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