With the UK Government bringing in sweeping reforms around packaging waste, it’s a good time to get your head around what packaging related regulations you should know about in 2024.

In this article, we’ll review the key pieces of packaging legislation that might impact you in 2024, if you’re a UK-based business.

What is packaging legislation?

Packaging legislation is any legal requirement or regulation that involves packaging materials. The legislation may only apply to certain businesses, depending on different criteria, such as how much packaging they produce or handle.

What packaging legislation should you be aware of in 2024?

In the UK there are four key pieces of packaging legislation to be aware of: Packaging Waste Regulations, Extended Producer Responsibilities, the UK Plastic Packaging Tax and the EU Corporate Sustainability Reporting Directive. Let’s take a look at each one…

Packaging Waste Regulations

If your business produces or uses packaging, or sells packaged goods, you may be classed as an “obligated producer” under packaging waste regulations. The regulations aim to help businesses to reduce the amount of packaging they produce, reduce how much of their packaging goes to landfill and increase the amount of their packaging waste that is recycled.

You’ll be classed as an obligated producer if:

• handled 50 tonnes of packaging materials or packaging in the previous calendar year
• have a turnover of more than £2 million a year (based on the last financial year’s accounts)

In this instance, you will need to be registered by a packaging producer by 7 April every year, meet any required recycling obligation and obtain evidence of your compliance. Your certificate of compliance then needs to be submitted by 31 January the following year. Click here to learn more.

Extended Producer Responsibilities

In addition to the standard packaging waste regulations, the UK Government has introduced Extended Producer Responsibilities (EPR). EPR legislation is a reform of historic packaging waste regulations that looks to shift the cost of household packaging waste management to producers.

Obligated businesses will have to provide even more granular information about the packaging they’re putting on to the UK market. They’ll also need to pay fees, depending on their packaging use and if the packaging is likely to end up in household waste. Fees are set to be modulated, based on the packaging material. So, for example, plastic is expected to be taxed more than paper. Even within the category of “plastics” different types of plastics will have different fees, depending on how easy they are to recycle.

To be considered in scope, the following needs to apply:

• you’ll be an individual business, subsidiary or group (but not a charity)
• you’ll have an annual turnover of £1 million or more (based on your most recent annual accounts)
• you’ll have been responsible for more than 25 tonnes of packaging in 2022
• you’ll carry out any packaging activities as defined by the Government

Different reporting and fees will then depend on if you’re a large business or a small business. Large businesses will have enhanced reporting and fee paying obligations, including paying waste management fees, scheme administrator costs, and charges to the environmental regulator.

Large businesses are defined as organisations over £2m in annual turnover and who are putting more than 50 tonnes of packaging on the UK market. Click here for more information.

UK Plastic Packaging Tax

Introduced in 2022, the UK Plastic Packaging Tax applies a levy to plastic packaging materials that contain less than 30% recycled content. Currently, the fee is £210.82 per tonne. From 1st April 2024, the tax will be applied at £217.85 per tonne. (You can learn more about the regulations here.)   

When you consider that modulated EPR fees are expected to be higher for plastic materials on top of the Plastic Packaging Tax, the Government is really incentivising businesses to high recycled content materials, more recyclable plastics or even ditch it in favour of paper-based packaging materials.

EU Corporate Sustainability Reporting Directive

‍The EU’s new Corporate Social Responsibility Reporting Directive (CSRD) requires at least 50,000 large companies within the EU, to create a report on their social and environmental impact actions from 2024 onwards.

While you might think “wait – the UK isn’t part of the EU anymore” the legislation could apply to UK businesses with strongholds in other European countries. They will apply in two scenarios:

• Listed Securities – if your company has securities listed on an EU regulated market, regardless of its location, it will fall under the scope of the CSRD reporting obligations.
• EU Net Turnover – if your company has a net turnover in the EU exceeding €150 million over the last two consecutive financial years, it will be subject to the CSRD if your company meets either of the following criteria:

1. You have an EU subsidiary with securities listed on an EU regulated market or qualifies as a large undertaking.
2. Your company operates an EU branch that has generated a net turnover exceeding €40 million in the previous financial year.

If these scenarios apply to your business, you will need to comply with the CRSD.

