Logistics & Quality Assurance
Logistics/QA Key Strategies/Initiatives 2012-13 1.
2. 3.
4.
Durham Warehouse Outbound Autopalletization Ottawa Warehouse Expansion Enhance receiving function at London Warehouse QA Rollout Sweetness Descriptors
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 1.
Automatically palletize cases for outbound shipments > Roll out prototype to 18
palletization stations > Significant cost savings > Improve throughput > Reduce injuries
Logistics/QA Key Strategies/Initiatives 2012-13 2.
Ottawa Warehouse Expansion
Logistics/QA Key Strategies/Initiatives 2012-13 2.
Ottawa Warehouse Expansion > Integrate “Depot”
with Ottawa warehouse > Increase storage capacity > Split receiving and
shipping
Logistics/QA Key Strategies/Initiatives 2012-13 2.
Ottawa Warehouse Expansion > 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 3.
Enhance receiving function at London warehouse > Introduce ergonomic
destuffing platforms coupled to automatic palletizer > Improve productivity,
reduce labour costs > Enhance safety
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
Logistics/QA Key Strategies/Initiatives 2012-13 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.
Creating and evolving the Logistics Safety Culture
Wine Shopping Made Easy
LCBO Sweetness Descriptors
LCBO Sweetness Descriptors • QA will rollout sweetness descriptors for table wine which will replace the current Sugar Code system. • The new system is sciencebased 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.
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 Case Sales 2011-12 Fiscal year ending March 31st, 2012 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 %
Specialty Services Private Ordering Retail Service Centre Sales ($) 2011-12 Fiscal year ending March 31st, 2012 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%
Specialty Services Private Ordering Retail Service Centre Threshold Utilization (Consignment program only) 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 %
Specialty Services Private Ordering Retail Service Centre Inventory Turns (Consignment cases only, Fiscal 2011-12)
TY
LY
% Variance TY vs. LY
Inventory Turns
6.4
6.5
(1.5) %
Weeks of Inventory Onhand
8.1
8.0
1.3 %
(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 objectives 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
Specialty Services Private Ordering Retail Service Centre Ongoing operational review to maximize efficiencies > Effective task management > Cross-training > Resource Allocation
Thank You
Quality Assurance Updates Stephen Cater Director; QA Department Logistics/Quality Assurance Division
Drinks Ontario Meeting April 19, 2012
PART 1: ALLERGEN AND REGULATORY UPDATES
Allergen Legislation Canada Gazette II of Feb 16, 2011 > Amendment to Food and Drug Regulations > Requires declaration of priority allergens > Enforcement date of August 4, 2012
Priority Allergens Nuts Peanuts Sesame seeds Mustard Wheat, kamut, spelt or triticale
Eggs Milk Fish Crustaceans Shellfish Soybean
Equivalent to Priority Allergens Gluten Sulphites
Allergens in Beverage Alcohol Impact of Allergen Legislation on Beverage Alcohol?
Sulphites > 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
Fining Agents > 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 Declaration Options 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)
Standardized Spirits Whisky & Vodka - no issues Other spirits especially liqueurs can have flavour added possible source for added allergens
Unstandardized Products 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
Beer 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
Further Information 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/indexeng.php
ORGANIC UPDATE
OrganicOrganic Refresher
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 on the label > Not required for ingredient marked organic in ingredient list.
Equivalency Agreements 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
EUOrganic Organic EU Wine Wine Reg
Regulation
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
UPCOMING
World Wine Trade Agreement Ratification 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
ProtectedProtected names
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.
PART 2: PACKAGING UPDATES
PPEC Collaboration Logistic/QA has partnered with the Paper and Paperboard Packaging Environmental Council of Canada to look at opportunities 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
Floor Load 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
Pallets 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
THANK YOU
