Ecr presentation jw
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This document discusses managing returnable packaging in the supply chain. It outlines considerations for choosing between display ready cartons and returnable plastic containers. Key steps in managing returnable packaging include scoping projects across the supply chain, prioritizing products, and ensuring total supply chain cost reduction targets are met. The document also provides an example of CHEP's value proposition in innovatively designing and processing returnable packaging.
Ecr presentation jw
- 1. MANAGING THE RETURNABLE PACKAGING IN THE SUPPLY CHAIN JEFFREY WONG, DIRECTOR CHEP SEA OCTOBER 15 TH 2008
- 2. THE WINNING RECEIPES FOR THE 2 ND DECADE OF ECR Market Context Increasing global sourcing of raw materials An increasing focus on the environment Greater health and hygiene regulatory pressures Increasing competition Changing consumer demand Loyalty increasingly influenced by the whole shopping experience The Ingredients for a Winning Recipe…. Leaner, Greener and Safer Supply Chains “… aimed at better satisfying consumer needs, through businesses and trading partners working together. ” ECR Australasia
- 3. RETAIL READY PACKAGING (RRP) Retail Ready Packaging not new in the market Referred to different names…Shelf Ready Packaging, One Touch Packaging, etc Display Ready Cartons is available in the market A high percentage of on the shelf products, non-produce shipped in DRC *26% of the Retail Produce Volume shipped in DRC in US Returnable Plastic Crates, sometimes called trays, crates, RPC, *has 8% volume of the Retail Produce Volumes in US Large returnable containers also called Bins are retail ready * Corrugated Packaging Alliance news realease17 May 2005 “… increased speed of replenishment leading to better on shelf availability & increased sales” ECR Australasia, Retail Ready Packaging, pg 6
- 4. RETAIL READY PACKAGING STRUCTURE *Consumer Unit Tertiary Packaging Merchandise Unit Dollies Returnable Plastic Crates Dairy Dollies Bins “ How to manage returnable packaging?” Easy to Identify Easy to Open Easy to Shelf Easy to Shop Easy to Dispose *ECR Australasia, Retail Ready Packaging, pg 6 Display Ready Packaging Display Inner (In a shipper) Display Shipper (Trade Unit) “ How to manage returnable packaging?”
- 5. HOW TO MANAGE RETURNABLE PACKAGING Considerations in choosing between DRC and RPC Scoping the project across the supply chain Prioritizing Products for Returnable Packaging Understand the total process and consider pooling of returnable equipment Ensure Supply Chain Costs Reduction Targets are Met
- 6. CONSIDERATIONS IN CHOOSING DRC AND RPC Requirements and Considerations Display Ready Carton (DRC) Returnable Plastic Container (RPC) Usage cycle One time, one way trip Reusable, Multiple trips Branding and differentiation through packaging Can be made to be distinctive and differentiated Blends into the retail surroundings High Demand Volatility One time costs expensed Invested RPC for peak not utilise during trough unless it is rented RPC Backhauling transportation Advantages across wider geographical areas or borders esp where volumes are low Advantages where there are large volumes need to be backhauled and transportation is available Robustness Can be designed to be robust at a higher cost but not as robust as RPC CHEP’s RPC build to sustain multiple usage in varying supply chains Environment – Life Cycle Inventory Measurements (Franklin Associates, Life Cycle Inventory for RPC and DRC for Fresh Produce Applications) Dispose after use Reuse after wash; requires 39% less energy, produce 95% less total solid waste, 29% less total greenhouse gas emission
- 7. SCOPING THE PROJECT ACROSS THE SUPPLY CHAIN Finalisation
- 8. PRIORITISING PRODUCTS FOR RPC OR RETURNABLE BINS Successful projects will need the participation of the Retailers, the Suppliers and the service providers that store and mover the products
- 9. PRIORITISING PRODUCTS FOR RPC (Examples)
- 10. ENSURE THAT TOTAL SC COST REDUCTION TARGETS ARE MET (…often total supply chain costs are not captured) Scope: From factory to organized retail store Product : FMCG basket of goods Transport Storage Handling 0.4 Procurement 0.8 RPC Maintenance &Cleaning 3.6 Other * Total
- 11. DEMONSTRATING CHEP’S VALUE PROPOSITION
- 12. REUSABLE PACKAGING INNOVATION – CHEP’S CREDENTIALS PCA (Packaging Council of Australia) Award Winner 2002: Beverage trays 2003: RPCs (1st Generation) 2005: Folding Bin 2005: Holden Automotive Custom Designed Packs & Inserts Regional implementation experience (ANZ) Beverage tray national pool RPC national pool Foldable Bin national pool International pool of auto parts containers Supply Chain benefits …realised ! Retail Ready Resource savings Capital benefits Product quality benefits Environmental benefits Warehouse efficiencies Transportation efficiencies
- 13. EXAMPLE OF AN INNOVATIVE DESIGN
- 14. RPC AND BIN PROCESS MANAGEMENT INSPECT FORECAST DEMAND WASH REPAIR RETRIEVE TRACK CRATE USE SUPPLY RELOCATION SOURCE CAPEX CRATE R&D
- 15. CHEP’S CORE VALUE PROPOSITION Recognised as the global leader in pooling solutions, CHEP offers pooled platforms, pooling systems and services which collectively represent a single supply chain logistics service. Core benefits delivered include: 1.Reduced costs Reduced platform manufacturing and maintenance expense Reduced transportation costs Reduced process management costs Reduced losses Trans Tasman produce movements coordinated in Australia and New Zealand 2.Reduced risk Customers’ products are protected in transit meaning reduced damage, loss & ullage A single pooling solution that operates throughout the customer’s supply chain meaning integration and simpler, risk-free systems compatibility 3. Revenue protection Customers’ products are shipped and arrive in ready-to-use or ready-to-sell condition Speedy turnaround ensuring faster cash-flow Continual monitoring of supply chain to ensure Vendor costs minimised 4. Reduced CAPEX Customers do not need to invest in their own pooling infrastructure, pooling processes and pooled platforms
- 16. CHEP’S CASE STUDY: PRODUCE SUPPLY CHAIN IN ANZ Challenge To help a major regional retailer move, store, merchandise and protect a range of fresh produce lines from a base of >1,000 suppliers into 800+ retail stores Replacing 60 million Styrofoam and cardboard containers per annum Solution Collapsible, returnable, vented, column & cross stackable RPC – and a sophisticated tracking system Benefits Improved product quality, reduced handling, transport efficiencies (outbound), 40% reduction in reverse logistics, reduced packaging waste, improved supply chain visibility eg. cycle times, stocks & flows
- 17. IN SUMMARY Supply chains are constantly changing, needing to be LEANER, GREENER and SAFER CHEP can help you achieve operational excellence through: Efficient, safe & environmentally friendly packaging design Synchronisation of reusable & returnable packaging with forecasts Network leverage (physical & knowledge) RFID enabled visibility & control Standardisation & customisation
- 18. WHO IS CHEP TODAY? Brambles owned and part of a global CHEP business in 45 countries around the world Provider of managed reusable & returnable supply chain packaging solutions Working to make logistics in Asia-Pacific leaner, greener & safer Serving customers in: FMCG Fresh Food Auto Industrial Transport & Logistics
Editor's Notes
- #4: For many organisations in the food & grocery industry survival requires a focus on increasing customer value either by delivering more for what they’re paying today or by reducing prices As the rate of innovation grows in your business, the key is to build more flexible supply chains that will help you respond to future market changes and navigate market turbulence.