A green spin on packaging
In the race for success, environmental sustainability might not top a company’s list of priorities. Yet going green can actually be the key to survival in the marketplace, shares Greenpac’s CEO Susan Chong.
By: Fiona Liaw
Sustainability is growing in importance for businesses, with new trends such as compulsory sustainability reporting for companies listed on the Singapore Exchange and multinational companies taking steps to ensure their partners are environmentally friendly. But will going green raise costs and erode profits?
Ms Susan Chong has proven that green efforts can make business sense. The CEO of Greenpac helps her clients rethink packaging to cut costs while saving the earth.
The business of going green
Her journey began in 2002, when she observed massive wastage of resources in the packaging industry. Greenpac was founded in response, to offer eco-friendly packaging customised to each client’s needs.
She quickly learned that businesses were most worried that going green would increase costs. “I needed to make my green idea economical,” says Ms Chong, who changed her business model in 2004 to focus on cost savings that companies could reap from going green.
“We bring businesses cost savings by being lean and green,” she adds. This involves understanding each client’s logistics operations and redesigning their packaging to improve the entire process, from packing and unloading to delivery. The aim is to generate savings in material and freight costs, or through manhours saved with improved operational efficiency. Green packaging also helps companies comply with green procurement policies.
For example, Greenpac re-engineered a crate for a DNA analyser to reduce almost 100kg in weight and 60 minutes of crating time. This minimises waste, helps logistics staff work faster, and saves both freight and labour costs for the company. The improved packaging is also compliant with international sustainability standards without compromising on protection — in fact, it even offers improved shock absorption.
“We cannot take chances with the safety of our customers’ products. So we partner our customers to understand their needs,” says Ms Chong, who adds that many of Greenpac’s clients manufacture sensitive equipment for the medical or aerospace industry.
Greenpac helps companies to go green by using sustainable materials such as Forest Stewardship Council-certified wood, and ensuring that these materials can be easily reused and disposed of.
For every new customer, Greenpac’s engineers would rack their brains to create new solutions. “Our packaging is all about customisation. Every industry has different requirements and policies. Hence, we need to leverage a lot of know-how.” says Ms Chong.
One key approach is to look upstream. “By packing it right, we provide maximum protection of the product with minimal use of materials to achieve significant freight cost savings and reduce carbon footprint.”
Green from the inside out
Ms Chong’s dedication to going green has also influenced the way her business is run. Solar panels and VariShield thermochromic glass windows ensure the office is zero energy, and staff actively participate in sustainability-related community outreach. In one such initiative, Greenpac donates hydroponic systems to schools, with staff training students to care for the plants. The vegetables grown are donated to residents in the vicinity.
“When the staff serve the community together, they bond and develop empathy,” shares Ms Chong, who believes such activities help to build a stronger team.
Greenpac has grown to a team of over 50, winning a slew of accolades such as the World Packaging Star Award by the World Packaging Organisation and the Singapore Quality Award by Enterprise Singapore.
Overcoming the odds
Despite these victories, Ms Chong has had to overcome her fair share of challenges.
From the start, the perception of packaging as a sunset industry made it difficult for her to gain support. It was also challenging to get companies to give her a chance, because sustainability was not a popular concept 16 years ago and firms were reluctant to take risks with their expensive equipment.
But these obstacles only spurred Ms Chong on to work harder. She familiarised herself with the ins and outs of the packaging industry — even learning to operate forklifts and personally making deliveries in a truck — and spent four to five years educating businesses on her cause, gradually building rapport and gaining their trust.
It took over a year and a half to convince her first client to adopt Greenpac’s solution, which reduced half of the packaging foam used and generated 25 per cent cost savings for the company. But this success story paved the way for other companies to come on board.
Ultimately, patience and perseverance are crucial, she highlights. “If you face a lot of rejection, you must have a lot more determination. Even today, we face rejection but we continue to strive.”
Greenpac has no plans to rest on their laurels. Ms Chong aims to continue pushing frontiers. “In any business, you need to continue to evolve and innovate, and I think innovation is still not good enough. I want to disrupt myself all the time, instead of waiting for my competitors to disrupt me.”
