Pallets and RTI (Returnable Transport Items) Seminar

and working group meeting

11.04.2012, Radisson Blu Hotel Latvia, Riga Start at 10:00

Edgars Pentjuss edgars@ecr-baltic.org +37126546645

Antitrust and Competition Law Caution

ECR Baltic will not enter into any discussion, activity or conduct that may infringe, on its part or on the part of its members and participants, any applicable competition laws. By way of example, members and participants shall not discuss, communicate or exchange any commercially sensitive information, including non-public information relating to prices, marketing and advertisement strategy, costs and revenues, trading terms and conditions and conditions with third parties, including purchasing strategy, terms of supply, trade programs or distribution strategy. This applies not only to discussion in formal meetings but also to informal discussions before, during or after meetings.

Message to new members, participants and/or people taking part for the first time: Please note that taking part in ECR Europe’s and ECR Baltic activities is subject to having read and understood ECR Europe’s EC Competition Law Compliance Program. If you have not done so, please do so now. http://www.ecr-baltic.org/f/docs/clcp.pdf

Participants:

Kaspars Davids Aldaris

Ināra Šure Aldaris

Guna Velkere Aloja Starkelsen SIA

Rimas Montvilas Alsena

Rolandas Plieda Baltic Logistic Solutions

Margus Aaslaid BEPCO OÜ

Margus Ärm BEPCO OÜ

Karla Polli BEPCO OÜ

Tomas Girdzevičius BEPCO OÜ/AUTEPRA

Andrius Jurgelevičius BLS / Sanitex Group

Armands Kreilis Cēsu alus AS

Maciej Kubiak CHEP Polska Sp. z o.o.

Marta Górska CHEP Polska Sp. z o.o.

Marcin Brzuszkiewicz CHEP Polska Sp. z o.o.

Gvido Krieviņš CIDO

Jevgeni Rudkovski Coca-Cola HBC Eesti AS

Michal Adamek Container Centralen Polska Sp. z o.o.

Artjoms Ušakovs Drogas AS

Edgars Pentjuss ECR Baltic

Anda Kalnina ECR Baltic

Janas Likšo EPAL Baltic

Janis JAVA Gontermann Analytik GmbH (Latvija)

Artak DANIELYAN Gontermann Analytik GmbH (Latvija)

Jani Peltonen K. Hartwall

Tuomas Sointu K. Hartwall

Nerijus Balandis Kraft Foods

Evaldas Ciukas Kraft Foods

Igors Bugrovs KRONUS SIA

Jānis Rullers KRONUS SIA

Aleksejs Volčenkovs KRONUS SIA

Jānis Šolks Latvijas piensaimnieku centrālā savienība

Ligita Turnere LPUF

Pēteris Liniņš LPUF

Vytautas Ilgevičius MAXIMA GROUP

Vaida Šalnienė MAXIMA GROUP

Villem Massur Metrosystem OÜ

Sergej Chmeliov MPS LITHUANIA

Igoris Kononovas MPS LITHUANIA

Rima Gurskaite Nestle Baltics UAB

Kristīne Josuloviča NP Foods AS

Inese Bertulane Nutricia

Egidijus Midveris Palink

Saulius Reipšleger Palink

Laimonas Girgzdas Pallet Logistic JSC

Ernestas Jagminas Pieno žvaigždės

Janek Kalbin Rakvere/Miesnieks

Tatjana Sargsyan Ramundas GM

Edgaras Gedeikis Rimi Baltic

Paulis Dalbergs Royal Unibrew / Cido

Kristo Sussen Saku Brewery

Rita Rozentāle Schoeller Arca Systems

Sandra Gegere Schoeller Arca Systems

Gints Užāns Spilva SIA

Vaiva Najute Svyturis

How we will work today?

LANGUAGE:

Primary ENGLISH, Q&A in RUSSIAN (what is more convenient

for speaker). Moderator is here to help – so that we do not feel

any language barriers.

AGENDA IN A NUT SHELL:

• Introduction ECR Baltic

• Pallets part till the lunch + discussion

• RTI sessions starting with presentations from solution

providers

• Update on RTI Baltic Standard proposal + discussion

• Working group meeting: defining next steps!

DETAILED AGENDA, 1st part:

9:30 Registration

========

10:00 Introduction

10:15 Presentation of Baltic EUR Pallet Assessment Cards (EPAL, ECR Baltic)

10:45 Terms of use and application (EPAL, ECR Baltic)

11:00 Summary of manufacturers feedbacks about pallets issues by Ligita Turnere, Latvian Food Manufacturer Association

11:15 Discussion by All

========

11:30 Coffee break

========

11:50 How to prolong pallets life (EPAL, ECR Baltic, Chep)

12:10 Pallets pooling by Chep

12:40 Pallets issues discussion by All

==============================

13:10 Lunch break thanks to CHEP

==============================

DETAILED AGENDA, 2nd part:

14:00 Optimizing Efficiency of the Whole FMCG Supply Chain with RTI Solution – Case Examples by Tuomas Sointu, Head of Retail Solutions, K. Hartwall

14:20 Supply chain logistics, packaging costs (ROI) and traceablilty (incl. RFID) by Margus Arm, Bepco

14:40 RTI unification Baltic standard proposal and feedbacks from retailers and manufacturers by Edgars Pentjuss, ECR Baltic.

