Tosca plastic pallets are now being shipped from 13 Avery Dennison plants to 400 locations. Impressive results have been enjoyed while still at the 40% mark toward total conversion.
Faced with rising costs and supply chain challenges during the COVID-19 pandemic, Avery Dennison turned to Tosca and its reusable L1 plastic pallets to enhance supply chain efficiency and reduce environmental impact. This partnership has not only delivered substantial operational benefits but has also significantly advanced Avery Dennison’s sustainability goals, achieving nearly 500 tons of CO2 savings in 2023 with just 40% of pallets converted.
COVID-19 Prompted Avery Dennison to Look for Alternatives
The pandemic exposed vulnerabilities in Avery Dennison’s reliance on wooden pallets. “During the COVID plenary, the price of wooden pallets increased tremendously, and on top of that, their availability and supply were not guaranteed,” explained Violeta Gómez Valdivieso, Central Packaging Leader at Avery Dennison. “Therefore, we decided to look for alternatives, and that’s how Tosca came into place.”
With a commitment to achieving net-zero greenhouse gas emissions by 2050, Avery Dennison recognized that switching to Tosca’s pooling system of durable plastic pallets would address supply chain challenges and align with its sustainability priorities. European regulations such as the Packaging and Packaging Waste Regulation (PPWR) further reinforced the importance of adopting circular, reusable packaging solutions.
Irish Trial Phase Validates Tosca Plastic Pallet Approach
Before a full-scale rollout, Avery Dennison conducted an initial trial in Ireland. This strategic approach allowed the company to assess the benefits, address logistical complexities, and gauge customer acceptance. “The partnership with Avery Dennison started one and a half years ago with a live trial in Ireland, which resulted in the big launch of the L1 plastic pallet in 2023,” explained Felix Van Ouytsel, Sales Director for Tosca.
Trials provide companies with actionable insights while mitigating risks associated with large-scale implementation. In Avery Dennison’s case, the trial confirmed that Tosca’s plastic pallets could meet operational demands while delivering on sustainability objectives.
Early Benefits Following Conversion
The switch to Tosca’s plastic pallets yielded measurable environmental and operational improvements. “By working with Tosca, we are reducing our greenhouse gas emissions,” said Gómez Valdivieso. “Tosca initially estimated a saving of 819 tons of CO2 emissions annually. In 2023, with only 40% of the pallets switched to plastic, we reached almost 500 tons of CO2 emissions.”
Operationally, the durable design of Tosca’s L1 plastic pallets enhanced efficiency across Avery Dennison’s European supply chain. The pallets are now used in 13 factories and distribution centers, shipping to over 300 customer locations. “The large pallet volume and the number of locations make this a very impressive supply chain in the world of plastic pallets,” noted Van Ouytsel.
The collaboration also supports Avery Dennison’s goal of complying with emerging European packaging regulations that emphasize recyclability and reuse. Tosca’s pallets meet the PPWR requirement of having at least 40% reusable transport or sales packaging by 2030.
Future Opportunities
Beyond immediate benefits, Avery Dennison is exploring the additional value of Tosca’s integrated RFID tags. These tags offer the potential for full traceability of orders packed on the pallets, opening avenues for enhanced order management and customer satisfaction. “We’d like to explore the possibility of having full traceability of the orders packed in these pallets for the future,” said Gómez Valdivieso.
The long-term goal is to fully transition to Tosca’s plastic pallets, scaling the solution across Avery Dennison’s operations. This requires ongoing collaboration with stakeholders and customers to demonstrate the value of the pooling system. “The ultimate goal is to switch 100% to plastic pallets,” said Van Ouytsel. “It’s crucial to convince all stakeholders in the industry about the benefits of pooled plastic pallets.”
Key Takeaways for Industry Leaders
Avery Dennison’s partnership with Tosca highlights several important lessons for businesses considering similar transitions:
- Adaptation to Market Challenges: The shift from wooden to plastic pallets was prompted by rising costs and supply chain disruptions, demonstrating the importance of agility in the face of changing market conditions.
- Sustainability as a Driver: By adopting reusable pallets, Avery Dennison not only reduced its carbon footprint but also aligned with regulatory and customer demands for sustainable practices.
- Value of a Trial Phase: The trial in Ireland provided valuable insights, minimized risks, and laid the foundation for a successful large-scale rollout.
- Collaboration and Innovation: The partnership with Tosca exemplifies how collaborative innovation can address operational challenges while driving environmental benefits.
As both companies continue to expand the partnership, they are demonstrating how thoughtful, scalable solutions can simultaneously meet business objectives and advance global sustainability goals. “With Tosca, we are moving in the right direction,” Gómez Valdivieso concluded. “This partnership is not just about meeting today’s needs but about building a more sustainable future for the entire supply chain.”
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Source: Tosca
Rick LeBlanc, EMBA, is the founder and editor of Reusable Packaging News (subscribe to the free newsletter) and editor of Western Pallet Magazine. A supply chain journalist with more than 30 years of experience, he specializes in pallets, reusable packaging, material handling and related operations. Rick is co-author of Pallets: A North American Perspective and Pallets & Progress: A Collected History of Pallets and Palletized Handling 1922–1945. He is also an advisory board member of the Virginia Tech Center for Packaging and Unit Load Design. Read Rick’s full bio.