So, what does it mean for packaging? In essence, packaging strategies may form part of your sustainability reporting and have a direct influence on your environmental impact. You may need to consider your packaging waste data, the recyclability of your packaging and how packaging could affect your carbon footprint. Plus, you will have an obligation to report on this information. Find out more here.

Support mitigating the impact of packaging legislation in 2024

At Macfarlane Packaging, we’re geared up to help you mitigate the impact packaging legislation can have on your business:

• Sustainable packaging products – we have an extensive range of recycled content and recyclable packaging products. For example, our stock 0201 double wall cardboard boxes are made form 100% recycled content! We can also offer FSC® certified products too.
• Easy  “click-of-a-button” reporting – our e-trading system can help you produce packaging weight data in seconds, helping you cut down admin time associated with packaging legislation and waste reporting.
• Packaging optimisation – our experts can help you create more sustainable, right-size packaging that’s lighter. This can help you reduce your overall pack weight and remove CO₂ from your packaging supply chain. We can even show you the material impact of this with our unique Packaging Optimiser software that shows the cost and CO₂ reductions our solutions can generate..
• Advice from a business dedicated to sustainability – we’re always looking for ways to make our business more sustainable and help our customers do the same. We hold certifications, accreditations and standards that demonstrate our commitment to sustainability practices, like an EcoVadis gold rating, as well as being a Sedex member (find out more here). So, you can rest assured you’re getting expert packaging advice from a trustworthy source.

Don’t hesitate to get in touch to see how we can help you today.

The post Packaging legislation to be aware of in 2024 appeared first on Macfarlane Packaging.

Organising returns on damaged items can be a frustrating experience for your customers. What is more, it can also damage your brand image and negatively impact future sales because dissatisfied customers may never want to shop with you again.

And that is just the beginning. You may also need to factor in the cost of handling returns and sending replacements, including extra shipping fees and labour.

In this blog article, we will explore the topic of packaging automation and how it can help reduce shipping damage. We will cover the definition of packaging automation and the several types available. We will also look at the primary causes of product damage and the potential benefits of automating your packaging operation.

Packaging automation – what is it?

Let us begin by defining packaging automation.

Simply, packaging automation is a process of using automated tools and equipment to increase packing speed without manual intervention. The goal of packaging automation is to improve consistency, reduce material waste and save money.

Using automated packing systems allows you to reassign valuable resource to high value tasks or in a way that better suits your operation. You can improve most aspects of a packaging process; from picking and packing through to conveying and wrapping, there are packaging machines for it all.  

Types of packaging automation available

Packaging automation can take on a variety of forms, depending on your requirements. We distinguish between semi-automated and fully automated packaging processes.

• A semi-automated process is part manual and part automated. For example, an operator may start the process, but an automated packing system may finish it. This is typically a cheaper option if you are looking to introduce some automation but are working with a constrained budget.

• A fully automated packing process is programmed from the beginning to completion. This can include everything from picking, packaging application and palletisation for dispatch.

You can automate anything from packing and void-filling cardboard boxes to taping and wrapping your pallets ready for shipments.

Common causes of shipping damage

Now that we have gone over some of the basics, let us take a closer look at what causes shipping damage and how packing automation can help prevent it.

Some of the top shipping damage causes include:

1. Too much space in your pack

Shipping damage is often caused by packing materials being too large for the products. If your goods rattle inside the packaging during transport, they are more lately to get broken as they move through the supply chain.

Automated packaging solutions ensure that your parcels are packed exactly as they should be. Machines can measure the size of your product and choose the right packaging for it.

Smaller, compact parcels that result from using automation, will take up less space on your delivery vehicles. This means you will need to make fewer trips to deliver your products, reducing your fuel costs and keeping your cardboard emissions down. 

2. Not enough in-pack protection

It can be tricky to know how much packaging is too much, and how much is too little. Over-packaging is wasteful, while under-packaging can increase the risk of damage to your product. The amount of packaging you need will depend on your product’s weight, dimensions, and fragility.

Packaging automation can help optimise your packaging, making sure you are using the right type and amount each time. This will guarantee adequate product protection and reduced transit damage rates.

3. Inconsistencies in packing processes

How your team packs a product may differ from person to person. For instance, one person might not use the right amount of void fill material, or someone might not select the right box size.

This is where packaging automation comes into play, as it helps to improve quality control, reduce damage, and reduce packaging material waste. It can also drastically improve your pack line productivity, allowing you to dispatch more packs per hour to cope with demand and reassign labour to key tasks.

