Discover how Hoover CS is transforming industrial packaging with models to enhance sustainability and cost-efficiency in the chemical supply chain.
About this episode
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When we talk about plastic waste, you probably imagine grocery bags or plastic balls. But one
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of the biggest problems actually lies upstream in the massive industrial containers. We are rarely
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talking about this problem and that's why we are dedicating this podcast episode to it.
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Hello. Hello. You are watching a brand new episode of Green New Perspective podcast. your go-to
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place when you want to learn about innovative technology, sustainable solutions, and marketing
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efforts that are fueling growth in this space. My guest today is Christopher Winkler. He is the
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senior vice president of sales and operations at Hoover Circular Solutions. Chris and his team
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are tackling the part of the plastic waste problem most of us never see. Huge industrial containers
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that are used for shipping materials, materials and chemicals around the world. Right now, most
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of them are used just once. After that, they are discarded, creating mountains of hidden plastic
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waste. So, Chris is trying to find solutions that are more sustainable, but also cost effective. So,
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in this episode, we are going to talk about why this plastic problem is often overlooked,
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how the entire industry can change to be more eco-friendly, and how technology can help. So,
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stay tuned and enjoy the conversation. Hello, Chris. Welcome
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to the Green New Perspective podcast. Thank you. Thanks for having me. Well, to kick things off,
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can you please tell us a little about yourself and your role at Hoover? And for the folks who have
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never heard of the company, what does the company do? Sure. So, my name is Chris Winkler. I'm the
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senior vice president of sales and operations at Hoover Circular Solutions. So, we are a
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rental and packaging company for industrial supply chains for both chemicals and catalyst materials.
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um really focus on renting packaging solutions with value added services around them to help our
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customers meet their needs both with a sustainable reusable package but also an overall cost benefit
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to their packaging and their operation. Yeah, you mentioned sustainability and I guess most
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people don't think about the big plastic tanks and containers used in the heavy industry. So
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why would you say those containers are a problem? What usually usually happens to them? Yeah. So,
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a large portion of the industry today uses what they call one-way intermediate bulk containers
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or IBC's. And a lot of times they're single use and that plastic then is clean and and and
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often either put to waste or or destroyed. And what we're seeking to do in our in our offering
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is really you have a reusable packaging. So, it's used and then can be reused over again.
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Both stainless steel as well as poly. So, from a chemical compatibility standpoint,
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it's compatible. and really try to get that into the market and and heavily used to reduce overall
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plastic waste and to improve their kind of CO2 and emissions footprint. And do you feel like
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industrial packaging waste has been left out of the sustainability conversations because I feel
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like has at least we haven't had anyone on the podcast and we've recorded 60 plus episodes so
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far and we never talked about this. Yeah. I mean a lot of the focus ends up being more consumer
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packaging and food packaging. So you talk about straws and plastic water bottles and plastic cups
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and plastic bags and you know to give you an idea one IBC that's used for chemical if it's disposed
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of is equivalent to about 5,000 plastic bags or a little over 1,700 water bottles. So it's
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probably not as visible to people. But when you go upstream into chemical supply chains,
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whether whatever the chemistries or chemicals might be, the volume gets quite significant
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when you start talking about overall movement of raw materials, chemicals, and even into finished
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products before they're packaged out into the end use or end user goods. And so it's just an
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area that probably isn't seen by the public, but we certainly think has a large impact when
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you look at overall plastic consumption. And what are the reactions within the industry?
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I think the industry so the industry today uses reusable containers and I think typically they're
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used where they're where the requirements of the chemistries require it. Um you know a stainless
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steel tote is used more when flash points are higher and it's a flammable chemical and it's
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needed from a safety perspective or regulatory requirements suggest that they have to use it.
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You know the challenges for supply chains in adopting reusable packaging. What we've seen
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is the real big challenge is the return leg. So you can ship it out. It's much like a a one-way,
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but the challenge is you need to get it back and you need to get it back to reuse it. Um and that
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and that return leg adds costs and complexity into their operations that may or may not be part of
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it today. And so we've had to really focus on kind of two aspects of that. One, how do we demonstrate
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that there's an environmental or sustainability benefit of the reuse? Meaning you're not buying
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a new one-way plastic container every time you're doing a fill of a product and shipment. But then
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two, we had to also overcome the economics and making sure that we can demonstrate to them a a an
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overall package cost savings by going to reusable versus one way in the model. And do they feel like
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when you mentioned it's that your solution is more sustainable? It would automatically cost more.
