How Do Distribution Centres Manage Packaging Waste and Stretch Wrap Recycling?

Distribution centres (DCs) generate large volumes of packaging waste every day — including cardboard, plastics, pallets, and especially stretch wrap. Managing these streams well is critical for cost control, operational safety, compliance, and sustainability performance.

Here’s how DCs typically handle packaging waste, the challenges they face, and the systems that deliver the best results.

Why Packaging Waste Is a Priority in Distribution Centres

DCs process thousands of inbound and outbound units each day. That means:

High volumes of cardboard
Constant generation of soft plastics, shrink wrap and pallet wrap
Damaged pallets and packaging
Mixed waste arriving from suppliers

If not managed well, packaging waste can block dock areas, increase contamination, raise disposal costs, and slow productivity.

A well-designed system improves flow, safety and cost efficiency.

1. Cardboard Management in DCs

Cardboard is usually the highest-volume recyclable material in distribution centres.
Most sites manage cardboard using one of the following systems:

1. Loose cardboard bins
Easy to deploy but fill quickly and require frequent collections.

2. Cardboard balers
DCs producing high volumes use balers to reduce space, avoid overflows, and reduce collection frequency.

3. Compactors (where volumes justify it)
For very large operations processing pallet loads of cartons daily.

Effective cardboard management reduces general waste, increases diversion, and lowers disposal costs.

Key benefits include:

Fewer dock blockages
Lower contamination risk
Higher recycling tonnage
Reduced transport costs
Better workflow for pick–pack teams

2. Stretch Wrap and Soft Plastics Recycling

Stretch wrap is one of the most common waste streams in any DC.
It is generated from:

Palletised inbound goods
Pick–pack outbound preparation
Stabilising stacked items
Supplier packaging

How DCs manage stretch wrap effectively:

Dedicated soft plastic bins
Placed at packing lines, inbound bays and pallet breakdown areas.

Bale bags or cage systems
Used for sites producing large daily volumes of wrap.

Soft plastic balers (for high-volume operators)
Baled plastic reduces storage needs and creates clean, recyclable feedstock.

When stretch wrap is collected clean and uncontaminated, it can be recycled domestically into:

Plastic films
Packaging
Resin pellets
Industrial products

Recycling soft plastics also reduces the weight of general waste, lowering disposal and levies.

3. Pallet Waste, Mixed Timber and Supplier Packaging

Distribution centres also deal with:

Broken pallets
Timber offcuts
Damaged packaging
Mixed fibre
Excess supplier materials

These are typically managed through:

Timber-only skip bins
Pallet recovery programs
Pallet buy-back partners
Resource recovery providers

Proper segregation prevents large volumes of recoverable material being charged as general waste.

4. Bin Placement and Workflow Design

DCs operate quickly. Waste systems must match the workflow or staff will default to the nearest bin — often general waste.

High-performing distribution centres use:

Paired bins (general + recycling side-by-side)
Site-specific signage
Colour-standardised bins across the whole DC
Bins placed directly at pack stations, not “somewhere down the dock”
Stretch wrap collection points wherever pallets are broken down

A well-designed layout significantly reduces contamination and improves flow.

5. Staff Training and Toolbox Talks

Even with excellent infrastructure, stretch wrap and packaging recycling fails without education.
DCs often have high turnover, subcontractors, and varying skill levels across shifts.

Effective training includes:

Quick toolbox talks
Induction content for new starters
Visual signage at every workstation
“What goes where” cheat sheets
Supervisor reinforcement across shifts

Training does not need to be long — it just needs to be clear and repeated.

6. Avoiding Common Contamination Issues

The most frequent contamination issues in DCs include:

Food waste or drink containers in cardboard bins
Tape and labels left on cartons
Stretch wrap mixed with general waste
Timber and cardboard combined
Incorrect liners used in recycling bins
Damaged product mixed with recyclable packaging

A structured waste layout combined with simple visual signage eliminates most problems.

7. Reporting, Data and Continuous Improvement

Large DCs rely on data to manage costs, compliance and ESG reporting.

Nationwide Waste Solutions provides:

Tonnage reports for each stream
Diversion percentages
Site-by-site comparisons
Photos of contamination events
Service utilisation (over/under-servicing)
Levy exposure for general waste
Scope 3 waste impact data

This data helps you identify issues early, adjust services and demonstrate sustainability improvements.

How Nationwide Waste Solutions Supports Distribution Centres

Nationwide works with distribution centres across Australia and New Zealand to design systems that keep operations efficient and waste costs under control. We help DCs:

Standardise bin infrastructure and signage
Implement stretch wrap recycling programs
Reduce general waste volume
Right-size services across inbound and outbound operations
Deliver toolbox talks for staff and contractors
Monitor contamination and performance
Provide consolidated data and reporting
Reduce landfill levy exposure

Because we don’t own trucks or landfills, we design systems based on what genuinely benefits your operations — not what fills a truck.

Want to Improve Packaging and Stretch Wrap Recycling in Your Distribution Centre?

Our team can assess your site, identify opportunities and design a streamlined, cost-efficient waste system tailored to your operational flow.