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LINPAC Allibert

Inventing new ways of delivering value


Agenda

■ ■ ■ ■ ■ ■

UK Retail snap shot UK RTP (Returnable Transit Packaging) system UK pool size / rotations per retailer Why standardisation is important Bread basket standardisation case study Opportunities to grow RTP participation: - Folding crate - Minipac & Maxipac - Dollies


UK grocery market snapshot: Summer 2012 250

2012 £163.2bn

9%

2017 £192.6bn

200

150

5 year growth +18.0%

10%

100

CAGR +3.3% )ro n b £ ksz( ceytailm G

133.6 3.8%

139.2

146.0

152.2

157.3

163.2

168.1

173.6

179.6

186.0

192.6

7% 6%

4.9%

5%

4.3%

4.2%

8%

3.3%

3.8% 2.9%

3.3%

3.4%

3.6%

3.5%

4% ) (% th w gro YO

3%

50

2% 1% 0%

0 2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

■ Rate of growth slowing ■ Energy costs and austerity measures affecting household spend ■ Very competitive market Source: IGD Research; IGD ShopperVista July 2012. All market data is for year to April


Online, discount and convenience to lead growth

Year to April 2012 Value (ÂŁbn)

Year to April 2017 Value (ÂŁbn)

Change in Value %

72.3

76.9

6.4

34.5

38.8

12.5

33.9

43.6

28.5

Discounters

7.5

12.4

64.7

Online

5.6

11.1

97.7

Other retailers

9.4

9.8

4.2

163.2

192.6

18.0

Superstores and hypermarkets Small supermarkets (3,000-25,000 sq ft) Convenience

Total


UK RTP System

■ Roll out of standard Grocery RTP since early 1990s ■ Used mainly for domestic produce & fresh meat ■ Bakeries now have shared-use dedicated pool ■ Other RTP formats used for high volume beverage lines


Why use RTP?

■ Reduce supply chain cost ■ Improve in store space utilisation ■ Reduce waste ■ Enhance product protection ■ Lower health & safety risks ■ More consistent merchandising ■ Improved carbon footprint


UK Crate Pool - Snap Shot

Maxinest Share Tesco UK Aldi Coop M&S Asda Sainsbury Morrisons Waitrose Mkt Share % 34 3 7 4 17 16 12 7 Est annual tray 220 18 36.8 152 160 200 170 trips m Charging Trip Fee Trip Trip Fee Trip Trip Trip Fee Trip Fee Trip Fee method Fee Fee Fee Service Norbert Logtek Norbert Logtek Norbert K&N IFCO and IFCO provider self Total Fleet 11,000 1,200 2,419 7,455 5,795 10,500 4,930 2,500 Size 2011 (000's)

■ Trip fee includes deposit, issue fee & daily hire from €0.30 to €0.50 ■ Average cycle times can fluctuate between 14 & 21 days (some as low as 7 days)


Why standardisation is important

■ Supplier to shelf journey to be achieved in the shortest, most responsive and efficient way possible ■ Maximise availability, drive sales & reduce wastage ■ Suppliers & depots able to invest in generic automation ■ Standard merchandising fixture ■ Less time sorting kit at back of store ■ Simpler pool management enabling better stock management


The cost benefit of standardisation

■ UK Grocery Pool RTP trips estimate 850-million per year ■ Approx 47-million trays required to support this ■ Variants being rationalised ■ Tray types reduced by 50% to an average of four ■ Less tray sorting at back of store & wash sites ■ Saving realised to be approximately €30m PA


Bread case study: No. of variants

■ Different suppliers used different baskets ■ Each type of basket was a different size ■ This added to replenishment cost ■ Wasted space at back of store ■ Difficulty in repatriating baskets to correct suppliers


Case study: bread merchandising

From this...

‌ in a tray that works for all parties

to this...


