w sses ng.
THE SEAL OF APPROVAL
Distribution Centres omated warehouse
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SIGNED,SEALED & DELIVERED WITH SEALED AIR WRITTEN BY
DAN BRIGHTMORE PRODUCED BY
STUART IRVING
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S E A L E D A I R C O R P O R AT I O N
HOW SEALED AIR IS AIMING TO BALANCE ITS USE OF TECHNOLOGY TO INCORPORATE SUSTAINABILITY, COST EFFECTIVENESS, SPEED AND PROTECTION FROM WAREHOUSE TO DOORSTEP
S
ealed Air’s genesis came in a moment of accidental innovation back in 1957. Two engineers, Alfred Fielding and Marc
Chavannes, in Hawthorne, New Jersey, attempted to create a new wall covering by laminating 04
two plastic sheets with air bubbles in between. Although their invention never caught on as interior decoration, it was later discovered as the perfect material for protecting items, starting the pop culture legacy commonly known as bubble wrap. Fast forward to the present day, and Sealed Air’s mission has grown to help businesses succeed across the packaging space in both the food and brand protection markets. “The underlying theme for Sealed Air today is to pick up on the sustainability pillars within the industries we serve,” explains Michael Basagre, NZ 3PL and Fulfilment Sector Leader. Our team specialises in reducing damages, cube optimisation, fulfilment velocity and enhancing the overall customer experience through better packaging design. Our innovation has always been driven
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$4.5bn+ Approximate revenue
1960
Year founded
15,000
Approximate number of employees w w w.se a l e da ir. com
S E A L E D A I R C O R P O R AT I O N
“ THE UNDERLYING THEME FOR SEALED AIR TODAY IS TO PICK UP ON THE SUSTAINABILITY PILLARS WITHIN THE INDUSTRIES WE SERVE”
by the market and the customers. As a result, today’s technology has evolved around those key drivers, challenging us to re-invent how we interact with packaging, whether that be ensuring products of all shapes and sizes arrive safely to its destination or reducing food waste such as meat, fish and produce to achieve a longer shelf life.” Basagre says these innovations range from tabletop devices capable of making packaging on demand such as bubblewrap, to large, fully automated, IoT-enabled machines that require little to no human interaction. “It’s a wide
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Michael Basagre, NZ 3PL and Fulfilment Sector Leader
spectrum, depending on the industry and the particular customer that it might be appealing to,” he adds. The big challenge for Sealed Air is to continue to meet the changing needs of customers. “With the continued rise of e-commerce, the consumer is now demanding, if not already conditioned to more convenience, such as same day delivery, free shipping and more eco-friendly or sustainable packaging,” says Basagre. “That wave of customer influence is driving us back to the heart of the supply chain to reinvent how retailers and warehouses package their orders with the customer in mind.
CLICK TO WATCH : ‘NEW AIR I.B .® NANO PACKING APPLICATIONS’ 07 We’re trying to break the traditional
share the same forward-thinking ethos.
mentality of the warehousing and
“In particular, the solutions we are
fulfilment centres we deal with. There
seeing today, that are really taking off
has been a focus on traditional
are in that sustainability area.” he says.
processes when it comes to packag-
“Businesses choose Sealed Air
ing, especially in the logistics industry
because our solutions match their
here in New Zealand. However, as the
values as a company. My role has
demands of customers increase such
traditionally been focused on the
as same day delivery, so too does the
backend of that supply chain where
pressure to fulfil those orders, which
packaging meets a person packing an
means non-value-added activity in the
order, but with the rise of sustainability,
supply chain must be carefully reviewed
e-commerce and enhanced customer
with a more customer centric approach.”
experience, my role has very much
Basagre believes customers are now choosing retailers and brands who
shifted towards a more holistic view, a view that connects the person packing w w w.se a l e da ir. com
S E A L E D A I R C O R P O R AT I O N
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the order with the customer receiving
wrap. The process may look like this:
the order.
the packer goes to a bulky storage
“I now focus on ensuring that the
area to cut and collect this traditional
packaging benefits everyone across
bubble wrap before taking it back to
the supply chain process, and that
the pack bench to wrap around three
means being responsible for communi-
to four times around the fragile order
cating all the health and safety benefits
before taping and placing into a carton.
