An evaluation model for sustainable packaging systems in supply chains - the case of Volvo

Purpose of this paper The purpose of this paper is to develop an evaluation model comparing a one-way with a returnable packaging system from a supply chain perspective. Design/methodology/approach A theoretical evaluation model for comparing cost efficiency and environmental impact of one-way and returnable packaging systems in supply chains is developed from literature. The deducted model is subsequently tested in a case study of a supply chain involving Volvo Car Corporation and Volvo Logistics Corporation, comparing the use of a newly developed one-way packaging with the sustainability of a returnable packaging. Findings The developed theoretical model showed to be useful to compare the environmental and economic impact of two different packaging systems in a specific supply chain. The criteria used in the model are 1) packaging efficiency, 2) packaging material, 3) transport, 4) material handling, 5) waste, recycling and reuse, and 6) administration. In the case study, the one-way packaging resulted in less economic and environmental impact, indicating the importance for companies to question their packaging systems. Research limitations/implications The model only has been tested on one component in a case study. The model provides comparative, but not absolute, figures. Practical implications Managers can use the packaging evaluation model to compare different packaging systems for a component and determine the most sustainable packaging from an environmental and economic perspective. The case study indicated that the returnable packaging system commonly used in the automotive industry is not always preferable in terms of sustainability. What is original/value of paper The paper fulfils a need for evaluating the impact of packaging systems on supply chain sustainability, in terms of economic and environmental criteria. (Less)