4. Poor load containment

When products are shipped, it is important to ensure they are properly contained. If your pallet wrap is not tight enough to hold the product in place, it can cause the load to shift or tip while in transit. Similarly, stacking a pallet too high can cause crushing.

Machine-automated stretch wrap solutions are ideal for securing your loads and preventing them from separating during transport. Some solutions are perfect for wrapping both large and small items, speeding up the packing process.

Support with packaging automation

Whether you are looking to minimise shipping damage or simply need assistance choosing the right automated packaging solution for your products and needs, the Macfarlane team is here to help.

We will work with you to identify which automated packaging solutions are right for you and which areas of your supply chain would benefit most from automation.

We have a range of solutions to suit unique needs and budgets, and we can also recommend several semi-automated packaging solutions if you would like to test them on a smaller scale.

Contact us to discuss your specific requirements.

The post How packaging automation can reduce shipping damages appeared first on Macfarlane Packaging.

To manage the impact packaging has on the environment, the UK Government has begun delivering a program of packaging legislation reform. These changes are key in the Government’s strategy to tackle climate change and build a more circular economy that supports delivery of the 25 Year Environmental Plan.

So, what are key environmental packaging regulations that you need to be aware of? Here, we’ll provide a whistlestop tour of key legislations that may impact you if you use packaging.

UK environmental packaging regulations to be aware of

There are currently three key packaging-related environmental legislation schemes to be aware of:

• The Plastic Packaging Tax
• The Extended Producer Responsibility scheme
• The Deposit Return Scheme

What is the UK Plastic Packaging Tax (PPT)?  

The UK Plastic Packaging Tax (PPT) is a tax on plastic packaging that was introduced by the UK government to reduce the amount of plastic waste produced and came into effect on 1 April 2022.  It applies to plastic packaging that does not contain at least 30% recycled plastic.

The rate of the tax increased on 1 April 2023 to £210.82 per metric ton of packaging that does not meet the minimum recycled content threshold. This means that companies that produce or import plastic packaging must pay the tax, which is intended to encourage the use of recycled plastic and reduce the amount of plastic waste sent to landfill or incineration.  From 1st April 2024, the tax will be applied at £217.85 per tonne.

The revenue generated from the tax is set to be used to support initiatives that will reduce plastic waste and improve recycling infrastructure in the UK.

You can find more resources about the Plastic Packaging Tax here.

What is the Extended Producer Responsibility (EPR) scheme?  

The Extended Producer Responsibility (EPR) scheme is a policy approach that makes producers responsible for the environmental impact of their products throughout their entire life cycle, from production to disposal. The goal of the EPR scheme is to shift the cost of recycling and waste disposal from local authorities to producers and retailers, incentivising businesses to design packaging that uses less material and are easier to recycle or dispose of.

The scheme is designed to properly fund Local Authority for the full cost of recycling services and is strongly linked to other regulation that the Government intend to bring forward to increase the quality and consistency of recycling across the UK.

EPR schemes are being implemented in many European countries, but each country has set their own parameter of regulations.   

The UK EPR scheme will be implemented in the UK during 2023, with fees commencing during 2024. If you would like to find out more about the scheme or how Macfarlane can help your business reduce future EPR costs, look at our EPR landing page, which details information about the scheme and access to our FAQs.

What is the Deposit Return Scheme? 

For those of us old enough to remember buying “pop” in the 70’s, the Deposit Return Scheme will bring back memories of collecting up bottles to cash in at the local shop.  

With the Scottish’s Governments recent decision to delay their scheme, it is now expected that a UK wide scheme will go live in 2025. This will apply a charge to single use drinks containers which will be refunded on return to retailers.   The UK Government are hoping to reduce the number of bottles and cans discarded as litter by 85%. 

What other environmental regulations should I be aware of?

While it isn’t a UK regulation, if you are a business that has a foothold in Continental Europe, it is also worth being aware of the new EU Corporate Sustainability Reporting Directive.

The EU legislation wants all large companies to publish regular reports on their environmental and social impact, and packaging can play a role in this. You can read more about the CSRD in our article here.