of our solutions as well as how it will
However, this process can be im-
help drive brand awareness and loyalty
proved by one of our machines that
for a retailer,� Basagre continues. “For
produces bubble wrap on demand,
example, say a customer orders a
called New Air iB. This means it can
fragile item that is prone to getting
easily eliminate the unnecessary
damaged, a packer will aim to protect
process of walking to cut and collect
that order by using traditional bubble
bulky bubble wrap, and because our
film is perforated there is no need for
sufficient for the product it is protect-
a knife, add to the fact that this
ing, meaning it’s not over packed. And,
on-demand Bubblewrap is much
because it was packed much more
stronger than traditional bubble wrap
quickly, the customer has a better
meaning less layers are required to
chance of getting their order in time,
achieve the same amount of protection.
enhancing the unboxing experience
“Overall this improved process
and the overall customer experience
reduces the manual aspect found in
with the retailer.” Such streamlining
traditional bubble wrap, by improving
strikes the right note for sustainability
the packer’s performance and
targets as, from a purely packaging
eliminating the potential health and
perspective, Sealed Air’s innovation is
safety risks such as knife cuts or
focused on helping businesses reduce
fatigue,” says Basagre. “Now, when the
the amount of packaging they use
customer receives their order, they are
without compromising on integrity as
now receiving packaging that is
per the example provided by Basagre.
E XE CU T I VE PRO FI LE
Michael Basagre Michael Basagre prides himself on being able to help others succeed. “Packaging is just a by-product of that conversation,” he says. “If I can have a conversation with a person that allows them to become better versions of themselves, whether that’s using our packaging more efficiently, or providing insights to a better approach to recycling, then that’s what success looks like in this space. If you are genuinely interested in helping others succeed by enabling them to unearth their potential, then the chances that you will succeed becomes greater.”
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S E A L E D A I R C O R P O R AT I O N
Sealed Air’s approach to reverse logistics is also addressing the waste hierarchy, while keeping the company on target to meet its sustainability goals with materials used on demand. “Many of our protective packaging materials can be reused,” confirms Basagre, highlighting the ability to use the same packaging for product returns via the supply chain or re-forwarding orders to other destinations. “What we’re also seeing in the B2B supply chain is this active awareness to reuse our packaging materials
It’s how businesses get along.
Leading the revolution in Distribution Centres to create world class automated warehouse conveyor systems.
11 instead of disposing them. Most of
“ I’VE EXPERIENCED THAT PEOPLE ARE MOTIVATED TO DO THE RIGHT THING, IF ITS ACCESSIBLE AND EASY TO DO”
these solutions are strong enough to be used multiple times in that supply chain whether that is return logistics or reusing for new order.” This commitment to reuse is echoed in Sealed Air’s partnership with Soft Plastics, a New Zealand recycling initiative. “We provide financial assistance around drop-off points so that they can recycle a lot of our soft plastics – our clear mailer bags, bubble
Michael Basagre, NZ 3PL and Fulfilment Sector Leader
wrap bags and protective packaging plastics can be put back through the system to be regrinded, reprocessed, w w w.se a l e da ir. com
S E A L E D A I R C O R P O R AT I O N
and reused to make other plastics. In this particular case, here in New Zealand, it’s being transformed into plastic fence posts by an innovative company called Future Post” says Basagre. “Future post in particular is aiming to replace traditional timber fence posts found in the agriculture industry by converting the plastics into post, which means they minimise plastics ending up in landfill.” Sealed Air also works with Astron Plastics, which regrinds plastic material for much of the New Zealand market. “We send our 12
off cuts to Astron and they reprocess it for us to purchase back, in which we are then able to re-use in our own processing plant here in Auckland,” he says. “We’re trying to ensure we have that closed-loop process as we aim for a more circular economy.” Sealed Air carried out a survey back in 2014 around ecommerce and online orders, and found that 58% of consumers are more conscious about packaging materials than they were five years previously. Meanwhile, 77% of consumers believe that packaging should reflect a retailer’s environmental values. Basagre says the study’s insights drove many back-of-house changes.
