© The Sage Group plc 2002 EC Packaging Legislation Steve Tattum CPD Manager

© The Sage Group EC Packaging Waste Directive Issues German Requirements UK Requirements Sage Enterprise’s Solution Overview

© The Sage Group EC Packaging Waste Directive EC legislation since 1994 Industrial & Domestic Waste Targets –By % to 60% “recovery” 25% to 45% “recycled” –By % “recovery” 60% “recycled” Less than 10% disposed of in landfill Take-Back Systems across all EC states by 1998 Issues

© The Sage Group EC Packaging Waste Directive Optional “eco-taxes” by EC state Affects Manufacturers & Distributors –Physical collection and sorting –Reporting –Self managed or 3rd Party compliance schemes Issues

© The Sage Group EC Packaging Waste Directive “Polluter-Pays” Principle 3rd Party Compliance Scheme - “Duales System” Trade Mark “Der Grune Punkt” - Green Dot Collection Schemes –Kerb-side pickup Aluminium, tinplate, plastics, drinks cartons –Drop-off points Paper, cardboard, bottle banks –Registration Fees by Type of Packaging Material fee (by weight) Item fee (by volume or surface area) German Requirements

© The Sage Group EC Packaging Waste Directive Monthly, Quarterly & Yearly Reporting of Usage –Total quantity by pack type –Total weight by material –Total calculated fee German Requirements

© The Sage Group EC Packaging Waste Directive Variation of “Polluter-Pays” Spread Responsibility throughout Supply Chain –Raw material manufacturers - 6% –Packaging manufacturers - 11% –Pack fillers - 36% –Sellers (to end consumer)- 47% Transit Packaging –“Secondary providers”- 83% –Imported packaging - 100% UK Requirements

© The Sage Group EC Packaging Waste Directive 3rd Party Compliance Schemes –Valpak, Difpak, Biffpak Obligation Thresholds –> £1M turnover –> 50 tonnes of packaging per year Interim Targets – Recovery 38%; Recycling 7% – Recovery 38%; Recycling 7% – Recovery 43%; Recycling 11% – Recovery 52%; Recycling 16% UK Requirements

© The Sage Group EC Packaging Waste Directive Yearly Reporting of Usage –Total recycle obligation by material Material Qty x Activity % x Recycle target % –Total recovery obligation (across all materials) Material Qty x Activity % x Recovery target % –By end of 1st Quarter of following year –Proven physical recovery by end of following year UK Requirements

© The Sage Group EC Packaging Waste Directive Single Generic Solution Retrospective Build of Pack Usage –Stock History File Sales despatches Purchase receipts (imports) –New Entities Activity Codes Material Codes Pack Codes Customer/Supplier Activity Overrides Customer/Supplier/Item Packing Structures Release Solution

© The Sage Group EC Packaging Waste Directive Packaging Detail Analysis Enquiry & Reporting –Quantities, Weights, Fees –By Activity or Activity/Trading Partner –By Material or Material/Trading Partner –By Vol./Area or Vol./Area/Trading Partner Solution

© The Sage Group EC Packaging Waste Directive Real-Time Pack Build/Entry –Order entry –Despatch Packing Lists Pack Details on Despatch Documentation Support for Returnable Packaging Automated Recharging of Recovery Fees SES’s Solution (Phase2)

© The Sage Group Activity Codes

© The Sage Group Company Profile

© The Sage Group Links Between Packing Companies

© The Sage Group Volume/Surface area Codes

© The Sage Group Material Codes

© The Sage Group Packing Codes

© The Sage Group Packing Structures

© The Sage Group Partner Activity Override

© The Sage Group Partner Maintenance

© The Sage Group 1 Purchasing Order Processing Stock Transactions 2 Transaction Extract 3 Pack Build 4 Analysis Reporting Purchase Rec. Audit Trail D1 Stock Audit Trail D2 Sales Order Header D3 Sales Order Detail D4 Customers D6 Suppliers D7 Structure Header D8 Items D9 Transaction Extract D10 Pack Codes D11 Materials D12 Activities D13 Volume/Surface Area Codes D14 Pack Extract Workfile D16 Pack Details Analysis D17 Structure Detail D15 Sub-contract History D5 Entity Diagram

© The Sage Group plc 2002 PACKAGING WASTE DEMO SYSTEM

© The Sage Group For ease of understanding, we will build a model based on cans of product packed in CASES of 12, shrink wrapped and labelled. The stock item is therefore a CASE. The stock item may be sold by CASE or by PALLET, comprising 48 CASES. Building a Demo System

© The Sage Group TRAY (12 CANS) CAN400 LABELLED CAN SHRINK WRAPPED CASE Building a Demo System

© The Sage Group LABELLED CASE PALLET (48 CASES) Building a Demo System

© The Sage Group DOGGY CHUNKS ||| || ||| ||||| ||||| |||||| SHRINK WRAPPED PALLET LABELLED PALLET Building a Demo System

© The Sage Group Building a Demo System

© The Sage Group In this example, we have constructed a multi-level packing structure adding each packing code in turn. (We could simplify this by defining all the packaging for a CASE and setting up the appropriate material types and percentages, and then repeating the process for the PALLET packaging.) We start by defining the packaging codes. Building a Demo System

© The Sage Group F11 Materials - specify the make up of this Packaging Code Building a Demo System

© The Sage Group We now need to link the Stock item and packaging codes together. Note that a ‘many to one’ structure is not possible. Building a Demo System

© The Sage Group The stock item is 1 CASE of DC DOGGY_CHUNKS comprising 12 labelled cans on a tray, shrink wrapped and then labelled. The input quantity is 1/12 = of a CASE with minimum output of 12. I.e. Quantity / Layer x Minimum Output = No. of layers Building a Demo System

© The Sage Group Building a Demo System

© The Sage Group There are 48 cases on a pallet. By defining the minimum output of the previous stage in the packing structure as 48, we ensure that further levels of packing are only used when more than 48 cases are sold. I.e. Wooden Pallets, shrink wrap and pallet labels are not used when less than 48 cases are sold Building a Demo System