Furthermore, for all businesses with significant operations in Europe, the EU is currently bringing forward additional legislation known as the Waste Packaging Regulations. It’s highly ambitious and seeks to set new regulatory requirements including, waste reduction, limitations on packaging empty void space and setting targets around reusable packaging in certain sectors. This legislation is currently expected to come in to force for EU member states during 2025.

Support with sustainable packaging and carbon emission reduction

If you need support making your packaging more sustainable and future proofing your business against future regulations, we have the expertise to help you. Tools like our Packaging Optimiser can help you make informed decisions about what your packaging is costing you and the environment, and model how solutions can remove CO₂e from your packing operation. Contact us to learn more.

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If you are operational throughout Europe, there are many moving parts at play that can absorb high levels of administration time and drive-up cost.

In this article we will explore the time and cost implications that can be experienced when managing multiple packaging suppliers throughout continental Europe. 

We will consider the freedom of product movement across the continent, how packaging legislation could affect the way you to trade in some countries, common barriers to smooth transactions, as well as opportunities for cost reduction.  

What is the European Union and how does it control the movement of materials

According to the United Nations, 44 countries make-up Europe, of which 27 are member states of the European Union.

Formed to promote peace and economic stability after World War II, the European Union is built on a foundation of binding treaties which, over the years, have harmonized laws and adopted common policies:

• a customs union;
• a single market in which capital, goods, services, and people move freely;
• a common trade policy;
• a common agricultural policy;
  • aspects of social and environmental policy;
  • a common currency (the Euro).

To be eligible for EU membership, countries must first meet a set of established criteria, including having a functioning democracy and market economy. Once a country becomes an official candidate, negotiations are a long and complex process in which the applicant must adopt and implement a massive body of EU laws and regulations. 

There are currently 8 candidate countries working through negotiations and a further 2 potential candidate countries.

Only twenty of the twenty-eight EU member states use the Euro as a form of currency, and 22 members participate in the Schengen area of free movement (where internal border controls have been eliminated).

So, whilst much of Europe is governed with a commonality of regulations, there are still a high number of countries which operate outside of these, introducing a level of complexity required to navigate individual country customs, taxation and paperwork.

The impact of packaging taxation in Europe

On January 1^st, 2021, the EU implemented a plastic tax levy to each member state, requiring them to pay €800 per tonne of non-recyclable plastic used.  Individual country contributions are calculated based on their own national waste database figures.

How each state country recoups these costs is at their own discretion.  Many of the countries have, or are in the process of, bringing in their own packaging taxes and regulations for packaging disposal, to claw back the levy costs.

Unfortunately, there is no unified recycling scheme across the European Single Market either, so each country operates differently.

Some countries require businesses to hold a valid packaging license to cover the cost of end-of-life recycling.  This licence is required even if your business does not operate within that country.  For example, an ecommerce company operating outside of France, requires a packaging licence to deliver goods into the country. 

In January 2024, the new EU Corporate Sustainability reporting comes into force, and will apply to all large companies operating in the EU, including those with non-EU parent companies. Mandatory reporting on packaging use will be required, with businesses expected to itemise the total weight and material make-up of packaging used. It’s hoped that this will deliver transparency of a business’s environmental impact, social affairs and governance matters.

Complexities of packaging supplier management in Europe

Packaging supplier management impacts many touchpoints throughout a business operation. From the initial research to find the right product capabilities, ensuring corporate governance and credit checks, through to contract negotiation, it takes up valuable time to find new suppliers and source products.

There is also an impact on day-to-day transaction management – order placement, goods-in unloading and put away, paperwork handling, invoice matching and payment can take up significant time when replicated across multiple suppliers. Each of these have an impact throughout your operation and become much more complex when you are managing suppliers across borders. 

Throw into the mix the potential for language barriers – there are over 200 spoken in Europe. This can make it challenging to identify supplier specialisms, product quality and supply chain robustness.

It can become administratively overwhelming to track deliveries from multiple suppliers, in a variety of languages. Absorbing valuable time to track logistics, implement cross border quality checks and collate all the reporting.

The impact of multi-currency trading

Only 20 of the 44 European countries trade using the Euro, which means there is a high chance that you will need to trade in multiple currencies. 

Multi-currency bank accounts are available but are chargeable. Currency fluctuations should also be considered – you may get a favourable rate of exchange on the first order placement but, it may not be so competitive when you place the follow-up order. 

