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Proof of cost savings will drive change<br />
Both manufacturers and retailers regard proof of cost<br />
savings as the most important driver for change in<br />
designing EUL. Manufacturers are particularly sensitive<br />
to pay-back issues such as sharing of gains and other<br />
financial incentives. Retailers see additional triggers in<br />
the shape of new (environmental) regulations, and<br />
Figure 10: Drivers for change<br />
Triggers<br />
Proof of cost savings<br />
Agreement on gains sharing<br />
New regulations<br />
A generally accepted<br />
modular<br />
Financial incentives<br />
New product development<br />
Changes in product flows<br />
Importance score<br />
No Low Middle High<br />
new replenishment techniques, which will lead to<br />
changes in product flows. Retailers – handling<br />
assortments – expect to gain more from the use of<br />
Efficient Unit Loads than manufacturers, but<br />
manufacturers are more likely to have to invest. This<br />
topic is covered in Chapter 8.<br />
Manufacturers<br />
Retailers<br />
Source: A.T. Kearney Survey, Efficient Unit Loads project<br />
Ways forward are based on agreement<br />
Agreement exists between manufacturers and retailers<br />
regarding the key dimensions of secondary and tertiary<br />
unit loads, although major investments will,<br />
nonetheless, be required.<br />
Secondary unit loads<br />
While retailers see a clear need for prescribed length<br />
and width, manufacturers do not. Agreement exists on<br />
a basis for such a prescription: use of the 600x400<br />
master module. Both players are not interested in<br />
height and internal dimension regulations.<br />
With regard to RTI loads, there are differing opinions<br />
on return logistics. Manufacturers do not regard this<br />
operation as a critical success factor. Retailers, who<br />
often operate their own systems, tend to view return<br />
logistics as a means of competitive advantage and are<br />
reluctant to relinquish control to a pool operator.<br />
Exceptions are manufacturers operating their own<br />
return logistics systems, particularly those in the<br />
beverage industry, who use both reusable primary<br />
packaging (bottles) and reusable secondary unit loads.<br />
The Efficient Unit Loads Report 21
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