Tooltechnic Systems (Aust) Pty Ltd. August 2016 June 2018

Transcription

1 Australian Packaging Covenant (APC) Action Plan August 2016 June 2018 Company summary/history Tooltechnic Systems Australia (TTS) Pty Ltd is a privately owned Australian business since January Prior to 2010, Tooltechnic Systems Australia was a wholly-owned subsidiary of the TTS Group in Germany, responsible for the distribution of Festool power tools Australia-wide. The Head Office is located in Dandenong South, Victoria, where it officially opened its door on 30 th March 2001, making it the first TTS subsidiary outside of Europe. Prior to then, Tooltechnic Systems was a division of Festo, distributing tools in Australia under that brand name since In August 2015 TTS extended into the brand Fein. The sales for TTS Australia are approximately AUD 30M per annum, which represent approximately 3.5 % of the total power tool market in Australia. With a strong and committed focus to future directions in a globalised economy, particularly in the Australian market, Festool has a long established reputation for power and air tools, plus accessories and consumables of the highest quality, designed and manufactured in Germany. All design, development and production control for both Festool and Fein occur within the brand management companies in Germany and manufactured mainly in Germany and the Czech Republic. The products purchased and imported from TTS companies in Germany are distributed by TTS Australia from the national warehouse at Dandenong South in Victoria, which is also the location for sales management, administration/accounting, marketing and after sales service. Our distribution partners are typically specialty power tool distributors and are not inclusive of the major hardware chains e.g. Bunnings Warehouse. Our distributors are supported by a team of Technical Sales Consultants, National sales manager and a National Training Manager. The total workforce for TTS Australia including the external Technical Sales Consultants team is 53 employees. The external sales team are set up with a storage lock up facility to hold demonstration tools and equipment which allows them to store and re-use packing material. The majority of the Festool demonstration tools are kept in Systainer plastic carry cases. Page 1 of 7

2 In keeping with the company s global strategy, TTS Australia sells the Festool and Fein ranges of professional power tools to well-defined market segments within the power tool industry: Woodworking, which includes specialist trades such as Joinery, Cabinet-making, Furniture Manufacture and Carpentry; Painting and Plaster Industry, Metal Industry (engineering metal construction), Automotive and Marine finishing and repair as well as the concrete renovation market. With this focus in mind, as part of our premium brand strategy we have a limited but expanding distribution network of Specialist Partner Dealers who are committed to support the brand and their customers, with extensive product knowledge and training, professional presentation of the products and professional service and advice, both during and after the sale. The dealers in our network also undertake to understand and commit to upholding the core values of Tooltechnic Systems. TTS Australia supports this specialist dealer network with a wide range of activities from our committed sales team including end-user demonstration on site. A trained After-Sales Service team carries through our commitment by providing top quality, factorybacked service. Besides the Festool brand, TTS Australia has now also started to import products from Germany that are not produced by the TTS Group of companies, including Fein. However, at this stage, these other imports (excluding Fein) account for less than 4 % of the total turnover and can therefore be segmented for the purpose of this action plan. APC classification We are the importer of our brands Festool and Fein and are therefore classified as the Brandowner. The Festool brand contributes around 83 % of the total annual turnover, the Fein brand makes up the rest of about 13 %. Covenant contact officer The company contact person for this Project is as follows: Stefan Felix Inventory/Logistics Manager Quantum Close Dandenong South, VIC 3175 Phone: 03/ Fax: 03/ Stefan_felix@tooltechnic.com.au Page 2 of 7

