Soft Drink Supply Chain Sustainability: A Case Based Approach to Identify and Explain Best Practices and Key Performance Indicators
Abstract
:1. Introduction
- the high complexities due to the huge packaging variety since the packaging must play its part in safeguarding the beverage, offering appropriateness to the intended outlets and affording maximum convenience to the consumer [17]; and
- the huge water consumption in the production process and as the main component of the soft drinks itself [18].
- (i)
- depicting the current set of sustainable best practices and KPIs which companies perform according to the literature review and, therefore, revise the actual body of the literature; and
- (ii)
- finding which of these best practices and KPIs are also implemented in the real world, helping companies to have a better decision-making framework.
2. Research Background
3. Research Questions and Methodology
Assumption
4. Literature Review
4.1. How Soft Drinks Supply Chains Address Sustainability
- Alternative sustainable energy
- Waste management and recycling
- Packaging
- Water footprint
- Water recycling
- Environmental impact of the packaging systems emphasizes polyethylene (PET) containers. The scope of the analysis was to use this as a basis for decision making in environmental policy; the simulation model shows that “although the total PET volume collected will increase constantly, the recycling rate will eventually decrease. This is due to the fact that the PET production rate will be higher than the PET collecting rate” [28].
- Eco-design and recycling was analyzed based on the greenhouse gas emissions of using refillable polyethylene terephthalate (REF-PET) and non-refillable polyethylene terephthalate (NR-PET) in the Norwegian soft drink and carbonated water market [30]. Results show that the emissions from the production and transportation of the two types of bottles are similar, however NR-PET bottles generate 18% less CO2 emissions than REF-PET bottles. Based on these findings, we suggest that the Norwegian market should change regulations on beverage bottles.
- Recycling and reuse analysis considered experimental production of novel value-added materials from PET waste. PET waste can be depolymerized by glycolyzing it with MPD. This polyester diol has the potential for further reactions to produce various products. The polyurethane samples, obtained from PET waste, could be used in various applications, such as industrial parts, membranes and O-rings. The necessity of finding a simple economic method for recycling PET waste is a key concern for sustainable recycling. In fact, it not only serves as a partial solution to the solid-waste problem, but it can also be regarded as a source of raw material to some industries and thus can also contribute to the conservation of raw petrochemical products and energy.
- Environmental Impact assessment: The paper dealing with this topic focuses on water footprint of the bottle, other packaging materials, paper and energy used in the factory [29]; all water used for production processes and general purposes is “collected and treated in a public wastewater treatment plant before it is returned to the environment”. It emphasizes the importance of returning the water used by companies to nature with the aim of reducing the impact on the local water system.
- Recycling and reuse: Closed-loop water recycling systems and the practice of water reuse for fruit washing were introduced to save water and associated costs in the company. A major motivation of company managers taking part in this study was to secure economic benefits in addition to conservation of water resources [33]. The authors considered two best practices:
- reusing cooling water in the washing process; and
- adopting a closed-circuit cooling system.
- Industrial symbiosis: Wastewater, through sewage treatment services and using the organic material in the wastewater, could be used as the input material for hydrogen fermentation [32]. Industrial symbiosis presumes that industries collaborate intentionally and organize themselves to reach not only a better usage of materials but also a partnership that permits to share strategies and objectives. The symbiotic process described by [32] allows reducing carbon emissions and increasing the adoption of sustainable energy. The commercialization of such energy is still limited by the high production costs of dark fermentative hydrogen. In fact, despite the advantages of industrial symbiosis, it also introduces some challenges to its implementations:
- regulatory barriers which may prevent the transfer of waste; and
- cost of reusing waste streams, which may outweigh the benefits, especially when byproduct use is not a significant economic driver for a firm.
4.2. Packaging Best Practices
- protect beverages from the external environment;
- transmit information to consumers; and
- fulfill transportation and distribution.
4.3. Water Best Practices
4.4. KPIs for the SDSCs
- General Aspects include safety, security and customer satisfaction. This section considers objectives that are not specific on how to improve the manufacturing processes but, indirectly, are likely to affect the industry’s sustainability performance. Specifically, these KPIs allow analyzing the social perspective of sustainability.
- Materials and Packaging cover all those metrics and indicators about the efficient and effective use of material including: material efficiency, reduction of raw material, increase usage of renewable material and waste reduction.
- Water and Energy are the most commonly analyzed resources for assessing environmental performance. It covers energy and water efficiency.
- Emissions include the intensity of the weight of all outflows to air, land, and water during a specific period. Its objectives are to minimize emissions to air, land, and water.
5. Results
5.1. Case Study A
- It is the leader in the Italian market.
- It has a large global market share.
- It seeks continuous improvements.
- It has an excellent record in safety and quality of the products.
- Plant 1 produces and bottles carbonated and non-carbonated soft drinks in PET, glass, cans, Pre-Mix and Bag-in-Box.
