Greening Product Development: Larry Dana, Infosys

A recent study by Harris Interactive (www.harrisinteractive.com) for SCA (www.scatissue.com) found that 57 percent of consumers said they would pay 17 percent to 19 percent more for products made from recycled materials. This indicates a shift in consumer attitudes toward buying more sustainably-built products, and consumer goods (CG) companies need to create products that meet this consumer demand.

Fortunately, several manufacturers and retailers in the CG sector are striving to lower their carbon footprint through green products and packaging -- from simple things, like using less packaging and influencing consumers, to more complex efforts, like employing clean technology and energy, redesigning products, restructuring the supply chain, and recycling products and packaging. Some examples include:

• Procter & Gamble Canada (www.pg.com) developed a concentrated detergent range that consumes 35 percent less water.
• H.J. Heinz (www.heinz.com) reduced tinplate consumption by 10 percent by using thinner tinplate and 60 percent recycled steel.
• Wal-Mart (www.walmart.com) developed a Packaging Scorecard system to gather information on 300,000 items carried at Wal-Mart and Sam's Club.

Opportunities Abound

CG companies must make important product development-related changes to go green. PLM tools, capabilities and solutions can help to enable CG companies to innovate, design, source and manage their products in more sustainable ways. Here's how:

• Product Portfolio Planning: Support compliance with regulations and sustainability targets through proactive management of product pipeline, comparison, revenue forecast, etc.
• Consumer Needs Management: Provide the ability to cater to the environmental needs of consumers through eco-friendly products.
• Field Performance Management: Manage field performance data of products as it pertains to sustainability.
• Materials Repository: PLM as a single source of truth that includes product and raw material specifications, green attributes, Hazmat and MSDN information, etc.
• Design and Production Process: Enhance product and process optimization to meet sustainability goals with a focus on packaging design, composition, sourcing eco-friendly materials and supplier processes, and supply chain and manufacturing processes that minimize environmental impact in bringing a product to shelf.
• Product Development Discipline: Maintain the company's sustainability goals by introducing discipline around the product development process.
• Green Labeling: Communicate the carbon footprint of products and services.

Innovative Engineering

Most of the products we consume are swathed in packaging cardboard or plastic destined for the garbage can. To use eco-friendly packaging that does not overwhelm the landfill, CG companies can:

• Minimize packaging, which lowers product weight and volume, helps reduce the carbon footprint and cut transportation costs. McDonald's (www.mcdonalds.com), for example, redesigned its fry boxes and reduced packaging weight by more than 1,100 tons. Procter & Gamble recently introduced Neat Squeeze tubes for Crest, eliminating outer cartons.
• Use alternative packaging materials that have a lower environmental impact. For example, PepsiCo's Frito-Lay (www.pepsico.com) business will introduce fully compostable PLA packaging for a snack line in 2010.
• Ensure that a high proportion of packaging material is eco-friendly(recycled or biodegradable). Sainsbury's (www.sainsburys.co.uk) has developed edible potato starch packaging that becomes an ingredient with the contents.

By packaging with recyclable materials, consumers can more easily connect with products, as 97 percent of those surveyed by Harris Interactive say they already recycle or are willing to recycle.

Go Green

Green products are a huge opportunity for growth and profits, and, as evidenced above, consumers are willing to pay for it. By adopting a green philosophy and looking at different ways they can cut carbon emissions through green initiatives such as packaging, CG companies can save costs and the planet.