As well as the direct financial costs, there will also be an impact on how you handle those transactions through your business systems.  Does your software allow you to transact in multiple currencies? Are you able to manage SKUs, purchase orders and invoicing in a variety of currencies? 

Business software may need to facilitate multi-lingual trading too – placing purchase orders or receiving order confirmations and invoices for example.

Simplifying your European packaging supply chain

If the above scenarios are familiar and you’re looking for ways to simplify your European packaging supply chain then supplier consolidation with a partner who operates across Europe could help to streamline your business.

Macfarlane Packaging supports customers with European operations through our distribution service and easy e-trading portal.  We source your packaging and provide a single point of contact for all of your packaging SKUs.  We transact in the language of your choice and invoice in a single currency.

Our online easy ordering portal integrates with your systems and brings together your sites, your orders and tracking. All supported with “touch of a button” reporting.

With ISO9001, 140001, Sedex and EcoVadis membership, we deliver peace of mind, as well as packaging, to your packing operation.

The post Managing European packaging supply chain continuity appeared first on Macfarlane Packaging.

Rents have been steadily increasing across the UK over the past few years, with an average annual rental growth rate of 4.2% estimated between 2022 and 2026.

Optimising your warehouse space is key to helping keep the costs down and ensuring your packing operation runs smoothly. 

In this blog article, we will look at packaging automation and how it can help you reduce costs and maximise your warehouse space.

What is packaging automation?

Packaging automation is the process of introducing automated tools and packaging machinery to increase the speed of packing without manual intervention. It ensures consistency, reduces material waste and helps generate cost savings in the long run.

Types of packaging automation

There are different types of packaging automation, depending on your needs. You can automate pretty much anything from packing and void filling cardboard boxes to taping and wrapping your pallets ready for shipments. Some of the most common solutions include:

• Box automation – case and box erecting solutions, as well as automated boxing machines, designed to open, fold and seal your boxes, depending on the equipment used. Automated box-sizing machines measure the size of products and adjust the box size to offer the best fit for the content.
• Protective automation – examples include semi and fully automated void fill systems, as well as air cushioning and air pillow machines. Depending on the model, air cushions can be automatically inflated, cut to size and placed inside the boxes.
  
• Paper automation – this can involve anything from void filling, through to wrapping and cushioning. Paper void fill dispensers can be programmed to release specific lengths of material for each of your pack options.
• Automated taping – semi and fully automated tape dispensers and machines that can automatically release and cut your tape to specified lengths. This helps ensure you are getting the right amount each time.
• Automated bagging – fully and semi-automated bagging solutions that can automatically prepare, fill, cut to size and seal your bags to ensure optimal fit.
• Stretch Automation – these include fully and semi-automated pallet wrappers, horizontal and vertical stretch wrapping machines, as well as rotating arm stretch wrap machinery.
  

We also distinguish between semi-automated and fully automated packaging processes.

A semi-automated process is part manual and part automated. For example, an operator may start the process, but an automated packing system may finish it. This is typically a cheaper option if you are looking to introduce some automation but are working with a constraint budget.

A fully automated packing process is programmed from the beginning to completion. This can include everything from picking, packaging application and palletisation for dispatch.

The benefits of packaging automation

Packaging automation has many benefits to offer. It helps lower your operational costs, improve pack line productivity and save valuable storage space. It also ensures consistency in packing, warranting all products are packed to the highest, uniform standard.

Smaller, compact parcels, that result from using automation, will take up less space on your delivery vehicles. This means you will need to make fewer trips to deliver your products, reducing your fuel costs and keeping your cardboard emissions down. 

The initial investment involved in purchasing and setting up the required packaging machinery may be off-putting, however, automation will help you generate significant cost savings in the long run.

Ultimately, you will be spending less on your materials, labour and transportation. Optimised packaging will also help reduce the risk of product damage in transport, minimining costs involved in processing returns.

Packaging automation and storage space

Packaging automation can play a big role in optimising your warehouse space. It helps reduce the amount of packaging products you need to store in your warehouse, which creates more room for other operations and saves costs. 

Automated packaging solutions ensure your parcels are neatly packaged with just the required amount of material. This helps prevent overpacking and material waste, freeing up your storage space.

Is packaging automation right for me?

If you are struggling with warehouse space or are simply looking for ways to improve the efficiency of your packing operation, packaging automation may be the right solution for you.