15:00 RTIs for Dairy Industry in Latvia by Jānis Šolks, Latvian Central Dairy Producers Society

15:10 Discussion by All

========

15:30 Coffee break thanks to Polymer Logistics (Rep. In Latvia Gontermann Analytik)

========

16:00 RTI unification in Baltics discussion continued... (approval of RTI Baltic recommendations and standard)

16:45 Pallets issues: use of color criteria on pallets assessment cards and best practice for disqualified EUR pallets management.

17:30 Closure

ECR Baltic members (31.12.2011)

What is ECR?

ECR Baltic is an Efficient Consumer Response Initiative in Estonia, Latvia and Lithuania.

ECR Baltic is a collaborative retailer-manufacturer platform with a mission “to fulfill consumer wishes better, faster and at less cost”. It is a non-profit organization which aims to help retailers and manufacturers in the FMCG sector to drive supply chain efficiencies and deliver business growth and consumer value.

ECR Baltic is a member of ECR Europe.

Since November 2010, ECR Europe is the regional platform for collaboration of the Global Consumer Goods Forum.

Uniqueness

Only European platform for value chain co-operation on a parity basis between brand manufacturers and retailers

ECR mission and objectives?

What ECR is all about?

How does ECR work on a supply side?

Manufacturers part Retailers part

Whole Supply Chain Cost

Manufacturers part Retailers part

Working collaboratively to remove unncessary costs!

ECR win

How does ECR work on a supply side?

Manufacturers part Retailers part

Not moving costs back and forth!

ECR Working Groups STRATEGY & STANDARDS

Consumer Goods

Forum

ECR Europe

ECR Baltic

Global Standards (GS1) and local

legislation

EDI 4Doc

GDS Datapool

RTIs & Pallets

SOLUTIONS &

IMPLEMENTATION

Telema, Edisoft Itella, BPO

SA2, Edisoft, GS1, Saphety

Nielsen, Analyse2 Solutions

EPAL Chep Bepco MPS CC

Category Managem

ent

ECR Baltic Focus:

Category Management, OSA,

Shopper engagement, Shooper insights

Supply Chain Committee: Pallets and

secondary packaging unification,

DataSync

EDI – Electonic Data Interchange

Trainings and Education

Academic partnership with Industry

Annual ECR Baltic Forum

Focus on consumer

Networking and people

development

Efficient Supply Chain

Join ECR Baltic working groups

• Supply Chain Committee

• Pallets and RTI standartization

• Electronic Data Interchange

• Education and Training

Committee

• Demand – Category

Management

• HOT!

26.04.2012 Master Data

Management (GDS Data Pool

introduction in Baltics) evaluation

session with solution providers!

Baltic EUR Pallets Assessment introduction and presentation

11.04.2012, Radisson Blu Hotel Latvia, Riga

Edgars Pentjuss edgars@ecr-baltic.org +37126546645

Terms of use and application of Baltic

PACs

Terms of use and application of Baltic

PACs: Practical asspects?

• Distribution (available online) and printed hard copies in

5 languages;

• Color criteria? Why is it important for food retail?

• Do we understand PACs the same as our customers

(joint training opportunities with ECR Baltic/Poland and

EPAL);

• Other top of mind issues: (Transition period, the

transparent disposal of disqualified pallets)

• Discussion and summary from Latvian Food

Manufacturers Association!

DETAILED AGENDA, 1st part:

9:30 Registration

========

10:00 Introduction

10:15 Presentation of Baltic EUR Pallet Assessment Cards (EPAL, ECR Baltic)

10:45 Terms of use and application (EPAL, ECR Baltic)

11:00 Summary of manufacturers feedbacks about pallets issues by Ligita Turnere, Latvian Food Manufacturer Association

11:15 Discussion by All

========

11:30 Coffee break

========

11:50 How to prolong pallets life (EPAL, ECR Baltic, Chep)

12:10 Pallets pooling by Chep

12:40 Pallets issues discussion by All

==============================

13:10 Lunch break thanks to CHEP

==============================

How to prolong pallets life 11.04.2012, Radisson Blu Hotel Latvia, Riga

Janas Likšo EPAL Baltic

European Pallet Association e.V.

Beginning After 1 month After 6 months After 1 year

Norway spruce

Douglas fir

Discoloration

Nailing patterns Inner deckboards

Outer deckboards

Correct False

General rules for handling and storage pallets:

• Use clean, dry pallets for the food industry.

• Wooden pallets should not be stored unprotected outdoors in order to avoid

biological, physical and chemical contamination.

• The best place to store the pallet is protected from one or two sides respectively

large shed.

• Keep pallets separated – special pallets for hygienic zones

• Use pallet inverters. To avoid contamination a possible, cheap and easy solution is

to use wooden pallets with a slip-sheet on top.

• When depalletising one pallet, the receiving pallet also has a slip-sheet on top.

• The pallets can be kept in separate zones and the slip-sheets can be made of

different materials, expendable or reusable.

Warehousing

Exposure to sun and rain worsens general pallet’s condition Shutten rooms without ventilation and humidity suitable for fungus

The best place to store the pallet is respectively large shed

Samples of fake pallets

RTI Standard proposal feedbacks:

From contacted 63 companies we received only one dairy producer who claimed that the proposed standard do not fit their product range. I am also attaching responses from Valio and Tere with their permission (whereas biggest concern is about necessary changes in production line modifications and current crates disposal). On contrary we have received full support from Selver . Which means we have minimum 5 big retail customers who are asking to do something about the current situation with returnable transport items - primary in dairy category!

Thank you