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That's probably the initial reaction from some of our customers and we've put a lot of effort
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and our marketing team has really helped to put a lot of effort into one we did a life
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cycle analysis on our containers versus one-way containers which really helped us demonstrate kind
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of the calculations around logistics and freight and also when you compare it to buying a package
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versus renting and and the cost of renting and we really boil it all the way down to what is
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your cost per kg or gallon of of a packaged chemical and we were able to demonstrate a
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beneficial ROI on that. So, an overall reduced cost of of packaging a chemical, but then also
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showed them the sustainability benefits in that model as well. And I'd say customers, you know,
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receptions vary depending on the the company and the and the customer. And I, you know, I have to
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say our our maybe our Europeanbased chemical companies that operate in the US certainly
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are more interested or sustainability or the environmental aspects kind of go higher up their
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buying scale of priorities. But I would say even that even US-based companies are looking more and
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more at it. I'd say cost comes first though. You have to you have to clear the hurdle of of showing
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overall package cost savings before you can get them to move to kind of that next step. And when
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Hoover made a shift from oil and gas to focus on reusable sustainable packaging, what was initially
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behind it and what was your reaction to this idea of rebranding and refocusing? Well, so I think
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it it kind of started actually started before I joined Hoover, but I I I came in later and and I
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would say it started in 2021 and and really the company divested of its oil and gas uh offshore
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business uh packaging and container business and then also divested of its manufacturing side of
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the business. We manufactured our own IBC's for a number of years. Um it to really focus on rental
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and also really focus on a circular solution around packaging and sustainability. And I think
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I liked you know the move has been great because it's opened up our customer base of who we can
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go in and service. You know, we certainly have an oil and gas customer base today that we service,
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but we also have a large chemical manufacturing, chemical distributor, food and beverage,
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and and some of the other markets that gave us market diversity in terms of who we're able to go
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in and service. Uh, and that's really, I think, helped broaden our business, as well as given
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us a lot of perspective around the environmental aspects and sustainability of what they're looking
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at for their packaging requirements because across those different industries have different kind of
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different requirements, different needs. And that's really helped broaden us and I think
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really formed the company to be really focused on rental with value added services around it to
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kind of deliver that overall value proposition to a customer. And what is like for you to help lead
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both the sales and the operation side of that transformation? Let's say it's been exciting.
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It's been a lot of fun. Um not without its challenges. I I can say um you know like anything
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but you know that's part of what makes it fun is overcoming those challenges. And I think one of
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the challenges I quickly saw when I joined and my prior experience being in a oil and gas specialty
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chemical company companies struggle with how they manage fleets of reusable tanks in both
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distributors and chemical companies alike. I think I saw a real opportunity for us to bring a little
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differentiating solution around fleet management and help them be more efficient at managing that
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fleet that would both optimize the size, optimize the the the routes that they distributed and
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delivered that fleet and also got the return units back and reduced overall what you might
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call lost tanks. Really not lost. I mean, you don't you don't lose a large stainless steel tank,
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but it it does end up sitting in the back of a yard somewhere or the back of a warehouse and get
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out of circulation. And I think what we've been able to put together with our fleet management
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program has really been a differentiator in the industry and what we can deliver around helping
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customers see the value in moving to a reusable fleet and and really helping them realize overall
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cost savings and their packaging. and then the added benefit of that sustainability aspect of
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reducing their overall waste in terms of their operations. Can we go back on how the reusable
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packaging system actually works? So, can you walk us through a typical container life cycle, let's
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say, so that our audience can better understand? Yeah. So, you know, a stainless steel container
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it's it's it's produced average life of that container is somewhere around 25 to 30 years. So,
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it has a relatively long life. Tech typically it's produced. We would then certify it, you know, UN
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or DOT certification, which that occurs every two and a half and 5 years, but it would be delivered
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to a a chemical manufacturer or distributor. They would fill it, send it to their customer, and then
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as their customer emptied it and they delivered more chemical in, typically their drivers or or
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their freight companies would pick up that empty and bring it back to that distribution point,
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either the manufacturing location or or a warehouse for distribution. And it kind of
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goes in that cycle. Occasionally customers depending on their their their supply chain,
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it may go to a service center to be washed. If they want to have that tank not be dedicated to
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products or a set of products, in which case then it would go to a a wash center to be serviced.
