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MANAGING THE RETURNABLE PACKAGING IN THE SUPPLY CHAIN JEFFREY WONG, DIRECTOR CHEP SEA OCTOBER 15 TH  2008
THE WINNING RECEIPES FOR THE 2 ND  DECADE OF ECR Market Context ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],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
RETAIL READY PACKAGING (RRP) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],“… increased speed of replenishment leading to better on shelf availability & increased sales” ECR Australasia, Retail Ready Packaging, pg 6
RETAIL READY PACKAGING STRUCTURE *Consumer Unit Tertiary Packaging Merchandise Unit Dollies Returnable Plastic Crates Dairy Dollies Bins “ How to manage returnable packaging?”   ,[object Object],[object Object],[object Object],[object Object],[object Object],*ECR Australasia, Retail Ready Packaging, pg 6 Display Ready Packaging Display Inner (In a shipper) Display Shipper (Trade Unit) “ How to manage returnable packaging?”
HOW TO MANAGE RETURNABLE PACKAGING ,[object Object],[object Object],[object Object],[object Object],[object Object]
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
SCOPING THE PROJECT ACROSS THE SUPPLY CHAIN Finalisation
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
PRIORITISING PRODUCTS FOR RPC (Examples)
ENSURE THAT TOTAL SC COST REDUCTION TARGETS ARE MET (…often total supply chain costs are not captured) ,[object Object],[object Object],Transport Storage  Handling 0.4 Procurement 0.8 RPC Maintenance &Cleaning 3.6 Other * Total
DEMONSTRATING CHEP’S VALUE PROPOSITION
REUSABLE PACKAGING INNOVATION – CHEP’S CREDENTIALS ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
EXAMPLE OF AN INNOVATIVE DESIGN
RPC AND BIN PROCESS MANAGEMENT INSPECT FORECAST DEMAND WASH REPAIR RETRIEVE   TRACK CRATE USE SUPPLY RELOCATION SOURCE CAPEX CRATE R&D
CHEP’S CORE VALUE PROPOSITION ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
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
IN SUMMARY ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
WHO IS CHEP TODAY? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

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Ecr presentation jw

  • 1. MANAGING THE RETURNABLE PACKAGING IN THE SUPPLY CHAIN JEFFREY WONG, DIRECTOR CHEP SEA OCTOBER 15 TH 2008
  • 2.
  • 3.
  • 4.
  • 5.
  • 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.
  • 12.
  • 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.
  • 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.
  • 18.

Notas del editor

  1. 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.