Supply Chain Council of European Union | Scceu.org
Procurement

BMW Group backs sustainable packaging in its logistics

+++ Increase in proportion of recycled material in packaging +++
Nikolaides, Head of Logistics: “We are leveraging various options to
save carbon emissions and raw materials.” +++ Other pilot projects
underway +++

 

Munich.
The BMW Group has implemented several projects in its
packaging logistics to further save resources. With these projects,
the Group aims to work closely with suppliers to reduce carbon
emissions and realize the principles of the circular economy as best
it can. As part of this initiative, the European plants will use more
recycled material in their packaging. This will mean that, for newly
awarded contracts, the proportion of recycled material in reusable
packaging for logistics purposes will almost double this year from
around 20 percent to over 35 percent. However, using alternative
sustainable materials, reducing single-use packaging, introducing
lightweight packaging in certain areas and reducing transport volumes
will also help cut carbon emissions. The BMW Group is monitoring the
impact of individual measures via a CO2 calculator for
packaging. The Group’s overall aim is to reduce CO2
emissions in the supply chain by 20 percent per vehicle (compared to 2019).

 

Michael Nikolaides, Head of the BMW Group Production Network and
Logistics: “Our ‘re:think, re:duce, re:use, re:cycle’ approach is
being implemented consistently in packaging logistics, too. We’re
using innovative strategies to consistently reduce the volume of
resources we use, thus reducing our carbon footprint. We in Logistics
are also doing our part to get the BMW iFACTORY up and running – with
a particular focus on the ‘green’ side of things.” BMW iFACTORY. LEAN.
GREEN. DIGITAL. is the strategic vision for the global production
network, with an emphasis on flexibility and efficiency,
sustainability and digitalization. It provides an answer to the
challenges involved in the transformation to e-mobility and takes a
global approach. ‘Green’ means leveraging the latest technologies to
create a production process that uses minimal resources.

 

Plastic in packaging replaced by recycled material

One example of how the BMW Group is fulfilling the criteria of a
circular economy is the use of recycled material in EPP packaging (EPP
= expanded polypropylene). Currently, our newly developed EPP
packaging already contains 25 percent recycled material. EPP is used
in special containers as its shape can be adapted to the components
being packaged, allowing them to be transported safely. Around 360,000
of these containers are needed each year. Using 25 percent recycled
material allows us to save almost 280 tons of CO2 annually.
There are plans to increase this proportion of recycled material even
further, with the first pilot schemes with 100 percent recycled
material currently underway. If these tests are successful, this
configuration will become standard for new contracts from 2024.

 

 

An additional 680 tons of carbon emissions savings can be made every
year by using covers and so-called small load carriers with 50 percent
recycled contents. As things stand, these measures are focused within
the European markets due to the current waste management situation and
available recycling infrastructure. We are currently working towards
expanding to our locations in Mexico, the USA and China.

 

Reducing transport volumes

The BMW Group is introducing something that will have an even greater
impact on emissions: folding large load carriers. As of this year,
instead of pallet cages made of steel, we will be using folding
plastic alternatives made from over 90 percent recycled material.
These work in a similar way to the collapsible shopping crates that
most people are familiar with: when they are empty, they can be folded
up, making them easier to transport. Using 15,000 of these new
containers reduces CO2 by around 3,000 tons per year.

 

Alternative materials with great potential for the future

When it comes to packaging, the sky’s the limit. We’re launching
pilot projects using bio-based materials to replace oil-based
substances polyethylene and polypropylene (PE and PP). We are also
investigating whether and in what ways we can use materials from
recycled household appliances in our packaging. In the long term, our
aim is to use alternatives to raw materials across the board.

 

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