CASE STUDY

While Rapamar was been experiencing continued growth in container sales, the company was challenged with disposing of the significant amount of scrap cardboard generated from the manufacturing process. On average, Rapamar can receive approximately $100 per semi-load of scrap. While this is not economical, it also creates a storage challenge, holding the scrap to gather enough to justify taking it to a recycling center. Alternative solutions include burning the material which is not environmentally friendly. They had researched the feasibility of recycling the scrap to create corrugated packaging that could be resold as packing material and had identified a vendor who could provide a machine that would cut the scrap to form the packing material. Without research on the customer market for this type of packaging material, the company would be at risk of purchasing the machine and not generating enough revenue to recover the cost of the new equipment. In addition, not addressing a more efficient and effective way to dispose of the scrap creates a potential environmental risk.

NWIRC Strategic Business Advisor and TDMI expert provided assistance to research the potential customer markets for recycled corrugated packaging material. This information helped Rapamar make informed business decisions as to whether there was a potential to create another viable revenue stream for the company. Basis for the research included industry sectors that have a need for this type of packaging, competing companies that are already in existence, and the current average selling price of this type of material. An Idea Map and recommendations were presented at the conclusion of the project.