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11 empties standardization_and_optimization_pan_baltic_project_for_milk_crates
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11 empties standardization_and_optimization_pan_baltic_project_for_milk_crates


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  • 1. Empties Optimisation & Standartisation Workgroup November 5, 2007
  • 2. 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
  • 3. Working Group: Main Issues to Address • Returnable Transportation Packaging (RTP) standartisation within/between product categories • RTP pooling opportunities • Efficient RTP criteria • HOT: Dairy crates standartisation
  • 4. Current Dairy Crates Overview: Manufacturer Perspective
  • 5. Current Dairy Crates Overview: Manufacturer Perspective Crate for polypacks protected with additional carton walls from 2 sides
  • 6. Current Dairy Crates Overview: Manufacturer Perspective
  • 7. 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, 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
  • 8. Current Dairy Packaging Overview: Retailer Perspective Non-Returnable Packaging – “Simple” carton boxes vs. – Retail Ready Packaging
  • 9. Current Situation in Dairy Current Dairy Packaging Overview: Retailer Perspective Returnable packaging – Different through countries LT LV LT LT LV LT EE LV LV
  • 10. Dairy Plastic Crates Current Dairy Packaging Issues • 15-20 different types of crates per country distributed • Different sizes & standards • Non-stackable: high risk of damage & shrink, decreased on shelf availability • Proper crates missing for milk in plastic and small size products, manual not efficient solutions prepared by suppliers • Complicated handling & return
  • 11. Dairy Crates in the Baltic’s Today
  • 12. Current Dairy Crates Overview: Plastic Manufacturer Perspective High costs = high sales prices due so many different types of crates in use
  • 13. World Practice of Dairy Crates
  • 14. Current Dairy Crates Overview: Common Needs • Fit current industry standards of primary packaging • Product quality protection • 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
  • 15. Working Group Work-in-Progress  Only 3, maximum 4 types of crates  All stack together in one system  Much easier and faster handling (storing, moving, displaying, returning, washing, returning)  Bigger orders = lower costs  Less waste
  • 16. Dairy Crates Potential Solution
  • 17. Dairy Crates Solution - Interstacking
  • 18. 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 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
  • 19. Dairy Crates Standartisation Benefits in Logistics • Savings due to stackable packaging solutions • Increased efficiency due to possibilities to have shorter controlling time in sales process with coding of crates – scanner solutions • Effective and acceptable sales units – higher efficiency in terminal picking processes
  • 20. Dairy Crates Standartisation Benefits for Consumer & Retailer • 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 • 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
  • 21. Join us! If this topic is relevant for your business, join us in room Gamma1, 2. floor @ 12.50
  • 22. Efficient Distribution and Transportation