Logistics & Quality Assurance Logistics/QA Key - - PowerPoint PPT Presentation

Logistics & Quality Assurance

Logistics/QA

Key Strategies/Initiatives 2012-13

• 1. Durham Warehouse

Outbound Autopalletization

• 2. Ottawa Warehouse

Expansion

• 3. Enhance receiving

function at London Warehouse

• 4. QA Rollout Sweetness

Descriptors

• 1. Automatically palletize cases for outbound shipments

Logistics/QA

Key Strategies/Initiatives 2012-13

1.

Automatically palletize cases for outbound shipments

Logistics/QA

Key Strategies/Initiatives 2012-13

• 1. Automatically palletize cases for outbound shipments

Logistics/QA

Key Strategies/Initiatives 2012-13

> Roll out prototype to 18

palletization stations

> Significant cost savings > Improve throughput > Reduce injuries

• 2. Ottawa Warehouse Expansion

Logistics/QA

Key Strategies/Initiatives 2012-13

• 2. Ottawa Warehouse Expansion

Logistics/QA

Key Strategies/Initiatives 2012-13

> Integrate “Depot”

with Ottawa warehouse

> Increase storage

capacity

> Split receiving and

shipping

• 2. Ottawa Warehouse Expansion

Logistics/QA

Key Strategies/Initiatives 2012-13

> Install ergonomic technology > Introduce automation to the

receiving side

> Improve traffic flow and

customer service

> Increase productivity and

throughput

> Reduce labour requirements > Enhance safety

Logistics/QA

Key Strategies/Initiatives 2012-13

• 3. Enhance receiving function at London Warehouse

Logistics/QA

Key Strategies/Initiatives 2012-13

> Introduce ergonomic

destuffing platforms coupled to automatic palletizer

> Improve productivity,

reduce labour costs

> Enhance safety

• 3. Enhance receiving function at London warehouse

Logistics/QA

Key Strategies/Initiatives 2012-13

• 3. Enhance receiving function at London warehouse

Logistics/QA Key Strategies/Initiatives 2012-13

4.

Rollout Sweetness Descriptors

Logistics/QA Key Strategies/Initiatives 2012-13

4.

Rollout Sweetness Descriptors

Creating and evolving the Logistics Safety Culture

Safety Culture Evolution

>

Operate in a “proactive mode” by continuous education of staff.

>

Ensure orientation programs are updated and reflect new focus.

>

Maximize the use of ergonomic solutions.

>

Continue to roll out the various components of our safety culture change.

Logistics/QA

Key Strategies/Initiatives 2012-13

Wine Shopping Made Easy

LCBO Sweetness Descriptors

• QA will rollout sweetness

descriptors for table wine which will replace the current Sugar Code system.

• The new system is science-

based and uses descriptive terms to explain how sweet a wine will taste.

• The new system will also

display the actual sugar content of each wine, expressed in grams per Litre.

• New information will be

displayed on bin tickets.

LCBO Sweetness Descriptors

Specialty Services

Private Ordering Retail Service Centre

Overview

• 1. The year in Review
• 2011/12
• 2. The year ahead
• 2012/13

Specialty Services

Private Ordering Retail Service Centre

TY LY % Increase TY vs. LY Private Orders 165,078 141,262 16.9 % Consignment Programs 495,747 465,603 6.5 % Total Case Sales 660,825 606,865 8.9 %

Case Sales 2011-12 Fiscal year ending March 31st, 2012

Specialty Services

Private Ordering Retail Service Centre

TY LY % Increase TY vs. LY Private Orders $ 20,952,613 $ 17,307,969 21.0 % Consignment Programs $ 73,273,326 $ 68,223,364 7.4 % Total Sales $ 94,225,939 $ 85,531,333 10.2%

Sales ($) 2011-12 Fiscal year ending March 31st, 2012

Specialty Services

Private Ordering Retail Service Centre

TY (2011-12) LY (2010-11) % Increase TY vs. LY Average, Actual On-hand 37,997 36,982 2.7 % Percentage, On-hand to Threshold 85.1 % 79.4 % 7.2 %

Threshold Utilization (Consignment program only)

Specialty Services

Private Ordering Retail Service Centre

TY LY % Variance TY vs. LY

Inventory Turns 6.4 6.5 (1.5) % Weeks of Inventory On- hand 8.1 8.0 1.3 %

Inventory Turns

(Consignment cases only, Fiscal 2011-12)

(Inventory turns are calculated by dividing Annual Sales by Average inventory on-hand)

Specialty Services

Private Ordering Retail Service Centre

2012-13 Objectives

Excellence in:

• the Customer Experience
• Operational Efficiency

Specialty Services

Private Ordering Retail Service Centre How do we plan to achieve these objectives?

• 1. TECSYS system
• 2. Ongoing Operational Review

Specialty Services

Private Ordering Retail Service Centre Specialty Services TECSYS System

• Scheduled go live date is January 2013
• System is comprised of the following three integrated

modules:

• 1. Web Portal
• 2. Distribution Management System(DMS)
• 3. Warehouse Management System(WMS)

Specialty Services

Private Ordering Retail Service Centre

Web Portal

Agents will be able to access the Specialty Services system through the web portal using their internet browser

• 1. User-friendly environment
• 2. 24/7 user access
• 3. Value-added functionality

Specialty Services Private Ordering Retail Service Centre

Distribution Management System

> Integration with LCBO systems > Expedient processing and fulfillment > Value-added functionality > Easy access to robust and flexible reports

Specialty Services Private Ordering Retail Service Centre Warehouse Management System

Operational efficiencies gained will translate into:

> Improved service levels > More accurate inventory > Improved order-pick accuracy > Reduced wait times for Agents and Customers at the dock

