Pacific Optics Pty Ltd Australian Packaging Covenant Action Plan June 2011 – June 2013 Executive Summary 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 Background 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 Sunglasses 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 weight. • 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 Email: email@example.com 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 Baseline Goals Actions Resp Target Timeline Data 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 Martin compromising quality or safety. Watches. per 1000 of secondary Watches Thongs Thongs. items for and tertiary 1/3/2012 KPI 1 Phone Chargers. each packaging by Each category will be assessed using the category 10% Phone Chargers 63 question guideline template. 1/3/2012 Sustainable packaging guidelines will be incorporated into Pacific Optics New Product Development Process. Goal 2 Recycling Establish target after Pacific Optics has an active recycling review. 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 materials. recycled materials for packaging by 15% for 1/9/2011 Mike 2012 vs. KPI 3, 4 2011 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 process 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 recycling. 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.