James Tupper, ECR Learning & Change Manager, IGD · WRAP funded IGD prog ’11 Waste Prevented (tonnes) Pot Noodles 10 Sugar - Asda102 75Biscuits and Sugar - Tesco 115 Cans 295 Veg

© IGD 2012

James Tupper, ECR Learning & Change Manager, IGD

11.30 – 11:50 Main Hall, ECR Baltic Forum (Vilnius), 8th November 2012

© IGD 2012

Who we are

• Over 750 members from across the supply chain

• At the heart of the industry for 100 years

• Total supply chain perspective

• In-house team of 100 – Over 30 analysts with relevant industry experience

• Funding: 20% Subscriptions , 80% Trading

© IGD 2012

Our Purpose – Making a Difference

• Training and development – Helping people flourish at all

stages of their careers

• Skills and employment – Providing skills and career

opportunities

• Nutrition and technical – Helping consumers make more

informed choices

• Sustainable supply chains – Delivering environmental benefits

through guidance and best practice

Download our latest impact report for more information on how we deliver public benefit:

www.igd.com/impact

http://www.igd.com/impact

© IGD 2012

Agenda

• Food and packaging waste in the supply chain: preventing it from occurring in the first place

• Performance gaps and their scale. Why the gaps have grown and why opportunities to improve have not been exploited

• How some in the industry are challenging assumptions, driving change, demonstrating achievements and influencing the framework within which it operates

• Hard hitting case studies hot off the press from some of the most proactive FMCG - retail businesses in UK

How to Improve Performance Together will be fully addressed in the special workshop from 13.30 to 14:55 in the Secondary Hall


© IGD 2012

Sustainability: the three pillars or the triple bottom line

Global Reporting Initiative Sustainability Performance Indicators

Social

Economic Environmental

Sustainable

Viable

Equitable Bearable

• Materials

• Energy

• Water

• Biodiversity

• Emissions, effluents and waste

• Products and services

• Labor Practices and Decent Work

• Human Rights

• Society

• Product Responsibility

• Economic performance

• Market presence

• Indirect economic impacts

• Compliance

• Transport

• Overall

Living within our means so future

generations can meet

their needs

http://sustainability.mycgforum.com/

© IGD 2012

Waste in the supply chain

© IGD 2012

• How may tonnes of Food and Drink waste do you need to Recover to be equivalent in Greenhouse Gas terms to Preventing one tonne of Food and Drink waste?

Adapted from Defra/DECC’s Greenhouse Gas Conversion Factors for Company Reporting

Prevention Recovery vs. Multipliers (CO2e)

Prevent / Redistribute

Compost Prevent /

Redistribute Anaerobic Digestion

> 8.3 > 6.6

© IGD 2012

1 2 3 4 5 6 7 8 9

Aluminium cans and foil

Wood

Steel Cans

Textiles

Board (78% crgt, 22% crtnbrd)

Glass (colours seperated)

Plastic film (incl bags)

Plastic rigid (incl bottles)

Glass (mixed colours)

Food and Drink Waste (AD)

Food and Drink Waste (Compost)

1.1

1.2

1.6

1.6

2.0

2.3

2.4

2.8

4.1

6.6

8.3

Prevention vs. Recycling Multiplier (CO2e)*

* Net Benefit of Saved Production Emissions Versus Landfill vs. Net Benefit of Recycling Versus Landfill data from July 2011 Guidelines to Defra/DECC’s Greenhouse Gas Conversion Factors for Company Reporting

Government’s new tougher UK packaging recovery rate targets 2012 2017

Overall 74% 79%

Glass 81% 64% re-melt

Plastic 32% 57%

Paper 69.5%

Steel 71% 76%

Wood 22%

Aluminium 40% 55%

© IGD 2012

Agenda







© IGD 2012

Wasting Profit

Waste Margin

Rates as a % of Sales

Waste Margin

Rates as a % of Sales

© IGD 2012

Barriers to performance improvement The potential of many underexploited opportunities for savings go straight to the bottom line are obscured because we are:

