As the cost of raw materials, transportation, and labour skyrocketed, multinational companies with complex operations have been looking ever closer – and more creatively – at their supply chains to deliver efficient and more sustainable solutions.

With ambitious sustainability goals, and despite supply chain disruptions, JTI (Japan Tobacco International) had success with its lightweight carton board project, thanks to the close-knit collaboration with four key suppliers, who became true partners during the process.

Estella Gan, Global Supply Chain Procurement Vice President at JTI , comments: “Together, we successfully reduced more than 10% of our packaging weight, while maintaining the same high quality for our consumers. As a result, the total reduction in our carton board consumption is equivalent to saving more than 10,000 trees annually.”

Optimising efficiencies; reducing the company’s environmental footprint

Packaging requirements in the tobacco industry are highly complex and specific, and any changes to the specifications require a long qualification process.

When the lightweight carton board initiative kicked off in 2019, the aim was to work with suppliers and internal partners to develop and reduce the weight of the carton board, while maintaining quality and sustainability considerations.

“It was technically complex,” said Estella, who describes herself as energised by challenges.

“However, by bringing the right partners together with the right mindset, we were able to simplify specifications and processes to meet our business objectives.  In turn, this generated cost and time savings for all parties, and ultimately resulted in a more streamlined use of resources across our supply chain.”

The initiative started off with just a few face-to-face meetings with partners, and then COVID-19 hit, requiring, as for most companies, the need to switch the project to 100% remote.  

Ten people in JTI’s core project group, located in different countries and across multiple time zones, worked with our partners – two printers and two board suppliers – to form a team and bring the partners closer to JTI’s supply chain.

Estella explained that all team members believed it was a key initiative that would bring value to the business, although at first, some had concerns about having too many partners. 

Sustainability at JTI | Japan Tobacco International – a global tobacco company

Right mix of partners key to success

“We work in a very open-minded way, and don’t set limits for what we can achieve,” said Estella.  

“For this complicated project, we sought out partners who have a like-minded approach and were open to true collaboration. We knew we had the right combination when our partners – even though they were competitors – shared best practice and expertise openly, while keeping a keen focus on the business objectives.”

According to Estella, this type of transparency and true collaboration can set a precedent for how future projects could work.

Building and nurturing strong relationships with partners is crucial, and something that Estella prioritizes daily with her 40+ strong team spread across the company’s international headquarters in Geneva, as well as in Japan and Germany. 

At JTI, more than 16,000 people located around the world have a role to play in contributing to a seamless and sustainable supply chain from leaf to consumer – transforming natural resources, raw materials and other components into finished tobacco products.  

Estella is responsible for the strategic sourcing and supplier relationship management for the supply chain, including raw materials, logistics and capital equipment.

“I cannot emphasize enough how the close relationships we developed across our team and with our partners, combined with an open-minded and long-term outlook contributed to the success of this initiative with tangible results in sustainability,” Estella concluded.

“It was truly a collaboration without limits – and one which we all recognize and celebrate.” 

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