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Can You Imagine a Supply Chain That Will Deliver Goods While Saving the Plant

Keith Holliday Director- Supply Chain & Logistics

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Sonoco is a Global Packaging Company• Founded in 1899, Sonoco is a $4.8 billion global provider of consumer

packaging, industrial products, protective packaging and packaging supply chain services.

• With more than 19,600 employees working in more than 340 operations in 34 countries, we serve some of the world’s best-known brands in some 85 nations.

2012 2013

Sales $1,912 $1,894Base EBIT $177 $187

2012 2013

Sales $478 $523Base EBIT $19 $24

2012 2013

Sales $1,841 $1,859Base EBIT $141 $138

2012 2013

Sales $555 $572Base EBIT $39 $37

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What We Achieved

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Sustainable Supply Chains

Economico Risk & Crisis Managemento Customer Relationship Managemento Supply Chain Management

  Environmental

o Environmental Policy/Management Systemo Operational Eco-Efficiencyo Product Stewardship

  Social

o Human Capital Developmento Talent Attraction & Retentiono Stakeholder Engagement

 

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Total Solutions Provider - Conception to Collection

Packaging Design, Innovation& Artwork Management

Complete Consumer Packaging

Retail Merchandising

Packaging Supply Chain Services

Recycling

Sonoco, through its recycling operations, recovers the equivalent of 65%, of what we place into the market, by weight.

Sonoco Recycling

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Sonoco Engaged in recycling since the 1920s

• Globally, collects more than 3 million tons of paper, plastic, metal and other materials annually

• 40+ processing facilities throughout the world • 20+ facilities within the US, servicing over 200 sites in the US and

Canada• 6 full-scale single stream Material Recovery Facilities (MRF);

• Sort, process and market residential and commercial single stream • Continuous improvement in facility upgrades and educational

services• Over 65% of material received at the recycling plants or MRF’s

goes directly to Sonoco plants, vertical integration unique to a packaging company

Vertical Integration - Some products Sonoco manufactures from the recovered material:

• Composite cans (chip/dough can containers)• Construction SonoTubes• Film, tape, and label cores• Point of purchase displays

CONFIDENTIAL

• Recycled linerboard• Uncoated boxboard• Plastic regrind

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Sonoco Sustainability Solutions – Pursue Landfill-free

Program designed to help customers create and implement sustainable business solutions:

• Identify cost avoidance opportunities through reducing and diverting materials currently going to landfills

• Convert waste streams to revenue streams by finding alternative uses for the materials

• Provide web-based summary reporting of both productivity improvements and sustainability statistics

• Assurance of safe destruction of branded material

Perform waste audit,

report to identify landfill

reduction, revenue

enhancement opps

Propose equipment

where needed

Remove standard recyclables

and materials designated

for alternate outlets

Influence packaging

design

Pursue Zero Waste to

Landfill goal

Transport to 3rd party

contractors for safe material

destruction

Audit: 1-2 daysReport: ~2 weeks Timing dependent upon facility

Provide reporting,

continuously improve,

researching best material

outlets

CONFIDENTIAL

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Sustainable Supply Chains - Optimized and Agile to Minimize Footprint with Sustainable Economics

• Push/ Optimization Supply Chains

• Link into the S&OP process

• Demand, Inventory, Capacity loading all planned in advance

• Pull/ Agile Supply Chains

• Late Stage Customization (at or near the customer)

• Pre-staged Inventory (VMI/SMI)

• Integrated Raw Material Planning

• Composite supply chains (Elements of Push/Pull)

• Raw material Planning/ MRP

• Collaborative Planning/ Inventory Risk pooling

• Integrated information flows

Paper must have Forward, Demand Based planning for Operational Efficiency

Conversion must build to order with short lead times and high service levels

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Paper Manufacturing

ConvertingTubes & Cores

Composite Cans

Segmenting Supply Chains - Industrial

Segmenting Supply Chains - Consumer

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Customer Sonoco

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Risk Management• Close integration with Customers & Suppliers

• Collaborative planning with key CPG customers

• Geographic coverage with regional converting operations and close couple customer dedicated operations

• Efficient transportation vs DC based system

• Backup facility coverage for manufacturing risks

• Supplier Sustainability award program

• SRM focused on critical few suppliers

• Assessment of Supply Risk

• Annual risk scenario survey

• Mitigation plans for high risk potential or severe impact

Sonoco Supply Chain Talent

• Corporate team developing supply chain roles… who is in scope?• Probably 5 major roles with Logistics variations• Standard Job descriptions, deliverables, metrics across Sonoco

• Since 2008, have been conducting APICS CSCP (Certified Supply Chain Professional) class on company time • Probably 50 people now certified including CSRs, Sales, Logistics,

Procurement, and SC professionals• Considering how to better develop the plant level planners and schedulers…

CPIM?

• Selective use of developmental assignments• SC Logistics, SC Procurement, Div SC SC Excellence, Div Div

• Hiring in young, analytical, systems savvy talent to start• Scenario modeling, increasing hunger for information and analytics among

business leaders

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• Unique characteristics of segmented supply chains impact decision making during the new product development process

• Must engage supply chain at the right time to accelerate time to market

• Standardizing processes and metrics to drive new product lines

New Product Integration

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Delivering on the Promise