RM2 leverages Life Cycle Assessment to drive product innovation and business value

Many businesses are familiar with the benefits of using Life Cycle Assessment (LCA) to communicate the sustainability-related benefits of their products, but the companies that gain the greatest business value from these studies are those that use LCA earlier in the process, to guide product development and improvement. 

LCA is a powerful tool companies can use to measure, analyze, and communicate the environmental impacts of a product system across all the stages of its life cycle, from raw material selection to manufacturing through end-of-use.

The advantage of conducting LCA early on is that the results can help the company produce a better product that is more sustainable and more closely aligned with customer needs. Over 70% of a product’s environmental impact (as well as cost) is often locked in during the design stage. This case study highlights how RM2, a global innovator in pallet design, manufacture, and logistics management, leveraged an LCA conducted early in the product development process to drive business value while significantly improving product sustainability.

RM2 recognized the correlation between environmental benefits and business benefits and sought to develop a pallet system that required less material than traditional wood pallet systems while also reducing impacts across all life cycle phases. Their new BLOCKPal™, a pallet manufactured from a composite material made of glass fiber and polyurethane, was intended to meet these objectives.

Improved Sustainability

Because RM2 made the strategic decision to conduct the LCA early in the BLOCKPal design phase, the company was able to apply the results of the study to their final product design. Preliminary results of the Life Cycle Assessment, conducted by Pure Strategies, revealed that the most effective strategy for reducing product impact was to focus on three key drivers:

• Pallet weight
• Pallet durability (number of trips a pallet can make during its usable life)
• Loss rate (how many pallets are lost between destinations)

Pure Strategies’ analysis showed that pallet weight is the most important factor in a more sustainable pallet system. Changes in pallet weight drive larger relative changes in life cycle global warming impact than do other factors. In addition, as long as load-bearing performance criteria are met, the more pallet weight is reduced, the more the product’s global warming impact is reduced. Other drivers, such as pallet durability, showed valuable but smaller reductions in global warming impact, but those benefits begin to diminish after a certain point. 

Based on insights from the LCA, RM2 made significant changes to the design and manufacturing process, resulting in a meaningful reduction in pallet weight, while maintaining durability and other performance criteria.

The new pallet’s lighter weight requires less diesel fuel to transport it, reducing greenhouse gas emissions. The glass fiber and polyurethane composite material is significantly more durable than the traditional wood pallet, increasing pallet durability. Gaining more lifetime trips per pallet reduces the environmental impact of pallet replacement.

In a reuse system, the pallet manufacturer retains pallet ownership and tracks each pallet between destinations. A small percentage of pallets are typically lost during normal use. RM2’s tracking system results in a loss rate significantly lower than the industry average, decreasing landfill rate, and the need for replacements, which further reduces resource usage and greenhouse gas emissions.

Due to the design improvements that were informed by the LCA performed by Pure Strategies, and the logistical advantages of RM2’s tracking system, RM2’s new pallet design will reduce carbon emissions by 1.4 million pounds for every 1 million pallet trips, compared to traditional wooden pallets. This represents a 21% reduction in carbon emissions compared to using traditional wooden pallets for these trips.

Business Benefits

By incorporating LCA earlier in the design process, RM2 was able to maximize the value of this tool for their customers and for themselves. The reduced environmental impact of the lighter-weight pallet helps their customers meet their own global warming reduction goals, and the significantly reduced loss rate, combined with a more durable product (yielding more than five times as many lifetime trips per pallet) provides customers with significant long-term cost savings.

RM2 CEO John Walsh asserts, “We believe that the results of the peer-reviewed Life Cycle Assessment are a pivotal point in the development of RM2 and will be a key catalyst in the long-overdue modernization of the global pallet logistics infrastructure.”

Positive customer response to the pallet improvements has helped RM2 grow its revenues, and the ability to document and communicate the environmental benefits of the BLOCKPal as a result of the LCA has contributed to enhanced brand reputation and recognition of industry leadership for RM2.