London Produce Show – Where is the fresh produce market going?

Everyone from the growers, the retailers, and the catering industry through to the consumer all want one thing when it comes to produce – freshness. The importance of freshness and the quality of fruit and vegetables is at its highest level and looks set to grow, this is the challenge for the fresh produce market.

In order to deliver the freshest produce supermarkets and fresh produce retailers are looking to reduce the contact points of their goods from the grower to the shelf to one touch. This is where shelf ready packaging is now in high demand and to maintain the freshness and increase the shelf life it is imperative to reduce the supply chain timings. The handling of fresh produce only once before the end consumer buys it is vital. The responsibility of the grower to also be the processor and packer into shelf ready bins / totes is a must. With the correct packaging at the correct prices this is now manageable and available.

Using plastic as opposed to cardboard cools the produce 60% quicker and protects the contents throughout the supply chain which reduces damage. Handling is also reduced as the 2^nd handling process in the country of destination is cut out.

Improving the freshness and quality through speeding up the supply chain adds to the shelf life of the produce and this in turn dramatically reduces the retailer’s waste costs.

When it comes to looking at alternatives in anything to do with business often there tends to be areas that are left behind.  There are now returnable packaging options available that meet all of those above requirements to the highest possible standards leaving no stone unturned, and at the competitive pricing as a result of one trip.

The plastic 5-FV tote and 330 Shuttle Bin are designed for ease of use for the grower to place their produce in and to ship them effectively, hygienically and reducing damage that can then be placed straight onto supermarket shop floors.

 Both of these products are available as one trip options which is the beauty of plastic. The fresh produce industry has commonly used expendable packaging, the collapsible tote and bin are a returnable alternative that reduces packaging costs and improves return on investment.

The tote then complies with the usual requirements of a packaging solution. The reinforced corner edge allows them to be stacked confidently 10 high per pallet, this is opposed to cardboard that is commonly used and is susceptible to collapse due to moisture.

I look forward to visiting the London Produce Show to understand what the market is after and to show them how I can help them improve the performance of their supply chain by delivering top quality produce. 

The Importance of the EU to the Supply Chain

Which side of the EU debate is the automotive and supply chain industry?

How could the EU debate affect these industries?

It is important to look at where the automotive industry is currently and where it is heading in the future, then add the European Union to the question.

The UK is the second largest manufacturer in Europe this year behind Germany; this is a six year high and an interesting sign towards the future. This performance is down to number of great performances by a group of manufacturers.

 Jaguar Land Rover has been the main contributor with the new Range Rover and Jaguar range this is a manufacturer that is going to be 40k cars short of sales this year. The majority of JLR’s vehicles are exported, mainly to the emerging Asian markets which are an indication why they are building plants around the globe.

Nissan are another car manufacturer that has been a huge contributing factor in the UK success in the automotive sector with the new Micra and Qashqai being built in Sunderland. The factory is the most productive in Europe.

General Motors have ramped up production in the UK and closed down their plant in Germany. Toyata and BMW are also contributing with the large number of vehicles they are exporting from the UK. If that isn’t a big enough indicator of where the UK are going in the European pecking order then what is.

The majority of the vehicles coming off the production lines of manufacturers in the UK are being exported; therefore the industry needs a helping hand moving them off the island and onto mainland Europe or through European waters. If there is an exit then this task becomes harder and more expensive as the taxes and fees will be increased as the UK will no longer be part of the club.

Before we get to the exporting stage, the manufacturers need their parts delivered in order to make the car and then to sell it. Importing parts and logistics is a factor that involves European Union membership.

Whichever direction the UK automotive industry looks the European Union is going to involved in some shape or form and for the good and the bad.

With the future picking up for the manufacturers and supply chain they are going to need as much help as possible but on the flip side they need to safe guard against competition and sustainability. 

Why can’t you make returnable’s work in a Global market?

There really is no reason why returnable packaging shouldn’t work for your supply chain. Returnable packaging delivers on all areas of the supply chain, most importantly on cost downs and efficiency.

Michael Scholl of Opel states that returnable packaging is a key part of the strategy yet questions the use of them due to cost. The cost of returnable options is reduced through the pooling companies offering one trip solutions. If you explore the market of returnable packaging you will be able to find viable alternatives that match the company’s needs and help to drive down costs.

Earlier this year at the Automotive Logistics Conference Andreas Ginkel highlighted the importance of returnable packaging to the supply chain and aiding automotive manufacturers in growing globally.

Scholl points out in the Automotive Logistics magazine that due to the rise in the number of parts there is “a critical focus on replacing extra handling in plants and warehouses, such as repacking or sequencing with the most advanced delivery concepts”. If Opel are aware of the needs to look at repacking and packaging, why are they unaware of what returnable packaging can do to help them address this issue?

Using returnable packaging removes the need for repacking; returnable options are able to go line side requiring no extra handling and aids in streamlining in-plant logistics. Using plastic returnable packaging reduces the risk of dust contamination during the manufacturing of vehicles as opposed to using cardboard is another benefit.

When asked about standardised packaging Scholl states the returnable packaging is “historically high and a key strategy”.

But then goes on to say - “However, for certain parts and supplier locations, returnable packaging cannot be justified from a cost perspective, as the length of the loop would require too high an investment and freight costs of empty returns.”

Returnable packaging is designed with global manufacturing at the forefront of thinking, so why can’t it be justified in terms of supplier locations? And then when it comes to the cost of empty returns, as mentioned above, explore the one trip solutions offered by pooling companies which removes the cost of returning and the added hassle.

The point that is missed by many when one trip solutions are mentioned is the fact it is not solely used for the automotive industry. They can be used to ship a variety of goods from clothing to pharmaceuticals.  

If Opel are so clued up on returnable packaging and the fact that they are a key strategy why aren't they equipped with knowledge to understand how returnable packaging can benefit them?

They have identified the need for them and also some of the associated problems that they could encounter, this is when a free trial is needed to understand the process and address the problems that they are outlining.