• Immune to the effects on waste of our decisions elsewhere in the business or in other companies

• Dazzled by spotlights on the great work to light-weight or plant-base packaging and to reduce household waste

• Busy, and we have better qualified and responsible colleagues in waste and sustainability departments

• Cautious to open a whole can of worms with colleagues, let alone trade partners

• Busy diverting waste to avoid landfill tax and salvage some value as feedstock to recovery industries

• Cautious about talking of issues that can too easily be misunderstood and damage reputations

© IGD 2012

Agenda







© IGD 2012

Retail Packaging 2004 - 2008

Plastics – Multi Trip

Plastics – Single Trip

Corrugated

© IGD 2012

Packaging Material Cycles

Source: IGD Research

Home

Retail

Extraction Manufacture Filling

Distribution

Incin

era

tio

n

or

Landfill

Recovery

Retu

rn /

Reuse

Recycle

Tertiary Primary Secondary

© IGD 2012

Product and Packaging Waste 2010 -

• Customer Service Director

• Supply Chain Director

• Customer Supply Chain Manager

• Store Ordering Programme Manager

• Sustainability Manager

• Supply Chain Controller

• Customer Services Executive – Multiple

• Supply Chain Environment Manager

• Head of CSR & Corporate Affairs

• Fresh Supply Chain Controller

• Supply Chain Project Manager

• European Sustainability Director

• European Activity Management

• Operational Risk Manager UK & Ireland

© IGD 2012

Supply Chain Prod & Pack Waste (tonnes, 2009)

Returns Returns managed for suppliers

Redistribution / alternative markets

Fact

ory

In-G

ate

/ U

K P

ort

Recovery (including recycling and composting)

Recovery (including recycling and composting)

Redistribution / alternative markets

Manufacturers Supply Chain

Sewer / controlled water course

Dispose

Retailers Supply Chain

Dispose

Till Till

Red

uce to

Clear

Mark D

ow

ns

Arrows not to scale !

5,275 243

© IGD 2012

Struggling to see the Lines

© IGD 2012

IGD Waste Targets

150,000 tonnes Diverted from Landfill and Sewer by end 2012

≈ 10,000,000 wheelie bins

≈ 5,000,000 wheelie bins

75,000 tonnes Prevented or Redistributed by end 2012

http://bookersite.mccanni.co.uk/home.asp

http://www.compass-group.com/

http://www.dairycrest.co.uk/

http://www.palmerharvey.co.uk/home.html

http://www.wiseman-dairies.co.uk/servlet/HsPublic?context=ir.static.jsp&client=rwd&path=util&service=getPage&page=wiseman_home_page

© IGD 2012

Change-by-change reporting Identify

change & impact

See how improvement

achieved

Gauge return on

investment

Celebrate achievement

Share best

practice

Drive improvement

Broadsheet & broadcast

coverage

Inform consumers & government

Inspire trading partners

Get industry on front-foot

© IGD 2012

2010 Supply Chain Waste Submissions

75,000t waste Prevented or Redistributed 38,000t

150,000t waste Recovered or Recycled

115,000t

© IGD 2012

Types of initiatives of impact in 2010

The reported initiatives that prevented waste (or redistributed it to alternative markets) fell into one or more of the following categories:

• Design – of product and packaging to protect or prolong the product

• Range – selecting a new product range to minimise waste while increasing sales

• Forecast – to better deal with weather, new products and / or promotions

• Measure – focusing people's attention on preventing rather than managing waste

• Engage – engaging and motivating our teams to want to eliminate waste

• Process – accelerating the value adding flows of material and information

• Collaborate – working better together with trading partners to prevent waste

• Redistribute – via alternative markets for human or animal consumption

We also welcome reports about recovery / recycling initiatives that have diverted waste from, for example, landfill or sewer