Specialty Services

Private Ordering Retail Service Centre The degree to which we are able to meet our

• bjectives will depend on the level of:
• Agent buy-in and use of the system
• Acknowledgement that success will be achieved

through ongoing LCBO Specialty Services/Trade partnership

• Mutual understanding that we will continue to face

limitations such as program space, building capacity and externalities outside of our control

Ongoing operational review to maximize efficiencies

> Effective task management > Cross-training > Resource Allocation

Specialty Services

Private Ordering Retail Service Centre

Thank You

Quality Assurance Updates

Stephen Cater Director; QA Departm ent Logistics/ Quality Assurance Division

Drinks Ontario Meeting April 19, 2012

PART 1: ALLERGEN AND REGULATORY UPDATES

Canada Gazette II of Feb 16, 2011

> Amendment to Food and Drug Regulations > Requires declaration of priority allergens > Enforcement date of August 4, 2012

Allergen Legislation

Priority Allergens

Nuts Peanuts Sesame seeds Mustard Wheat, kamut, spelt or triticale Eggs Milk Fish Crustaceans Shellfish Soybean

Gluten Sulphites

Equivalent to Priority Allergens

Impact of Allergen Legislation on Beverage Alcohol?

Allergens in Beverage Alcohol

> Bilingual declaration for non-vintage and 2012 and later vintage dated wines > Exempt for USDA organic seal or “no added sulphites” claim- confirmed by lab testing

Sulphites

Declaration Options Contains statement: > Contains sulphites; contients des sulfites Ingredient list (not for wine) > Ingredients: Alcohol, water, sulphites, flavour > Ingredients: Alcool, eau, sulfites, arôme

Sulphites

> Bilingual declaration for non-vintage and 2012 and later vintage dated if contains residues of: > Albumen (egg) > Casein (milk) > Isinglass (fish) > NISS attestation > Non-turbid wines considered to be low risk for fining agents- turbidity confirmed by lab testing: white wine: 5 NTU red wine: 10 NTU

Fining Agents

Contains statement: > Contains: sulphites, milk (fining agent) > Contient: sulfite, lait (agent de collage) Ingredient list (not for wine) > Ingredients: Alcohol, water, sulphites, flavour, milk (fining agent) > Ingrediénts: Alcool, eau, sulphite, arôme, lait (agent de collage)

Fining Agents

Declaration Options

Whisky & Vodka - no issues

Other spirits especially liqueurs can have flavour added possible source for added allergens

Standardized Spirits

Required to have ingredient list “Flavour” may include an extract of an allergenic item

Unstandardized Products

Declaration Options

Contains statement:

• Ingredients: alcohol, cream, sugar. Contains milk

Ingredient list:

• Ingredients: alcohol, cream (milk), sugar

Unstandardized Products

Temporary exemption When exemption terminated will require gluten warning (name gluten grain, e.g. barley, wheat) Exemption does not apply > If ingredient list present > If standard of identity not met

Beer

Declaration Options

Contains statement:

• Contains barley, wheat. Contient orge, blé

Ingredient list:

• Ingredients: Water, malted barley, hops, yeast,

flavour

• Ingredient: Eau, malt d’orge, houblon, de levure,

arôme

Beer

LCBO Trade Letters CFIA Website http://www.inspection.gc.ca/english/fssa/labeti/allerg/2011 0216inde.shtml Health Canada Website http://www.hc-sc.gc.ca/fn-an/label-etiquet/allergen/index- eng.php

Further Information

ORGANIC UPDATE

Organic Refresher

All products making organic claims must meet Canadian organic standard or equivalent Organic claims must be bilingual Organic products must state organic certifying agency

• n the label

> Not required for ingredient marked organic in ingredient list.

Organic Refresher

Equivalency Agreements

USDA National Organic Program (NOP) EU 834/07 > No exceptions, full equivalency BUT > Does not cover production of wine so cannot be used in Canada for wine

Equivalency Agreements

EU Organic Wine Reg

Announced February 8, 2012

Regulation to be published > Will not apply until 2012 harvest > Expect Canadian equivalency if:

• “Organic wine” on label
• EU organic logo on label
• Certificate shows “organic wine” status, not “wine

from organic grapes”

• Sulphite content within Canadian maximum

EU Organic Wine Regulation

UPCOMING

Expected by January 1, 2013 (date imposed by agreement) Revision of labelling regulations: > Single field of vision > Use of “alc 12% vol” as acceptable format STATUS: > Consultation closed Feb 14/12 > Awaiting Gazette 1

World Wine Trade Agreement Ratification

Protected names

Last phase of trade agreement has compliance date of December 31, 2013. End of permitted use of champagne, sherry, port and chablis for products not from the designated appellations.

Protected Names

PART 2: PACKAGING UPDATES

Logistic/QA has partnered with the Paper and Paperboard Packaging Environmental Council of Canada to look at

• pportunities to align LCBO Product Packaging Standards

with current industry standards and best practices.

PPEC Collaboration

PPEC has established a technical committee comprised of representatives from the pulp and paper and corrugated box manufacturing sectors and are currently developing a technical specification for further discussion.

PPEC Collaboration

Output of Discussions:

• Develop harmonized standards for both LCBO & Vintages

products

• A recent survey of over 700 Vintages products determined

65% are complaint with current LCBO packaging requirements

PPEC Collaboration

Floor loaded containers required for all non-continental North American loads Slip sheets and pallets not permitted As of July 3, non-compliance fees will be issued to suppliers and freight forwarders

Floor Load

40” x 48” CPC or equivalent pallets required for all continental North American loads As of July 3, non-compliance loads will be subject to a fee and possible diversion to a 3rd party for re-work

Pallets

THANK YOU