Creation of a Recycling-Oriented Society

PALTAC is committed to the creation of a recycling-oriented society through the reduction of waste generated by our business activities, including the recycling of corrugated board waste generated in the distribution stage and the reduction of returned products.

Reducing Returned Products

To build a sustainable distribution cycle, we are working with our suppliers to reduce returned products. In our industry's business practices, returned goods increase not only the additional costs of sorting and shipping, but also the environmental impact of CO2 emissions and product disposal. Returns occur in the process of quickly developing products on store shelves in response to Japan's four seasons and changing consumer needs, and are a direct consequence of lost sales opportunities. In order to reduce returns while creating a sales floor that meets consumer needs (without generating sales opportunity losses), it is essential to maintain appropriate inventory levels through coordination across the entire distribution chain. PALTAC works with retailers and manufacturers to reduce returns by quickly coordinating with them and implementing timely and accurate measures such as moving inventory from one store to another or stopping orders to prevent excess inventory from occurring.

  • Diagram of CO2 emissions during the return process
  • Correlation of Returns and Sales Opportunity Losses

Environmentally Friendly Logistics Equipment

Oricons used to transport products use less plastic and are free of screws and other impurities for easy recycling. Oricons that use less plastic are about 24% lighter than conventional types, which reduces workload and CO2 emissions during delivery.
In addition, a "rewritable laser system" has been introduced at the newly-operated center, which can print and erase necessary shipping information on the Oricon using a laser method. This eliminates the need for disposable label stickers, which were previously applied and replaced manually, thereby improving work efficiency and reducing waste.

  • Folding Container Photo
  • Images of Rewritable Laser System

Establishment of a resource recycling cycle utilizing the existing distribution network

We are building a sustainable "resource recycling cycle" that efficiently recycles corrugated cardboard waste in cooperation with resource recycling companies involved in distribution as well as manufacturing, distribution, and sales. Specifically, we use the return trips of trucks that have delivered our products to collect corrugated cardboard breakers generated at retailers' stores, thereby reducing the number of packer trucks. We have also established a system that eliminates the need for recycling companies to compress and process the materials, thanks to the "automatic consolidation and compression function" installed in our distribution center. This will improve the loading efficiency of trucks as the volume of cardboard breakers handled increases, and reduce the number of loading and unloading times by sending directly from our company to paper manufacturers, thereby improving efficiency in the collection and recycling of cardboard breakers. We believe that this initiative will help build a sustainable society by reducing the overall distribution workload and CO2 emissions.

Flow chart of efficient recycling of corrugated board breakage material utilizing existing distribution flow

Promoting the Introduction of a Confidential Document Recycling System

Toward the formation of a resource-recycling society, we have introduced a "confidential document recycling system (recycling boxes with locks)" that facilitates the recycling of recycled paper. Unnecessary confidential documents placed in the recycling box are collected by a specialized company and then transformed into cushioning materials and other materials.

How the confidential document recycling system works

Images of the process of the confidential document recycling system

Handling of Environmentally Conscious Products

PALTAC handles many products that help solve social Section issues, such as environmentally friendly detergents and cosmetics that use naturally derived ingredients, and health foods that contribute to improving the quality of people's lives. As a wholesaler that serves as an intermediary distributor, PALTAC is working to expand ethical consumption that leads to the creation of a sustainable society by strengthening the handling of these products and proposing sales floors that easily convey the value of the products.

Development of Environmentally Conscious Products

As a new initiative to expand ethical consumption, we have developed environmentally friendly products using waste plastics as raw materials in cooperation with companies that develop materials and products that promote resource recycling. In addition to products developed by manufacturers, we ourselves are involved in product development and actively contribute to the expansion of distribution of "high value-added products that enable consumers to contribute to the environment in their daily lives.

Participation in the Consumer Goods Forum (CGF)

PALTAC is a member of CGF, an international trade association that brings together retailers and manufacturers of consumer goods from around the world to collaborate on solving social and environmental issues in non-competitive sectors.

Reducing Food Losses with AI Demand Forecasting

  • As retailers face the challenge of reducing food loss, CGF has launched a service that aims to reduce food loss through AI-based demand forecasting and automated ordering systems. This service takes into account the strengths and weaknesses of each product in the AI automated ordering system, and has established a system that enables hybrid operation, utilizing conventional ordering methods for areas where AI is not strong. In a demonstration experiment, a 10% reduction in food loss was achieved. In the future, we will strive to improve the accuracy of AI automatic ordering, and by having more retailers use this system, we will contribute to the streamlining of ordering operations and the reduction of food loss.

  • Schematic diagram of AI demand forecasting and automated ordering system for food loss reduction

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