PJL-30

Through a simple mathematical equation, 30 x 2 = 60, Mili S.A. has conquered a leadership position in the Brazilian market thanks to its new 60-meter long roll. An intuition by company president Valdemar Lissoni that is worth double, given the success in sales registered in the last year. Why a 60-meter roll and what differentiates it from others present on the market? Perini Journal asked President Lissoni.

**Perini Journal**

The choice to produce the 60-meter roll stems from a mathematical calculation whose result is an advantage for the final consumer, for retailing and for the environment, explains Lissoni. “Mili S.A.’s 60-meter roll has a price allocation that is about 5-10% less than the 30-meter roll and offers more product; an excellent quality/price combination that predisposes the consumer to purchase it and also to its use. For retailing, the profitability of the shelf space occupied by the product increases thanks to greater product turnover. Furthermore, it reduces waste in production resources such as, for example, glue or coreboard for the cores”. Let us see the advantages of the 60-meter roll.

**INDUSTRIAL ADVANTAGES.** The production of the 60-meter roll allows the optimization of machines dedicated to converting: the line has greater profitability because the same machine yields twice as much profit. The wear of some components is halved. Just think of a log saw blade that needs to cut 50% fewer logs. And also the warehouse space occupied by the packaged rolls is 50% less.

**ADVANTAGES IN LOGISTICS AND TRANSPORT.** From the point of view of logistics, if we consider the same volume, packs containing 60-meter rolls require fewer handling operations than the 30-meter ones. And they also occupy half the space and allow to transport 50% more product, thanks to the use of one means of transport instead of two. And all this to the advantage of a reduction in transport costs and in the cost of the final product.

**ADVANTAGES FOR RETAILING.** As for retailing, the pack comprised of four 60-meter-rolls increases the profitability of the shelf space. How? The 60-meter roll packs occupy half the space of the 30-meter packs (of course, considering the same volume) but are more remunerative because even though they are sold at a lower price with respect to others, they increase turnover: the right quality/quantity vs. price ratio determines an increase in use.

**ADVANTAGES FOR THE FINAL CONSUMER.** The advantages for the final consumer can be summarized in price and logistics. The price positioning of the 60-meter roll is competitive and advantageous because, as mentioned in the first lines of this article, it is 5-10% inferior with respect to other rolls and offers twice as much product. From a logistics point of view, in the same space – or in some cases even in half the space occupied by 30-meter packs – more product is available for the consumer. Another factor not to be neglected is that consumers will have to change rolls less frequently – half as frequently, to be precise.

** **

**ENVIRONMENTAL ADVANTAGE. **Today, guaranteeing environmental respect and working according to an industrial policy that respects and safeguards energy resources are surely musts for every company. And thanks to its 60-meter roll, Mili S.A. ensures respect for the environment, reduction of waste and resources, to the advantage of the entire production chain. Let’s start with resources. First of all, we can highlight a 50% savings in the coreboard necessary for core production, as well as a savings in the amount of glue necessary both for core gluing and initial and final sealing. At the same time, the production of 60-meter rolls allows to save 50% of the film used for packing and palletizing.

Continuing with the environmental advantages, it is surely interesting to highlight the advantages deriving from ground transport, therefore the 50% savings in gas used for the trucks and 50% less wear on the tires. But let us now try to explain through a simple exercise how a new 60-meter roll eliminates waste.

Let’s start with an annual tissue production of 1,000,000 tons, that is to say 1,000,000,000 kg. If we divide by 3.5 kg, the average weight of a pack, we obtain 285,714,285 packs produced in one year. If we divide the number of packs by 1000, the volume that fits in a truck, we obtain 285,714 trucks used for transport per year. By multiplying 285,714 trucks by the average distance traveled – 700 km – we obtain 200,000,000 km per year. In terms of gas consumption, about 3 km per liter, we divide 200,000,000 km by 3 and obtain 66,666,666 liters of gas consumed in a year to transport 30-meter rolls, equal to a cost of 120,000,000 Reais (USD 66,666,666). The transport of 60-meter rolls halves the number of trucks necessary, with a consequent reduction also in the cost of gas used, that becomes USD 33,333,333.

Still in terms of savings, the production of 60-meter rolls favors the reduction of polyethylene necessary for packaging. Considering the production of 285,714,285 packs, the consumption of polyethylene for the production of 30-meter rolls is estimated to be around 35,000 tons, while that for the 60-meter roll packs is halved, becoming 17,500 tons. The same happens also for core production. 90,000 tons are necessary for the production of 30-meter rolls; in the case of 60-meter ones, consumption goes down to 45,000 tons. Numbers that bear witness to the fact that this new product by Mili S.A. covers a social role, decreasing by 50% the use of resources that carry an economic-industrial weight, but also a social value regarding pollution.

If it is true that 60 is twice as much as 30, then we can also state that Mili S.A.’s new roll has twice as much value on the market: one of industrial savings and also one of concern for the environment.

Comment:

Login or Register to publish a comment

PERINI JOURNAL 30

OTHER ARTICLES