- Plant 2 produces and bottles carbonated and non-carbonated soft drinks in PET, Pre-Mix, and Bag-in-Box.
- Plant 3 produces and bottles carbonated and non-carbonated soft drinks in PET, glass, and cans.
- Plant 4 produces and bottles water in PET.
- reduce general waste; and
- minimize the environmental impact of packaging.
- water efficiency; and
- water treatment and recycling.
- Type 1 uses 25% recycled PET.
- Type 2 allows 57% saving of PET.
- Type 3 is biodegradable and developed from natural resources (fibers).
- Returnable packaging increases consumers’ environmental awareness leading to better product choices.
- Post-consumer actions use bottle and can compacting machines that attract customers by monetary compensation or discounts.
- reduce water by 60% in the washing processes;
- capture and store rainwater for fire protection and sanitary services of the plants;
- reduce energy consumption and alkaline detergents;
- lower costs; and
- sell wastewater.
5.2. Case Study B
- It is a leader in the water bottling process in Italy.
- It pays great attention to safety and quality of the products.
- It is customer orientated.
- (1)
- Blowing the preform for the PET bottle
- (2)
- Bottling
- (3)
- Corking
- (4)
- Labeling
- (5)
- Packaging
- (6)
- Storing
- Light weighting reduces the package weight by using less PET; this process is done for the primary, secondary and tertiary packaging.
- Design of bio-plastic bottles uses PET produced from sustainable renewable materials, in this case sugar cane.
- Recycled PET is used.
- Post-consumer actions are based on special events or alliances, to sensitize consumers.
- expanding the use of returnable bottles;
- raw material reduction;
- recycling of raw materials; and
- reverse logistics and consumer education.
- reduce greenhouse gas emissions by 19% per liter of water produced;
- reduce greenhouse gas emissions by 30% on the packaging phase; and
- reduce non-renewable energies by 8%.
- water source protection;
- responsibility for water production;
- enhancement of local communities;
- educational activities conducted to make people aware of their responsibilities and the importance of water; and
- educational activities with respect to the importance of hydration for health.
5.3. Comparison between Literature Data Analysis and Case Studies
6. Conclusions
Author Contributions
Funding
Conflicts of Interest
References
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Research Question |
---|
RQ1: What are the main water and packaging sustainable best practices in the soft drink supply chains? |
RQ2: How do soft drink supply chains measure sustainability? |
Author | Sustainability Dimension | Topic | Evaluating Method |
---|---|---|---|
Hanssen (2007) [27] | Environmental | Environmental and resource efficiency and effectiveness | LCA |
Romero-Hernandez (2009) [28] | Environmental | Packaging | LCA |
Ercin (2011) [29] | Environmental | Water footprint | Environmental impact assessment |
Bø (2013) [30] | Environmental | Packaging | Data-based approach |
Luz (2015) [31] | Environmental | Performance | LCA |
Wen Hsu (2015) [32] | Environmental & Economic | Water recycling/reuse | Cost analysis |
Alkaya (2016) [33] | Environmental & Economic | Water recycling/reuse | Cost analysis |
Shamsi (2016) [34] | Environmental & Economic | Packaging | Chemical analysis |
Best practice | Description |
---|---|
Light weighting | Lightening of packaging in accordance to the regulations and legislations. |
Usage of recycled material | It allows the reduction of raw materials consumption and non-renewable materials. |
Upcycling | The packaging already consumed is used as “raw materials” for other production processes. |
Design of “Bio plastic bottle” | Usage of natural materials as raw materials for packaging. An example is the application of endive root or wood waste for the bottles production. |
Adoption of more efficient technologies | Application of new generation machine, such as new blower machines, which reduces the consumption of compressed air or the adoption of new generation of blow moulding machine, which allow reducing energy consumption. |
Evolution of collection models | Independent models for the collection of waste bottles are being implemented by SDSC, in order to recovery raw materials. In this direction they are also considering incentive models for the consumers. |
Best practice | Description |
---|---|
Reduction | Consume less water to produce beverages, and then reduce water withdrawal |
Recycling and treatment of wastewater | Recycling water to make it safe to be used in the beverage, the production processes, or released into the environment |
Rainwater recovery | Systems of capturing and storing rainwater in tanks or lagoons |
Innovative technologies for cleaning processes | Automatic cleaning of the line ducts for changing flavours in the process system that saves water and energy |
Engagement with suppliers, especially those in agriculture | Wastewater recovered is used for the irrigation of supplier fields |
Group | KPI | Description |
---|---|---|
General Aspects | Industrial safety | Indicates numbers of incidents, fatal and nonfatal accidents, health and safety prevention costs. |
Client satisfaction | Measures the level of satisfaction, well-being, and added value to customers and users. | |