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Hoover does have and operates some wash centers. We also partner with third parties uh to offer that
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service and then it would then go back to the chemical manufacturer and it kind of go in that
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in that cycle or that circuit. And then when they look at fleet sizes and what they need, they would
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look at what is my overall volume of chemical that I'm I'm supplying, the number of products,
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number of customers, and from that work out relatively overall fleet size that they need in
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rotation to be able to service that that business that they have.
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You mentioned the complexity of working with this massive fleet. So can you tell me how does
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the fleet operate and how do you keep everything running smoothly like tech logistic partnerships
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what's important the single thing or or all of these things together? Yeah, I'd say, you know,
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all of the there's there's quite a few things that are important. If we look at kind of if I first
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look at servicing and maintenance of a fleet, you know, that's something that we have two service
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centers that we operate today for our IBC's, one for our ISO containers. And it's really important
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to make sure that we one run those fleets service centers efficiently. Um because in many cases the
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cost of servicing a tank for our customers is a cost that they don't necessarily recoup from
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their end customers. It's a it's an expense to managing a fleet and so we need to make
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sure that we're we're cost competitive. We do a good job from a service and quality standpoint
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and deliver a good quality output. The other aspects at the service centers that we do have
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to be very cautious of and it's certainly first and foremost with us is safety. Handling the
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stainless steel tanks. There is an element of risk to that. Certainly when you're also washing them,
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you're dealing with chemicals, you're dealing with high temperature water,
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um pressure and those sorts of things. So it is something that we look at very you know very
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important in our sites and and something that we take seriously. You know last year we did
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achieve goal zero across all of our sites which we're very proud of. So we had zero incidents.
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We have a very robust competency and training program that we've rolled out at all the sites.
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So we have very clear procedures uh for how to how to handle and and do each task that goes in
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our operation center as well as the appropriate PPE that's needed for each of those tasks. Uhhuh.
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And then I would say the next aspect is handling those fleets is the complexity is when you get a
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large number is how do you keep track of them? Where are they? Are they being used right? Are
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they are they lost? Are they sitting at a at a site too long? Are they in the right location?
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Because our other customer, you know, a lot of our chemical distributors and manufacturers,
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one of the key challenges is they need the they need the empty containers when they have an order
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and when they need to fill. And they need them clean, certified, and ready and available to
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use. And and that's one of the challenges, at least I know from my past life in the chemical
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manufacturing space. That is a challenge. A lot of these companies, their focus, and rightfully so,
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is on molecules and new formulas and making the product and the manufacturing of it. Packaging
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becomes kind of something that's a necessary evil, but not a focus. And so our job really,
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I see it as how do we make that easier for them? And how do we make sure those tanks are in the
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right place? And that's really where our fleet management offering comes in where we have the
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ability to bring various technology to use to both track and monitor where those tanks are,
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when they're likely empty and ready to be picked up, and then where they need to be located to
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be in service and optimal for that customer. And that's there's a lot of aspects to it, you know,
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and I I kind of look at as there's three legs on the stool when we look at our fleet management.
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There's the technology and the platform where you can go look and and see dots on a map and
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see where your tanks are. A number of people have that in the marketplace. We work with a lot of
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them because we're not making that technology. We we outsource that technology. We do have a
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proprietary platform that we take that data into to manage the fleet itself that's called Fleet AI
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that Hoover owns and runs and manages. But really what probably sets us apart and makes us unique is
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the thought partnership aspect that we bring where we have our team that looks at that data, looks at
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that information and is able to give whether it be dashboards, reports, messages out each day,
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text messages with actionable intelligence to that service company that whether it be a
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chemical company or distributor that they can use to then go manage their fleet more effectively.
