Ghirardelli
Chocolate Sweetens The Bottom Line
When the StopWaste Partnership (Partnership)
asked the Ghirardelli Chocolate Company to consider possible waste
reduction projects, they found a willing partner. Ghirardelli had
recently been purchased by Lindt & Sprungli, a Swiss chocolate
manufacturer, whose philosophy was to be a company “that cares
for the environment.” The accomplishments of Ghirardelli and
the Partnership not only take good care of the environment but also
help workers and significantly improve the company’s bottom
line.
…
The challenge: Ghirardelli’s challenges were
to eliminate the waste, product breakage, and high cost that resulted
from transporting its preimum chocolate squares in cardboard boxes.
Ghirardelli had been spending $520,000 a year on 580,000 cardboard
boxes for internal distribution. The boxes would become soiled with
use and so were thrown in the trash – resulting in an additional
$2,700 spent on disposal. What’s more, the boxes tend to collapse
when stacked, crushing the chocolate inside.
…
The Partnership team, led by Rory Bakke, assessed the company’s
operation and identified reusable totes as a potential solution.
The next steps were a cost-benefit analysis and a $75,000 grant
that was provided to help offset the much larger intial corporate
investment and get the project rolling. The reusable tote solution
is allowing Ghirardelli to realize $1.95 million in net packaging
reduction savings over the 5-year life of the project and prevent
350 tons of soiled cardboard a year. In addition, it means that
workers are less likely to develop repetitive stress injuries from
taping and opening cardboard boxes. As stated by the Planning Manager
from Ghirardelli, “The reusable tote project was financially
viable, improved product quality significantly, and provided a positive
contribution to the community.”
…
To complete their waste reduction portfolio, the company also buys
sugar and cocoa butter in bulk to cut costs and increase efficiency.
Silos at the plant are filled directly by a tanker truck, eliminating
all packaging. The company also recycles cardboard and scrap metal,
composts chocolate hulls, and donates edible outdated chocolate.
…
The tools: Manufacturer waste reduction opportunities
assessment, Cost-benefit analysis for upper management with 1.2-year
simple payback, Vendor partnerships, Employee training.
…
Case Study information provided courtesy of StopWaste.Org
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