10_2012_pallet_pooling_chep_zywiec_zdroj

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Packaging management costs in the supply chain

Iwona Nowakowska

Maciej Kubiak

Supply Chain Director

Country General Manager


About 呕ywiec Zdr贸j S.A. (Danone Waters)

Danone Group Employment - approx. 570 employees


呕ywiec Zdr贸j S.A. is a leader in the sector of bottled water in Poland

Other 43,6%

Polskie Zdroje 8,5% Coca Cola 5,8%

Nestle Waters 9,7%

32,4%

Source: Nielsen, Total Poland+Petrol Stations, 2011, value shares


CHEP is a global leader in pallet pooling services

Bydgoszcz Gądki

Warsaw Kampinos Radom

11 mln

4,500

600

Pallets Issued

Delivery Points

Customers

Świętochłowice

CHEP Service Centres CHEP Office


7 new countries were added to CHEP business in 2011


History of collaboration CHEP - 呕ywiec Zdr贸j S.A.

2010 2009 2008

End of analysing Value Chain

Begin of Value Chain Analysis

2007 Begin of negotiation regarding pallet management

Begin of cooperation (800x600)

2012 Begin of cooperation (1200x800)


Pallet Management at Żywiec Zdrój S.A. Requirements for pallet entry to producer’s factory

Volume

Beverage production requires high demand for pallets

Seasonality in sales causes fluctuation of pallet demand during the year

Production cycle requires just-in-time pallet supply

Limited space for pallets storage

The use of pallets on automated production lines requires high-quality carriers

Seasonality

Production

Quality


Pallet Management at Żywiec Zdrój S.A. Requirements for pallet entry to retailer’s location •

Pallet acceptance by customers

Shortening time of delivery

Decrease in responsibility for pallet management by Żywiec Zdrój and cooperating companies (e.g. Transporters, 3PLs)

Improvement in business relations with customers and other business partners

Acceptance

Time

Responsibility

Relation


Management of EUR pallets Cost generation at 呕ywiec Zdr贸j S.A.

Pallet Supplier

Distribution Centre Pallet purchese

Pallet Recycling

Pallet Administration

Pallet Acceptance

Pallet losses

Wholesalers

Retailers Increase in pallet balances

Repairs Return transport

Transport


Pallet management cost identification Value Chain Analysis Analysis of the Value Chain allows to estimate the cost of pallet management in the company

Supply Chain Analysis

SWOT Analysis

Cost Analysis

Analysis of the current pallet management system

Presentation of strengths and weaknesses of the current system

Presentation of current and estimated cost of pallet management


Pallet management cost identification Value Chain Analysis Do we have full knowledge about the number of pallets in the system?

How much does the pallet exchange cost?

Is the number of pallets shipped equal to the number of pallets received?

What factors influence the cost of pallet management?

Where are the biggest pallet losses?

Are we sustainable in pallet management?


What factors influence the cost of pallet management?

Transport

Variable pallet price

Pallet losses

Increase in transport costs

Unstable fuel prices

Increase in turnover /Sales

Responsibilities concerning sustainability


Cooperation with CHEP allowed 呕ywiec Zdr贸j S.A. to improve its supply chain ...

Security of supply

Consistent quality

Minimised administration

Safety in manufacturing

Safety in warehouse

Reduced cost

Distribution Centre

Acceptance (lack of complaints)

Faster deliveriy

Retailers

Wholesalers

Limited responsibility

No appointment for collection

Improvement of relations with customers and carriers

Transport Efficiencies


...and to bring transparency concerning the costs of pallet management


Pallets and the Environment

PEFC and FSC CHEP has the PEFC and FSC certificate, which gives Żywiec Zdrój S.A. guarantee, that the use of wood for the production of pallets generates from a legal source

5 700 trees... are saved within 10 years by Żywiec Zdrój S.A. using CHEP pallets

5 tons of CO2... are saved within 10 years by Żywiec Zdrój S.A using CHEP pallets


Żywiec Zdrój S.A. Social Responsibility in the context of Environmental Protection    

Climate footprint reduction (reducing CO2 emissions)

Tree Planting and Education Revitalization of green areas, support the liquidation of illegal waste dumps Organization or Co-organization of educational workshops and ecological happenings, such as „Waste collection", "Eco Rally"


Iwona Nowakowska

Maciej Kubiak

Supply Chain Director

Country General Manager


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