Signs your business is ready for packaging automation include:

• Your packaging is increasingly taking up room in your warehouse
• You continually need to hire new staff for your production and/or pack line
• Your packs per hour aren’t increasing in line with demand
• Your business is creating increasing levels of packaging waste
• You experience an uplift in customer complaints about damaged goods
• Your packing team’s morale may be lower due to increased workload

Support with packaging automation

If you are struggling with your warehouse space, Macfarlane Packaging can help you determine which automated packaging systems are best for you, and which points in your supply chain will benefit most from using automation.

We can also recommend a range of semi-automated packaging solutions if you are looking at trying it out on a smaller scale.

We have solutions to fit different needs and budgets.

Why not contact us today to discuss your specific requirements?

The post How packaging automation can release warehouse space appeared first on Macfarlane Packaging.

The Spring Budget delivered some light relief for businesses, as unexpectedly the Chancellor, Jeremy Hunt, announced a further freeze on fuel duty for another 12 months, extending the 5p a litre cut in duty on petrol and diesel.

Increased transportation costs have contributed to the record inflationary highs of 10.4% in February 2023 in the UK as it ultimately impacts the prices of goods and services. It also has a knock-on effect to consumer spending as we all have less disposable income to spend, contributing to a slowdown in the economy as people reduce their spending.

As many businesses rely on diesel-powered machinery or vehicles, higher diesel costs are increasing operating expenses and impacting profits.

Of course, there is an upside to the fuel cost increases – the impact on the environment. As a major contributor to air pollution and greenhouse gas emissions, these higher diesel prices can incentivise businesses to optimise their vehicle fleet to use less fuel and, potentially, switch to cleaner forms of transportation.

In this blog, we’ll discuss you can utilise packaging to optimise your vehicle payload! We’ll also look at ways to maximise your vehicle space to reduce transportation costs and minimise your environmental impact.

Even if you are engaging couriers to deliver on your behalf, how you pack your products for delivery will still have an impact on your business. Optimised shipments will help you to reduce your operational costs and improve the sustainability of your business. We will cover:

The importance of optimising your delivery network

Maximising the load of a lorry or delivery van (also known as optimising the payload) helps to increase efficiency, reduce emissions and improve productivity.

Carrying a maximised load can increase the efficiency of transportation as the more goods transported per trip, the lower the overall transportation costs per unit. This can result in lower business costs and increase your competitive edge.

It also has the potential to reduce the number of trips required, reducing fuel costs and improving productivity. A maximised load can reduce turnaround times as more goods are transported per trip, reducing the time and costs associated with loading and unloading. This helps you to make better use of resources, such as vehicles and labour, as well as fuel.

Of course, when fewer journeys are required, it reduces the number of vehicles on the road.  Burning fuel releases carbon dioxide and other harmful emissions into the atmosphere, contributing to global warming and air pollution.

By reducing fuel usage, you can reduce the greenhouse gas emissions of your supply chain, improving the sustainability of your business.

How packaging impacts the optimisation of your delivery process

How your products are packed plays a huge role in the size (and shape) of the goods you are shipping. By rethinking how your goods are packed, you have the ability to reduce the footprint of your products.

For example, if a product is packed into a box larger than required, this will impact how much space it takes up in a vehicle and reduce the capacity of your delivery network. Meaning your fleet might have to make multiple trips, rather than condensing the products to a minimum number of trucks.

For some items, there is also the need to use extra packaging to fill the void; this will increase the cost of your packaging materials too. So, ensuring the correct packaging is being used for your product will reduce costs to your operation, from warehousing to transportation!

Utilising packaging to optimise your vehicle payload

Whether you are shipping pallet loads or parcels, there are always opportunities to optimise your delivery vehicles and increase payload. 

Consider ways to optimise the cubage of your products – this means using packaging materials that are a better fit, reducing the amount of air in the pack and maximising space on the delivery vehicle.

Sometimes the adjustment to improve parcel cubage can be tiny – shaving just a few centimetres, or even millimetres, from the height of your transit packaging doesn’t sound like much in isolation but, if you are shipping hundreds of packs per day, that could unlock metres of space!

It has the potential to increase pallet yield too, allowing you to add additional layers to a pallet. As well as maximising payload it also has the possibility to reduce the amount of pallets you need to buy and handle, improving productivity in goods out handling and vehicle loading. It also reduces handling for your customers goods-in team.

