RAJA: “The concept of environmental responsibility goes far beyond the product alone“

To expand its range of environmentally friendly products, the RAJA Group recently introduced recyclable hand stretch paper and bubble paper. Due to its commitment as well as innovation, the packaging specialist was awarded the gold medal in the category “Innovative Supplier” at the fifteenth edition of the Purchasing Trophies.

“Join the ecological packaging revolution” is the motto of the purchasing department of the RAJA Group, which was founded in 1954 by Rachel Marcovici and Janine Rocher. The department consists of about 100 buyers and product managers, about half of whom operate in Roissy, the company’s headquarters, and the rest throughout Europe. They manage €1 billion of spend and continuously develop and optimise the product range in collaboration with management and sales. RAJA generated a turnover of €1.2 billion in 2021, has 4,500 employees and 26 offices in 19 European countries, and is committed to sustainable development.

Focus on customer satisfaction

A small digression: according to a customer satisfaction analysis carried out, ecological responsibility seems to be a fundamental selection criterion. For this, at the end of 2018, about a dozen purchasers and product managers of the RAJA Group were brought in to present innovative products. Subsequently, the “RAJALab” was set up within the purchasing department, a kind of research station for packaging techniques in e-commerce and logistics.

To better understand customers’ needs, Purchasing and Sales have increased the number of joint customer visits, including many e-commerce companies. “We have no less than 2 million customers. Many of them don’t want to use plastic anymore,” says Ulrick Parfum. “The classic bubble wrap serves its purpose very well, but it is plastic. So we had to find an alternative made of paper/cardboard and at the same time manage to preserve the air in paper pads. To meet this challenge, Purchasing tested different versions of the product over a period of one year in collaboration with their suppliers – whom they call production partners. These are
97 per cent from Europe, and 86 per cent of the products sold by RAJA are produced in Europe.

Purchasing is at the heart of innovation

Bubble paper is an environmentally friendly, recycled and renewable cushioning solution. It is manufactured in Europe using a unique technology – air is trapped between two sheets of honeycomb paper – and protects goods from impact, contamination and damage during shipping. “Our products are integrated into our customers’ production cycle. So it’s about offering packaging that guarantees real benefits for the user,” Ulrick Parfum emphasises.

The hand stretch paper is an innovation that required several years of research. Care is taken to produce the products as close as possible to the Group’s warehouses in order to limit the_{CO2 impact of} transport. It is also important that the wood used comes from sustainably managed forests. “The idea of ecological responsibility goes far beyond the product. I am convinced of the need for a holistic approach. There is no point in developing a product that is intrinsically environmentally friendly if it is bought on the other side of the world. Our CSR requirements are very strict,” says Ulrick Parfum.

The goals of margin, profitability and competitiveness

A strategy that is competitive in spite of everything. Although purchasing was confronted with a massive cost increase, it managed to secure supply and bring economically viable products to the market.

“Innovation has its price, paper is more expensive than plastic. But our partnership with our manufacturers and our proactive pricing policy enable us to combine economic performance and environmental responsibility. We go to great lengths upfront to avoid excessive costs. We also know that the question of economic viability will resolve itself with the commercial success of the product,” assures the Head of Purchasing and Product Marketing, who points out that bubble and stretch paper are among the best sellers in France, the Benelux countries, Germany, Italy, Spain and England.

Even though the RAJA Group does not have its own development department, the purchasing department does everything it can to pick up on innovations. The buyers know the market and the production facilities of their suppliers in detail and build a solid partnership strategy. This is necessary to expand RAJA’s customer base and to meet the needs of existing customers.

“By its very nature, the purchasing and product marketing departments are focused on innovation, with one common goal: to help our customers work more efficiently, save time and space, and add value to their shipments…. Our product managers know exactly the production capacities of the manufacturers. This facilitates the exchange and allows us to significantly reduce the time to market,” says Ulrick Parfum.

Between original experiments and active partnerships

To ensure the resilience and ergonomics of these new products before their launch, the purchasing department, together with the logistics and transport departments, arranged for test shipments throughout Europe. “We had to be sure that our products would protect the goods, be ergonomic and easy to handle,” says Ulrick Parfum.

Interdepartmental action is complemented by collaboration with suppliers. “Our idea of partnership is one of pro-activity. We strongly challenge our suppliers to ensure that they always provide us with the best products, services, prices and innovations. All our projects could not be done without them,” says Ulrick Parfum.

“We have reviewed many suppliers before selecting those who will accompany us on our projects. In addition to the intrinsic quality of the product, its mechanical properties, durability and environmental benefits, we also had to ensure that the selected suppliers met our very demanding purchasing specifications. We include CSR assessments with a high weighting in our selection procedures.” All suppliers working with RAJA are signatories to the group’s Responsible Sourcing and Sustainable Development Charter, which is based on the ten principles of the UN Global Compact, of which RAJA is a member. “This charter is very demanding and it is impossible to work with RAJA if you are not one of the signatories,” explains Ulrick Parfum.

Launch of RFAR labelling

Purchasing therefore strives for balanced relationships with their suppliers and shares the resulting success. Forecasts are provided in advance to enable them to plan their workload. Speed of payment is also essential. “Since we expect to be supplied on time, it is a matter of honour for us to pay on time,” says Ulrick Parfum.

To highlight the quality of their methods, Purchasing is working to obtain the Relation Suppliers and Responsible Purchasing (RFAR) label, which is expected soon. “We hold all the cards to get the certification. We have been working with some of our suppliers for more than 30 or even 40 years and we apply strict and objective protocols,” says Ulrick Parfum.

New projects and new hires planned

While RAJA is planning new projects in packaging, storage, office supplies and hygiene, the purchasing department is hiring new buyers and product managers to help grow the group. “RAJA is a real source of inspiration, constantly generating new ideas and projects. It is an exciting group. That’s why I’m calling for applications. Working in purchasing with us is a real adventure that fosters creativity, understanding of business issues and entrepreneurship. There is so much room to grow,” Ulrick Parfum concludes.