Pacific Optics Pty Ltd

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					                                        Pacific Optics Pty Ltd
                                Australian Packaging Covenant Action Plan
                                          June 2011 – June 2013

Executive Summary
Pacific Optics has consistently maintained an on-going program of review in all areas of the company operations
to ensure our systems and policies are in line with current expectations and that we are maximizing not only our
efforts to our own business sustainability, but also to ensure our company complies with the Australian standards
in terms of product and packaging guidelines, and our impact on the consumer and environment.

Pacific Optics is embracing the revised Packaging Covenant and is the process of ensuring the goals of optimising
packaging design, efficient collection and recycling of packaging and product stewardship are part of our core
internal processes.

We see these new guidelines as giving our organisation an opportunity to refocus. We have intentionally kept our
Action Plan simple but most importantly achievable. It will be reviewed regularly and more taxing targets
established once the internal rigor is fully established.

Company Summary and History


Pacific Optics was incorporated in 1994, and has evolved to be the leading supplier of Sunglasses and Headwear
into the Australian Petrol and Convenience market.

As its business title suggests, Pacific Optics’ origin was as a specialist sunglass company and this product continues
to remain at the core of the business. Sunglasses have ultimately proven to be the catalyst in cementing Pacific
Optics’ position within the petrol convenience channel. This in turn has enabled us to introduce new products
into the market with the ultimate goal of strengthening the brand and extending our market share.

Research and development has also become a major focus in maintaining market dominance. The most current
fashion trends and initiatives in design are reflected in our product.

Pacific Optics success has been no accident. Its ability to develop products under the brand coupled with other
significant licenses, means that our image in the market place is recognised and trusted.

Pacific Optics is renowned for not only the high quality of its products, but also for its exemplary individual store-
to-store customer service. Specifically planned and proven sales strategies are applied to all product lines thus
ensuring customer satisfaction.

Pacific Optics totally manages all of its distribution through its highly trained and motivated Sales Executives. The
company distributes across all states and territories across Australia. This is achieved via a significant investment
in the sales team and sales management.
The success of the company and its trade marks is reliant on the continual development of the brand. With new
markets on the horizon and a greater portfolio, this company will further extend itself. Adopting this attitude will
ensure the products on offer are always fashionable, functional and offer our customers’ great value for money.

Brands and Position within Supply Chain

Pacific Optics owns the following brands and has full influence over the supply chain:
• Aerial Sunglasses
• Aerial Headwear
• Aerial Watches
• Aerial Thongs.

Pacific Optics distributes the following brands and has input into packaging and design within the supply chain:
• Walk n Talk Phone Chargers.

Packaging Materials Currently in Use

                            Consumer Packaging                        Secondary                     Tertiary

                   Material Bag that acts as cleaning        Individual plastic bag.        Pallet wrap for
                   cloth and tag                             Cardboard cartons              interstate deliveries
                                                             Plastic Bag containing 10
                                                                                            Pallet wrap for
    Headwear       Tag                                       articles. Cardboard Carton
                                                                                            interstate deliveries
                                                             containing 4 boxes

    Watches        Plastic Case                              Carton

     Thongs        Plastic Tag                               Cardboard Carton               Pallet wrap

                   Plastic heat sealed container that
                   prevents consumers opening at site.
   Walk n Talk                                               Cardboard Carton               Pallet wrap
                   The phone plug is accessible for
                   consumers to choose.

The packaging materials currently being used by Pacific Optics are as follows:
• Cardboard boxes which hold 50 sunglass units.
• Cardboard carton which holds 9 x 50 boxes.
NB: All cardboard cartons are manufactured to specifications according to contents, shipping and combined box
• small plastic bags for each pair of sunglasses
• plastic bag for caps/beanies
• plastic boxes for storage of watches - box is on sold to consumers

All packaging materials come with Pacific Optics products when shipped and their origin is China with the
exception of the 50’s boxes which are sourced locally.
Packaging Covenant Contact Details

Main Contact:                      Martin Best - CEO
Alternative Contact:               Mike Webb - Warehouse Manager
Phone:                             07 5593 4222
Address:                           PO Box 2170 BMDC
                                   Burleigh Heads QLD 4220

Cross Functional Team Responsible for Implementation

The packaging covenant action plan will be chaired by the CEO. Other representatives having an active role will
include National Sales Manager, National Business Manager, Sunglass Product Manager, Headwear Product
Manager and Warehouse Manager.

