DS Smith extends contract with car manufacturer for fiber-based packaging
DS Smith has announced the extension of a £108 million (US$140 million) contract with JLR, a UK-based multinational car manufacturer. The five-year contract is said to move JLR from transactional packaging to a fully integrated service model for local and international customers.
DS Smith will supply JLR Mercia Park in Leicestershire with a “one-stop-shop” packaging solution that includes inbound product packaging, outbound shipping packaging, and warehouse storage. The extended contract is based on “flexibility and agility” and a fixed agreement on outputs and delivery options.
Chay Ankers, Market Sector Business Unit director for Automotive at DS Smith, says: “We are pleased to announce the extension of our contract with JLR. We are working together to find new ways of innovating for the future and successfully transforming industry standards in packaging and design together.”
“The new service reflects a joined-up approach as we work together to manage packaging production, integration, and planning for the entire supply chain, which is in keeping with our shared sustainability goals.”
Contract specifications
The agreement includes the provision of an on-site warehousing and transportation service named JLR Just In Time, which was created to maintain a supply and flow of sustainable packaging materials. The transportation service also aims to facilitate the delivery of packaging materials to end-user storage facilities, says DS Smith.
In addition, DS Smith has installed an on-site operation model at Mercia Park. This model will ensure that corrugated cardboard waste from JLP is sorted and prepared for recycling or reuse as secondary pack material.
The extended DS Smith and JLR contract “reflects JLR’s long-term strategy to minimize the use of unnecessary materials in their packaging,” says DS Smith. Moreover, it builds on previous collaborations between the two companies, such as the Bumper Outer Shipper service, for the global packaging of individual vehicle parts in 2022.
According to DS Smith, it generated a 125% increase in shipped bumpers, expanded freight capacity, and saved time during the assembly of one-piece self-locking primary packs.
DS Smith’s market expansion
DS Smith is increasingly expanding its fiber-based solutions across multiple markets amid consumer demands for recyclable materials.
Recently, it partnered with egg producer Niels & Grete to eliminate plastic from its packaging. The packaging solution involves placing eggs into one molded pulp tray that can be slotted into a fully recyclable corrugated cardboard pack.
In addition, DS Smith supplied Slovakia-based Martins Brewery with recyclable beer bottle packaging, incorporating a simple unboxing experience and an interactive design.
