A I R C O R P O R AT I O N

TECHNOLOGY

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“Our technology is seen more as a value add to the entire supply chain as opposed to one element, which is traditionally focused on getting the orders out the door quicker,” says Sealed Air’s Michael Basagre, NZ 3PL and Fulfilment Sector Leader. The company’s e-Cube void-reduction system automatically creates rightsized packaging for a variety of industries – ideal for businesses shipping between 300 and 3,000 boxes per day. The system measures the height of the contents, scores and folds excess corrugated material and then seals the carton. “It takes the guesswork out of the equation for our customers, while reducing the amount of labour required in the packing

process,” adds Basagre. Sealed Air also offers a powerful solution for the high-volume e-commerce market. The FloWrap system produces customised, ready-to-ship, rightsized polybags. The FloWrap automated platform can produce packs at up to 30 bags per minute, “It eliminates human error as the packer doesn’t have to calculate which size bag should I use, the FloWrap enables that for them,” says Basagre. Customers can choose their best match from options including film length, width and height, and length.

A powerful solution for the high-volume e-commerce market, the FloWrap system produces customised, ready-toship, rightsized polybags.

likely. I’ve experienced that people are

supply chain, then there will be no raw

motivated to do the right thing, if its

materials for us to recycle.”

accessible and easy to do.”

Sealed Air’s 2025 Sustainability and

Collaboration is key to drive educational awareness in the sustainability

Plastics Pledge sets ambitious goals for

area, he believes. “The everyday

recycling, showing the company is keen

consumer is wanting to do their part to

to lead by working towards innovative

help reduce waste, let alone eliminate

packaging solutions that are 100%

plastics waste. So, it’s important that

recyclable or reusable. The challenge is

we also focus on recycling and

to eliminate plastic waste and achieve a

reducing as well continuing to investi-

target of 50% average recycled content

gate and develop more alternative

across all packaging solutions, 60% of

options. We need to bring to light that

which is post-consumer recycled

not all plastics are evil and not one

content. Stressing the difficulty of this,

packaging material is best fit for every

Basagre warns: “If we can’t get

application. For example, if we can

post-consumer plastics through the

extend the shelf life of red meat using

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S E A L E D A I R C O R P O R AT I O N

Sealed Air’s proven Cryovac packaging material, and enable that piece of meat to see another day and increase its chances of being purchased and consumed rather than thrown away, then that to me is being more sustainable. Or, if we can prevent fragile items from getting damaged by focusing on packaging performance, such as stronger protective bubble wrap, then the chances of that order turning up in one piece improves drastically, whereas if the wrong packaging material was used and it ended up 16

getting damaged then that’s the worst sustainable outcome that could happen because now you have to re-send, re-deliver and re-package

is protective paper packaging was

that order which is then contributing

once thought of as a dying breed.

to the carbon footprint.

It’s great that they are trending now

“Yes, the rise of more eco-friendly

because it means consumers are more

packaging is increasing and currently

likely to recycle paper, which means

it tends to gravitate towards paper-

our paper-based solutions are

based options, but it is also important

empowering consumers to recycle

to remember the purpose of the

more often. At the end of the day

packaging material and the applica-

sustainable packaging doesn’t have

tion,” Basagre states. “The great thing

a silver bullet, but it does have good

is we have both plastic and paper

intentions and we are for discussing,

alternatives to help provide brands and

informing and collaborating on the

customers the choice based on values

best packaging solutions”.

and purpose. What’s really interesting

Looking to the future, Basagre can

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see automation becoming more

mental hump that they can transform

accessible to the New Zealand market,

their business using this technology

and not just for the big guys. “SMEs are

without the burden of having to be the

reaching out to us to try and future

a large player to access this technol-

proof their businesses. We’re having

ogy, instead, they can see that our

more conversations now around how

technology could actually help enable

to use technology to build their

them to become the next large retailer,

business, grow their customer base

which is great to see.”

by getting orders out the door more quickly, and become more sustainable.

I’m seeing a breakdown in the mindset that automation in the packaging space is exclusive to larger customers. It’s great to see they are getting over the w w w.se a l e da ir. com

24 Bancroft Crescent 0650 T +64 7 850 0154 www.sealedair.com