4 MIN READ
1-23-2025
The Plastic Waste Problem in Global Distribution Chains
Alex Schulze , CEO/Co-Founder
The Plastic Waste Problem in Global Distribution Chains
Plastic is an integral part of modern supply chains, widely used for packaging and transportation due to its affordability, durability, and low weight. However, the environmental cost of relying on plastic is becoming a crisis. This article examines the issue of plastic waste in global supply chains, its environmental effects, and potential solutions.
Why Plastic Is Pervasive in Distribution Chains
Plastic is used extensively in supply chains for various purposes:
• Shrink wraps stabilize palletized items.
• Packaging like foam peanuts and bubble wrap protects fragile goods.
• Containers such as plastic crates and boxes are lightweight and cost-effective.
• Single-use plastics include films, bags, and wraps.
Plastic’s widespread use is driven by its affordability, durability, light weight, and versatility. However, these benefits come with significant environmental costs.
The Effects of Plastic Waste on the Environment
1. Water and Land Pollution
A large portion of plastic waste ends up in landfills or the environment. It is estimated that over 11 million metric tons of plastic enter the ocean each year, harming ecosystems and marine life.
2. Greenhouse Gas Emissions
Plastic production and waste management release substantial greenhouse gases. In 2019, more than 850 million metric tons of CO2 were emitted due to plastic production and incineration.
3. Microplastic Pollution
As plastic breaks down, it forms microplastics, which have been found in drinking water, seafood, and even human blood, indicating their presence in the food chain.
4. Biodiversity Loss
Plastic waste is often ingested by wildlife, causing injury or death. Marine animals, in particular, suffer from plastic packaging.
Sectors Affected by Plastic Waste
Several industries heavily rely on plastic in their distribution chains:
• Online Shopping: Plastic packaging, such as foam and bubble wrap, has surged with the growth of e-commerce.
• Food and Beverage: Plastic is used to preserve perishables, contributing significantly to waste.
• Consumer Goods and Retail: Plastic is common in packaging to protect goods.
• Pharmaceuticals: Plastic is used for its protective and tamper-proof qualities.
Recycling: A Limited Solution
While recycling is often seen as the solution, it has several challenges:
• Low Recycling Rates: Over 90% of plastic waste is not recycled, leading to landfill accumulation and pollution.
• Degradation of Quality: Recycled plastic is of lower quality, limiting its use.
• Economic Challenges: Virgin plastic is often cheaper to produce than recycled plastic.
• Lack of Infrastructure: Many regions, especially in developing countries, lack the infrastructure for effective plastic waste management.
Ways to Reduce Plastic Waste in Supply Chains
1. Switch to Sustainable Materials
Businesses can explore alternatives such as biodegradable plastics, recyclable materials like glass, paper, or aluminum, and innovative packaging made from cornstarch or seaweed.
2. Redesign Packaging Systems
Adopting minimalist, reusable, or smart packaging can reduce plastic usage. Reusable crates and containers can be returned for future use, and smart technology can optimize packaging materials.
3. Implement a Circular Economy
A circular economy emphasizes reusing and recycling materials. Companies can create packaging return programs and encourage recycling.
4. Invest in Recycling Infrastructure
Improving recycling facilities and standardizing plastics for easier recycling are essential steps. Extended producer responsibility (EPR) laws can hold businesses accountable for waste management.
5. Leverage Technology
AI can predict demand to prevent excess packaging, and blockchain can improve recycling transparency.
6. Engage Stakeholders
Raising awareness among consumers and businesses is key to reducing plastic waste. Educational campaigns can encourage more sustainable practices.
Companies Leading the Way
Several businesses are setting an example with sustainable practices:
• Amazon: Introduced “Frustration-Free Packaging,” using only recyclable materials.
• Unilever: Aims to reduce virgin plastic use by half by 2025, making packaging recyclable or reusable.
• IKEA: Plans to phase out plastic packaging by 2028, replacing it with renewable materials.
• Patagonia: Promotes product recycling and uses minimal packaging.
The Path Ahead
Despite its scale, the plastic waste problem is solvable. As regulations tighten and consumer awareness increases, companies are being held accountable for their environmental impact. Switching to sustainable practices in supply chains is not just an ethical choice but a smart business decision.
Conclusion
Addressing plastic waste in global supply chains requires innovation, collaboration, and systemic change. The long-term benefits for businesses, the environment, and society are clear. By adopting sustainable practices, companies can significantly reduce plastic waste and help build a greener future for all.