Smithfield Packing
Environmental Programs
Collapsible Vats and Plastic Vats
Smithfield Packing-Tarheel
July 15th 2011
Project Scope and Purpose
Project Purpose: This project combines two separate
efforts to achieve a single goal of reducing the use of
corrugated cardboard
• COLLAPSIBLE VATS
– This project eliminates all one time use of corrugated combos in
shipment of WIP raw materials from Tar-Heel to Wilson and
Kinston facilities by utilizing re-usable plastic collapsible vats.
• PLASTIC VATS
– The second portion of this project utilizes approximately 300
white plastic vats to replace corrugated cardboard combos used
in transfer of product inside the plant
Collapsible Vats
• Prior to this project, shipping of raw
material WIP product from Tar-Heel to
Wilson and Kinston required the use of
corrugated combos. During CY2010,
191,100,000 pounds of WIP product were
shipped in 98,000 single use combos; this
equates to 686 tons of cardboard per
year.
• Additionally, they have an additional
capacity of 200 pounds per bin. This
allows us to ship the same quantity of
WIP materials in 266 less trailer loads
thus reducing freight cost.
Project Implementation
• The project scope consisted of purchasing
540 collapsible vats to ship all WIP raw
materials to Wilson and Kinston facilities.
• Tarheel loaded all WIP product in the
Collapsible storage vats.
• Each vat utilized the same combo liner
that is used to line our existing corrugated
combo.
Logistics
• Wilson and Kinston would receive and
unload the vats, rinse them out, and place
them on a truck to be returned to Tarheel.
• The vats were returned on trucks that
would have already been returned to
Tarheel at the end of the production shift
• All of the vats would be tracked within SAP
White Plastic Vats
• cardboard combos were being used
to transport product within the facility
• Purchased 300 plastic white bins, with
each bin replacing the need for two
cardboard combos
• In CY2010, the Tar Heel facility
purchased 1,301,537 cardboard
combos or 1,197 tons of cardboard;
this project will reduce this figure by
171,000 combs or 13.1%.
Collapsible Vats Savings
•
•
•
•
•
Cost per individual cardboard combo
=
Savings by eliminating 98,000 combos: =
Cost of 540 collapsible vats
=
Total loads saved by additional weight =
Freight Savings (from reduced loads)
=
$3.23 / each
$316,540.00
$91,800.00
266 loads
$75,070.00
• Payback for Collapsible Vats = $299, 810.00
Plastic Vats Savings
•
•
•
•
# of plastic vats used daily
= 300
Cost for the plastic vats
= $700.00 (freight only)
Savings generated per plastic vat = $7.26
Savings by using the plastic vats = $620,730.00
(300 vats x $7.26 per vat x 285 production days)
Payback for Plastic Vats = $620,030.00
Total Project Savings
• Total Annual Savings (Plastic/White Vats &
Collapsible Vats)
• Cost Savings = $300,000 + $620,000 = $919,840
•
• Cardboard Use Reduction = 686 tons + 1,197
tons = 1,883 tons/year
•
• Overall Cardboard Combos Reduction = 20.6 %
Applicability of Project
• Collapsible Vats
– This Project is applicable to any facility that
transfers raw product to another location
on regular basis.
• Plastic Vats
– Project is applicable to any facility that
transfers product inside the plant.
Challenges to Consider
• Tracking system is essential in order
to ensure vats and bins are not lost
during transportation and sanitation.
Can be tracked through SAP
• There is an additional cost associated
with vat washing (water, chemicals,
and labor).
• Large Storage Space required
Environmental Impact
• The potential to not only reduce cardboard
consumption, but effectively eliminate it
from a particular process
• Reduction in fossil fuel emissions due to
the reduction in shipping trailers between
the different facilities
• Great initiative towards the implementation
of sustainable packaging
Questions?