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Transcript of Reverse Logistics
Supply Chain Structure
Factors that affect reverse supply chain in CCA
Supply chain structure
CCA and Sustainability
Critical challenge-Factors affecting reverse supply chain
The largest non-alcoholic beverage company in the Pacific Rim
About 16,000 employees
After-tax profits was $844million in 2010
Reverse logistic and advantages
There are 10 main factors that affect reverse logistics in CCA, which can be divided in
Legislation, customer demand, Supplier, competitor
incentive of company, strategic cost, environment concern, resource, coordination, volume and quality
Raw Material Suppliers
Manufacturing and Packaging
Distribution Centers and Warehouses
Wholesalers and Retailers
Saving social resource
Increasing competitive advantages
Establishing a good cooperative image
Encouraging enterprising and innovative behavior
Role of Packaging
CCA aware the importance of packing in the entire reverse logistic process.
Ensuring consumer receives the correct information
Ensuring the quality safety
Effective transportation and convenience
Role of recycling
CCA has been successfully contributed to developing and expanding public place recycling initiatives.
Public place recycling shopping centers, public events, leisure events and tourist attractions. Specific customers include; Hoyts Cinema ANZ stadium, Westfield and others.
Home recycling and curb side collection
Divert 700 tonnes of packaging material away from landfill annually
Investment in recycling
In 2011, CCA invested around $1.2 million in public place recycling infrastructure APC Annual Report 2011
Providing free signage support to 38 councils and communities across Australia
Collaboration with other companies
Devise the National Bin Network Proposal.
Focuses on away-from-home recycling through the national roll out of bins in public places and other initiatives to improve recovery and recycling
Importance of Sustainability
Sustainable development is to meet the needs of present without compromising the ability of future generation.(WCED, 1987)
Increasing awareness of human impacts on the natural environment
Sustainability brings with it promising growth opportunities for business throughout the value chain
New criteria to evaluate the performance of the company
Sustainability Application in CCA
From packaging perspective
Light weighting our 385ml glass bottles by 5 grams
Reducing stretch film usage by 30%
Reducing the width of our shrink film by 5% (saving 16 tons of shrink film per year)
From resource perspective
To reduce overall water use across the business
All the package material used in CCA is going to be recycled
CCA arrange training to help employees understand the importance of the sustainability
Mount Franklin Spring Water
The Mount Franklin Easy-Crush Bottle is made with 35% less PET plastic than the original
Its carbon footprint has been reduced by approximately 27%
It’s the lightest 600ml spring water bottle produced in Australia
It can be easily crushed when empty and recycled
It reduces PET plastic use by 1.7 million kilograms every year
It won GOLD for Sustainability in the Australian Packaging Design Awards
Green Energy power in Distribution Centre
“Coca-Cola Amatil today opened its new distribution center at Eastern Creek in New South Wales, which is partially powered by almost 700 solar panels.”
Distribution Center is also equipped with many other energy saving function such as the intelligent control of the lights that maximize the efficiency of daily usage
In October 2006, the Minister of Ecology and Sustainable Development launched a campaign entitled ‘Ecology needs all of us.
Slogan - Green
most governments have implemented some laws or regulations to contribute sustainability
The more customer demands would lead to more reverse logistics
local and closer supplier lead to decrease in transportation cost, and increase in efficiency and convenience
It is now becoming a popular trend to use reverse logistics as a competitive strategy to keep customers loyal to an organization that your returns processing strategy can save you money and provide a competitive advantage
Incentive of company
Developing beverage container recovery programs (Corporate Responsibility Report 2011).
The more money put in reverse logistics, the more strong effort happened in reverse logistics
Environmental performance of enterprise has already became a significant index of assessing enterprise operation performance
The coordination and corporation to the suppliers can be an important factor in reverse logistics
Volume and quality
Improving use of resource and resource recycling are the main purpose of reverse logistics
Company should improve its management of normal supply chain and learn from return, and balance the reverse and normal logistics
Once products returning happen, company should give immediate attention and quick response rather than just throwing products into warehouse
Q & A
Thanks for your attention!
Coca-Cola Amatil did very well in sustainability area.
Reducing, reusing and recycling techniques enabled their reverse logistic practice to be so successful.
It is not only can protect the environment, but also can increase their reputation in public.
The challenge for Coca-Cola Amatil is how to keep the leading position.
CCA annual report 2011, “CoCa-Cola amatil limited annual RepoRt 2011 ”viewed on 1 May 2013http://ccamatil.com/InvestorRelations/AnnualReports/2011/11303_CCA_AR_2011.pdf
CCA 2011, CCA’s Sustainability Report (December 2011), Coca-Cola Amatil Limited, viewed 28th of April 2013, <http://ccamatil.com/Sustainability/Documents/Other%20Public%20Reports/2011%20Energy%20Efficiency%20Opportunities%20Public%20Report_.pdf>
Coca Cola Company 2013, <http://www.coca-cola.com.au/index.jsp>
Corporate responsibility report 2011, “CoCa-Cola amatil limited for Environment”, viewed on 1 May 2013http://cca2011crr.reportonline.com.au/water-stewardship
Ferre J 2009, “Coca-Cola Amatil opens new distribution centre with help of solar power”, AFN, http://www.ausfoodnews.com.au/2009/11/05/coca-cola-amatil-opens-new-distribution-centre-with-help-of-solar-power.html
Nawari M 2006, “The Effect of Reverse Logistics of an Organisation: Competition, Cost and the Environment”, viewed on 1 May 2013http://edissertations.nottingham.ac.uk/544/1/06MScLixmn.pdf
Nuno Q, Júlia L, Fernando S 2011, “Sustainability: characteristics and scientific roots”, Environment, Development and Sustainability, Vol.13 (2), pp.257-276
Rahman S & Subranmanian N 2012, “Factors for implementing end-of-life computer recycling operations in reverse supply chains”, Sustainable Development of Manufacturing and Services, Vol. 140, Issue 1, pp. 239-248.
Smith P 2012, “The importance of organizational learning for organizational sustainability”, Emerald Group Publishing Limited, pp. 87
Stock, R James, ‘Development and Implementation of Reverse Logistics Programs, (1998) pp 20-12, Oak Brook
Source: CCA Corporate Social Responsibility Report 2011
Source: Lubin D & Esty D 2010, “The Sustainability Imperative”, the Big Idea
Source: Ferre J 2009, “Coca-Cola Amatil opens new distribution centre with help of solar power”, AFN, <http://www.ausfoodnews.com.au/2009/11/05/coca-cola-amatil-opens-new-distribution-centre-with-help-of-solar-power.html>
Source: Rumpala Y 2011, “Sustainable consumption” as a new phase in a governmentalization of consumption, Theory and Society, Vol.40(6), pp.669-699