{"id":3344,"date":"2015-12-08T21:52:16","date_gmt":"2015-12-09T02:52:16","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/europool-systems-reshaping-fresh-food-chain-one-tray-at-a-time\/"},"modified":"2015-12-08T21:52:16","modified_gmt":"2015-12-09T02:52:16","slug":"euro-pool-system-reshaping-fresh-food-chain-one-tray-at-a-time","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/euro-pool-system-reshaping-fresh-food-chain-one-tray-at-a-time\/","title":{"rendered":"Euro Pool System: reshaping fresh food chain one tray at a time"},"content":{"rendered":"<p><strong>Introduction<\/strong><\/p>\n<p>Most of us are well aware of the three major players\u00a0in fresh food industry: producers (e.g. Dole), logistics service providers (e.g. US Foods) and supermarkets (e.g. Kroger). However, some often overlooked market participants are key enablers of supply chain and create value in this competitive marketplace.<\/p>\n<p>Euro Pool System (EPS) is Europe\u2019s largest logistics service provider for returnable and reusable packaging managing over 700m movements p.a. [1]. It serves producers, distributors and leading retailers from 45 state-of-the-art service centres and headquarters in Rijswijk, the Netherlands. EPS stands out as an example of creating value by combining differentiated business model with deeply aligned operations.<\/p>\n<p><strong>Business Model<\/strong><\/p>\n<p>Tradition packaging solutions of fresh food are often a\u00a0non-core, &#8216;headache&#8217; operation for retailers:<\/p>\n<ul>\n<li>Disposable cardboard packages are purchased in bulk and managed by producers and retailers<\/li>\n<li>Retailer owned pools of plastic trays are often poorly managed and aren&#8217;t standardized due to lack of expertise or in-house resources to\u00a0ensure efficient tray movement and required\u00a0hygiene standards for fresh food (e.g. fruit &amp; veg, fish, meats)<\/li>\n<\/ul>\n<p>EPS improves fresh food supply chain by offering an alternative to these packaging methods by efficiently managing logistics chain for\u00a0own rigid plastic trays, used for packaging, handling, transport as well as in-store displays.<\/p>\n<p><em>Green foldable tray:<\/em><\/p>\n<p><a href=\"https:\/\/www.youtube.com\/watch?v=1eUdovg4OCc\">https:\/\/www.youtube.com\/watch?v=1eUdovg4OCc<\/a><\/p>\n<p>EPS generates revenue by charging retailers for added-value services that in return improves productivity and reduces retailer\u2019s resources required in\u00a0logistics.\u00a0 New retailers are contracted by references and case studies showing cost savings and improved supply chain performance.<\/p>\n<p><strong>Operating model<\/strong><\/p>\n<p>Company acts as a logistics partner to retailers and provides solution to non-core aspect of food chain. Its service centers are strategically located near retailer\u2019s major distribution centers (DCs), where company often also manages retailer\u2019s warehousing equipment and waste materials. State-of-the art service centres perform a number of highly automated processes including collection, sorting, cleaning, inspecting and storing crates for next pick-up. This is supported by advanced systems and trained staff responsible for tracking, inventory planning, order fulfilment, invoicing and deposit processing.<\/p>\n<p><em>Overview of\u00a0EPS operations:<\/em><\/p>\n<p><a href=\"https:\/\/www.youtube.com\/watch?v=yIzZfVECefc#t=127\">https:\/\/www.youtube.com\/watch?v=yIzZfVECefc#t=127<\/a><\/p>\n<p><strong>How it works<\/strong><\/p>\n<p>The initial user (e.g. producer) in the supply chain orders the trays on &#8216;My E-web&#8217; portal and pays a deposit to EPS. Producer then picks up trays from nearest service centre to fill it with fresh food before transporting further to retailer\u2019s DC. Once filled trays are handed over, producer re-charges the deposit to next participant in the supply-chain (e.g. delivery provider).