How to maximise your delivery routes

Before loading your vehicles, it is important to plan your vehicle runs to ensure that you can make deliveries in the most cost-effective way. Optimising your delivery routes can help to minimise the distance travelled and maximise the number of deliveries made per trip.

Are there opportunities to consolidate multiple orders for a single customer into one delivery? Grouping customer orders is a great way to optimise your transport, reduce fuel use and, save your customer time and effort in processing a single delivery. 

Prioritise deliveries based on factors such as customer importance, delivery time windows, and delivery distance. This can help you plan the most efficient routes and ensure that important deliveries are made on time.

Consider using route optimisation software, there are many software tools available that can help you plan the most fuel-efficient routes. These tools consider factors such as the location of customers, traffic patterns, and delivery windows.

When you can maximise your fuel economy, or miles per gallon (MPG), you also require less fuel stops! This means fewer interruptions in the delivery day…

How to foster fuel efficiency in your supply chain & lower fuel costs

Consider incentives that will improve the efficiency of your drivers and maximise the MPG of your vehicles. Encourage drivers to plan their routes carefully, avoid unnecessary stops, and use fuel-efficient driving techniques.

Good driving habits, such as driving at a moderate speed and avoiding sudden stops and starts, can help reduce fuel consumption and emissions. This not only contributes to your operational cost savings but also has a positive impact on the environment.

Train your drivers in efficient driving techniques, such as accelerating and braking gently, maintaining a steady speed, and avoiding idling. These techniques can help reduce fuel consumption and increase the distance that can be covered on a single tank of fuel.

Rewards for good driving habits can help reinforce the idea that responsible driving is important and lead to more a conscientious driving behaviour.

It’s also worth mentioning the importance of keeping your vehicles well-maintained to ensure that they are running at peak efficiency. This includes regular oil changes, tyre rotations, and tune-ups. Well-maintained vehicles consume less fuel and are less likely to break down, reducing the overall cost of transportation.

Support lowering your fuel costs with optimised packaging materials

At Macfarlane Packaging, we work with customers to optimise their transport operations and increase the payload of their vehicles.

We use a unique tool called the Packaging Optimiser. It helps customers to calculate cubage improvements in terms of vehicle space savings. We can demonstrate the impact on your vehicle runs, operating cost and show the kilograms of carbon saved as a result.

Our support has helped customers to increase fuel efficiency, improve productivity and reduce the carbon footprint of their operation – ultimately lowering fuel costs too.

Why not contact us today to find out how we can support your business?

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In this article, we’ll explore what the Corporate Sustainability Reporting Directive is, why it’s being introduced and how you can prepare your business for the impact the CSRD may have on your company’s operations through sustainable packaging and packaging optimisation. 

What is the Corporate Sustainability Reporting Directive?

The EU Corporate Sustainability Reporting Directive (CSRD) is the new EU legislation that will require all large companies to publish regular reports on their environmental and social impact. It helps investors, consumers, policymakers and other stakeholders to evaluate large companies’ non-financial performance.

It is set to be introduced following the  vote which was held in November 2022 to adopt the new reporting rules..

Why is the Corporate Sustainability Reporting Directive being introduced?

The aim of the directive is to update and amend the non-financial reporting requirements set for companies under the Non-Financial Reporting Directive (Directive 2014/95/EU, the NFRD).

Legislators hope changes to the current non-financial reporting standards will:

• To ensure transparency about environmental impact, social affairs and governance matters becomes the norm for large businesses
• more businesses become publicly accountable
• Position the EU as a front runner in global sustainability reporting

Overall, sustainability reporting is important as it helps make an organisation’s decision-making processes more efficient, helps reduce risk, reduces waste, and can even yield cost savings. It can also make things easier for potential investors and customers who need to consider environmental, social and governance criteria in their investment and purchasing processes.

Who does the Corporate Sustainability Reporting Directive apply to?

When the directive is introduced, it will apply to all large companies operating in the EU, including those that have non-EU parent companies.

The directive will apply to EU companies that exceed at least two of the following criteria: 

• more than 250 employees;
• a turnover of more than €40 million; or
• total assets of €20 million.

If a non-EU company has EU-generated turnover of €150 million or more from one of its subsidiaries or branches, the CSRD will also apply. Listed SMEs will also be included eventually, but they will have more time to comply with the new directive.