1 2 3 4 5 1 2 3 4 5

http://www.igd.com/measurewaste

http://www.igd.com/engagewaste

http://www.igd.com/forecastwaste

http://www.igd.com/designwaste

http://www.igd.com/rangewaste

© IGD 2012

Focus on Prevention

Definition of the “Five to Drive” based on survey of the root causes of waste

Design – of product and packaging design to protect or prolong the product

Range – selecting a new product range to minimise waste while increasing sales

Forecast – to better deal with weather, new products and promotions

Measure – focusing people's attention on preventing rather than managing waste

Engage – engaging and motivating our teams to want to eliminate waste

• Waste Prevention

• Waste Management






© IGD 2012

© IGD 2012

Collaboratative Waste Prevention Toolkit

© IGD 2012

© IGD 2012

The Five-to-Drive

Marketing

Commercial

Supply Chain

Operations

Sustainability Engage – engaging and motivating our teams to want to eliminate waste










© IGD 2012



So, how can we influence waste?

Engage – engaging and motivating our teams to want to eliminate waste



© IGD 2012

© IGD 2012

2010 and 2011 Supply Chain Waste Submissions

75,000t waste Prevented or Redistributed 70,000t

150,000t waste Recovered or Recycled

195,000t

© IGD 2012

Agenda







© IGD 2012

On-going Performance Improvement Programme

© IGD 2012

IGD Performance Improvement Programmes

March2011

March2010

31 Food Vendors 32 Consumable Vs 20 Fresh Vendors

Category RRP

Dec 2010

Aug 2010

On Shelf Availability

March 2008

June 2007


April 2005

Sept 2004


July 2005

Feb 2005


May 2006

Sept 2005


Jan 2007

July 2006


Sept 2004

Nov 2003


Sept 2007

Nov 2006

Promotions Mgt

June 2008

Jan 2008


July 2010

July 2008

Easy ID

Dec 2009

Aug 2009


Nov 2010

April 2010

Supply Chain Waste

January 2012

Jan 2011

Supply Chain Waste

Nov 2011

May 2011

Category RRP

15 Food 1 Vendors 15 Food 2 Vendors 24 Heath & Wellness

http://www.glanbia.com/

http://www.tesco.ie/

http://www.superquinn.ie/

http://www.scjohnson.com/home.aspx

http://www.world-flowers.co.uk/index.html

http://bookersite.mccanni.co.uk/home.asp

© IGD 2012

Waste Savings Achieved

WRAP funded IGD prog ’11 Waste

Prevented (tonnes)

Pot Noodles 10

Sugar - Asda 75

Sugar - Tesco 115

Cans 295

Veg Cans 11

Beverage Cans 28

Flour 54

Sugar - Brakes 32

Cooked Meats 46

WRAP funded IGD programme 2010 Waste

Prevented (tonnes)

Snacks and Cakes Promotions Mgt

102 Biscuits and Snacks Range Mgt

Cake Flow Through

Floral Waste Prevention

500

Ready Meal Waste Prevention

421

Collaborative Forecasting

170 Supplier Waste and Dumped Stock

Reducing to Clear to Prevent Waste

1 2 3 4 5

1 2 3 4 5 1 2 3 4 5













© IGD 2012

Simple Changes, Big Impact • 33% reduction in manufactures waste

• Up to 20% reduction in packaging

• 6% improvement in forecast accuracy

Reduction in overall waste

http://www.google.co.uk/imgres?imgurl=http://www.thehireman.co.uk/media/catalog/product/cache/1/image/500x500/9df78eab33525d08d6e5fb8d27136e95/9/3/932_1.jpg&imgrefurl=http://www.thehireman.co.uk/hire/road-working-general-building/wheelie-bins/large-wheelie-bin-660l.html&usg=__9vfh1EPC7YAJYaLtVk7GvK0gLwM=&h=500&w=500&sz=31&hl=en&start=3&zoom=1&itbs=1&tbnid=qiJ3RWyvEVahnM:&tbnh=130&tbnw=130&prev=/images?q=large+wheelie+bin&hl=en&sa=G&gbv=2&tbs=isch:1&ei=Y3yITaPGPJKGhQe4v9HLDQ

