packaging solutions to solve sustainability
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packaging solutions to solve sustainability
DECEMBER 2019
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H U H TA M A K I H O N G K O N G
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Huhtamaki works with clients to find the most practical sustainable solutions to increase revenue without impacting the environment
H
uhtamaki is a global specialist in the food and drink packaging industry. The company
operates across 35 countries including Europe, Asia, Oceania (EAO) and the US, working across three verticals; flexible packaging, moulded fibre packaging and foodservice packaging. Through these key verticals, Huhtamaki holds sustainability at its core and ensures that it offers an increasingly diverse portfolio of sustainable products and practices to satisfy the rising demand for CSR coming from a more
DECEMBER 2019
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conscious consumer base. Chi Lu, Head of Sourcing –
to a functional sourcing organisation working within the Foodservice EAO
Foodservice Asia-Oceania at
segment,” explains Chi. “For sourc-
Huhtamaki, outlines the challenges of
ing, I’m part of a group function. Our
maintaining a network of sustainable
team supports manufacturing units in
products across distant locations and
India, New Zealand, Australia, China
evolving cultural shifts. Chi is respon-
and Malaysia, totalling seven factories
sible for the governance of sourcing
and four sales offices operating in the
operations in the Asia Oceania region
Asian Oceania region.”
within the Foodservice segment and
The complexities of finding sustain-
is accountable for managing five
able materials produced by sustainable
direct reports for the traded goods.
manufacturers, who take social respon-
He coordinates projects between
sibility seriously, provides its own
the group and local units. “I belong
challenges. To eliminate the ambiguity w w w.huht a ma ki. com
H U H TA M A K I H O N G K O N G
“In terms of changing from plastic to a more sustainable alternative, there is no challenge – it simply must be done” 06
— Chi Lu, Head Of Sourcing, Food Services Asia and Oceania, Huhtamaki
of operating in smaller departments across a diverse range of countries and cultures, Chi has turned to creating a sourcing hub for traded goods in the Asia Oceania region, where suppliers and materials can be vetted through a single aligned process and set of regulations. To maintain consistency across all of its sourcing methods, Huhtamaki Foodservice EAO has chosen to apply a single centralised sourcing model within its group level. “In the group sourcing organisation, we have a sourcing director who is based in Europe for all the sourcing functions operating with our category buyers,”
DECEMBER 2019
CLICK TO WATCH : ‘PLEASE MEET HUHTAMAKI’ 07 says Chi. “The group function will cen-
practicality of what a material can do
trally source key raw materials, paper,
when trying to replicate the versatility
polymer, resin, ink and logistics for the
and robust nature of plastics. Some
segment manufacturing units. My team
materials may require additional chemi-
looks after third party traded goods
cal additives to achieve a level of quality
and we are based in Asia.”
in line with what a consumer may be
When looking to find alternative
used to from traditional materials.
materials, a number of factors must be
“There are instances where a client
considered beyond the tangible assets
may be used to plastics, yet when turn-
being offered by a prospective sup-
ing to sustainable materials, has very
plier. Maintaining sustainability can be
high standards. Not every supplier will
easy to overlook with the production
pass those strict requirements,” affirms
methods or workforce conditions used
Chi. Another challenge to replacing
to manufacture any given material. As
traditional material like plastic is main-
a juxtaposition to this there is also the
taining its long-term sustainability. An w w w.huht a ma ki. com
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1920
Year founded
example “typical alternative to plastic utensils is wooden cutlery made from birchwood. Birch tree usually takes about 20 years to mature. In the US
€3.1bn+
alone, there are about 40bn plastic utensils used each year. If you intend to
Total Revenue
replace all 40bn units annually, the end
3,200
considered as a whole. With this in mind,
Number of employees
product wouldn’t be sustainable when we ensure our suppliers source their raw material from a sustainable source.” Huhtamaki is also a creator of sustainable materials. It’s Fresh initiative created a meal tray from natural wood
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E XE CU T I VE PRO FI LE
