How Dagab (Axfood) transformed its packaging strategy with ImpactBuying

“ImpactBuying has helped Axfood streamline the quality process with private label products and ensure transparency and traceability in the supply chain.” –

Maria Edqvist (Process Manager, Product Information & Private Label Quality Processes)

Introduction
At Axfood, sustainability goals around packaging have been a key focus for several years, but turning ambition into action required the right tools. “We had set our sustainability goals, but we didn’t have any way to measure them”, Tove Almgren, Packaging Developer at Dagab explains. That’s where ImpactBuying’s database came in. “We understood that the packaging part was already in the system, but it wasn’t utilized and it didn’t yet support what we needed to measure.” Together, Axfood and ImpactBuying co-developed functionalities and dashboards that allowed for effective data collection and KPI tracking.

Challenges
The packaging targets defined back in 2019 included using only recyclable materials by 2022, increasing the share of FSC-certified paper and reducing the use of plastics by 2025. “But, how do you even measure that?”, says Tove. “That was really challenging and it became even more challenging over the years.”

Another big challenge Axfood faced was the definition of recyclable materials, it kept changing. “What is recyclable? That goal has been moving ever since we started”, Tove explains. To reduce the amount of plastic proved to be challenging as well. Axfood put in a lot of effort on this task and did achieve good results, but it’s not visible in the bigger scope. “It’s just a small drop in the sea compared to all the materials we use”.

Solutions with ImpactBuying
“We already had the possibility, it was right there at our feet”, says Tove. When Axfood started working on supply chain mapping for packaging, they had no clear insight into the materials used or the amount of their usages. “We didn’t have any clue,” says Tove. “We had some initial thoughts to map everything in Excel, but I don’t trust that very much nowadays.” Axfood soon discovered their suppliers lacked packaging knowledge too, leading to incorrect data. “They don’t always have the packaging resources,” she explains. That’s why all incoming data was checked and corrected. With enough data collected, Axfood could identify where to focus. “We combined it with our sales data to find our worst offenders, that’s where we should start working.” Collecting all the data and seeing the bigger picture.

Collaboration with ImpactBuying
Tove reflects positively on the collaboration. “It was really good”, Tove says. “We had great support from your team while developing the system and also collecting the data”. Although the development process took time, she appreciated the commitment. “Your team is really supportive.” She emphasizes the importance of having a clear direction from the start. “You need to be sure what you want to reach and why and move forward”.

The collaboration with ImpactBuying didn’t just support Axfood internally, it also helped strengthen relationships with their suppliers. “In the beginning, packaging was a new topic for many of our suppliers,” Tove explains. The system helped to share the sustainability focus and meetings around packaging with data as a basis became more meaningful. “At first, they didn’t even understand what we meant by mono materials. Now, four years later, they’re the ones coming to us with better packaging solutions.”

Results
Tove mentioned that Axfood is becoming more strategic in how they operate in the packaging area and now have more knowledge on all the materials used in packaging.

The next step in their packaging journey is to reach the newest legislation withing packaging, which is the ‘packaging and packaging waste regulation (PPWR)’. “This is going to become one of the key factors, for Impact Buying to support everyone in reaching and becoming compliant in the packaging area”, says Tove. This is going to be a big project for Axfood. “So, we all need to gear up and work together to be able to reach this”.

Advice
Advice Tove would give other companies facing the similar challenges: just get started and make sure someone is responsible for packaging. “You need to get involved and be on top of your packaging details”, she adds. 

Looking ahead, Tove sees a lot of potential. “The future is really exciting in the packaging area,” she says. “It’ll be a rocky, challenging, but fun road.” With new legislation constantly evolving, staying aligned will take ongoing effort “It’s a work in progress,” she adds. “There’s always something new and your system will play a key role in helping to keep up.”