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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. |