11 empties standardization_and_optimization_pan_baltic_project_for_milk_crates
TRANSCRIPT
Empties Optimisation & Standartisation Workgroup
November 5, 2007
Empties Optimisation & Standartisation Working Group
Established to deal with currently inefficient use of resources in the whole supply chain created by a number of various different non-stackable types of secondary returnable packaging in use in the Baltic States
Working Group:Main Issues to Address
• Returnable Transportation Packaging (RTP) standartisation within/between product categoriescategories
• RTP pooling opportunities
• Efficient RTP criteria
• HOT: Dairy crates standartisation
Current Dairy Crates Overview: Manufacturer Perspective
Crate for polypacks protected with additional
carton walls from 2 sides
Current Dairy Crates Overview: Manufacturer Perspective
Current Dairy Crates Overview: Manufacturer Perspective
Ideal (Missing) Polypack Crate Criteria
• Same sizes in terms of length and width as currently used box
• Closed by walls from all 4 sides, holding the product inside the crate
• Bottom part closed• Interstackable - could be placed one on another • Easy to handle (storing, moving, displaying, returning, • Easy to handle (storing, moving, displaying, returning,
washing)• Fits manufacturer packaging lines (automatic lines)• Has hand-holders• Effective in cooling• Cost-efficient• Products should be visible for shoppers• Optimum colour for display in store is light grey
Non-Returnable Packaging– “Simple” carton boxes vs.
– Retail Ready Packaging
Current Dairy Packaging Overview: Retailer Perspective
Returnable packaging– Different through countries
Current Situation in DairyCurrent Dairy Packaging Overview: Retailer Perspective
LV
LT
LT
LT EE
LVLT
LV LV
• 15-20 different types of crates per country distributed
• Different sizes & standards
• Non-stackable: high risk of damage & shrink, decreased on shelf availability
Dairy Plastic CratesCurrent Dairy Packaging Issues
shelf availability
• Proper crates missing for milk in plastic and small size products, manual not efficient solutions prepared by suppliers
• Complicated handling & return
Dairy Crates in the Baltic’s Today
Current Dairy Crates Overview: Plastic Manufacturer Perspective
High costs = high sales prices due so many different types of crates in use
World Practice of Dairy Crates
Current Dairy Crates Overview: Common Needs
• Fit current industry standards of primary packaging
• Product quality protection• Hygiene • Hygiene • Ease of handling at all points of supply chain• Merchandising efficiency• Stackability• Optimised number of products inside• Reduction of transport and warehousing costs• Excellence in Point of Sales
Working Group Work-in-Progress
Only 3, maximum 4 types of cratesAll stack together in one systemMuch easier and faster handling (storing,
moving, displaying, returning, washing, returning)returning)
Bigger orders = lower costsLess waste
Dairy Crates Potential Solution
Dairy Crates Solution - Interstacking
Dairy Crates Standartisation Benefits for Manufacturers
• Cost effectiveness for manufacturers due to production processes automatisation:– savings in labour costs– savings in packaging material/carton
• Lower prices for crates – bigger orders • Lower prices for crates – bigger orders from producers/ all Baltic manufacturers would create economy of scale for crate manufacturers and drive costs down
• Common solution for all retailers – no risk due to standardised secondary packaging
• Standardisation process should start from high volume products
• Savings due to stackable packaging solutions
• Increased efficiency due to possibilities to have shorter controlling time in sales process with coding
Dairy Crates Standartisation Benefits in Logistics
sales process with coding of crates – scanner solutions
• Effective and acceptable sales units – higher efficiency in terminal picking processes
• On-shelf availability increase• Less vulnerable packaging would reduce waste
• More attractive and clear shelves layout in stores drives customer saisfaction
• Efficient transportation, handling and return• There is a difference in handling 20 vs 2 types of crates
Dairy Crates Standartisation Benefits for Consumer & Retailer
• There is a difference in handling 20 vs 2 types of crates• Efficient use of space and human resources• Speed of handling in all chain• Appropriate size of the crate
• Re-usable packaging is friendlier to environment• Biggest benefit is agreeing same crate standards and
labelling, so all parties benefit from standardised empties
Join us!
If this topic is relevant for your business, join us in room Gamma1, 2. floor @ 12.50
Efficient Distribution and Transportation