DS Smith has secured an extended five-year contract with JLR to develop fibre-based packaging solutions within a fully integrated service model. This contract, valued at £108 million, reinforces JLR’s commitment to sustainability and marks a shift from transactional packaging to a comprehensive service-oriented approach. The agreement focuses on manufacturing and assembling key JLR products for global markets.
As part of this contract, DS Smith is supplying the JLR Mercia campus with a one-stop-shop packaging solution. This includes inbound product packaging, outbound shipping packaging, and warehouse storage. The end-to-end approach emphasizes flexibility and agility, operating under a fixed-cost agreement that accommodates various outputs, delivery options, and requirements.
The contract also includes an on-site warehousing and transportation service, JLR Just in Time (JIT), designed to maintain a streamlined supply and flow of sustainable packaging materials. This service ensures seamless delivery of packaging products to end-user storage facilities. Additionally, to support JLR’s Aftermarket service requirements, an on-site one-stop-shop operation model has been established at JLR’s Mercia Park facility in Appleby Magna, Leicestershire, UK.
The extended agreement aligns with JLR’s long-term strategy to reduce unnecessary packaging materials and incorporate innovative sustainable designs to eliminate waste. As part of this initiative, DS Smith ensures that excess waste material, such as corrugated cardboard from JLR’s packing process, is sorted and repurposed for recycling or secondary pack material. The integrated approach to packaging production and engineering aims to reduce CO2 emissions and lower costs.
“We are incredibly pleased to be able 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 and this is in keeping with our shared sustainability goals.”
Chay Ankers, Market Sector Business Unit (MSBU), Director, Automotive, DS Smith
The extended contract builds upon previous achievements and product innovations. In 2022, DS Smith launched the Bumper Outer Shipper packaging service to optimize the packaging of individual vehicle parts for JLR worldwide. This initiative resulted in a 125% increase in bumper shipments, improved freight capacity in delivery vehicles, and enhanced time-saving efficiencies in assembling one-piece self-locking primary packs. These developments also streamlined the unpacking process for dealers.
DS Smith’s ongoing collaboration with JLR reflects a shared vision for redefining industry standards in packaging and design. This partnership aligns with DS Smith’s overarching purpose of “Redefining Packaging for a Changing World,” as well as the objectives outlined in its target-led Now & Next Sustainability Strategy.