ECR Baltic RTI (Returnable Transport Items) standardization

initiativeToiduliit (Food Industry Association) Saku street 15

Tallinn, Estonia16.02.2016

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About ECR Baltic

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Efficient Consumer Response Initiative in Estonia, Latvia and Lithuania

Retailers – manufacturers collaboration platform on non competitive matters with the aim to fulfill consumer and shopper needs in the most efficient and sustainable way by cutting unnecessary costs from supply chain and growing demand and consumer value.

RTI standardization and pooling initiative in Baltics 2008 - 2016

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Brief and key competences: Reusable Transport Items (RTI), crates, pallets and roll cages, represent the "Nuts and Bolts" of the FMCG Supply Chain. Different incompatible management systems for RTI (we have recognized more than 100 crate types in Baltics) have led to market fragmentation and supply chain inefficiencies - standardized methods are needed to organize their distribution and return.

+ = ?

RTI standardization and pooling initiative in Baltics 2008 - 2016

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Aims:• Moving to the standard crates in meat & dairy flows in all Baltic market. •Specification and range of crates developed and agreed between suppliers and retailers.• Generic crate specification (sizes), not owned by any solution provider

400x300x118/170/290 foot print (Dairy)

600x400x180/240 foot print (Other categories)

Deliverables and milestones2008 - 2016

- 2008 RTI Baltic working group initially led by Valio, Tere, PŽ, Rimi, Maxima- 2008 – 2011 Market needs assessment led to 3 + 2 euro pallet size types of

crates and dairy as a highy volume category to start with;- 2011 issued ECR Baltic recommendations (alligned with major retailers and

manufacturers to fit the primary packaging) and solution providers invitedto propose solutions?

- 2012-2014 ECR Baltic and Lithuanian ECR Baltic RTI standard disseminationworking group:- Solution providers offers (IFCO, CC, BEPCO, NORFA/RIVONA, POLYMER

LOGISTICS)- Assessment of ECR 1,2,3 type of crates for primary packaging,

production lines, washing other considerations;- Carton v RTI cost calculation tool, other ROI exercises- ECR tender for available soltion providers in pooling and

manufacturers owned business models (5 offers received)

Next steps 2016

- Common Baltic standard dissemination working groups in Latvia andEstonia?

- Standardisation in Meat, FF&V, Bakery categories- Enabling standard crates in manufacturers owned business model- RFID and ID recommendations from GS1 standards

Useful links:

http://www.ecr-baltic.org/en/working-groups/supply-chain-committee/rti-unification-and-pooling-initiative/

Royalty free drawings: https://issuu.com/ecrbaltic/stacks/e2072d146c7d4a67b78590d91b982cc2

http://www.ecr-baltic.org/en/working-groups/supply-chain-committee/rti-providers-list/

Reminder of Competition law andantitrust compliance :

• Participation in standard-setting is unrestricted• The procedure for adopting the standard in question is

transparent• There is no obligation to comply with the standard• Access to the standard is on fair, reasonable and non-

discriminatory terms

Conclusion: there is no doubt that ECR Baltic RTI Standardization Initiative can provide effective contribution to the market integrity giving economic efficiencies to all stakeholders.

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Thank you!

Edgars Pentjuss+371 26546645

edgars@ecr-baltic.orgwww.ecr-baltic.org

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Additional slides:

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Current situation

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Waste management (carton/plastic)

Stability issues

Cross stackability/handling problems

Current situation

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«Space» transportationQuality problemsCarton stacking issues

Standard crates

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Crates type ECR1 ECR2 ECR3Dimensions 40x30x12cm 40x30x17cm 40x30x29cmGTIN 4741525431189 4741525431707 4741525432902

Initiators and workgroup: Valio, Rakvere, Tere, Pieno žvaigždes, Maxima, IKI and RIMIMission: to develop universal and efficient returnable transport system to deliver products from producer to a store

Effectiveness and stackability

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Benefits

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Main benefits Suitable with EUR pallet/dolly Cross stacking Universal, fits well with most of the

products Volume reducible up to 68% in

return logistics Easy and fast to handle and display Not too heavy to pick up by female

employees To get rid of costly carton

Additional benefits for producers Suitable for automated lines Easy to cool Minimise product damage Well washable Low cost RFID ready

ECR Baltic members:

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31.12.2014

• Participation in standard-setting is unrestricted• The procedure for adopting the standard in question is

transparent• There is no obligation to comply with the standard• Access to the standard is on fair, reasonable and non-

discriminatory terms

• Conclusion: there is no doubt that they (in this case ECR RTI Standardization Initiative) can provide effective contribution to the market integrity giving economic efficiencies to all stakeholders.

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Generic drawings for compatible RTI solutions development (5 standard + 2 small set)

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Additionally proposed small crates set

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Top of mind issues discussed duringprevious meetings:

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• Feedback from other retailers (example: Norfa 600x400x150), using own crate:

• Manufacturers owned crates v. poolers. Cons.: shrinkage (steeling) Pro owning: historically prefered business model, own control, washing issues.

• Metal dollies to fit standard crates

Top of mind issues discussed duringprevious meetings:

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• Primary packaging fit (2L plasctic milk jars?)• Washing test results BEPCO crates?• Carton to standard RTIs (10-30%)

NEW:

• Standard owned and rented crates (how to separate? Colour / RFID);• Crates shrink, who are responsible in rented and owned SC business model?• ECR Baltic recommendation on RFID tagging of standard crates?

ECR Baltic recommendation on RFID tagging of standard crates?

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• GRAI (Global Returnable AssetIdentifier) by GS1 as a barcodeand RFID codedand EDI DESADV. Reference: http://issuu.com/ecrbaltic/docs/11_pub_2003_rti_organisational_recommendations_3_?e=6462145/1364849

Marking of RTIs

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Notwithstanding its type, an RTI is marked with a logo, a brand or some other labelling. For private RTIs this will be the responsibility of the owner. RTIs which are completely unmarked, can’t be used in an RTI pool. In general there are three different ways of marking an RTI with a GRAI: 1. Human Readable: Both nGRAI and sGRAI are possible. This is often used as a back-up system for the barcode or the EPC tag. As a rule, human readable information must always be combined with one of these GS1 symbologies.

2. Barcode: The encoding of nGRAI and sGRAI in the GS1-128 barcode is possible, provided AI 8003 is used. The use of sGRAI is recommended as it is the only approach which makes possible tracking & tracing of RTIs.

3. EPC Tag: Only the sGRAI can be used. It should be noted that the marking of RTIs is a complex issue of its own. Often, burning or engraving the information into the RTI is the only possibility, as such identifying it for its entire lifecycle.

Thank you!

Edgars Pentjuss+371 26546645

edgars@ecr-baltic.org

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