http://www.google.co.uk/imgres?imgurl=http://wheelie-bins.co.uk/images/wheelie-bin.jpg&imgrefurl=http://wheelie-bins.co.uk/&usg=__EQvKFjodFsifkgoxh_IEFfzRJHE=&h=380&w=380&sz=30&hl=en&start=17&zoom=1&itbs=1&tbnid=dIkloC4DJtRY_M:&tbnh=123&tbnw=123&prev=/images?q=large+wheelie+bin&hl=en&sa=G&gbv=2&tbs=isch:1&ei=Y3yITaPGPJKGhQe4v9HLDQ

© IGD 2012

End to End Process Review

Forecast Process & Accuracy

Production Planning

Manufacturing Process

Delivery Process

Store Process

© IGD 2012

Purchase orders

• Accuracy of estimated orders reviewed

• Frequency of order estimates reviewed

• Order and production lead times were not synchronised

© IGD 2012

Improving Communication

• Communication was on a needs must basis

• Communication is now joined up and proactive not reactive

Effective communication is key!

© IGD 2012

Design – Secondary Packaging • Noon reduced case sizes at no on-cost to improve flow to

shelf; increasing availability without increasing waste

• To reduce waste at store, the case label was improved by using colour, a clearer font and by using only store-relevant abbreviations in the product description

© IGD 2012

Design – Primary Packaging • Reduced in size by 20% saving material !

• The material added no value to the consumer !

• Easier to put on shelf and fit more on the shelf !

• Clearer for customers to understand what they are buying , sales prove this !

• Easier for the consumer to shop , in store consumers told us !

• Clearly stamped on the label ‘Meal-for-One’ , or meal for 2 , No confusion !

• Why did we not think of this before !

© IGD 2012

Design – Primary Packaging

• Keep meals for one in purple

• Move meals for two to clear bags to show off size better

• Move meals for four to a box to clearly display value for money

• Implement colours for different meals to make easier to shop

• Rearrange levels and adjust shelf heights

Not

the

best

What

good

looks

like

© IGD 2012

Ready meal waste

• improvement despite significant disruption

0

1000

2000

3000

4000

5000

6000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23

No

on

Rea

dy

Mea

l Was

te a

t M

orr

iso

ns

Week

New Product

Major Promotional

© IGD 2012

Food waste at Noon • has reduced from over 30 tonnes per Month

http://www.google.co.uk/imgres?imgurl=http://i104.photobucket.com/albums/m162/SwedyBird/Phrases/EXCELLENT/EXCELLENT-work_Tagan01.gif&imgrefurl=http://www.jehovahs-witness.net/watchtower/bible/178374/1/2009-Bearing-Thorough-Witness-About-Gods-Kingdom-PDF&usg=__jayZq6fXdQOKmJ5NbPfDk50PYAY=&h=200&w=200&sz=84&hl=en&start=8&zoom=1&itbs=1&tbnid=O92BIeXCMoRsuM:&tbnh=104&tbnw=104&prev=/images%3Fq%3Dexcellent%2Bwork%26hl%3Den%26sa%3DG%26gbv%3D2%26tbs%3Disch:1&ei=by2STZmRJ4GV8QOHsujpAw

© IGD 2012

• Working together with other supply chains

• Increasing use of proven solutions, achieving efficiencies and reducing prices to shoppers

• steering completely clear of anticompetitive effects

Senior ManagementSenior ManagementSenior ManagementSenior ManagementSenior Management

