Using EPC to cut costs at NZ's largest kiwifruit packhouse
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Utilizando EPC para reducir los costos en producción de kiwis en Nueva Zelanda
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Using EPC to cut costs at NZ's largest kiwifruit packhouse
- 1. New Zealand Using EPC to cut costs at NZ’s largest kiwifruit packhouse Dr Peter Stevens Chief Executive, GS1 NZ
- 2. First, a Word About New Zealand Terminology… T i l kiwis kiwis kiwis kiwifruit 2 © 2009 GS1 New Zealand
- 3. Contents New Zealand Introduction Eastpack’s Supply Chain Solution Overview Project Timeline j Results After 1st Season 3 © 2009 GS1 New Zealand
- 4. Where (and with whom) it all New Zealand started … t t d 4 © 2009 GS1 New Zealand
- 5. New Zealand’s Bay of Plenty Zealand s New Zealand 80% o New Zealand’s of e ea a d s kiwifruit production 5 © 2009 GS1 New Zealand
- 6. EastPack Limited New Zealand Established in 1983 in Edgecumbe 1983: packed 60,000 trays 2008: packed 15.7m trays 12% of industry GREEN trays 24% of industry GOLD trays 42 coolstores at 3 sites 6 © 2009 GS1 New Zealand
- 7. Te Puke site: New Zealand • purpose built • < 7 years old • packs 8m t k 8 trays, of which 5 t f hi h 5m trays are GOLD 7 © 2009 GS1 New Zealand
- 8. New Zealand Edgecumbe site: • 3.5m trays of GREEN and GOLD 8 © 2009 GS1 New Zealand
- 9. New Zealand Opotiki site: • 3.5m trays of GREEN and GOLD 9 © 2009 GS1 New Zealand
- 10. Contents New Zealand Introduction Eastpack’s Supply Chain Solution Overview Project Timeline j Results After 1st Season 10 © 2009 GS1 New Zealand
- 11. Eastpack Supply Chain (simplified) New Zealand $1b+ 11 © 2009 GS1 New Zealand
- 12. EastPack s EastPack’s Responsibilities New Zealand To deliver in full on time in spec (DIFOTIS) • Checkpoint at the wharf • Replicated at coolstore door DIFOTIS Penalties are severe • NZ$ 400 / pallet main season • NZ$ 500 / pallet kiwistart season • Total cost 2007: NZ$ 280k Penalties for not loading ‘kiwistart’ product by the end of Week 24 12 © 2009 GS1 New Zealand
- 13. Bonus System as well New Zealand If EastPack can be flexible to fill late order there is the ability to earn up to NZ$ 200 / pallet 13 © 2009 GS1 New Zealand
- 14. Issues with meeting orders New Zealand Orders are comm nicated 10 da s in ad ance communicated days advance Orders are changed up t 2 d Od h d to days b f before close l load date • change in market requirement • vessel arrival dates change • fresh fruit deteriorates faster than expected 14 © 2009 GS1 New Zealand
- 15. Issues with meeting orders New Zealand 6,600 different SKU’s • often pallets need reworking to meet orders S o t oad g Short loading window do • GOLD = 20 weeks • GREEN = 40 weeks The bottleneck was finding pallets in the coolstore 15 © 2009 GS1 New Zealand
- 16. Large Seasonal Workforce New Zealand 1,300 seasonal staff employed , p y 31 different nationalities Relatively short picking season, 83 days. days Packing main pack & Controlled Atmosphere product: 140 days. 16 © 2009 GS1 New Zealand
- 17. Solution needed… New Zealand To quickly find product in the coolstores A system that requires no human intervention. 17 © 2009 GS1 New Zealand
- 18. Contents New Zealand Introduction Eastpack’s Supply Chain Solution Overview Project Timeline j Results After 1st Season 18 © 2009 GS1 New Zealand
- 19. Solution Overview New Zealand 19 © 2009 GS1 New Zealand
- 20. Solution: EPC-enabled Pallet New Zealand Cards C d 20 © 2009 GS1 New Zealand
- 21. Solution: EPC-enabled New Zealand Forklifts F klift 21 © 2009 GS1 New Zealand
- 22. Solution: Location New Zealand 22 © 2009 GS1 New Zealand
- 23. Solution: Putting It All New Zealand Together T th 23 © 2009 GS1 New Zealand
- 24. Contents New Zealand Introduction Eastpack’s Supply Chain Solution Overview Project Timeline j Results After 1st Season 24 © 2009 GS1 New Zealand
- 25. Project Overview New Zealand Initial Meeting: • 18th Jan 2007 • General information about the benefits of RFID, EPC Scoping to RFP (Request for Proposal): • March - May 2007 Proof of Concept to Pilot: • July to October 2007 y Full Roll-Out • December 2007 to April 2008 Target: 100% of pallets t k d b start of season (20th M h • T t f ll t tracked by t t f March 2008) • 42 coolstore @ 3 sites, ±30 forklifts, 12,000 SkyMarkers, etc… 25 © 2009 GS1 New Zealand
- 26. Contents New Zealand Introduction Eastpack’s Supply Chain Solution Overview Project Timeline j Results After 1st Season 26 © 2009 GS1 New Zealand
- 27. Results New Zealand 2007 2008 DIFOTIS penalties $280k $90k ‘Kiwistart’ penalties $250k Nil Coolstore managers 1 Nil ‘burnt out’ Forklifts 24 16 Gold Fruit Loss 8% 4% Volume (T V l (Trays) ) 1.8m 18 2m (+10%) 2 ( 10%) *Investment: USD300,000. ROI= 1 season 27 © 2009 GS1 New Zealand
- 28. Coolstore Map: Pallet New Zealand Locations L ti 28 © 2009 GS1 New Zealand
- 29. Coolstore Map: Forklift New Zealand Locations L ti 29 © 2009 GS1 New Zealand
- 30. Underway now… New Zealand 1. Further mining the data 2. We are out of our 24 months ‘non-compete’ clause 3. Targeting Eastpack’s competitors & single-desk 3 T ti E t k’ tit i l d k exporter (Zespri) 30 © 2009 GS1 New Zealand
- 31. New Zealand 31 © 2009 GS1 New Zealand
- 32. Overall New Zealand We have taken the chaos out of the coolstore Staff feel like they are part of a winning team again again. We met the KPI’s and capex requirements of Eastpack’s board. Eastpack increased shareholder value. E t ki d h h ld l 32 © 2009 GS1 New Zealand
- 33. The Team That Pulled It Off… New Zealand 33 © 2009 GS1 New Zealand
- 34. New Zealand 34 © 2009 GS1 New Zealand