The issue of packaging wastage is important because supply chain as an entity is facing a new challenge nowadays. Not only a company’s supply chain needs to ensure that right product is delivered at the right time and at right cost to the customers, but there is also an added responsibility of fulfilling the environmental requirements. With stricter regulations, scarce resource availability and more aware and demanding customers, the supply chain fraternity is slowly but definitely taking cognizance of the environmental aspects in day-today operations. The scope for eco-friendly packaging in India is very high. According to the data offered by the Indian Institute of Packaging, the total packaging waste in India is around 32 million metric tons per year. In developing countries, about 25-30% of packaging wastage occurs in supply chain due to the practice of shipping products in multiple boxes or in boxes far larger than their dimensions. Additionally, the products and supplies are packaged, unpackaged and re-packaged at each stage of the supply chain, generating more wastage and cost. This cost may range as high as up to 12% for product categories such as soft drinks to as low as 0.5% for pharmaceuticals. The success story of Wal-Mart augments the need for eco-friendly packaging. It uses ‘packaging scorecard’ system by offering preferred supplier status to suppliers who aim to reduce packaging waste by 5%. It offers a lesson to the supply chain community in India, where the disposal and biodegradability is a major issue, to focus on sustainable packaging.

Packaging can be defined as “an art, science and technology to protect, preserve, and present the products effectively to satisfy the consumers” (Altekar, 2005). Packaging plays an important role in supply chain by minimizing the losses and damages to the product at various stages of distribution by conveying the product details such as size, weight, color, and content to the customer, changing product density and facilitating efficient storage and handling. Traditionally, the function of packaging was guided by logistical and marketing considerations. However, community concerns, government regulations, and increasing environmental awareness among customers have driven companies to focus on the environmental aspects of packaging. The issue of sustainable packaging demands attention because of the cost and environmental impact associated with packaging wastages, as shown in Figure 1.

The objective of this paper is to build a case for implementing eco-friendly packaging in the Indian companies. A study done by the Associated Chambers of Commerce and Industry of India (ASSOCHAM) states that the eco-friendly packaging sector is growing at about 25% per year as compared to the overall packaging industry which is growing at about 20% annually (ASSOCHAM, 2011). This shows that there is a potential market

Supply Chain Management Journal, Eco-Friendly Packaging in Supply Chain, Packaging Cost, Carbon Emission, Different Industries, Green Packaging, Types of Packaging, Minimizing Packaging Amount, Recyclable Material, Biodegradable Materials, Drivers of Sustainable Packaging, Cost Reduction, Induced Buying Behavior, Brand Awareness, Environmental Sustainability, Market Potential, Success Stories.