Plastics started as a disruptor for the greater good. As a packaging material, it provided and continues to provide an affordable and durable alternative to the once ubiquitous paper bags.
Plastics are still a disruptor today albeit for less than beneficial reasons. Admittedly, the main issue is the disposal of plastics rather than its utilitarian value. Unfortunately, the citizens’ failure to properly dispose of plastics has led to the demonizing of plastics. No amount of campaigns on environmental friendliness, 5Rs (refuse, reduce, reuse, repurpose, recycle) and the possibility of an apocalypse triggered by plastics has made a serious dent on the growing pile of plastics on land and sea, until now.
Last Sunday, May 31, The Manila Times (TMT) featured “Rethinking packaging: Back to the Drawing Board,” which described the current situation primarily of the plastics industry around the world, the monumental challenges it faces and the quick fixes as well as long-term solutions for the industry must implement before plastics overrun by weight the number of fishes in the ocean.
TMT spoke further to Fabio Tiviti, vice president for Infor Asean, whose writing formed the basis of the packaging feature the previous Sunday.
Our conversation with Mr. Tiviti:
TMT: Why do manufacturers need to move away from plastic packaging?
Tiviti: Plastic waste is a problem that has piled up over the years due to a use-and-throw culture worldwide. Today, it chokes our oceans and poisons our wildlife.
There are two key reasons why manufacturers need to move away from plastic packaging. First, consumer awareness on the environmental cost of plastic consumption is at its peak, and this increased consciousness is reflected in consumer purchasing habits. A study found that one-third of consumers now make purchase decisions based on their perception of whether a brand shares their values. Brands that make a conscious effort to behave more sustainably today would reap rewards in the longer term.
Second, the burden to alleviate the plastic problem falls on all of us. Plastic use may never be fully eradicated, but manufacturers could make an effective contribution towards mitigating the problem by intervening at the source. Technology could help manufacturers accelerate the research, development and successful adoption of alternative materials in their packaging.
Opting to shift away from plastic packaging to reusable, recyclable and compostable items must provide a clear return on investment for manufacturers and benefit the planet in turn.
TMT: What are some of the challenges manufacturers face in moving away from plastics?
Tiviti: Moving away from plastic packaging is a difficult challenge for manufacturers of all sizes. Many considerations that come into play, and manufacturers need to adopt a holistic view of their business operations in order to address the issue.
For starters, costs and margins are huge considerations that ultimately impact the premium consumers must pay for non-plastic packaging. Aside from being a cost-effective material, plastic has also proven to be hugely convenient for both manufacturers and consumers. So, while swapping out plastics for alternative packaging may seem like a deceivingly simple pledge for businesses to make, manufacturers need to weigh various considerations, such as cost and convenience, find the right balance. For businesses, profit-impact is crucial — environmental-friendly alternatives must prove to be well-worth the return on time and efforts invested.
TMT: How could technology help manufacturers, especially those in F&B — Food and Beverage, rethink their use of plastics?
Tiviti: Rethinking plastic packaging doesn’t come down to making a simple swap. Because so many considerations come into play, technology could play a critical role in helping manufacturers calculate the costs, test products and pricing strategies, as well as track and monitor the entire lifecycle of a product.
Predictive analytics, driven by artificial intelligence (AI) and machine learning (ML), have proven extremely useful in helping manufacturers calculate the bottom-line costs of recyclable, reusable or compostable alternatives. These data-driven analytics could allow manufacturers to compare the ramifications of using other materials, such as paper, silicone or bamboo, and whether shipping processes and machinery would need to be modified.
Technology could also aid in monitoring the needs of various alternative materials and adapt these according to market changes. A good Product Lifecycle Management (PLM) solution, for instance, could help simplify and streamline the entire packaging process. In monitoring the lifecycle of a product, PLM equips manufacturers with critical data on packaging specifications, batch formulas and shipping needs, such that they stay informed on the progress and process of transitioning to new packaging and projection for new product launches.
TMT: What are some efforts that other countries are taking in greening the plastics industry?
Tiviti: Globally, governments have started to take the plastics problem seriously. In Asean, the Indonesian government has made steady progress in greening the country’s plastic consumption. At the World Economic Forum earlier this year, it unveiled a plastics master plan — which included a pledge to work with manufacturers on shifting toward circular plastics, redesigning and repackaging products for reuse and recycling. The country also plans to double its plastic waste collection and recycling capacity, and recently imposed a nationwide excise aimed at reducing plastic consumption by up to 50 percent.
Malaysia’s Plastics Manufacturers Association and Malaysian Plastics Recyclers Association are also advocating for increased investments in advanced technology, infrastructure and capacity to strengthen the nation’s waste management system. Its plastic recycling industry has already contributed some RM$4.5 billion ($1.04 billion) to the Malaysian economy, making a strong case for further government support and funding.
Singapore has also pledged to take climate change more seriously. Aside from committing S$6 billion toward sustainability in its 2020 national budget, it recently announced a new initiative — Newoil, which is aimed at recycling plastic waste into pyrolysis oil, a potential replacement for fossil fuel petroleum.
While these initiatives to manage and recycle waste are certainly encouraging, nothing could be better than preventing plastic from entering the stream in the first place. Hence, it’s important for manufacturers to play their part by reviewing their product packaging policies.
TMT: What could the Philippines do to minimize plastic use among businesses and organizations?
Tiviti: The Philippines has made steady progress in greening its plastic consumption habits, and the ban of single-use plastics in Quezon City is a great start. However, there remains a lot that could be done. For instance, greater collaboration among partners in the public and private sector, and education must be seen as a critical component in developing a holistic understanding of the plastics industry.
Key players in plastic production could come together with the support of the government to identify challenges and opportunities in plastic production and packaging, as well as consolidate research innovation and efforts in sustainability.
Greening the plastics industry isn’t merely about rethinking plastic packaging, but also looking into alternative ways to treat plastic after consumption, increasing the nation’s waste disposal and management capacity as well.
Infor is a global leader in business cloud software products for companies in industry specific markets. Over 68,000 organizations worldwide rely on Infor to help overcome market disruptions and achieve business-wide digital transformation.