A / PA / PA / PA / PA / P R & DR & DR & DR & DR & D

FinanceFinanceFinanceFinanceFinance MISMISMISMISMIS

Manufacturing& DistributionsManufacturing& DistributionsManufacturing& DistributionsManufacturing& DistributionsManufacturing& Distributions

CustomerService

CustomerService

CustomerService

CustomerService

CustomerService

MarketingMarketingMarketingMarketingMarketing

SalesRep

SalesRep

SalesRep

SalesRep

SalesRep


PlanningPlanningPlanningPlanningPlanning

FinanceFinanceFinanceFinanceFinance

A / PA / PA / PA / PA / P

MISMISMISMISMIS

Supply ChainSupply ChainSupply ChainSupply ChainSupply Chain

Store OperationsStore OperationsStore OperationsStore OperationsStore Operations

MerchandisingMerchandisingMerchandisingMerchandisingMerchandising

BuyerBuyerBuyerBuyerBuyer





CustomerService

CustomerService

CustomerService

CustomerService

CustomerService


SalesRep

SalesRep

SalesRep

SalesRep

SalesRep





MISMISMISMISMIS









CustomerService

CustomerService

CustomerService

CustomerService

CustomerService


SalesRep

SalesRep

SalesRep

SalesRep

SalesRep





MISMISMISMISMIS









CustomerService

CustomerService

CustomerService

CustomerService

CustomerService


SalesRep

SalesRep

SalesRep

SalesRep

SalesRep





MISMISMISMISMIS









CustomerService

CustomerService

CustomerService

CustomerService

CustomerService


SalesRep

SalesRep

SalesRep

SalesRep

SalesRep





MISMISMISMISMIS









CustomerService

CustomerService

CustomerService

CustomerService

CustomerService


SalesRep

SalesRep

SalesRep

SalesRep

SalesRep





MISMISMISMISMIS





• Working together with colleagues

• Building and asserting understanding

• Challenging the status quo

• Cutting through confusion

• Making small changes in behaviour & to designs

Performance improvement made possible by

Senior Management Senior Management

A / P A / P R & D R & D

Finance Finance MIS MIS

Manufacturing & Distributions Manufacturing & Distributions

Customer Service

Customer Service

Marketing Marketing

Sales Rep

Sales Rep

Senior Management Senior Management

Planning Planning

Finance Finance

A / P A / P

MIS MIS

Supply Chain Supply Chain

Store Operations Store Operations

Merchandising Merchandising

Buyer Buyer

and trading partners

© IGD 2012

How? Collaborate and

Access to reference material

On-Board

Meeting

Week 1

Progress

Meeting

Week 8

Progress

Meeting

Week 16

Set

-up

Evaluate

Meeting

Week 24

• deliver results and apply learnings to other areas of the business

• win short-term gains to motivate others to join in the change process

• ensure actions are based on evidence; not myth & legend or gut-feel alone


Phase 2

Redesign

& Pilot

Phase 3

Roll-out

& Sustain

Phase 1

Measure &

Understand

© IGD 2012


"This is amazing. We have been trying

to collaborate on this for years.

Fantastic progress has now been made

in just two months”

"Working with

suppliers in a way

that we have not

been able to

achieve before"

"I see all the people taking part have

grown in themselves and their knowledge

and understanding is significantly better as

a result of the programme”

"No one is

dominating:

IGD is

facilitating a

‘neutral

ground’"

"IGD’s

facilitation fee

is dwarfed by

the benefits

gained from the

programme“

"It hadn’t been on

the radar screen.

Now we have made

110% progress and

we have lots of

momentum"

Extra, quicker, easier and more sustainable and scalable results achieved by retailer-supplier cross functional teams working and learning together

What Sponsors & Participants Say

© IGD 2012

Agenda







Documents

James Tupper, ECR Learning & Change Manager, IGD · WRAP funded IGD prog ’11 Waste Prevented (tonnes) Pot Noodles 10 Sugar - Asda102 75Biscuits and Sugar - Tesco 115 Cans 295 Veg