All consuming – why ethical sourcing is so crucial

Spikes and troughs in product demand aside, Greg Crisp is adamant there will be one constant in the cleaning consumables space this year – more ethical sourcing of products.

The sector manager – facility management for Bunzl Australia & New Zealand says at a time when the Modern Slavery Act is forcing businesses to assess workplace conditions, the public and consumers increasingly want to know if a product has been imported or locally manufactured.

“And if it’s imported, where is it from and does it adhere to ethical sourcing standards?” Crisp says.

“It’s a much more educated procurement and supply chain now.”

Bunzl distributes a massive range of cleaning equipment, chemicals and janitorial and washroom supplies, as well as safety and PPE gear.

Crisp says during the pandemic the company has adopted a 50:50 split between imports and local products to help ensure supply-chain speed and integrity.

“That means supporting local industries more because we know the quality is good and we know that the speed and the coverage is there.”

With contract tendering, customers are also seeking more information about product quality and sourcing.

“So, we do audits, we do checks, and everything is in place with our inventory,” Crisp says.

Supply-chain challenges to persist

As orders of general cleaning products and accessories such as disinfectants, sprays, wipes and microfibre cloths rise in response to higher hygiene standards, supply-chain disruptions remain problematical.

Accord Australasia is the peak body representing the hygiene, personal care and specialty products industry in Australia. Its members have reported a lack of availability or significant delays in getting some critical ingredients and packaging components, as well as cost increases for consumable products.

“Regrettably, this is an ongoing and multifaceted problem for Australia, not only related to necessary component and product imports and associated maritime logistics, but also on-shore transport and warehousing,” says Bronwyn Capanna, Accord’s executive director.

She says increased inventory holdings to offset demand stresses have contributed positively and negatively to the situation, while labour shortfalls have been exacerbated by the most recent Omicron wave of the pandemic.

“None of these elements have specific short-term fixes,” Capanna says.

Capanna says such challenges have been accompanied by significant changes in the regulatory space, including the replacement of the National Industrial Chemicals Notification and Assessment Scheme (NICNAS) with the Australian Industrial Chemicals Introduction Scheme (AICIS), which is now the national regulator of the importation and manufacture of industrial chemicals.

“Another impact felt by the Accord team and members has been the ongoing loss of face-to-face relationship building, networking and training opportunities,” she says.

To offset this problem, Capanna says Accord has pivoted to online delivery of such events and discussion workshops for members that facilitate dialogue with a broad range of external stakeholders.

At ACCO Brands, a leading manufacturer and distributor of cleaning chemicals, janitorial supplies and general office products, brand manager Ben Antecki says shortages of labour, transport and shipping palettes have also been an issue for its business.

To offset supply-chain issues, ACCO Brands has tried to ensure that it has surplus stock on hand when possible. Close communication with clients to manage their supply expectations has been critical, too.

“They’ve heard a lot about the supply-chain challenges,” Antecki says. “In some ways it helps lessen the impact because it confirms that it’s a widespread issue and not just a problem for a particular business or industry.”

Hygiene standards drive demand

In response to stricter hygiene demands and greater soap and hand towel use in many facilities, Bunzl has seen a dramatic increase in the use of its cleaning consumables during COVID-19.

Crisp says service providers, facility managers and asset owners are showing more interest in the hygiene and environmental performance of cleaning dispensing systems, including where they are sourced and manufactured.

Some have also found that liquid soap reservoirs are a honey trap for vermin and bacteria, so they are switching to pod-style solutions.

“You’re replacing the pods regularly, so you’re also replacing the mechanisms regularly and there’s no chance of bacterial growth.”

Bunzl has also observed “bubbles” in demand for products such as masks and gloves in the past 18 months, while the requirement for PPE gear has been strong and consistent.

As part of consumers’ demands for the best hygiene systems available, Crisp says there has also been a shift to environmentally friendly products with GECA or Green Seal certification.

“And they’re not just asking for them for members of the public who may be coming in and out of their facilities, they’re making sure they have them available for their staff and clients.”

The rationale is that better hygiene standards can also result in less sick leave for employees and better retention rates.

Antecki says with ACCO Brands’ range of microfibre cloths for use in homes, offices and other facilities, there is a growing desire to adopt industry-standard colour coding as a means of preventing cross-contamination.

For example, blue cloths are designated for general cleaning, yellow cloths for infectious areas, green cloths for kitchens and red cloths for washrooms.

“Consumers are becoming savvier with colour coding,” Antecki says. “In the past people might have used one sponge around the office and that one sponge did it all – the dishes, the tables, the benches and to clean the microwave.”

