Development of new packaging for delivery services by optimization of production process in Tempodem

Description

Tempodem Ltd. is a medium sized company, established in 1995 in the village of Trud, South-Central Planning Region of Bulgaria. The main activities of the company are related to design, production and supply of corrugated cardboard packaging, as well as laminated packaging products with full colour printing. The company is one of the largest producers of packaging in Bulgaria.

The role of packaging has been evolving over the past couple of years. The world is consuming more packaging than ever, driven by complex global supply chains and exponential growth of the e-commerce. COVID-19 has also accelerated the shift to direct deliveries (on-line sales has increased with app. 71% in 2020). At the same time, the packaging industry is one of the largest consumers of plastic and paper materials in Europe (app. 40% of the plastics and 50% of the paper materials). Moreover, most of the products  are designed to be used once and afterwards discarded. As a result, packaging industry generates an enormous amount of waste.

The project''s objective is investment  in an innovative equipment that  will reduce technological waste and save energy as it is going to replace current die-cutting process that generates a big amount of technological waste. Part of the equipment will complete the production process. It works with biodegradable Polypropylene strap  that can be recycled or disposed in the general rubbish bin. Once disposed to landfill biodegradation is accelerated approximately 90+% faster than conventional plastic strapping.
The project results will lead  to extension of Tempodem''s  product portfolio and to introduction to the market of a fully recyclable and biodegradable packaging from corrugated cardboard - e-Green pack.

Summary of project results

Tempodem Ltd. was facing significant challenges in adapting to the rapidly evolving packaging industry, driven by rising environmental concerns and surging demand for e-commerce packaging. The key challenges included:

• Rising Demand and Complexity in Packaging Needs: The exponential growth of e-commerce, accelerated by the COVID-19 pandemic, has led to a 71% increase in online sales in 2020 alone. This surge requires a larger volume of packaging materials to fulfill direct-to-consumer deliveries. The complexity of e-commerce parcels—often containing various items like fillers, plastic bags, and foam—adds to Tempodem’s logistical challenges in meeting diverse packaging needs while maintaining efficiency.
• Environmental Impact of Single-Use Packaging: The packaging industry is a major consumer of plastics and paper, responsible for approximately 40% of plastics and 50% of paper materials used in Europe. With most packaging items designed for single-use, the industry generates substantial waste, raising environmental concerns. For Tempodem, this pressure to reduce waste presents a clear need to innovate towards sustainable, reusable, or biodegradable materials, adding to operational complexity and investment requirements.
• Transition to Sustainable, Eco-friendly Packaging: Tempodem’s intention to develop e-Green Pack, a line of recyclable and biodegradable packaging made from corrugated cardboard, represents a significant shift in its production model. However, transitioning to sustainable packaging materials requires new technologies and production techniques, which involve considerable financial investment, training, and potentially higher material costs, impacting profitability in the short term.
• Market and Regulatory Pressures for Sustainable Practices: The shift toward sustainability was driven not only by consumer demand but also by evolving regulatory pressures across Europe to reduce plastic use and promote environmentally friendly materials. Tempodem Ltd. was required to balance regulatory compliance with market competitiveness, a complex challenge given the financial implications of sustainable packaging production.

In summary, Tempodem Ltd. was facing the dual challenge of meeting increased e-commerce packaging demand while aligning with strict environmental and regulatory standards. Developing sustainable packaging options like e-Green Pack was essential to maintaining competitiveness but required overcoming significant cost, operational, and technological hurdles.

The project at Tempodem Ltd. has led to a series of impactful advancements, primarily through the acquisition of cutting-edge equipment that enhances both efficiency and environmental sustainability. Key results achieved include:

1. Reduction in Waste and Energy Savings:

   • The new Digital Cutting Machine has replaced the older die-cutting equipment, which was known for producing significant amounts of technological waste. The advanced technology of the digital cutter minimizes waste generated during the cutting process, ensuring a more precise cut with less material loss. Additionally, this modern machine is energy-efficient, further contributing to reduced operational costs and a lower carbon footprint, enhancing the company’s overall sustainability.

2. Environmentally Friendly Packaging Solutions:

   • The integration of a fully automated strapping machine has streamlined Tempodem’s production of corrugated cardboard packaging, branded as e-Green pack. By using biodegradable Polypropylene (PP) straps, the new strapping solution is both functional and eco-conscious. These PP straps biodegrade much faster than conventional plastics when disposed of, aligning with the company’s commitment to sustainable production. The recyclable nature of the straps ensures that end-users can dispose of them responsibly, adding to the environmental benefits of the e-Green packaging line.

3. Enhanced Production Management and Efficiency:

   • The establishment of a dedicated working station has provided Tempodem Ltd. with an optimized setup for design, monitoring, and management of the new production line. This working station supports streamlined production processes by allowing staff to oversee the digital cutting and strapping processes more effectively, enhancing precision and output consistency. As a result, the company has achieved a more coordinated workflow, leading to higher throughput and a faster production cycle.

4. Comprehensive Production Line Completion:

   • By incorporating automated systems and a well-organized management station, Tempodem has transformed its production line into a fully integrated and eco-friendly operation. With this updated setup, the company can meet the rising demand for sustainable packaging solutions in a more efficient and environmentally conscious manner.

In summary, the project has resulted in a refined, waste-reducing production line, environmentally-friendly strapping materials, and improved workflow management, positioning Tempodem Ltd. as a forward-thinking leader in sustainable packaging production.

The project undertaken by Tempodem Ltd. has led to significant results across various aspects of production and sustainability, particularly through the implementation of innovative machinery and a focus on green practices. Here are the specific results achieved under the project:

Results Achieved

1. Equipment Acquisition and Implementation:

   • Digital Cutting Machine: The installation of this advanced equipment has streamlined the cutting process, resulting in enhanced efficiency and precision. This machine replaces the previous die-cutting method, which generated excessive waste.
   • Fully Automated Strapping Machine: This addition has optimized the packaging process, utilizing biodegradable polypropylene straps, thus promoting environmental sustainability.
   • Working Station: The new working station facilitates design, monitoring, and management, enhancing the overall production workflow.

2. Waste Reduction:

   • The project has resulted in a 27% reduction in generated technological waste. This is primarily achieved through the improved cutting process, which minimizes material waste.
   • 27% less use of fiber paper as a raw material has been targeted, contributing to the conservation of resources and the reduction of waste generated during production.

3. Energy Efficiency:

   • An 18% reduction in energy consumption has been achieved due to the optimization of the die-cutting process. This means that Tempodem Ltd. is now operating more efficiently, lowering energy costs and environmental impact.
   • 18% reduction in CO2 emissions is expected as a direct result of the energy efficiency improvements and the implementation of biodegradable materials in packaging.

4. Sustainable Production Practices:

   • The project has successfully greened the production process by optimizing operations for low to medium order volumes. This ensures that the production remains viable while being environmentally friendly.
   • The use of biodegradable materials and the focus on reducing landfill waste align with broader sustainability goals, supporting the company’s commitment to environmental responsibility.

5. Project Management and Publicity:

   • Activities related to project management have ensured that the project is implemented effectively, staying on track and within budget.
   • Publicity efforts have raised awareness about the company’s new sustainable practices and products, enhancing its brand image and market positioning.

Conclusion

In summary, the results of the project reflect Tempodem Ltd.''s commitment to enhancing production efficiency while significantly reducing environmental impact. The integration of innovative technologies has led to substantial improvements in waste management, energy consumption, and CO2 emissions, positioning the company as a leader in sustainable packaging solutions.