Georgia-Pacific Launches Packaging Systems Optimization Microsite

Atlanta, GA - Paper products company Georgia-Pacific has launched its Packaging Systems Optimization (PSO) microsite as part of the company's program to help customers reduce total packaging costs while achieving greater sustainability with a short lead time.

The site offers the PSO Calculator, a Web-based tool to estimate potential sustainability improvements. With the calculator, site visitors can input current corrugated spend, and the PSO Calculator then estimates potential savings in terms of raw material cost, energy consumption and greenhouse gas emissions (GHG).

Georgia-Pacific's PSO program is a five-step process in which a team of packaging experts and engineers analyze a company's entire packaging supply chain from package design and shelf impact to line productivity, material handling and distribution. The PSO team delivers a detailed report outlining areas in which improved cost-savings, profitability and sustainability can be achieved.

"Since we began using PSO in 2002, we have identified annual savings of over $180 million for our customers," said Brian Reilly, senior director at the Georgia-Pacific Innovation Institute. "We've found that our process works across all industries — the solutions are different, but the path to get there is the same."

Small Changes, Big Improvements

Reilly said that even the smallest changes to the packaging supply chain can improve sustainability and decrease costs. "For example, a packaging redesign that optimizes material usage can increase assembly line productivity and maximize cube utilization. The end result would be reduced energy consumption as well as emissions from fewer shipments."

As part of its PSO recommendations for water heater manufacturer A. O. Smith Corporation, Georgia-Pacific's engineering experts assessed the company's supply chain and developed a plan to reduce fiber content, energy use and transportation costs while significantly increasing productivity. In less than a year of PSO implementation, A. O. Smith has seen a substantial reduction in total packaging systems costs, according to Georgia-Pacific.

PSO was developed at Georgia-Pacific's packaging plants and the Innovation Institute, which offers a collaborative environment where Georgia-Pacific and its customers work toward identifying opportunities to reduce supply chain costs, increase shelf velocity and measure sustainability factors. The Innovation Institute simulates retail and packaging environments, allowing customers to experience sustainable innovation and new package design solutions in action.

SOURCE: Paper products company Georgia-Pacific