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.   

How far are we away from standardised packaging?

The myth that the automotive industry can’t standardise packaging on a global scale is an issue that is quite irritating.

We as an industry, in terms of automotive manufacturers and in supply chain and logistics, are increasingly talking about the shift towards global manufacturing. So how can some people still not entertain the idea of a returnable packaging solution that is standardised?

A manufacturing process that spans continents taking place in numerous countries which is growing is going to require more parts more often covering thousands of miles in various forms of transportation. So why not have packaging that complies with all guidelines, is suitable for all forms of transport and delivers on cost, efficiency and quality.

But then here is my point – so many of you are unaware of the opportunity in returnable packaging being charged on a one trip only basis across continents. Has the automotive industry turned a blind eye to the ISOBin solution and how this can be the FIRST EVER standardised packaging solution?

ISO Bin is tailored to the ISO Sea Container to optimise capacity for goods to be shipped globally. The ISO Bin cubes out to 97.2% of the containers – so this is a packaging solution for the only globally standardised shipping containers that are the market leaders in terms of optimisation.

With this in mind – are we really that far away from a standardised returnable packaging solution? Are we that far away from the automotive industry realising that with production growing and the shift to global manufacturing models, that not only require returnable packaging and not expendables but also a standard solution that can be used across their supply chain?

At Macro Plastics with the ISO Bin we could have the first ever recognised standard packaging that delivers on all requirements of a modern day returnable packaging solution.

All of this has stemmed through a detailed design process ensuring that all manner of requirements from cost efficiencies to environmental issues and it has led to a quality returnable solution. If you are shipping in cardboard then the content have to unpacked and then transported to the line, these are unnecessary handling processes when the ISO is able to go straight to the assembly line.

The ISO Bin is one quick fix that can be shipped globally, is the best on the market in terms of space utilisation helping you to ship more and reduce costs. This is an environmentally friendly solution that can be leased to help reduce shipping costs and is available as a one-way rental, further reducing costs and driving up efficiency and quality standards.

So with all of these factors, why is the automotive industry yet to have a standardised returnable packaging solution that produces results for them? 

Automotive Logistics Europe Conference, Bonn

Overall, the conference was filled with some very exciting developments for the automotive industry and the supply chain.

With growth both in Europe and globally, the supply chains are increasing in complexity and standards of performance. With an increase in volume and need for new systems and expertise it can only spell good news for logistics and packaging supplies.

It was interesting to hear that VW are looking to reduce their carbon emissions by 25% by 2018. The environmental impact of transportation has been a burning issue for a while and is a bold move in the right direction. In terms of returnable packaging reducing emissions is high on the agenda. With manufacturing globally on the rise ensuring the utilisation of the capacity in packaging is essential, if this is done properly a reduction in the environmental footprint will follow.

Also, just the principle of returnable packaging aids this. Expendables are disposed of and require a recycling process. Just by using a packaging solution more than once will go towards improving the footprint.

Marzell Bandur, Director of Supply Chain Planning at Opel, spoke about looking at packaging design, supply flows and consideration for costs.

“For example, we are transporting more parts, larger part, over larger distances. With carbon dioxide emissions taxes, as well as road toll prices, it means that the costs involved along the supply chain are much higher”. – Marzell Bandur.

All of the points made above look directly towards the potential of returnable packaging. A returnable packaging solution cannot only cover those areas but deliver on them with one simple solution which can provide a clear breakdown of costs and savings.

Lastly, it was refreshing to see that the importance of logistics to the whole business model was brought up. Having a representative from supply chain and logistics on the board of management is something that other industries have embraced; this was pointed out by delegates from Starbucks and Amazon. A lesson to be learnt by the automotive industry in my opinion.

Levent Yuksel, from Jaguar Land Rover, made some great points on the issue.

“Logistics needs to be thought of as cross-functional, it’s as much about trying to keep customers, manufacturers and suppliers all happy. We should be putting a logistics person on each company’s executive board. This would give a competitive advantage. We shouldn’t be thinking ‘logistics is a cost and a waste’”.

Logistics and supply chain have an impact/influence on all areas of the executive board so it makes sense to place someone there. And if done correctly and effectively logistics can be a cost that works and reduces waste to the overall manufacturing process that both aid the bottom line. 

The Importance of Globalisation

Last week I chaired the Returnable Packaging session at the Automotive Logistics Europe Conference in Boon, Germany.

It was an extremely insightful and productive discussion with one of the main topics was the importance of globalisation.

Previously, automotive manufacturers would operate on a regional basis, selling models especially into continental and national markets. There was a requirement for global supply chains but for the standardised parts that were used in all models.

Now more than ever models are being manufactured and sold internationally. Tier suppliers are now required to ship globally as opposed to regionally. With this trend set to continue and grow there is a heightened need for an agile global supply chain.

Returnable packaging plays an integral part of building a global supply chain. It is no longer a matter of packaging components that will be transported within the same country or continent. Components are required in larger quantities in numerous locations around the globe and are travelling longer distances.

To create a sustainable supply chain that is able to keep up with trends and developments in the automotive industry only points in one direction – returnable packaging.

The industry now requires packaging that ticks the large as well as the small boxes. The large boxes are durability and size. If components are passing through numerous countries on their trip across the world using more than one form of transport, a solution needs to ensure quality upon delivery and comply with transporting requirements in terms of size in the various jurisdictions.

These were the areas that I am pleased to say came up during the session. It provides an indication to me that the OEM’s, tier suppliers and manufacturers know that they have to move and modify their supply chains in order to produce results.  

One trip returnables – why don’t you just have a go?

The one thing that strikes me about the automotive supplychain is the reluctance to try something new for the first time.

There is a lot of talk around where logistics and the supply chain will move with technology and how savings are made. This was a topic of discussion at the Automotive Logistics Conference in Bonn last week, looking to what lies ahead and how they can improve.

It is all well and good talking about it but it is actions that will help the industry realise how they need to move forward in an expanding market.

This is where I encourage the automotive tier suppliers and OEMs to look at where they would like to go with returnable packaging and commit to doing a free trial.

A lot of people are put off when looking to make the shift from expendable to returnable solutions. There is the impression that you have to make your decision and stick to it. Stop using expendable one day and begin using returnable’s the next. This is far from the truth as you trial new returnable methods alongside the existing ones to give you a real flavour of the benefits of using returnable packaging.

One trip solutions are a great benefit of using returnable packaging. Irrespective of where you require your products all you have to do is rent the packaging, it is delivered to your desired destination and you don’t have to worry about the return journey. Then pooling companies arrange for the containers to be picked up after you have finished with them helping to reduce packaging costs. How easy it that?

All that is asked of the automotive industry who are looking to make the switch from expendable to returnable is to look into a free trial now so that you can experience the benefits first hand.

I encourage anyone who is looking into this or have any questions in how I can help to improve your supply chain to talk to me.

Communication is key, if I am where of your problems at the outset I can help you resolve them quicker, saving you time and money.