Chi Lu Chi Lu is an experienced senior strategic sourcing professional with industry experience spanning close to 20 years. He has worked for multi-national corporations in Australia, New Zealand and Asia. His work portfolio is extensive, including logistics, medical consumables, dairy, building products/construction, and food packaging. Chi is recognized for his proven track record of improving profitability by delivering sustainable cost saving and a driving force behind transforming from a transactional price based approach to a strategic focus value proposition model. He has inf luenced business decision making processes, challenged the status quo, and contributed to the growth of businesses. He has participated in organizational transformations and commercial optimization projects which have contributed to the growth of businesses considerably. In his current portfolio he is part of a regional leadership team and is currently managing sourcing and sales operations. Prior to this, he served in various sourcing and commercial positions. He has a Bachelor’s Degree in Management Studies with a double major in Finance and Strategic Management and a Master’s Degree in International Business and Law from the University of Sydney. w w w.huht a ma ki. com
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Quality assurance PPD focuses mainly on thermoformed plastics in food packaging industry. Using high-speed in-line automatic forming machines along with in-house tooling and design team, plus in-depth industry knowledge and expertise in production, we will ensure high quality products to our customers. Learn More
“Our team supports manufacturing units in India, New Zealand, Australia, China and Malaysia, totalling seven factories and four sales offices operating in the AO region.” — Chi Lu, Head Of Sourcing, Food Services Asia and Oceania, Huhtamaki fibres, sourced from FSC certified
a natural alternative to provide one
renewable Nordic forests, in collabora-
solution with the resilience of plastic
tion with Saladworks and Södra. The
packaging. Bagasse is the dry pulpy
material can match the versatility of
fibrous residue that remains after sug-
black plastic but is still recyclable
arcane or sorghum stalks are crushed
and certified for home composting.
to extract their juice. This material can
“Huhtamaki Fresh has ensured
then be processed to create a biode-
the removal of 56 tonnes of hard to recycle black plastic from Waitrose
gradable plastic alternative. The perception of sustainable products can sometimes
& Partners supply chain,
be different from the
per year. The fibre-based
reality. Consumers
packaging is also 10%
may expect sustainable
lighter than conventional
materials to behave
trays and creates a 50%
a certain way on first
reduction in CO2 Emissions,”
impressions without
comments Tor Harris, Head
knowing the details behind
of CSR at Waitrose & Partners.
it. For example, there are
Chi has also turned to Bagasse,
instances of materials that w w w.huht a ma ki. com
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H U H TA M A K I H O N G K O N G
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“We ran trials, product samples and negotiated the commercial terms” — Chi Lu, Head Of Sourcing, Food Services Asia and Oceania, Huhtamaki
may be listed as biodegradable but require certain conditions to act as a catalyst in order to achieve that degradation, such as PLA. “PLA is made from starch and other compound which may be able to decompose into a carbon in a controlled environment; that is industrial composting facilities,” says Chi. “However, there are places that don’t have the industrial composting facilities needed to start this decomposition. Putting it into a landfill is not enough.” Huhtamaki is also educating
DECEMBER 2019
customer’s requirements, ensuring a satisfactory outcome for the business and the environment. Chi explains one example where Huhtamaki Foodservice EAO worked with its client to reach a sustainable and economically viable solution. “Our customer’s goal was to find an alternative to plastics by 2020. We were able to work with our customer, understand their requirements, and from there we ran supplier selection, trials, product samples and negotiated the commercial terms. The sourcing and product development process ran within our customer’s specific time line and, by the end, we were able to remove plastics in that supply chain.” customers around achieving sustaina-
The demand for sustainability is ris-
bility whilst maintaining high standards
ing as consumers are unable to ignore
for product packaging. The Packaging
the realities of a future reliant on sin-
for Good programme focuses on
gle use products manufactured from
four key themes – people, packaging,
pollutive materials.
supply chain and operations – to offer
“Sustainability is on top of the
Huhtamaki’s expertise and guidance
agenda for Huhtamaki,” summarises
for a company’s CSR goals and within
Chi. “In terms of changing from
Huhtamaki itself.
unsustainable to more sustainable
By educating consumers on the realities of sustainable materials, Huhtamaki
alternatives, there is no challenge - it simply must be done.”
Foodservice EAO segment is able to work with customers to find which materials would best accommodate the w w w.huht a ma ki. com
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Huhtamaki Hong Kong Hong Kong www.huhtamaki.com