1. MANAGING THE RETURNABLE PACKAGING IN THE SUPPLY CHAIN JEFFREY WONG, DIRECTOR CHEP SEA OCTOBER 15 TH 2008

6. CONSIDERATIONS IN CHOOSING DRC AND RPC Requirements and Considerations Display Ready Carton (DRC) Returnable Plastic Container (RPC) Usage cycle One time, one way trip Reusable, Multiple trips Branding and differentiation through packaging Can be made to be distinctive and differentiated Blends into the retail surroundings High Demand Volatility One time costs expensed Invested RPC for peak not utilise during trough unless it is rented RPC Backhauling transportation Advantages across wider geographical areas or borders esp where volumes are low Advantages where there are large volumes need to be backhauled and transportation is available Robustness Can be designed to be robust at a higher cost but not as robust as RPC CHEP’s RPC build to sustain multiple usage in varying supply chains Environment – Life Cycle Inventory Measurements (Franklin Associates, Life Cycle Inventory for RPC and DRC for Fresh Produce Applications) Dispose after use Reuse after wash; requires 39% less energy, produce 95% less total solid waste, 29% less total greenhouse gas emission

7. SCOPING THE PROJECT ACROSS THE SUPPLY CHAIN Finalisation

8. PRIORITISING PRODUCTS FOR RPC OR RETURNABLE BINS Successful projects will need the participation of the Retailers, the Suppliers and the service providers that store and mover the products

9. PRIORITISING PRODUCTS FOR RPC (Examples)

11. DEMONSTRATING CHEP’S VALUE PROPOSITION

13. EXAMPLE OF AN INNOVATIVE DESIGN

14. RPC AND BIN PROCESS MANAGEMENT INSPECT FORECAST DEMAND WASH REPAIR RETRIEVE TRACK CRATE USE SUPPLY RELOCATION SOURCE CAPEX CRATE R&D

16. CHEP’S CASE STUDY: PRODUCE SUPPLY CHAIN IN ANZ Challenge To help a major regional retailer move, store, merchandise and protect a range of fresh produce lines from a base of >1,000 suppliers into 800+ retail stores Replacing 60 million Styrofoam and cardboard containers per annum Solution Collapsible, returnable, vented, column & cross stackable RPC – and a sophisticated tracking system Benefits Improved product quality, reduced handling, transport efficiencies (outbound), 40% reduction in reverse logistics, reduced packaging waste, improved supply chain visibility eg. cycle times, stocks & flows