\u00a0When used trays are returned to EPS service centre by retailer, deposit is returned and all trays are swiftly processed before returning to circulation.\u00a0Each tray has a unique identifier code which enable tracking. In combination with deposit system, system\u00a0creates accountability and ensures short rotation\u00a0cycles improving overall efficiency of the chain.<\/p>\n<p><em style=\"line-height: 1.5\">Graphic overview: flow of trays<\/em><\/p>\n<p><a href=\"https:\/\/i4tsk12in2b2y7uts14c528g-wpengine.netdna-ssl.com\/wp-content\/uploads\/sites\/4\/2015\/12\/abc.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-medium wp-image-3503\" src=\"https:\/\/i4tsk12in2b2y7uts14c528g-wpengine.netdna-ssl.com\/wp-content\/uploads\/sites\/4\/2015\/12\/abc-300x129.jpg\" alt=\"abc\" width=\"300\" height=\"129\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/abc-300x129.jpg 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/abc-600x258.jpg 600w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/abc.jpg 795w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><\/p>\n<p><strong>Power of alignment between business and operating model<\/strong><\/p>\n<p>EPS strategy of value-add partner to retailers makes it increasingly entrenched in customers\u2019 operations [2]. Company&#8217;s\u00a0business model\u00a0is supported by streamlined operations which improve efficiency across supply chain and create tangible benefits to customers:<\/p>\n<ul>\n<li><strong>Improved service and logistics efficiency: <\/strong>100% availability of clean trays, online order system and automated order picking warehouses due to standardized packaging<\/li>\n<li><strong>Reduced produce waste:<\/strong> rigid packaging prevents damage to food items<\/li>\n<li><strong>Reduced container loss:<\/strong> millions of CO2 kg are saved as\u00a0EPS\u2019 trays are reusable, 100% recyclable and have 10 year life. Cardboard boxes need to be recycled\/ disposed each time and traditional plastic trays often get lost or damaged as items are not\u00a0accounted for<\/li>\n<li><strong>Improved transportation fleet:<\/strong>\u00a0foldable trays are compact to transport when empty saving 86% of space compared to standard\u00a0trays [3]<\/li>\n<\/ul>\n<p>Company\u2019s large service centre network, investments in technology and unique logistics capability in specialised food chain drive sustainable competitive advantage. Moreover, established relationships with blue-chip retailers and reputation for critical highest hygiene &amp; safety standards further strengthen EPS position in the market. While a number of players have emerged\u00a0to benefit from shift towards outsourced tray management,\u00a0smaller local competitors (e.g. Svenska Returnsystem, Transbox) lack regional scale and expertise required by largest supermarket chains [4].<\/p>\n<p><strong>Performance<\/strong><\/p>\n<p><em>\u201cEuro Pool System has become a bridge to logistic knowledge. Company has proven experience with automatic order pickers for fresh products.\u201d<\/em><br \/>\n<strong>Logistic Director of the Eroski-group, Spain<\/strong><\/p>\n<p>By combining differentiated product and unmatched efficiency in operations, company has experienced rapid growth. Started in 1992 by three cooperative auction organizations in Benelux, company is now present in 13 countries and holds over 40% market share in Europe. Application of \u00a0trays has expanded from fresh fruit &amp; veg to fish, meat, bakery and various convenience products.<\/p>\n<p>Company reported\u00a0revenues of $270m in 2013 [5] and is expected to continue strong growth despite weak macro in Europe. As more retailers realize cost and service benefits of outsourcing the food handling\u00a0process, EPS is well positioned for\u00a0growth due to its latest Integrated Service Centre Concept for end-to-end management of retailer&#8217;s supply chain [6].