Plant Applications: Reusable dunnage saves $8 million, reduces environmental waste for brewer

October 13, 2011

Situation

As a leading beer brewer, MillerCoors® transports more than half a million loads of beer bottles, beer cans, and other products from its warehouses to its distributors every year. Transporting the shipments involves carefully packing truck beds and railcars. One misstep could result in a damaged load or prohibit compliance with bridge laws.

The company had been using disposable dunnage, such as corrugated bulkhead spacers, plywood sheets, and cardboard dividers. These products often were thrown away after each shipment, resulting in considerable waste. In addition to the environmental impact, the waste resulted in a significant operating expense, since the products had to be repurchased for each shipment.

"Disposable dunnage also was problematic because the wooden products are heavy, weighing as much as 55 pounds," said Ray Reehm, a member of the MillerCoors Supply Chain. "This caused workers strain and injury, not to mention leaving behind splinters."

Resolution

The company decided to field-test Paylode® 100 percent recycled, reusable plastic bulkhead spacers and separator pads in its trucks in mid-2008. The spacers were used at the nose of trailers to balance axle weight and center loads. The spacers were designed to withstand 20,000 lbs. of force to protect loads while weighing almost half that of the wooden bulkheads.

The separator pads replaced sheets of plywood and cardboard dividers as buffers between pallets. They feature an ergonomic hand hole to simplify loading and unloading and a cushioning hollow cavity to protect loads.

After field tests generated successful returns, the company began using the bulkheads, and by the end of 2010 it was using the spacers and separator pads in all of its truck shipments. The companies also worked together to develop a custom panel for MillerCoors' rail shipments that not only secured the loads, but also allowed the company to increase weight loads by 35 percent.

Since rolling out the products across its warehouse-to-distributor operations, MillerCoors has seen $8 million in operating savings due to reuse of the bulkhead spacers and pads and the ability to maximize the weight of its shipments, particularly by rail. The company has reduced damaged loads by 60 percent and eliminated 7,700 tons of solid waste per year, allowing it to meet its goal to eliminate 20 percent of waste sent to landfills—five years ahead of schedule.

In addition, the lighter-weight bulkheads have reduced shipment weight and, therefore, strain on employees loading and unloading shipments, eliminating the source of 25 percent of all recordable injuries.

Paylode Cargo Protection Systems, 200 S. Friendship Drive, New Concord, OH 43762, 877-421-2914, www.paylode.com