Key activities are to be incorporated into existing business processes including New Product Development and
Overhead Review Groups.

    Covenant Performance
           Goals                                         Actions                      Resp                      Target             Timeline
          and KPI’s
                                          Review all forms of packaging by product
                                          category. In particular review
                                          opportunities to prepack mix in factory                                                           st
                                                                                                                                Quantify by 1 July
                                          to reduce requirements on secondary
                                          packaging.                                              Quantify         10 %
                                                                                                                               Sunglasses 1/10/2011
 Goal 1 Optimise packaging to achieve     Product Categories:                                    weight of    improvement.
 resource efficiency and reduce           Sunglasses.                                           cartons and   That is reduce
                                                                                                                               Headwear 1/1/2012
 environmental impact without             Headwear.                                              bags used     consumption
 compromising quality or safety.          Watches.                                               per 1000      of secondary
                                                                                                                                 Watches Thongs
                                          Thongs.                                                items for      and tertiary
 KPI 1                                    Phone Chargers.                                           each       packaging by
                                          Each category will be assessed using the               category           10%
                                                                                                                                 Phone Chargers
                                          63 question guideline template.
                                          Sustainable packaging guidelines will be
                                          incorporated into Pacific Optics New
                                          Product Development Process.

 Goal 2 Recycling
                                                                                                               target after
 Pacific Optics has an active recycling
 policy. Secondary packaging is reused                                                 Mike
                                          1. Quantify the average number of times                                              Review completed by
 multiple times within our own supply
                                          we are reusing secondary packaging.                     Trace          Target to          1/10/2011
 chain. Furthermore we have
                                          2. Quantify tonnage disposed in                       movement         increase
 designated cardboard waste                                                            Mike
                                          cardboard recycling bins                               through         tonnage        Review 1/10/2011
 collection at all warehouse sites.
                                          3. Review source packaging to ensure it                 supply           being
 Currently we do not have a policy on                                                Product
                                          is compatible with internal recycling                    chain       disposed in
 purchasing on using recycled                                                        Managers
                                          4. Develop a policy on purchasing                                    recycle bins      Policy developed
                                          recycled materials for packaging                                      by 15% for           1/9/2011
                                                                                                                 2012 vs.
 KPI 3, 4
Covenant Performance Goals                                                                    Baseline
                                                          Actions                    Resp                Target       Timeline
         And KPI’s                                                                             Data
                                           Pacific Optics Action Plan is to                               Develop     1/8/2011
                                           incorporate the goals of the Packaging                        plan and
                                           Covenant in all key business                                  integrate
                                           processes.                                                    into NPD
                                           Of particular relevance will be the
                                           New Product development Process.
                                           The criteria for bringing a new line to
                                           market will incorporate meeting
                                           packaging KPI’s. Each potential new
                                           line will be assessed using the 63
                                           question template.
Goal 3 Product Stewardship
                                           Furthermore Pacific Optics undertakes                          Develop     1/8/2011
KPI 6,7,8
                                           to form a working group with our                               working
                                                                                     Martin     Mike
                                           domestic packaging suppliers and                              group with
We have in place contracts for recycling
                                           transport companies to ensure we                                regular
waste cardboard materials
                                           optimize all packaging – improve                               quarterly
                                           resource efficiency, optimize transport                         reviews
                                           efficiency and maximize reuse and

                                           Reduction in Litter

                                           Our brands have very little consumer
                                           packaging – only necessary tagging.
                                           Therefore litter is not of concern

                                           However it will be included in NPD
                                           decision hierarchy.