Georgia-Pacific Launches Packaging Systems Optimization Microsite

ATLANTA, Ga.—Georgia-Pacific recently launched its Packaging Systems Optimization (PSO) microsite, highlighting the company’s program to help customers reduce total packaging costs while achieving greater sustainability with a short lead time. The site also offers the PSO Calculator, a web-based tool that quickly estimates potential sustainability improvements. With the calculator, site visitors simply input current corrugated spend. The PSO Calculator then estimates potential savings in terms of raw material cost, energy consumption and greenhouse gas emissions (GHG).

Georgia-Pacific’s PSO program is a rigorous, five-step process, in which a team of packaging experts and engineers analyze a company’s entire packaging supply chain from package design and shelf impact to line productivity, material handling and distribution. The PSO team delivers a detailed report outlining areas in which improved cost-savings, profitability and sustainability can be achieved.

“Since we began using PSO in 2002, we have identified annual savings of over $180 million for our customers. We’ve found that our process works across all industries—the solutions are different, but the path to get there is the same,” said Brian Reilly, senior director, Georgia-Pacific Innovation Institute.

“Even the smallest changes to the packaging supply chain can improve sustainability and decrease costs,” added Reilly. “For example, a packaging redesign that optimizes material usage, can increase assembly line productivity and maximize cube utilization. The end result would be reduced energy consumption as well as emissions from fewer shipments.”

As part of its PSO recommendations for water heater manufacturer A. O. Smith Corporation, Georgia-Pacific’s engineering experts assessed the company’s supply chain and developed a comprehensive plan to reduce fiber content, energy use and transportation costs, while significantly increasing productivity. In less than a year of PSO implementation, A. O. Smith has seen a substantial reduction in total packaging systems costs.

PSO was developed at Georgia-Pacific’s packaging plants and the Innovation Institute, a creative, collaborative environment where Georgia-Pacific and its customers work toward identifying opportunities to reduce supply chain costs, increase shelf velocity and measure sustainability factors. The Innovation Institute simulates retail and packaging environments, allowing customers to experience sustainable innovation and novel package design solutions in action. Designed to facilitate breakthrough thinking and next-generation packaging solutions, the Innovation Institute helps customers realize the full value of their packaging investment. For more information on Georgia-Pacific’s Innovation Institute, visit www.gpinnovates.com