<\/p>\n<p><a href=\"https:\/\/i4tsk12in2b2y7uts14c528g-wpengine.netdna-ssl.com\/wp-content\/uploads\/sites\/4\/2015\/12\/Picture123.png\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-medium wp-image-3766\" src=\"https:\/\/i4tsk12in2b2y7uts14c528g-wpengine.netdna-ssl.com\/wp-content\/uploads\/sites\/4\/2015\/12\/Picture123-300x276.png\" alt=\"Picture1\" width=\"300\" height=\"276\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/Picture123-300x276.png 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/Picture123.png 429w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a> <a href=\"https:\/\/i4tsk12in2b2y7uts14c528g-wpengine.netdna-ssl.com\/wp-content\/uploads\/sites\/4\/2015\/12\/Upload-2.png\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-3777\" src=\"https:\/\/i4tsk12in2b2y7uts14c528g-wpengine.netdna-ssl.com\/wp-content\/uploads\/sites\/4\/2015\/12\/Upload-2-300x195.png\" alt=\"Upload 2\" width=\"417\" height=\"271\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/Upload-2-300x195.png 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/Upload-2-600x391.png 600w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/Upload-2.png 881w\" sizes=\"auto, (max-width: 417px) 100vw, 417px\" \/><\/a> <a href=\"https:\/\/i4tsk12in2b2y7uts14c528g-wpengine.netdna-ssl.com\/wp-content\/uploads\/sites\/4\/2015\/12\/A2.png\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-3762\" src=\"https:\/\/i4tsk12in2b2y7uts14c528g-wpengine.netdna-ssl.com\/wp-content\/uploads\/sites\/4\/2015\/12\/A2-300x284.png\" alt=\"A2\" width=\"288\" height=\"273\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/A2-300x284.png 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/A2.png 500w\" sizes=\"auto, (max-width: 288px) 100vw, 288px\" \/><\/a><\/p>\n<p>&nbsp;<\/p>\n<p>Sources:<\/p>\n<p>[1]\u00a0http:\/\/www.europoolsystem.com\/en\/About-us\/Facts-and-figures<\/p>\n<p>[2] http:\/\/www.europoolsystem.com\/UploadBestanden\/Strategy-I.pdf<\/p>\n<p>[3]\u00a0http:\/\/www.europoolsystem.com\/UploadBestanden\/12-2012-Article-in-European-Business-Journal.pdf<\/p>\n<p>[4]\u00a0http:\/\/www.cimcorp.fi\/Article\/The_plastic_crate_is_going_strong<\/p>\n<p>[5]\u00a0http:\/\/www.lpr.eu\/Nieuws\/Toon\/228<\/p>\n<p>[6] http:\/\/www.europoolsystem.com\/UploadBestanden\/Euro-Pool-System-Leaflet-Integrated-service-centre-UK.pdf<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Introduction Most of us are well aware of the three major players\u00a0in fresh food industry: producers (e.g. Dole), logistics service providers (e.g. US Foods) and supermarkets (e.g. Kroger). However, some often overlooked market participants are key enablers of supply chain [&hellip;]<\/p>\n","protected":false},"author":935,"featured_media":3788,"comment_status":"open","ping_status":"closed","template":"","categories":[703,701,627,37,418,21,109,702],"class_list":["post-3344","hck-submission","type-hck-submission","status-publish","has-post-thumbnail","hentry","category-cost-savings","category-europoolsystems","category-fresh-food","category-innovation","category-integration","category-logistics","category-operational-efficiency","category-plastic-trays"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-rctom\/assignment\/the-tom-challenge-tom-winners-and-losers-assignment\/","yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Euro Pool System: reshaping fresh food chain one tray at a time - Technology and Operations Management<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/euro-pool-system-reshaping-fresh-food-chain-one-tray-at-a-time\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Euro Pool System: reshaping fresh food chain one tray at a time - Technology and Operations Management\" \/>\n<meta property=\"og:description\" content=\"Introduction Most of us are well aware of the three major players\u00a0in fresh food industry: producers (e.g. Dole), logistics service providers (e.g. US Foods) and supermarkets (e.g. Kroger). 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