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And I think that's the one thing I've heard since I've been with Hoover. These companies need a way
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to better effectively manage that fleet and they struggle with how they do that and getting that
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relevant information and I think that's the thing our fleet management has been able to
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give them is actionable intelligence to be able to better manage their fleet and that's really at
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the end of the day we can do that think we then reusable and going to reusable becomes much less
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of a barrier it becomes actually a benefit and and a cost savings to their operation as well
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as a sustainability win from a overall waste and and CO2 and how do you communicate all these let's
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say complex benefits to the potential customers because there's a lot to unpack here. Yeah. No,
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there is and I and I think you know the way we look at it typically is we want to look at what
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is your packaging cost today and how can we you know how can we improve that and then through
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the process of improving that is where those other aspects start to come in because then you
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start to get into logistics you start to get into fleet size you start to get into how do I certify
0:16:24.880,0:16:30.240
my tanks how do I maintain them and and and then those other pieces kind of come but I I found if
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we start at the first and foremost probably what ultimately matters to the the key stakeholders
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How do I how do I address cost savings in my packaging and then how does that help me bring
0:16:39.920,0:16:45.040
a more sustainable model into my supply chain? You hit those two things and then it kind of builds
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from there. And you mentioned that you have let's say different kind of interest across markets to
0:16:50.800,0:16:55.920
change it like for the EU and then the US. So does the message change depending on who you're
0:16:55.920,0:17:01.200
talking to? Uh I think the message not so much across segments as much as it's probably where
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you are in the organization, the level you're talking with. So if you're in with the supply
0:17:05.520,0:17:10.800
chain or the operational side, their their questions or challenges or areas of concerns
0:17:10.800,0:17:16.480
are maybe a little bit different than if you're with say an enduser on the business side or with
0:17:16.480,0:17:20.640
their commercial teams or their end customers and you know they have maybe a different set
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of concerns or challenges. And so I think that's where we kind of help build and coach our sales
0:17:25.760,0:17:30.800
team to understand who you're in front of and and then tailor the messaging appropriately to
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address those those challenges and concerns. I would say that one one thing we've adapted our
0:17:35.440,0:17:40.480
sales team. If I look specifically commercially and how we've gone to market, we have probably
0:17:40.480,0:17:45.680
pivoted from more of a transactional sale and are you interested in renting a unit and what's the
0:17:45.680,0:17:51.680
day rate into a solution-based salesforce where we're more counseling and trying to understand
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their challenges and issues and then how does our how can we address that? What's the right
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solution to address their challenges or their issues? And you've mentioned Hoover AI. So can
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you tell us more a bit? Yeah, so Fleet AI is our is our platform. Yeah. And that's our platform for
0:18:06.480,0:18:12.160
managing fleets. And so it really is a platform that we can take in data around the tank itself,
0:18:12.160,0:18:16.960
whether it's its location. We can have telemetry. It can do level. So we know what the level in the
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tank is. We can also look at what you know where when it was last certified, when it's
0:18:21.680,0:18:28.000
next due for certification, what was its last wash certification and wash spec and what was it last
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serviced? All of that as that information comes in there and we can look and manage an overall fleet.
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So it's really a platform for aggregating data and information on a customer's fleet and then
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from there we build out dashboards or reports or have an API into their ERP systems or planning
0:18:45.920,0:18:51.680
systems to kind of feed that information in. So they can see you know I have 10 clean tanks ready
0:18:51.680,0:18:55.840
at this warehouse for this product. I have what I need to ship that product. you know,
0:18:55.840,0:19:00.800
I have 15 tanks over here that have been at this customer for more than 20 days. They're likely
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empty. I need to reach out to them and find out if they are empty and on my next delivery,
0:19:04.480,0:19:09.280
pick up those tanks and bring them back. That type of information is then derived out of that. So, it
0:19:09.280,0:19:15.600
helps with better organization and transparency, I guess. Yeah, it helps. And and I can say from
0:19:15.600,0:19:20.480
my my being in my past chemical industry, there aren't really systems that do that. I think we we
0:19:20.480,0:19:24.720
often had people with spreadsheets that tried to manage it and it's challenging. I mean,
0:19:24.720,0:19:29.280
there's other tracking systems out there, so you can track an asset, but just knowing that, hey,
0:19:29.280,0:19:34.400
my tank is at that that longitude and latitude doesn't actually tell me a whole lot necessarily.
