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G-P PSOT Program Increases Client Profitability in Tough Economy

Wednesday, April 8, 2009

ATLANTA, GA — Georgia-Pacific is helping industrial and consumer product companies through this tough economic environment with its Packaging Systems Optimization (PSO™) program, which identifies opportunities to streamline packaging operations to reduce total supply chain costs.

PSO is an assessment tool that looks for sources of inefficiency and waste across the entire packaging supply chain, from manufacturing to distribution. The program comprises a rigorous process, wherein a team of packaging engineers analyzes areas including package design, material optimization, shelf impact and SKU consolidation, as well as line productivity, material handling and distribution.

After an initial analysis, the Georgia-Pacific PSO team delivers a detailed report that clearly outlines areas where cost-savings may be achieved. Recommendations may include anything from developing new box design concepts and refining packaging prototypes to automating manual processes. A Total Cost Analysis (TCA™) report is then developed, which quantifies the total cost-savings for those opportunities that have been identified.
“If comprehensively evaluated for efficiencies, the packaging process can be a source of considerable cost savings,” says Pat Smorch, director, packaging sustainability at Georgia-Pacific’s Innovation Institute®. “The PSO program was developed to look across the entire packaging supply chain, providing a holistic perspective on where modifications may be made.”

The PSO process also supports sustainability efforts. Recommendations to streamline material handling and warehousing practices can lead to significant energy efficiency improvements and greenhouse gas reductions.

The PSO program draws on the extensive in-house expertise and resources of Georgia-Pacific’s Innovation Institute, a creative, collaborative package design and innovation lab that simulates retail, warehousing and transportation environments. Georgia-Pacific’s engineering and design experts work together to identify opportunities to reduce supply chain costs, optimize package designs, increase shelf velocity and measure sustainability factors.

About PSO
Georgia-Pacific’s PSO program was developed at Georgia-Pacific’s Innovation Institute, which simulates retail and packaging environments, allowing customers to experience sustainable innovation and novel package design solutions in action. Designed to facilitate break-through thinking and next-generation packaging solutions, the Innovation Institute helps customers realize the full value of their packaging investment. For more information on Georgia-Pacific’s Innovation Institute visit www.gpinnovates.com.

About Georgia-Pacific
Headquartered at Atlanta, Georgia-Pacific is one of the world’s leading manufacturers and marketers of building products, tissue, packaging, paper, cellulose and related chemicals. The company employs more than 45,000 people at approximately 300 locations in North America, South America and Europe. The familiar consumer tissue brands of Georgia-Pacific Consumer Products LP include Quilted Northern®, Angel Soft®, Brawny®, Sparkle®, Soft 'n Gentle®, Mardi Gras®, So-Dri® and Vanity Fair®. Dixie Consumer Products LLC, a Georgia-Pacific company, manufactures the Dixie® brand of tabletop products. Georgia-Pacific has long been among the nation’s leading manufacturers and suppliers of building products to lumber and building materials dealers and large do-it-yourself warehouse retailers, with brands such as Plytanium® plywood, DryPly® water repellent plywood, Ply-Bead® panels and Wood I Beam™ joists offered by Georgia-Pacific Wood Products LLC and DensArmor Plus® interior drywall, DensGlass™ Exterior Sheathing and ToughRock® wallboard offered by Georgia-Pacific Gypsum LLC. For more information, visit www.gp.com.

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