By: Suman Ghosh -- Senior Research Analyst
28 June, 2013
1. Introduction: In recent times, FMCG companies are looking to implement sustainability measures throughout the supply chain to achieve business performance targets. Being an important part of FMCG supply chain, packaging also comes under this strategy. Most of the FMCG companies have already started viewing packaging as one of the dimensions of green supply chain. 2. Findings: Major FMCG companies like, Henkel and Unilever are predominantly banking on raw material sourcing and production to achieve their sustainability target. However, the study shows that the packaging provides a substantial scope for sustainability development compared to procurement and productions in terms of relative spend savings. Nowadays, many innovative and effective strategies have evolved to reduce negative environmental impact through packaging. Packaging materials? end life maximization through recycling, light weighting, design optimization and resource optimization are some of the options available. Other big FMCG companies like, P&G, Reckitt Benckiser, Colgate-Palmolive, Pepsi, The Coca-Cola Company, have also started their sustainability approaches through adoption of different strategies with respect to packaging. 3. Conclusion: Green supply chain requires a holistic sustainable approach towards all the steps involved in an FMCG product supply chain. Packaging contributes a significant portion of the total cost of materials and its environmental footprint is easy to count. As a result, efficient packaging is evolving as one of the key dimensions of a green supply chain.
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