“Part of my role is to link, the front-ofhouse with the back-of-house operations and make sure retailers are aware of what their packaging is reflecting to their customers and market. I’m finding more and more that retailers are looking for environmentally friendly or more sustainable packaging to meet the growing concern of their customers and the market they serve. Along with helping connect packaging with people, my role is to also help educate and ensure that decisions on packaging materials or processes involving packaging are made with as much information as possible, and that often includes advising decision makers on the trade-offs such as any extra costs, changes to packing process, performance of the packaging materials and of course the environmental impact. I believe it is equally important to understand these trade-offs as much as it is about choosing the right packaging material. What I am finding more and more of is - if the packaging material is too hard to recycle, or the packaging is perceived to not be environmentally friendly, then the chances of it being put through the correct recycling system becomes less w w w.se a l e da ir. com
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S E A L E D A I R C O R P O R AT I O N
TECHNOLOGY
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“Our technology is seen more as a value add to the entire supply chain as opposed to one element, which is traditionally focused on getting the orders out the door quicker,” says Sealed Air’s Michael Basagre, NZ 3PL and Fulfilment Sector Leader. The company’s e-Cube void-reduction system automatically creates rightsized packaging for a variety of industries – ideal for businesses shipping between 300 and 3,000 boxes per day. The system measures the height of the contents, scores and folds excess corrugated material and then seals the carton. “It takes the guesswork out of the equation for our customers, while reducing the amount of labour required in the packing
process,” adds Basagre. Sealed Air also offers a powerful solution for the high-volume e-commerce market. The FloWrap system produces customised, ready-to-ship, rightsized polybags. The FloWrap automated platform can produce packs at up to 30 bags per minute, “It eliminates human error as the packer doesn’t have to calculate which size bag should I use, the FloWrap enables that for them,” says Basagre. Customers can choose their best match from options including film length, width and height, and length. A powerful solution for the high-volume e-commerce market, the FloWrap system produces customised, ready-toship, rightsized polybags.
likely. I’ve experienced that people are
supply chain, then there will be no raw
motivated to do the right thing, if its
materials for us to recycle.”
accessible and easy to do.” Sealed Air’s 2025 Sustainability and
Collaboration is key to drive educational awareness in the sustainability
Plastics Pledge sets ambitious goals for
area, he believes. “The everyday
recycling, showing the company is keen
consumer is wanting to do their part to
to lead by working towards innovative
help reduce waste, let alone eliminate
packaging solutions that are 100%
plastics waste. So, it’s important that
recyclable or reusable. The challenge is
we also focus on recycling and
to eliminate plastic waste and achieve a
reducing as well continuing to investi-
target of 50% average recycled content
gate and develop more alternative
across all packaging solutions, 60% of
options. We need to bring to light that
which is post-consumer recycled
not all plastics are evil and not one
content. Stressing the difficulty of this,
packaging material is best fit for every
Basagre warns: “If we can’t get
application. For example, if we can
post-consumer plastics through the
extend the shelf life of red meat using
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S E A L E D A I R C O R P O R AT I O N
Sealed Air’s proven Cryovac packaging material, and enable that piece of meat to see another day and increase its chances of being purchased and consumed rather than thrown away, then that to me is being more sustainable. Or, if we can prevent fragile items from getting damaged by focusing on packaging performance, such as stronger protective bubble wrap, then the chances of that order turning up in one piece improves drastically, whereas if the wrong packaging material was used and it ended up 16
getting damaged then that’s the worst sustainable outcome that could happen because now you have to re-send, re-deliver and re-package
is protective paper packaging was
that order which is then contributing
once thought of as a dying breed.
to the carbon footprint.
It’s great that they are trending now
“Yes, the rise of more eco-friendly
because it means consumers are more
packaging is increasing and currently
likely to recycle paper, which means
it tends to gravitate towards paper-
our paper-based solutions are
based options, but it is also important
empowering consumers to recycle
to remember the purpose of the
more often. At the end of the day
packaging material and the applica-
sustainable packaging doesn’t have
tion,” Basagre states. “The great thing
a silver bullet, but it does have good
is we have both plastic and paper
intentions and we are for discussing,
alternatives to help provide brands and
informing and collaborating on the
customers the choice based on values
best packaging solutions”.
and purpose. What’s really interesting
Looking to the future, Basagre can
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see automation becoming more
mental hump that they can transform
accessible to the New Zealand market,
their business using this technology
and not just for the big guys. “SMEs are
without the burden of having to be the
reaching out to us to try and future
a large player to access this technol-
proof their businesses. We’re having
ogy, instead, they can see that our
more conversations now around how
technology could actually help enable
to use technology to build their
them to become the next large retailer,
business, grow their customer base
which is great to see.”
by getting orders out the door more quickly, and become more sustainable. I’m seeing a breakdown in the mindset that automation in the packaging space is exclusive to larger customers. It’s great to see they are getting over the w w w.se a l e da ir. com
24 Bancroft Crescent 0650 T +64 7 850 0154 www.sealedair.com