0:19:34.400,0:19:38.720
Um, I need to know more than that. I need to know how long it's been there. When was the last ship
0:19:38.720,0:19:42.640
there? I need maybe know other attributes. And that's that's what we've tried to do is build
0:19:42.640,0:19:47.360
out a little more complete dashboard, but also do it in a way that we can deliver that information
0:19:47.360,0:19:51.520
out to customers that's usable. Talking about transparency, there's a lot of greenwashing
0:19:51.520,0:19:56.960
out there, companies making sustainability claims without much to back them up. So, how do you stay
0:19:56.960,0:20:02.080
credible? Yeah, it's a good question. I think one of the things we did in in 21 is we as we shifted
0:20:02.080,0:20:07.040
to become Hoover CS. A couple of things we did, we went through a refinancing at the time and
0:20:07.040,0:20:13.440
we ended up getting a um environmentalbacked loan. So, we have certain criteria around our
0:20:13.440,0:20:18.560
financing that we have to meet. One of them, one of the criteria was we had to install and put in
0:20:18.560,0:20:23.360
water recycling systems in our service centers to recycle water. We're achieving, you know,
0:20:23.360,0:20:27.840
largely achieving our goals around that recycling both a benefit to the environment also a benefit
0:20:27.840,0:20:33.520
from a cost of operation as well. In that we also had a kind of if you want to call it put our money
0:20:33.520,0:20:39.120
where our mouth is in terms of use our containers for relative chemicals and other solvents that we
0:20:39.120,0:20:44.640
bring into those service centers. So go to a reusable model for our own intake of of raw
0:20:44.640,0:20:49.680
materials that we use for servicing our products. Uh and then we had a renewable energy aspect of
0:20:49.680,0:20:55.040
it as well. But that that was one thing we did was the sustainability backed loan which also in
0:20:55.040,0:20:59.040
turn made us do some things operationally um that I think we would have done anyway
0:20:59.040,0:21:04.800
but nonetheless are are good for our overall sustainability model. We also are in our fourth
0:21:04.800,0:21:09.680
year of putting out our sustainability report. And so we do track metrics around our service
0:21:09.680,0:21:14.880
centers and our operations about how we're doing in terms of improving on on overall consumption
0:21:14.880,0:21:20.880
of power and water and and those aspects to try to reduce our overall carbon footprint. We also are
0:21:20.880,0:21:26.000
part of EcoVadis. We're silver this year. Been a member for a number of years follow up with
0:21:26.000,0:21:32.160
that. We've also joined the UN compact last year and do follow I would say closely a lot of the
0:21:32.160,0:21:36.800
regulatory activity that's going on comes and goes or varies a little bit. Europe has a little more
0:21:36.800,0:21:41.600
I would call it a set path with some key things that we're watching closely in terms of tracking
0:21:41.600,0:21:46.720
of packaging and use of types of packaging. US is a little bit more still I would call it still
0:21:46.720,0:21:52.800
being defined a little bit but uh something um but I mean really it is something that we do take to
0:21:52.800,0:21:58.000
the core and as a company and are mindful of the fact that we are in a in a business and a market
0:21:58.000,0:22:02.800
where we're trying to create a circular solution or a circular supply chain we need to be doing the
0:22:02.800,0:22:07.120
same in our facilities and our operations well I'm also glad to hear that sustainability pays
0:22:07.120,0:22:13.920
off that it's cheaper in some aspects it does gives us a better interest rate I That's that's
0:22:13.920,0:22:18.640
that's one of the prejudices people have when you know talking about sustainable solutions that are
0:22:18.640,0:22:23.440
necessary have to be more expensive but it turns out they're not and that's why they are surviving
0:22:23.440,0:22:29.360
in the market right oh yeah no I I think I think that's maybe a little bit of a misnomer right I
0:22:29.360,0:22:33.840
think you can be sustainable and I think one of the things our customers are really asking
0:22:33.840,0:22:42.000
from us is we want to have cost savings or cost benefits and sustainability they want both and if
0:22:42.000,0:22:46.800
you have both you really have a a differentiating solution. Well, talking about the the future,
0:22:46.800,0:22:51.120
what are you most excited about when you work for the for the Hoover's perspective and then
0:22:51.120,0:22:56.480
the let's say the industry as a whole? You know, I think it's interesting reusable packaging today,
0:22:56.480,0:23:00.800
there's a small percentage out there that's reusable. There's probably only about 5% in
0:23:00.800,0:23:07.520
reusable. So there's a huge market and a huge opportunity to convert um a number of other
0:23:07.520,0:23:12.320
chemicals and products into reusable packaging from an industrial micol and distribution scale
0:23:12.320,0:23:18.640
side. Um that's exciting to me. It's exciting to be able to go into companies and and show them
0:23:18.640,0:23:22.720
the value that reusable packaging can bring, roll out the solutions that help them manage
0:23:22.720,0:23:27.760
it effectively and and really deliver cost savings to them while getting that sustainability improve.
