Aim 2: The processes used to gather data for Aim 2 in this research, are presented below (see Figure 1.10.)
1.5. Research Originality
This research focuses on the packaging sector and the individual problems or barriers caused in the market by important external factors such as legislation and directives. A strong motive for the investigation of the packaging issue and several other individual issues in the field, was the evidence for problematic situations and trade barriers caused by the so-called German refill quota. The specific law which was introduced in Germany in 1991, was an effort to limit the use of non-refillable containers pushing the beverage industry to use refillable containers for at least 72%
of its products (Golding, 1998, pp.77). The main idea behind this legislation was that since the volume of one-way beverage containers sold was increasing as a result of increasing beverage consumption, the market should be driven to the consumption of
Chapter 1 - Introduction
36 refillable containers (glass or plastic) in an effort to protect the environment (Fishbein, 1994).
However, very soon after its implementation the law was found to have weaknesses and generate trade barriers2. Other countries argued that the specific system that resulted in extra costs for the non-reusable containers was unfair for the foreign companies. This argument was based on the fact that the foreign industries were compelled not only to change their bottles into refillable but also to organise reverse, longer and expensive channels of transportation (compared with the domestic manufacturers) in order to collect the empty bottles (UKEN Archive, 2001).
A few years later due to emerging environmental problems, the European Union adopted the Packaging and Packaging Waste Directive (94/62/EU). This directive aimed to harmonize national packaging waste management measures, in order to reduce its impact on the environment and at the same time ensure that packaging laws did not create any obstacles to trade or restrictions to competition within the Community (The European Organization for Packaging and the Environment, 2000 and EUROPA, European Commission, Environment, 2005).
Despite the fact that the main purpose of the Directive is the environmental protection in Europe, the present research seeks and investigates problems, failures and obstacles generated by the European legislation. Geographic regions far away from the European core appear to have different characteristics, insufficient infrastructures and very often a lack of governmental management and sometimes absence of a will for change (Sklias, 2008). After conducting preliminary literature research it was clear that the paper packaging issue had never been investigated from the point that the researcher intended to conduct it. In addition, the researcher organized his research with special focus to the Greek market where there was still a lack of research on the specific field. The purpose is to provide a strong theoretical base concerning the peculiarities of Greece as a member-state, on the ease of compliance with the European orders on Directives such as the 94/62/EC. At a second stage, the same methodology could also be used to investigate the progress of other member-states on the same or similar field and make useful comparisons.
Although the researcher discovered academic research in the field, this research was not focused on the specific field and furthermore was targeted to specific packaging problems in other countries or geographic territories. The
2 According to the Institute for Local Self-Reliance (n.d.) the beverage industry in Germany failed to meet the quota for two consecutive years (1997-1998). For this reason the government in Germany started seeking alternative solutions in order to stop the decline of refilling.
37 researcher decided to evaluate the paper packaging issues in relation to the barriers generated by the implementation of the Packaging and Packaging Waste Directive (94/62/EC). At a second stage issues such as the need for the establishment of a reverse channel for a paper packaging manufacturer, the extent to which the packaging regulations affect the prices of the packaged products to the Greek market or the main factor affecting the buying decisions of the final consumers were also investigated. In addition issues such as the use of lighter packaging and its implications, the redesigning of packaging or the investigation of the overpackaging issue were issues of great importance addressed in detail in this research.
Except for the above contribution to knowledge the present research further enhances industrial knowledge by putting the outcomes to use. The methodological processes developed and analysed in the following chapters can be adjusted to the packaging needs of any company who needs to ameliorate its packaging processes.
The European Union that acts as a single entity should always consider the special needs and characteristics of its member states before proceeding with legislation. This investigation provides strong evidence on the specific field. Factors such as the current economic conditions, the financial standing of the residents, the infrastructure, the geographic position, special local problems, demographics, industrial level and many more should always be considered. For example, the findings in Greece revealed that the price of the product is among others (origin, environmental friendliness etc) the most important factor influencing the buying decisions of the consumers. This finding should be considered in relevant legislation that in turn should be fitted to the needs of each country since the financial standing of the residents is not the same in all countries. In addition, a similar investigation in other member-states may reveal that environmental friendliness is maybe more important in a country and the origin of a product could be decisive for another country.
However the investigation was extended to other packaging fields as well. In an effort to provide alternative suggestions for a more sustainable Packaging Supply Chain two issues were analysed in detail: the overpackaging issue and the redesigning of packaging. Due to the wide ranging nature of the subject, both approaches are focused on the secondary paper corrugated packaging.
Concerning the over-packaging issue the investigation has provided a practical framework and a detailed methodology, based on which, the substitution of a corrugated packaging quality could be successful if lab strength tests and detailed
Chapter 1 - Introduction
38 calculations are applied. The investigation is based on a real case study. A company (who until recently was not a Multi Pack’s customer) addressed Multi Pack and assigned the company to seek and ameliorate the corrugated packaging used in its packaging operations. The investigation revealed a number of issues for more than one of the corrugated boxes the company was using in its packaging operations. The solutions were finally suggested to the company who provided the details and the basis of the case study. The method could easily be applied to other types of packaging as well (primary, transportation etc), provided that the researcher holds sufficient data (concerning packaging, supply chain, modes of transport, storage time etc.) and physical access to the product.
For the redesigning issue, the investigation provides a detailed analysis of how simple changes to the shape or dimension of the secondary paper corrugated packaging could offer important advantages to the user. These advantages include a better utilization of vehicle space during transportation and cost reductions that could be achieved by an increase of the volume of products carried per vehicle in combination with a lower total packaging cost.
In order to achieve a better overview of the redesigning issue and its advantageous outcomes, the investigation included the analysis of two different products in two separate case studies. These are a product called 2TMIX3 200gr.
with an average retail price of 2.50€/piece and a bottle of wine 0.75lit. with an average retail price of 8.50€ per unit. The two products used i.e. the bottle of 2TMIX and the Wine Bottles were selected randomly among the five products that appear to have the highest volume/demand of packaging4. These five products were: a) 2T MIX or similar product, b) Wine Bottles, c) Olive Oil metallic cans, d) Marmalade Jars and e) Sponge or similar products. In order to increase the validity of the results the investigation included the analysis of two of the above products instead of investigating just one of them.
The alternative packaging suggestions made in the research refer, once again, to the secondary paper corrugated packaging since the objective was to show the value of the process. The analysis is detailed and from a practical scope, provides the researcher with a tool on how to estimate, present and compare different packaging approaches. In any case, the industry could be inspired and take ideas on how to analyse its special packaging needs. On the other hand, the
32TMIX is an oil product used for the lubrication of two-stroke engines. The oil must be mixed with the fuel to lubricate the engine and avoid any damages due to overheating.
4 The selection was based on relevant data provided by Multi Pack S.A.
39 research provides the tools for a packaging designer, on how to estimate, analyse, redesign and compare different approaches, finding the way to a more sustainable packaging supply chain.