The presentation given by Keith Holliday, Director of Corporate Supply Chain & Logistics at Sonoco Products Company, at the Supply Chain Insights Global Summit in Scottsdale, AZ on September 10, 2014 Can You Imagine a Supply Chain That Will Deliver Goods While Saving the Planet? Join this session to learn how Sonoco Products, a 110-year old packaging/paper company, developed a Corporate Social Responsibility Program and is now listed on the top 100 CSR rankings while delivering 350 consecutive quarters of common stock dividends.

1. Can You Imagine a
Supply Chain That Will
Deliver Goods While
Saving the Plant
Keith Holliday
Director- Supply Chain & Logistics
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2. Sonoco is a Global Packaging Company
• Founded in 1899, Sonoco is a $4.8 billion global provider of consumer
packaging, industrial products, protective packaging and packaging supply chain
services.
• With more than 19,600 employees working in more than 340 operations in 34
countries, we serve some of the world’s best-known brands in some 85 nations.
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2012 2013
Sales $1,912 $1,894
Base EBIT $177 $187
2012 2013
Sales $478 $523
Base EBIT $19 $24
2012 2013
Sales $1,841 $1,859
Base EBIT $141 $138
2012 2013
Sales $555 $572
Base EBIT $39 $37

3. What We Achieved
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4. Sustainable Supply Chains
 Economic
o Risk & Crisis Management
o Customer Relationship Management
o Supply Chain Management
 Environmental
o Environmental Policy/Management System
o Operational Eco-Efficiency
o Product Stewardship
 Social
o Human Capital Development
o Talent Attraction & Retention
o Stakeholder Engagement
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5. Total Solutions Provider - Conception to Collection
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Packaging Design, Innovation
& Artwork Management
Complete Consumer
Packaging
Retail Merchandising
Packaging Supply
Chain Services
Recycling
Sonoco, through its recycling operations, recovers the
equivalent of 65%, of what we place into the market, by weight.

6. Sonoco Recycling
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Sonoco Engaged in recycling since the 1920s
• Globally, collects more than 3 million tons of paper, plastic, metal and
other materials annually
• 40+ processing facilities throughout the world
• 20+ facilities within the US, servicing over 200 sites in the US and
Canada
• 6 full-scale single stream Material Recovery Facilities (MRF);
• Sort, process and market residential and commercial single stream
• Continuous improvement in facility upgrades and educational
services
• Over 65% of material received at the recycling plants or MRF’s
goes directly to Sonoco plants, vertical integration unique to a
packaging company
Vertical Integration - Some products Sonoco manufactures
from the recovered material:
• Composite cans (chip/dough can containers)
• Construction SonoTubes
• Film, tape, and label cores
• Point of purchase displays
CONFIDENTIAL
• Recycled linerboard
• Uncoated boxboard
• Plastic regrind

7. 7
Sonoco Sustainability Solutions – Pursue Landfill-free
Audit: 1-2 days
Report: ~2 weeks Timing dependent upon facility
Perform waste
audit, report
to identify
landfill
reduction,
revenue
enhancement
opps
Propose
equipment
where needed
Remove
standard
recyclables and
materials
designated for
alternate outlets
Pursue Zero
Waste to Landfill
goal
Transport to 3rd
party
contractors for
safe material
destruction
Provide
reporting,
continuously
improve,
researching
best material
outlets
Program designed to help customers create and implement sustainable business solutions:
Influence
packaging
design
• Identify cost avoidance opportunities through reducing and diverting materials currently going to landfills
• Convert waste streams to revenue streams by finding alternative uses for the materials
• Provide web-based summary reporting of both productivity improvements and sustainability statistics
• Assurance of safe destruction of branded material
CONFIDENTIAL

8. Sustainable Supply Chains - Optimized and Agile to
Minimize Footprint with Sustainable Economics
• Push/ Optimization Supply Chains
• Link into the S&OP process
• Demand, Inventory, Capacity loading all planned in advance
• Pull/ Agile Supply Chains
• Late Stage Customization (at or near the customer)
• Pre-staged Inventory (VMI/SMI)
• Integrated Raw Material Planning
• Composite supply chains (Elements of Push/Pull)
• Raw material Planning/ MRP
• Collaborative Planning/ Inventory Risk pooling
• Integrated information flows
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9. Segmenting Supply Chains - Industrial
Conversion must build to order with short lead times
and high service levels
Paper must have Forward, Demand Based planning for
Operational Efficiency
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Paper
Manufacturing
Converting
Tubes & Cores
Composite Cans

10. Segmenting Supply Chains - Consumer
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Customer
Sonoco

11. Risk Management
• Close integration with Customers & Suppliers
• Collaborative planning with key CPG customers
• Geographic coverage with regional converting operations and close couple
customer dedicated operations
• Efficient transportation vs DC based system
• Backup facility coverage for manufacturing risks
• Supplier Sustainability award program
• SRM focused on critical few suppliers
• Assessment of Supply Risk
• Annual risk scenario survey
• Mitigation plans for high risk potential or severe impact
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12. Sonoco Supply Chain Talent
• Corporate team developing supply chain roles… who is in scope?
• Probably 5 major roles with Logistics variations
• Standard Job descriptions, deliverables, metrics across Sonoco
• Since 2008, have been conducting APICS CSCP (Certified Supply
Chain Professional) class on company time
• Probably 50 people now certified including CSRs, Sales, Logistics,
Procurement, and SC professionals
• Considering how to better develop the plant level planners and
schedulers… CPIM?
• Selective use of developmental assignments
• SC  Logistics, SC  Procurement, Div SC  SC Excellence, Div
 Div
• Hiring in young, analytical, systems savvy talent to start
• Scenario modeling, increasing hunger for information and analytics among
business leaders
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13. New Product Integration
• Unique characteristics of segmented
supply chains impact decision making
during the new product development
process
• Must engage supply chain at the right
time to accelerate time to market
• Standardizing processes and metrics to
drive new product lines
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14. Delivering on the Promise
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