Georgia-Pacific PSO Program Helps Retailers Increase Profits

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Georgia-Pacific PSO Program Helps Retailers Increase Profits

Aiming to help industrial and consumer product companies gain a leg up in this tough economic environment, Georgia-Pacific’s Packaging Systems Optimization (PSO) program identifies opportunities to streamline packaging operations to reduce total supply chain costs.

An assessment tool that looks for sources of inefficiency and waste across the entire packaging supply chain, the PSO program comprises a rigorous process wherein a team of packaging engineers analyzes areas including package design, material optimization, shelf impact and SKU consolidation, as well as line productivity, material handling and distribution.

After an initial analysis, G-P’s PSO team delivers a detailed report outlining areas where cost savings may be achieved -- anything from developing new box design concepts and refining packaging prototypes to automating manual processes. A Total Cost Analysis (TCA) report is then developed, which quantifies the total cost savings for those opportunities that have been identified.

“If comprehensively evaluated for efficiencies, the packaging process can be a source of considerable cost savings,” says Pat Smorch, director, packaging sustainability, at Atlanta-based Georgia-Pacific’s Innovation Institute. “The PSO program was developed to look across the entire packaging supply chain, providing a holistic perspective on where modifications may be made.”

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