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

  1. 1. Empties Optimisation & Standartisation Workgroup November 5, 2007
  2. 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. 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. 4. Current Dairy Crates Overview: Manufacturer Perspective
  5. 5. Current Dairy Crates Overview: Manufacturer Perspective Crate for polypacks protected with additional carton walls from 2 sides
  6. 6. Current Dairy Crates Overview: Manufacturer Perspective
  7. 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. 8. Current Dairy Packaging Overview: Retailer Perspective Non-Returnable Packaging – “Simple” carton boxes vs. – Retail Ready Packaging
  9. 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. 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. 11. Dairy Crates in the Baltic’s Today
  12. 12. Current Dairy Crates Overview: Plastic Manufacturer Perspective High costs = high sales prices due so many different types of crates in use
  13. 13. World Practice of Dairy Crates
  14. 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. 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. 16. Dairy Crates Potential Solution
  17. 17. Dairy Crates Solution - Interstacking
  18. 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. 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. 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. 21. Join us! If this topic is relevant for your business, join us in room Gamma1, 2. floor @ 12.50
  22. 22. Efficient Distribution and Transportation