Project Team

■ Retailer ■ Bread Suppliers ■ Equipment Pooling Operators ■ Tray suppliers ■ Dolly / “wheel” suppliers ■ Shelving manufacturers


Outline criteria

Suppliers

Stores

Staff

Shopper

Agree common tray

Increase availability

Easy to check date code

Aisles less congested

Fit all products

Decrease aisle congestion

Easy ID of bread type

Can get what they want

Achieve high brand visibility/recognition

Improve quality (reduce handling)

Easy to move stacks

Good product visibility

Work with existing handling methods

Increase sales

Easy to replenish the fixture

Easy to shop

Work with existing handling equipment

Reduce waste

Easy to stack empty trays on wheels

Good product quality

Work with existing inbakery automation

Ten loaf tray (Health & Safety)

Easy to remove equipment from shop floor

Equipment is more “customer friendly�

Fit with modular fixture format Easy to rotate Easy to check bread in on receipt (count)


RTP growth: Interfold

The new folding reusable transit packaging solution for food and grocery distribution


RTP growth: Interfold

■ Over 90% of UK fresh produce & meat distributed in Maxinest RTP ■ 90% of imported produce still in card ■ 150-million cases of imported produce each year (excluding bananas) ■ Need to develop a folding crate that inter-works with existing nesting crates ■ Folding crates typically offer 10%+ internal volume ■ Also able to stack 8,580 units on reverse loads ■ Inter–stacking of trays does not impact on productivity at depot.


RTP growth: Interfold


RTP growth: Maxipac

Pallet and wheel based bulk shipping & display units


RTP growth: Maxipac case study

Carrefour using Maxipac for potatoes Problem: ■ Assembly of bulk units slow ■ Product prone to damage ■ Under recovery of vehicle costs ■ Non–stackable ■ Poor display in store ■ Not easy to replenish


RTP growth: Maxipac case study

Carrefour using Maxipac for potatoes Outcome: ■ 56% improvement in stock density ■ Reduced transport cost ■ Faster merchandising time ■ Improved customer quality perception ■ Delivers a more cleaner and consistent display


RTP Growth: Maxipac, what good looks like!


RTP Growth: Minipac

■ New half size unit: 600x400 ■ Ideal for smaller stores ■ Stores which don’t sell high volume potatoes ■ Ideal for root vegetables... ■ ...and other categories such as eggs which need higher level protection ■ Also promo off fixture display activity


RTP Growth: Maxipac & Minipac, what good looks like!


RTP growth: Dollies

Dollies Ease & speed manual handling operations


RTP growth: Dollies

■ 800x600 & 600x400 introduced more than ten years ago ■ Enables faster replenishment in store ■ Faster picking at depot ■ Can be used as merchandising unit


Supplier

■ For high volume ‘fresh lines’ crates can be packed straight onto dollies instead of pallets ■ The standard Euro crate can be stacked 11 high onto dollies – the same as a pallet ■ Full vehicle loads would hold 1,408 full trays & 64 dollies ■ Utilise vehicle better when collecting compared to wood ■ Approximate trip price under €2.00


Depot

â–

Dollies used for high volume lines into big stores can be cross docked saving picking hours at depot and at store level.


Store

■ Colleagues in store can move crates easily and quickly ■ At peak trading times produce can me merchandised straight from dollies ■ Increase in sales, lower wastage ■ Increase in productivity


Store

From experience gained working with other retailers; the increase in efficiency at the last 50 metres is as follows: l

£12€ / week sales increase per store

£1.2€ / week saved on wastage per store l

£0.5K€ / week saved on lower wages per store l

■ These three main areas would save on add on average £13.7K/week per store. ■ Multiply 365 days x store no.s


Universal dolly

Clover-leaf recesses allows dollies to stack safely when empty

Pop-ups safely retain loads

Clip-on/off interlocking handle

Unique flip-out extension for carrying nested ALCs

Clearance for forklifting dolly on or off delivery vehicle

100mmĂ˜ braked castors


Summary

■ Reusable standard RTP’s can be win:win ■ In store benefits ■ Availability ■ Reduced ‘out of stocks’ ■ Supplier benefits ■ Improved product protection ■ Cost ■ Sustainable

12_2012_Linpac_Allibert_Baltic_ECR_Nov  

http://ecr-baltic.org/f/docs/12_2012_Linpac_Allibert_Baltic_ECR_Nov.pdf

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