IBM in Ireland has scooped two accolades at the Chambers Ireland Presidents Awards. IBM received the awards in the supply chain category for Most Innovative CSR Project and Best Marketplace Supplier Programme by a Multinational Corporation for it's ‘Air-Filled Void Filler Process’ and its innovation in reducing the level of cost to the consumer, the environment and the company.
To reduce the environmental impact of internal packaging an initiative called the Air Filled Void Filler Process was established. The project objectives were to reduce the amount of packaging used to fill voids in the packaging of IBM products, whilst still ensuring the quality of the products shipped to the customer, by ensuring the products remain static whilst in transit to the customer. Traditionally crumpled paper (termed ‘dunnage’) is used to fill voids in the boxes and although ‘dunnage’ is an adequate and approved material for this process, it is expensive and adds additional weight and ultimately waste to the overall package.
ISC Dublin located a local supplier that had the potential to provide a ‘dunnage’ replacement solution. After a site visit to gain a deeper understanding of our processes and requirements, the local supplier determined that they could assist us to develop a new process, and a trial was setup.
The trial identified the materials and showed that not only did it cost less to fill the same type of box with air filler than with paper; it also reduced the weight of the box and the amount of paper being used to fill a box resulting in a positive impact on the environment and the local community. The trial also assisted with the change management process, helping the manufacturing department determine that the new material and procedure not only saved time, but was also easier to execute and resulted in fewer paper cuts and less dehydration of hands experienced by employees.
The project has now been extended to other areas within manufacturing in the Dublin ISC and the team are also working with the IBM WW packaging council to implement a global solution at every IBM ISC manufacturing site.
In addition to the environmental and community benefits, other benefits yielded from the project include a reduction in the costs of packaging and the amount of storage and handling required. One packaging system replaces paper, foam-in-place and bubble wrap. Close collaboration with relevant parties has resulted in the implementation of this innovation in less than a year.
The project covers a couple of important areas of IBM’s supply chain.The project has had significant beneficial impacts on supplier relationships, environment, cost and client satisfaction. A partnership of trust and respect has been established between IBM and the packaging supplier. The expectation is that we will partner again on new innovative packaging projects, and the supplier will be encouraged to approach us with new design ideas and process improvements.
Annually the overall weight of the internal void filler packaging has reduced from 55 tonnes of paper dunnage (equating to 162 pallets of paper), to just over 8 tonnes (equating to just 14 pallets) of air filled void. This has resulted in less pallets of packaging being delivered to the site resulting in a decrease in CO2 and other air emissions associated with logistics. The project has reduced our packaging costs by €200,000 per year. For our customers, who demand high environmental performance from our products and services, this project has achieved this.
The projects success highlights IBM as an environmental leader, and has encouraged collaboration and innovative thinking between our suppliers. By collaborating and encouraging our suppliers to be innovative IBM have been able to pass on the benefits of this project to our sister manufacturing sites.
Reflecting on IBM's success at the Chambers Ireland event, Campus Executive & Director ISC Server Manufacturing, Dan Carrell noted ''This recognition from Chambers Ireland demonstrates IBM's leadership in green business innovation and is a vivid illustration of our high standing in corporate citizenship and corporate affairs.''