0:23:27.760,0:23:32.320
That's exciting. I think our fleet management offering is something I'm really excited about.
0:23:32.320,0:23:36.800
I think that's going to really differentiate the ability to roll out usable packaging because they
0:23:36.800,0:23:41.120
can do it more efficiently and they can do it in a controlled manner and manage it more effectively.
0:23:41.120,0:23:46.160
So those are those are very exciting for me and I think overall I think as as regulations change
0:23:46.160,0:23:50.560
and as it comes albeit at different times in different parts of the world we're going to
0:23:50.560,0:23:56.080
get to be the benefit of that as a company going to a more circular sustainable solution. And why
0:23:56.080,0:24:01.040
do you think the number like you mentioned 5% of solutions are sustainable in packaging? Why
0:24:01.040,0:24:05.280
is that number so low? Is it because of the legislation or is it something else? Because
0:24:05.280,0:24:11.600
the interest in sustainability is rising. It is. I think it's a little bit of regulations in the
0:24:11.600,0:24:17.840
past didn't require it. Where they did use it, it was because the chemicals flammable flammability
0:24:17.840,0:24:23.680
or or flashoint dictated they had to use a steel container. I think they also limited because in
0:24:23.680,0:24:28.000
the past it was costly. It was more expensive. I mean, using a stainless steel reusable container,
0:24:28.000,0:24:32.880
I think in the past was more expensive than using a one-way plastic container today. I think through
0:24:32.880,0:24:39.280
our offering in our solutions, we can demonstrate we can make it a a a cost benefit to using versus
0:24:39.280,0:24:45.360
a a cost increase. And I think that's honestly been the barrier uh in in part. I think the other
0:24:45.360,0:24:50.320
part is, and I talked about it earlier, that return leg is a barrier to get over. And again,
0:24:50.320,0:24:54.560
that's where our fleet management really helps remove that barrier. And if that barrier is
0:24:54.560,0:24:58.960
removed, then I think the you'll have a lot of opportunity for conversion in the future.
0:24:58.960,0:25:04.160
I have to say that I'm excited to meet companies that are changing those perspectives from from
0:25:04.160,0:25:10.240
you know higher cost to sustainability actually being more affordable cost benefit. Yeah. Yeah.
0:25:10.240,0:25:16.000
So my last question for you is for leaders who are in the industrial business and who want to
0:25:16.000,0:25:20.560
be more sustainable but don't know where to start. What would you say to them since you
0:25:20.560,0:25:26.320
have experiences across the the industries and well the focuses of those industries? Yeah,
0:25:26.320,0:25:31.600
I mean I would say uh you know certainly look at what your peers are doing. Look out reach out to
0:25:31.600,0:25:36.960
associations as well. I think we've found a lot of value in in joining some associations that are
0:25:36.960,0:25:42.480
both in the in the in the respective industries whether it be distribution or or chemical but then
0:25:42.480,0:25:46.720
also even looking at some of the sustainability initiatives that are going around and kind of join
0:25:46.720,0:25:51.200
those to get a perspective right and to understand what are they talking about what are the what are
0:25:51.200,0:25:56.400
seem to be the hot topics um and one of the other things we did as a company is we had our general
0:25:56.400,0:26:01.840
counsel he's a very versatile guy so we had him reach out to some lobbyists in Washington and and
0:26:01.840,0:26:06.640
kind of get connection into in this case the EPA and and some of that in Department of Energy to
0:26:06.640,0:26:10.640
kind of understand where were they going with some of their initiatives or or where is it are they
0:26:10.640,0:26:14.800
heading really to kind of get some perspective to see where should we focus and that and that
0:26:14.800,0:26:19.600
helped our ability to then kind of form our focus around what are the areas of sustainability that
0:26:19.600,0:26:23.440
we should focus on to where we think we're going to be aligned and then probably most importantly
0:26:23.440,0:26:29.040
and I'd say last is we asked our customers um you know what are they focused on what are their areas
0:26:29.040,0:26:33.280
of sustainability that they're interested in and then how do we align to that or how do we fit to
0:26:33.280,0:26:37.760
that? Thank you, Chris. Thank you for your time and for being our guest here on the Green New
0:26:37.760,0:26:46.480
Perspective podcast. Well, thank you very much. Appreciate it. And uh you know, thank you again.