Employee turnover | Measures the level of turnover in a company, in terms of Number of employee departures divided by the average number of staff members employed. | |
Materials and Packaging | Usage of raw material | Measures raw material consumption per litre of beverages produced, and non-renewable materials intensity. |
Usage of renewable material | Measures renewable raw material consumption per litre of beverages produced | |
Solid waste generation | Grams of solid waste generated per litre of beverages produced | |
Recycling of solid waste | Percentage of recycled waste in relation to generated waste | |
Product Quality | Measures the number of errors, rejected batches, product defects, costs of bad quality and number of deviations | |
Packaging Quality | Measures the quality and safety of packaging | |
Water and Energy | Efficiency in water consumption | Number of litres of water needed to produce one litre of beverage |
Efficiency in energy consumption | Energy used per litre of produced beverage | |
Emissions | Emission to water | Measures nutrients and organic pollutants and metal emissions |
Emission to land | Measures oil and coolant consumption, restricted substances intensity and metal emissions | |
Emission to air | Measures air acidification, dust and particles, transport and greenhouse gases |
Packaging Best Practice | Main Results | Water Best Practice | Main Results |
---|---|---|---|
Light weighting | Reduction of weight and minimization of impacts on environment | Rainwater recovery | Capturing and storing rainwater for fire protection and sanitary services of the plants |
Use of recycled material | 25% of each bottle is produced with recycled PET; policies of packaging and glass recycling | Innovative technologies for cleaning processes | 60% reduction of water in the washing processes |
Design of “Bio-Plastic Bottle” | Reduction of carbon footprint thanks to the adoption of natural and sustainable materials | Recycle and treatment of wastewater | Value added by selling to agriculture producers |
Post-consumer actions | Development of special machines, which compact PET bottles and aluminum cans | Protection of reservoirs | Facilitating water infiltration and protecting natural reservoirs |
KPIs |
---|
Client satisfaction |
Energy consumption |
Favorable internal environment |
Industrial safety |
Packaging quality |
Product quality |
Raw material consumption |
Recycling of solid waste |
Solid waste generation |
Water consumption |
Packaging Best Practice | Main Results | Water Best Practice | Main Results |
---|---|---|---|
Light weighting | 16% weight reduction | Educational activities | These are conducted to make people aware of: (i) the responsibilities of the importance of water; and (ii) the importance of hydration. |
Use of recycled material | PET recycled, which allows reduce CO2 emissions, greenhouse gas and non-renewable energy consumption | ||
Design of Bio-Plastic bottles | PET production from sugar cane, which allows the reduction of raw material consumption | ||
Post-consumer actions | Special events or alliances to sensitize consumers |
KPIs |
---|
Client satisfaction |
Employee turnover |
Energy consumption |
Packaging quality |
Product quality |
Raw material consumption |
Raw material consumption |
Renewable material consumption |
Water consumption |
Best Practice | Case Study A | Case Study B |
---|---|---|
Light weighting | X | X |
Use of recycled material | X | X |
Upcycling | ||
Design of “Plant bottle” | X | X |
Adoption of more efficient technologies | ||
Evolution of collection models | X | X |
Best Practice | Case Study A | Case Study B |
---|---|---|
Reduction | X | X |
Recycling and treatment of wastewater | X | |
Rainwater recovery | X | |
Innovative technologies for cleaning processes | X | |
Engagement with suppliers, especially those in agriculture | X |
KPIs | Case Study A | Case Study B |
---|---|---|
Industrial safety | X | |
Client satisfaction | X | X |
Employee turnover | X | |
Use of raw material | X | X |
Use of renewable material | X | |
Solid waste generation | X | |
Recycling of solid waste | X | |
Product Quality | X | X |
Packaging Quality | X | X |
Efficiency in water consumption | X | X |
Efficiency in energy consumption | X | X |
Emission to water | ||
Emission to land | ||
Emission to air |
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Share and Cite
Demartini, M.; Pinna, C.; Aliakbarian, B.; Tonelli, F.; Terzi, S. Soft Drink Supply Chain Sustainability: A Case Based Approach to Identify and Explain Best Practices and Key Performance Indicators. Sustainability 2018, 10, 3540. https://doi.org/10.3390/su10103540
Demartini M, Pinna C, Aliakbarian B, Tonelli F, Terzi S. Soft Drink Supply Chain Sustainability: A Case Based Approach to Identify and Explain Best Practices and Key Performance Indicators. Sustainability. 2018; 10(10):3540. https://doi.org/10.3390/su10103540
Chicago/Turabian StyleDemartini, Melissa, Claudia Pinna, Bahar Aliakbarian, Flavio Tonelli, and Sergio Terzi. 2018. "Soft Drink Supply Chain Sustainability: A Case Based Approach to Identify and Explain Best Practices and Key Performance Indicators" Sustainability 10, no. 10: 3540. https://doi.org/10.3390/su10103540