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Case Studies

 

 

FedEx Express redesigned its overnight letter packaging to utilize 100% recycled fiber, strengthening its environmental leadership without compromising on product performance or long-term costs.

 

Creating Environmental Value at FedEx Express

FedEx Express, the global express delivery firm, has sought to be a leader in minimizing the environmental impact of its packaging. In 1998, led by the Director of Global Brand Marketing, FedEx decided to convert from its signature paperboard letter to a more environmentally preferable package. A Corporate Packaging Team was formed, including packaging engineers, marketing personnel, procurement staff, and representatives from operations, with the EHS department serving as an advisor.

The team fully embraced the idea of improving the environmental aspects of FedEx packaging. Their first goal was: Transform overnight letter packaging from nearly 100% virgin bleached fiber to 100% recycled in one year. This was to be accomplished with no adverse impact on customer satisfaction and tight control over costs.

The team worked with their existing supplier to develop the recycled packaging, which involved an arduous process of material selection, production design, and performance testing. In November 1999, FedEx released new packaging made of 100% recycled whiteboard, 35% of which was post-consumer content. To better distinguish the new packaging, the name was changed from the FedEx Letter to the FedEx Envelope and FedEx obtained agreement with the 100% Recycled Paperboard Alliance to display a "100% Recycled Paperboard" icon.

The FedEx Envelope has a slightly different appearance - the unbleached exterior material is not as bright and the interior is brown paperboard. FedEx used customer focus groups to ensure that there would be no degradation to either the FedEx image or the perception of quality in packaging and service. FedEx believes that its environmental initiatives are an important factor in sustaining its leadership position. However, because FedEx provides over 300 million envelopes each year to its customers free of charge, any cost increase in packaging must be scrutinized. Over several years FedEx has worked with its suppliers to refine the production process and reduce the unit cost back to its original level.

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