This requirement to collect and share sustainability information will impact around 50,000 companies trading within the EU.

When will the Corporate Sustainability Reporting Directive be introduced?

It’s expected that the first set of standards for the CSRD will be published in 2023. The new sustainability reporting rules will then start to apply between 2024 and 2028 depending on the type of business.

• From 1 January 2024 for large public-interest companies (with over 500 employees) already subject to the non-financial reporting directive, with reports due in 2025;
• From 1 January 2025 for large companies that are not presently subject to the non-financial reporting directive (with more than 250 employees and/or €40 million in turnover and/or €20 million in total assets), with reports due in 2026;
• From 1 January 2026 for listed SMEs and other undertakings, with reports due in 2027. SMEs can opt-out until 2028.

If your business is one that’s going to be impacted by this new sustainability reporting directive, where do you start to collate the required information and make improvements?

How will the Corporate Sustainability Reporting Directive transform your organisation?

While the full details of the required reporting are yet to be revealed, businesses affected will need to go above and beyond their current disclosures.

Some of the expected, extended standards will include general sustainability reporting around environmental matters, such as climate change and biodiversity, as well as social matters. It is predicted that there will be sector-specific standards, plus the requirement to analyse value chains and their impact on the environment.

Businesses will also be required to provide forward-looking disclosures as well as historic disclosures.

The role of packaging in the Corporate Sustainability Reporting Directive

You might be thinking: where do your packaging materials factor in when you think about the CSRD?

The packaging materials you use have a direct tie to your impact on the environment and your value chain. Of course, packaging is necessary to ensure the protection of your products but it must be designed, used and disposed of responsibly.

Have you ever considered the CO2e of your packaging? Or the packaging waste your business creates? Is your packaging easy to recycle? There are lots of factors to consider when it comes to the potential role of packaging and the incoming directive.

While it will seem like a lot to factor in initially, the packaging materials you use can represent an opportunity to reduce your impact on the environment.

Understanding the volume of packaging currently used, the types of packing material, and the carbon impact in your supply chain, can create a platform for making sustainable changes. These include material switches and reducing how much packaging your business uses.

The impact of these changes can maximise the use of resources. For example, by improving pallet payloads and reducing the number of vehicle trips required to deliver your goods, this can reduce both the amount of fuel used and carbon emissions.

These changes have an impact on the carbon footprint of your operation and help you to meet corporate sustainability goals. 

If you’re a UK based business, another benefit of being familiar with the details of the packaging you use is that it helps you plan for packaging waste reporting under current Producer Responsibilities and will stand you in good stead for incoming Extended Producer Responsibilities.

Using packaging optimisation to prepare for the directive and make your operation more sustainable

Optimising your packaging will help you prepare for the CSRD and make your operation more sustainable.

At Macfarlane Packaging we use our Packaging Optimiser to truly assess what your packaging is costing you and the environmental impact. The tool allows you to see the true carbon impact of your packaging including the material manufacture and recyclability, as well as other factors like storage, transport and damages.

The approach used by the Packaging Optimiser is a win-win as the sustainability improvements it can illustrate often go hand in hand with cost reduction.

A good example of packaging optimisation in action is our work with Exertis. By reassessing their use of stretch wrap, we identified the opportunity to remove 17 tonnes of plastic material annually from their packing operation. This would reduce their overall material use by 24% and remove an estimated 45 Tonnes of CO2e from their carbon footprint.

Managing the complexities of sustainability and sustainable packaging throughout Europe

At Macfarlane Packaging we provide a single point of supply chain management across multiple European countries removing logistical challenges, administrative demands, and reporting challenges. We have multiple sites across the continent and a multi-lingual team of experts that can help businesses manage the complexity of sustainability and sustainable packaging.

We source and vet suppliers, ensuring product sustainability, quality, branding and managing order placement. We can consolidate invoices across operations and into a single currency, so there are less invoices to track.  This ensures smooth packaging movement from location to location and maintains continuity of supply. This removes complexity, cost and carbon emissions from our customers’ operations.  Our easy order portal, Simplicit.e, provides you with the tools to assess packaging usage by site, generating packaging use analysis at the click of a button.

Contact us today to find out how we can support your business with packaging distribution in Europe.

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