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Metcash reduce costs by 20% and plastic usage by over 100 tonnes

Signet’s Tertiary Packaging Optimisation Project helps Metcash reduce plastic usage by over 100 tonnes while increasing efficiency by as much as 42%.

Metcash is Australia’s leading wholesale distribution and marketing company, proudly supporting and supplying some of Australia’s most notable brands such as Cellarbrations, IGA, and Mitre10.

As a member of the Australian Packaging Covenant Organisation, Metcash is committed to Australia’s 2025 National Packaging Targets, including reducing plastic waste through the phase-out of problematic and unnecessary single-use plastic across its distribution centres nationwide. 

Through a close supplier relationship spanning over a decade, Signet has helped Metcash transition to new technology cast films which allow for improved performance and cost efficiencies. 

The most recent program, which commenced two years ago, saw the leading wholesaler partner with the Signet team on a Tertiary Packaging Optimisation (TPO) Project to reduce their plastic usage and consumable costs, and increase efficiency in their supply chain. 

“New stretch film manufacturing technologies are resulting in films that are stronger at thinner gauges. This means companies can optimise their pallet stability while reducing unnecessary plastic and cardboard core waste in their supply chain.” —Matthew Best, Signet Corporate Partnerships Manager.  

Since beginning their downgauging journey two years ago, Metcash has reduced their plastic waste by over 100,000kgs resulting in a 20% cost-saving nationwide and increasing efficiency by 42% at one distribution centre. 

“With Signet’s guidance, we were able to re-examine our pallet wrapping systems and achieve record results for our bottom line and environmental mission.” —Alex Arnaudon, Metcash Corporate Responsibility Manager.

To guarantee a smooth transition, Signet implemented a specific training model in each Metcash distribution centre to ensure supervisors and warehouse personnel alike had the knowledge and skills to apply the film expertly and effectively.

Waste reduction

Metcash has saved over 100,000 kilograms in plastic waste since optimising their stretch film. 

Stretch Film rollsStretch Film rolls

In addition to the changes seen in their machine pallet wrap, switching to Signet Hemmed Edge Hand Film with a reinforced edge has further reduced plastic waste. As the film roll can withstand edge damage without losing its integrity, a common contributor to plastic waste in warehouses. This feature coupled with the increased roll length means 46,480 cardboard cores have been saved from recycling. 

Cost savings

Like any wholesaler, operational costs are a major factor due to the sheer number of products that need to be moved. Cost reductions upward of 20% have been seen by downgauging the thickness of their stretch film, meaning 22 more pallets can be wrapped per roll. Consolidating and limiting the types of stretch film used across all Metcash distribution centres contributed to these savings.  

“Being able to achieve plastic reduction goals while significantly decreasing costs to the business is a credit to the technology and insight Signet has brought to the table.” —Alex Arnoudon. 

Efficiency gains

Film consolidation has improved ordering efficiency, as sites nationally are using regulated film types for both hand and machine applications. 

The introduction of more effective Lantech pallet wrapping machinery in Metcash’s Queensland distribution centre has resulted in a 42% reduction in delay time caused by pallet wrapper hold-ups such as frequent roll changes.

 

Over the two years, this has saved approximately 720 hours per year on downtime. 

 

“Signet has helped us lead the way in single-use plastic reduction over the years and provide continued advice around alternative products that have a higher sustainability factor.” 

 

If you would like to speak with a Signet team member about optimising your Stretch Film, contact our Sales Team on 13 7446, email sales@signet.net.au, or Live Chat with us by visiting www.signet.net.au.

Lantech Pallet Wrapping MachineLantech Pallet Wrapping Machine

Signet is proud to support Metcash and over 60,000 other Aussie ventures.