CASE STUDY No. 9627
KEY WORDS OFFICE FURNITURE, LOGISTICAL SHIPPING
Herman Miller, Inc.
MS 0120
855 E. Main Avenue
P.O. Box 302
Zeeland, MI 49464-0302
Contact: Jim Miller, Environmental Affairs. Tel: 616-654-5020.
Summary
A new sleeve-pack method of wrapping chair components for transport 30 miles between one factory and another has reduced packaging materials 70% and demonstrated reusability of up to 100 times.
Action
In 1990 Herman Miller began working with customers and suppliers on a source-reduction program, including the replacement of all single-use packaging with reusable packaging. Events at the Herman Miller Holland Chair Plant provide an example of how a returnable-reusable packaging system can work.
The company had been shipping shells for its Equa chair--about 300,000 a year--from Grand Rapids to Holland, Michigan, packed in lots of 28 inside a heavy corrugated box. Each shell was wrapped in a polyethylene (PE) plastic bag, and PE foam fillers were placed inside for added protection. PE was selected for both applications to facilitate recycling. After the one-way trip of 30 miles, all packaging was disposed by recycling.
The replacement system of logistical packaging does away with the corrugated carton entirely as well as all expendable PE materials. Instead, chair shells are stacked on a plastic tray, capped with another plastic tray, and then covered with a corrugated sleeve. All these materials are returned to the source and reused. Implementing the new system took 6 months including the appropriation of funds and manufacture and receipt of sufficient packaging inventory (dunnage) to fill the pipeline.
Herman Miller points out that adopting a system like this means adding many new "parts" to inventory. "The biggest challenge associated with returnable packaging has been keeping track of the dozens of unique parts," the company states, "It's a major problem if a supplier runs out of a returnable part, which in turn means delayed parts shipments, missed completions, and the use of more costly expendable packaging." The company also notes that just-in-time sourcing "will remove any safety net, real or perceived, that may have been in place."
Payback
Herman Miller requires any system change to pay for itself in less than a year. Adoption of the reusable dunnage described here cost about $500,000 and was recovered within the required time. In addition, the company lists these benefits:
