Critical Success Factors for Returnable Glass Bottles (#RGB) in #AFRICA
Dumisani Siziba
Transformative General Manager & Business Leader | Tobacco | Beverages | Telecommunications | Supply Chain I Waste Management | Circular Economy | Recycling | EPR Strategy, Implementation, Advocacy | Sustainability
CRITICAL SUCCESS FACTORS OF SETTING UP A RETURNABLE GLASS BOTTLE (#RGB) OPERATION IN #AFRICA
In my last post, I wrote about the need for #FMCG Beverage Companies in #Africa to consider setting up Returnable Glass Bottle operations in light of consumers asking for #SuistainablePackaging that is environmentally friendly and contributes to a cleaner world. In this AFRICAN RTM LEADERSHIP SERIES (#AFFRICANRTMLEADERSHIP SERIES) I discuss and unpack anything RGB.?
Today I look at Critical Success Factors for an RGB Operation. RGB operations are not without their challenges and logistical issues can derail many an operation. Below are key success factors:
?1.??????CAPEX VS PAYBACK PERIOD.
Setting an RGB operation is Capital heavy. Capital Investment is required for purchasing packaging material (Bottles, crates, kegs, etc), setting up sorting, cleaning, storage facilities, etc. The Capital requirement must be weighed up against the payback period, and business case. Will the Sales Revenues be sufficient to cover once-off and ongoing logistical costs?
2.??????HAVE A DEDICATED RGB LINE.
It’s critical to have a separate and dedicated RGB Line where bottles are refilled with the product. This must be complemented by a robust logistical operation dedicated to this line.
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3.??????BOTTLE FEASIBILITY
Undertake a study to understand what type of bottle is required (size, shape, weight, etc) and customize it for your crates, pallets, and vehicles to facilitate a smoother logistics process. The bottle type and size must be suited to the environment in which it will be used.
4.??????HAVE SUFFICIENT FLOAT OF BOTTLES IN THE MARKET
Make sure the market has sufficient stock of Bottles, Caps, Crates, etc as NOT all the Bottles will make it back to the company
5.??????HAVE A REMOVABLE LABEL
To ensure that bottles are used for different beverages, you must have a removable label so that you can apply a new one where required
6.??????HAVE AN APPROPRIATE DEPOSIT RETURN SYSTEM
To encourage customers to return bottles, caps, crates, etc design an appropriate incentive scheme where customers get a refund when they return the bottles. This refund is part of the logistics cost included in the initial purchase price.?
Would you like to know more about Returnable Glass Bottles? Contact me and follow this blog for more information. #AFRICANRTMLEADERSHIPSERIES #DUMISANISIZIBA #ENCHANGE #SALES #MANAGEMENT
Supply Chain & Route to Market Expert
2 年An expert talking about a Returnable Glass Bottle (#RGB) Operation. You will get a lot of interest Dumisani Siziba, especially in #Africa.
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2 年Super excited about this chapter in your life D ?? Looking forward to more of your captivating and insightful writings. Hopefully, one day you will host an African conference ??
Only on the table. Without proper detailed processes that includes accountability; there will be excessive bleed. What’s the variance between “ deposit” and replacement?The greater the gap; the higher the likelihood off non return.Case in point is refillable gas cylinders; they are engineered to a higher space than domestic “bbq/braai” tanks. The deposit was 1/4 of replacement; huge “ export of empties took place; now it’s more inline. thank you for this
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2 年Is this D'Adjame Market?
Sales, Distribution, Retail & Patnerships management
2 年Very insightful Dumisani Siziba , my critical worry with the #RGB would be the rate of broken bottles in the market that keeps replacement of the same at a high cost to the manufacturer, any idea about that scenario?