Accord notes that the decreased use of many commercial spaces, such as office buildings and hospitality venues, at the height of COVID-19 lockdowns suppressed the market for some cleaning agents and disinfectants.

By contrast, good hygiene remained the cornerstone of safe healthcare and food production during the pandemic.

“We anticipate that the market for cleaning and hygiene in these sectors will likely continue to increase,” Capanna says.

“And it’s anticipated that the demand for cleaning agents, disinfectants and hygiene products broadly for all sectors will rebound and grow in 2022 as life gradually – hopefully – returns to a new normal.”

Sustainable packaging in the spotlight

The other big issue in the cleaning consumables space is sustainable packaging.

With Australia’s 2025 National Packaging Targets emphasising the need for a shift towards reusable, recyclable and compostable packaging, many eyes will be on the cleaning and hygiene industries’ response to such changes.

The Australian Packaging Covenant Organisation (APCO) has launched the Collective Impact report, an analysis of Australia’s progress towards the targets.

In addition to calling for a collaborative effort from all industry players, APCO identifies the actions required within the three core areas of activity in sustainable packaging – packaging designed for circularity, improved collection and recycling systems, and expanded markets for used packaging.

At Accord, Capanna says many members are taking decisive steps to cut their packaging waste, including increasing recycled plastic content, decreasing packaging volume and upping the use of reusable and refillable containers. Some companies have also successfully partnered with external organisations to minimise their packaging waste footprint.

“But there is also a strong sense that, although most companies are using recyclable plastic packaging, the Australian recycling system is not yet able to process the volumes that could technically be recycled,” Capanna says.

She adds safety and performance are paramount for Accord’s member companies and drives their decision-making on packaging. As such, compliance with regulations to ensure the safety and quality of products in both transport and use are important and non-negotiable.

For example, containers for products that are caught up by dangerous goods transport legislation are required to pass a drop test, which – at present – necessitates the use of plastic and also limits the amount of recycled content to a 20 per cent to 25 per cent threshold before the container fails.

“Technological advances are necessary before this can change,” Capanna says.

ACCO Brands is progressively making the switch to carded packaging instead of poly bag packaging, as well as stamping products with clearer recycling instructions.

Antecki says the business is also challenging its international suppliers, in particular, to “think differently” about packaging.

“The trend may not be moving as fast in other countries as it is in nations such as Australia and the United States. But it’s good that we’re starting to see some minds within the industry starting to look at better ways of shipping and packaging.”

For its GECA-certified products, ACCO Brands has been conducting tests on new, more environmentally friendly chemical bottles. At the same time, it is conscious of safety requirements around caustic chemicals such as oven and grill cleaners.

“We need to ensure that the particular chemical won’t affect the moulding of the plastic,” Antecki says.

If all goes well with the tests, he expects the new bottles to be rolled out later this year.

Positive outlook for sector

In such a complex health and regulatory environment, Capanna believes membership of a trade association such as Accord will be especially valuable for cleaning and facility management businesses as they navigate multiple challenges.

She says in addition to ongoing attention on sustainability issues and packaging waste, there is the ever-present reality of climate change.

“Considerations around greenhouse gas emissions and carbon footprints will increasingly impact businesses. While cleaning and hygiene products will always be in demand, there is a major opportunity for companies to stand out by effectively implementing and communicating their innovation and sustainability initiatives.”

Capanna says the latest health messaging is re-emphasising the need for a combination of all control elements – vaccination, social distancing, masks, ventilation and good personal and environmental hygiene – as the key to infection control.

In such an environment, Australia’s strong commercial, industrial and institutional cleaning and hygiene industry is well placed.

“Notwithstanding the challenges arising from disrupted supply chains due to COVID-19, it is anticipated that leading businesses that can maintain a nimble, responsive and customer-focused approach to innovation in product formulation, manufacturing, sourcing and packaging will stand in good stead in 2022 and beyond.”

Crisp is equally upbeat and says as well as addressing sustainability and hygiene issues, Bunzl will continue to focus on reducing costs for its customers where possible. With labour in the cleaning industry accounting for up to 90 per cent of costs, he says it is crucial to help businesses cut their payroll.

For example, in washrooms, simple changes such as having jumbo rolls of toilet tissue or continuous hand-towel systems can make a difference with the manual handling and replacement of products.

“There are great systems out there to make sure the cost of consumables doesn’t increase.”

This article first appeared in the March/April issue of INCLEAN. 

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