This document summarizes trends in retail packaging presented by Ishak Abdul Rahim from CHEP Malaysia at the 12th ECR Asia Pacific Conference. It discusses the importance and benefits of retail ready packaging (RRP), current trends in RRP including shelf ready, display ready and infrastructure ready packaging. Barriers to RRP implementation and innovations like one touch replenishment are also examined. The document also summarizes a supply chain study of the beverage industry in Thailand and Malaysia and CHEP's role in providing returnable packaging solutions to reduce costs and waste throughout the retail supply chain.

1. TRENDS IN RETAIL
PACKAGING
ISHAK ABDUL RAHIM,
CHEP MALAYSIA
12TH ECR ASIA PACIFIC CONFERENCE
OCTOBER 5, 2010
AGENDA
THE IMPORTANCE OF RETAIL READY PACKAGING (RRP)
INDUSTRY BENEFITS
AGENTS OF CHANGE
THE DRIVERS
ENVIRONMENTAL FACTORS
CURRENT TRENDS OF RRP
IMPACT OF RRP
INNOVATIONS IN RRP - ONE TOUCH REPLENISHMENT SOLUTIONS
SUPPLY CHAIN STUDY : BEVERAGE INDUSTRY
BEVERAGE TRAYS SUPPLY CHAIN
CHEP’S ROLE
2
ECR KL, OCT 4 2010 CROWNE PLAZA HOTEL

2. THE IMPORTANCE OF RETAIL READY PACKAGING (RRP)
First point of contact by which a company presents its products to
consumers.
Innovation in designs and colours as brands push for shelf appeal
and space.
Improved identification, recognition, direct case to shelf
replenishment.
The introduction of One Touch replenishment helps get the right
product to the right place for shelf replenishment
3
ECR KL, OCT 4 2010 CROWNE PLAZA HOTEL
Source: www.sustainpack.com
INDUSTRY BENEFITS
% of
respondents
4
ECR KL, OCT 4 2010 CROWNE PLAZA HOTEL
Source: IGD. Global RRP. IGD’s guide to building your response. August 2010

3. THE DRIVERS
Electronic business Supply chain Convenience packaging
processes management
Marketability Packaging for ageing Other demands
populations
5
ECR KL, OCT 4 2010 CROWNE PLAZA HOTEL
ENVIRONMENTAL FACTORS
Consumers – High awareness on the credentials of the products, brands
and the companies they buy from.
Commercial factors - supply chain plays a leading role.
Example - polystyrene boxes are banned and no longer acceptable in some
developed countries
Governments –Europe and Australia have targeted packaging for
environmental legislation.
Example - container deposits, packaging levies, bans on certain types of
packaging and imposing recycling rates
Recycling - recycling will benefit financial and environmental costs.
6
ECR KL, OCT 4 2010 CROWNE PLAZA HOTEL
Source: Australian Packaging issues and trends adapted from Packaging Council of Australia, issues # 18, 2005

4. CURRENT TRENDS OF RRP
Shelf Ready Display Ready Infrastructure Ready
Typically corrugated tray Easily Movable Infrastructure modifications are
which sits directly onto the required at certain levels
shelf Most commonly used for
promotional products or short High Volumes, Fast moving
Easy to change categories term display items
7
ECR KL, OCT 4 2010 CROWNE PLAZA HOTEL
Source: Global retail ready packaging, IGD, 2010
IMPACT OF RRP
% of respondents
8
ECR KL, OCT 4 2010 CROWNE PLAZA HOTEL
Source: IGD. Global RRP. IGD’s guide to building your response. August 2010

5. CONSIDERATIONS
Retail Ready Packaging
Emitter Warehousing Transporter Retailers Consumers
Supplier led considerations Retailers led considerations
Review Basic Supply Chain Cost Measure
Principles Efficiencies Models Performance
- Overall cost impact - In store costs
- Compliance
- Total supply chain - Pallets utilisation,
- Avoid - In store
benefits storage, transport,
fragmentation acceptance
- Robustness to shelf space
- Avoid complexity - Supply chain costs
move along supply utilisation, labour,
- Implementation - Sales volumes
chain handling - CAPEX, total
- Measurement - Replenishment
platforms packaging costs &
- Safety compliance time
environment
9
ECR KL, OCT 4 2010 CROWNE PLAZA HOTEL
WHAT DO RETAILERS AND SUPPLIERS WANT?
Retailers Suppliers
Equitable distribution of productivity,
Shelf availability and volumes
benefits and cost savings
Innovative, creative and consistency
Sharing data of RRP
in developing solutions
implementations
Shoppers Oriented Solutions Develop industry standards
Improved collaboration
Improved communication
10
ECR KL, OCT 4 2010 CROWNE PLAZA HOTEL

6. BARRIERS TO IMPLEMENTATION
% of respondents
11
ECR KL, OCT 4 2010 CROWNE PLAZA HOTEL
Source: IGD. Global RRP. IGD’s guide to building your response. August 2010
INNOVATIONS IN RRP - ONE TOUCH REPLENISHMENT SOLUTIONS
Rolling Solutions Delivery Trays
Example: Wheeled pallets in Tesco UK that can Example: Beverage trays on dolly or pallet
be a pallet or a dolly at any point in the supply provides optimum display effect & efficient
chain and will replace semi pallet and existing handling throughout the supply chain.
dollies.
12
ECR KL, OCT 4 2010 CROWNE PLAZA HOTEL

7. BEVERAGE SUPPLY CHAIN STUDY
Study Thailand and Malaysia end to end
supply chain of MNC in carbonated drinks
and beer segment
80% of beverage segment leaders were
interviewed.
Key Findings:
- One-way packaging are common
- Lack of standardisation in platforms
- Don’t look at supply chain flow as
whole.
- Environmental awareness is low
13
ECR KL, OCT 4 2010 CROWNE PLAZA HOTEL
BEVERAGE TRAYS SUPPLY CHAIN
TRAY, DOLLY & PALLET INDUCTION STATIONS AUTOMATED PACKING LINE
ASRS WAREHOUSING & DISTRIBUTION RETURN OF EMPTY BOTTLES IN TRAYS
14
ECR KL, OCT 4 2010 CROWNE PLAZA HOTEL

8. CHEP BEVERAGE TRAYS BENEFITS
Benefits
Helps reduce total costs
Optimum display effect
Efficient handling
Excellent stability
One touch merchandising
Eliminate cardboard waste
Reduce repacking / unpacking
time.
Improve brand positioning
Reduce import duty and tax cost.
15
ECR KL, OCT 4 2010 CROWNE PLAZA HOTEL
CHEP’S ROLE
Focus on Reduce, Reuse, Recycle.
Innovation based on a convergence of
packaging needs
- the gap between product protection and
portability, cost efficiency, sustainability.
- solutions that provide speed to shelf, less
waste and safer handling.
Create industry pool and standardize.
Examples
- Returnable plastic containers
- Returnable beverage trays
- Returnable shelf ready packaging (SRP)
- Returnable display pallets.
16
ECR KL, OCT 4 2010 CROWNE PLAZA HOTEL

9. THANK YOU