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PAC Award Winner-Silver

Eco Area Rugs

Overview

Each year, we strive to look for more ways to reduce our environmental footprint while providing sound customer and consumer benefits at each step.

The last two years of changes to our manufacturing process to ensure that not only is our manufacturing process recycling 100% of waste products, but our ECO area rugs are also 100%recyclable.

This past year, we took our sustainability initiatives several steps further by considerably reducing the amount of plastic used to ship each product culminating in saving the equivalent of 2 million sq. feet of plastic. Further, we reduced individual labeling by 50% by moving to a single clamshell versus a front and back label, and we converted from plastic bagging on small rugs to a recyclable cardboard box packing 3's instead of 2's to improve productivity and further reduce packaging.

The investment in RFID for Wal-Mart, a first in the home textiles area will result in significant improvements to flow of inventory through supply chain.

Motivation for Change

As a Canadian manufacturer, we acutely feel the need to do our part to conserve and preserve our environment. We are very proud of the changes that we have made thus far, but they are just part of a much larger commitment within our company to ensure we continue to be a leader within our industry for environmentally sustainable manufacturing. We will continue our efforts, to look for ways to press towards total sustainability.

Performance

Label innovation allows for a standardization of products and also provides critical information to consumers. The new label will provide better visual effects and will provide better retail attention. Also, the quality of the product will now not be affected by the marks of the 5-inch stretch wrap.

Clean Production

Korhani made a commitment to become a sustainable manufacturer 4-5 years ago beginning with the investment in new technology that allowed us to become a paperless distribution facility. Korhani received certification from Terra Choice in December 2008.

Effective Recovery

We produced a label which is recyclable. We walked away from plastic bailing and transitioned to recyclable corrugated cardboard on small rugs. The new box can be easily recycled at store level.

Resource & Energy Optimization

We reduced the plastic film we use from 3 mil to 2 mil reducing our plastic consumption per unit by 33%, saving the equivalent of 2 million square feet of plastic. We also removed a 5" stretch wrap from the center of all area rugs. Each 5 x 8 rug had 20' x 5" of plastic. Further we reduced our individual rug labeling by 50% when we combined front and back labels by moving to a single smaller clamshell. Moved several double case packs to 3's to improve productivity and inventory PI. These practices are applied to every single rug in our factory located in Sorel, Quebec.

Lastly ,we will be adding RFID tags to all Walmart rugs this year which streamlines and the supply chain process reducing over-ordering. We will be the first company in all of the home textiles industry to move to RFID.

Categories: PAC Award Winner Consumer Goods Home and Garden

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