Saito Labels - Putting sustainability at the core of their business
BACKGROUND
Saito Labels doesn’t just pay lip service to sustainability. It’s embedded in everything they do from the premises they work in to how they deal with waste. And that commitment is paying off, both with staff – who feel proud of the company they work for – and with customers who are drawn to Saito’s innovative practices.
Saito produces labels and tags for a wide range of industries including food and healthcare. The company is based in the Waikato with a small satellite office in Auckland.
Following a Smart Factory Assessment Saito is now looking at how it can improve its digital processes and start taking steps towards
implementing Industry 4.0, uniting around that process in the same way it has united around sustainability.
THE CHALLENGE
Labels and tags are inherently disposable, making it difficult to identify ways of significantly improving sustainability. For Saito Labels, sustainability extends beyond a mere compliance requirement. Their business purpose encompasses making positive contributions across the environmental, social, and financial dimensions of sustainability.
For small businesses (Saito Group has fewer than 25 staff) allocating resources to sustainability initiatives can be particularly burdensome. However, the team did not want this to be an excuse for not making meaningful change.
THE SOLUTION
The relocation from Auckland to Kerepehi (in the Waikato) in 2022 was a significant decision for the business. The lower cost of land in Kerepehi allowed them to incorporate several sustainable features into their new facility. These features include:- A solar array for electricity
- Rainwater harvesting
- Sustainable building materials (for example SaveBoard wall linings and Nucleer polycarbonate windows)
- An intelligent system for heating and cooling the building, and for treating for harmful pathogens
PROGRAMME PARTNERS
KEY BENEFITS
The benefits of Saito Labels’ sustainability initiatives are multifaceted. When you walk into the factory in Kerepehi it becomes clear that
sustainability is more than a buzz word for them. There is a congruence between their approach to sustainability, the factory environment, their company values and the way they work.
Moving out of Auckland resulted in significantly lower rent costs and shorter commutes for staff who relocated to Kerepehi, leading to
increased employee satisfaction and reduced transportation expenses. Flexible working has been standard practice at Saito for 20+ years so the adjustment for Auckland staff (and the Covid pandemic) was straight forward.
The investment in solar energy allowed the company to control energy costs, reducing their exposure to electricity prices and to fuel prices in the case of staff and company electric cars. They have even created their own virtual grid and share excess solar generation with local staff and their Auckland site.
Furthermore, their commitment to sustainability has attracted new business opportunities as customers are drawn to their genuine efforts and innovative solutions. The company’s approach to sustainability is fostering a positive work environment, with staff feeling more engaged and motivated by the company’s values.
Saito has achieved Toitu Enviromark Gold certification, which demonstrates its dedication to making sustainability a core focus of its operations and its robust environmental management system. However, achieving this certification was simply a recognition of their efforts and the way they work rather than being a goal in itself.
ADVICE
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- Involve your staff: Engaging employees in the sustainability process is crucial: those who plan the fight don’t fight the plan. Involving staff ensures that everyone is onboard and committed to the company’s sustainability goals.
- View sustainability as a core business model: Sustainability should be an integral part of the business model. It involves continuous improvement and celebrating small achievements along the way.
- Be open to innovation and networking: Actively seek out like-minded businesses and innovative solutions. Networking and collaboration can lead to new opportunities and help overcome challenges.
- Focus on genuine efforts: Avoid greenwashing and focus on genuine, impactful sustainability initiatives. Trust your gut. This builds trust with customers and creates long-term benefits.
- Adapt and evolve: Recognise that sustainability is an ongoing journey. Be flexible and open to new ideas and continuously seek ways to improve and adapt to changing circumstances.
NEXT STEPS
- Strategy and governance: In the same way Saito has united around sustainability, Saito’s journey toward Industry 4.0 would benefit from a unified approach.
- Vertical integration: Mapping key business processes has helped identify the processes that will have the greatest positive impact from digitisation or automation. In this way, resources can be prioritised by implementing smart technology where it would have the greatest positive impact on quality or efficiency.
- Shop-floor intelligence: The Saito team identified some straightforward and interesting opportunities where capturing live data from the shop floor would enable further efficiency gains and better decision-making.
“While perfect Industry 4.0 implementation may be unattainable, it is important to continue progressing with a clear goal. The assessment prompted the team to rethink their approach, sparking new ideas and discussion.”
CURRENT TECH STACK
Function
Software Tool
ERP
Sage 300
CRM
Hubspot
Inventory management
Sage 300 ERP + custom
automated reports
Production order
management
Prism MRP
SMART FACTORY ASSESSMENT
To find out more, head to www.industry4.govt.nz
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