3 Distribution and packaging processes TTS Australia imports goods into the country using sea freight container services and airfreight services. TTS distributes goods around Australia using a national transport network provider and local courier operators for the Melbourne Metro areas. Finished products are imported into Australia individually packaged on European skids. The majority of Festool tools are packaged in their plastic carry cases. These carry cases (Systainer ) are kept by the end consumer and provide an excellent long-time storage solution which practically eliminates waste. A whole range of accessory packages are also available in these Systainer carry cases as well as complete storage usage solutions. The Systainer becomes part of the product and is therefore not recognised as packaging such as. The Fein range also come in plastic carry cases, however we still have a range of tools that come in cardboard boxes. These boxes are not only for the safe transportation of the tool but also have a marketing aspect and are shelf ready. Our distribution partners in the market often sell the products to the end consumer in the retail packaging such as these plastic carry cases or the cardboard. Therefore the cardboard waste (secondary and tertiary packaging) is left behind with the distributor for re-use or recycling. These cardboard boxes are often re-used to return goods to us or for warranty/repair work. By utilising this middle man, we are reducing potential waste going into the end user market. We also provide an online web based shopping facility where end consumers are able to buy online from TTS Australia. In this case the products including the secondary packaging are being sent out to the end consumer. These internet orders, however, are less than 4% of our overall turnover. Most of our orders are from our distribution network (dealers) instead of directly from end users. All packaging material, cardboard boxes and cardboard sheets supplied from Germany, are being reused by TTS in its own domestic operations. No cardboard is being wasted and all skids/pallets are being re-used. Our cardboard packaging supplier, Oji Fibre Solutions AUS Pty Ltd, supplies TTS with 100% recycled material. These are being used as secondary and tertiary packaging. All our cardboard boxes are supplied with the recycling symbol (Mobius loop). The OH+S task force organises a yearly clean up day in December where the environmental policies and practices are followed on the day. Waste management systems are in place across the office building. The Office is equipped with paper recycling bins, kitchen areas with recycling bins and general rubbish. Paper towel dispensers have been replaced by Dyson Air Blades dryers in the toilet area. Used printer toners are also being collected in special bins for recycling. Used cordless drills batteries are being collected and recycled in bins provided in the warehouse. We also organise collections to dispose of old I.T equipment, metals, motors, cables and cardboard/paper waste. As an initiative to stop printing incoming faxes in the main office area, the faxes can now be saved electronically and viewed on the screen rather than printing on paper. This system will be used for processing sales order. A considerable amount of paper can be saved. Our Accounts and Customer service teams are also in the process of implementing a paperless policy where invoices, orders and Page 3 of 7

4 other documents are sent via and stored as soft copies in a systematic filing system. This is a new project and the policy won t be published until October 1 st From this date we aim for our teams to progressively develop and implement work practices that promote a paperless working environment. Schedule for packaging Reviews Additional to the action plan a list of the different types of packaging used by the company and a timetable for evaluating existing packaging by category or by SKU has been established. The specific actions for implementing the commitments under the Covenant and supporting the achievement of the Covenant s objective and goals: Goal 1: Packaging Optimised to achieve resource efficiency and reduces environmental impact without compromising product quality and safety: A plan is being put in place to review and assess existing packaging. Considering the Festool brand contributes the majority of the annual turnover for TTS Australia, we have decided to continue reviewing and assessing packaging for the Festool brand first. In a later instance, the brand Fein will become part of the APC Action plan to review existing packaging. Packaging for new upcoming products are being assessed as we are being informed by our suppliers in Germany. As all new product development, research and design is being carried out in Germany, we have a limited influence in terms of decisions making of product or packaging. Nevertheless, we will endeavour to contribute to the decision making wherever we see an opportunity for improvement. A policy will be put in place to review new product packaging. For existing packaging reviews and assessment, the following plan has been put into place: Festool Brand of Power tools: Systainer (carry case) version tools and accessories: The Systainer is part of the product and in most cases sold to the end consumer without a secondary packaging. As an ongoing plan, we will focus on selling products wherever possible in Systainer. This will be strongly recommended at point of introducing new products. Timeline: Ongoing Cardboard box version tools: We offer a range of tools which are being sold in cardboard box version. Some of the equivalent Festool tools are also being sold in Systainer carry case versions. To be competitive in the market this cheaper cardboard box version is being offered. As part of this action plan, we already have successfully phased out a range of cardboard box version of Festool tools and are now only offering the product in Systainer. This was completed in Page 4 of 7

5 April 2011 following discussions with the sales and marketing departments. We still have, however, a range of tool still sold in cardboard boxes including some of the sanders, the new KS 60, our CT 17 dust extractor and our stirring range of tools. Timeline: Sanders and new Kapex Saw to be reviewed in December 2016, Mixers and dust extractor to be reviewed in January 2017 Paper and cardboard packaging: We offer a complete range of accessories and consumables items for our tool range systems. The items range from circular saw blades, accessories for dust extraction unit as well as consumables such as dust bags and filters, abrasives/sand paper as well as sanding and polishing pads for our sanders and polishers. All these products are packaged in paper and cardboard packaging depending on the product. They are retail shelf ready and often have a marketing appeal Timeline: A review of all abrasives will be done in December 2017 Plastic packaging: As part of the accessory range, we offer an extensive range of router cutters, drill bit cases, jigsaw blades and other smaller accessories. These are packaged in small plastic containers or tubes which provide good protection and are retail shelf ready. As the containers provide excellent storage for the product (drill bit cases, router bits etc.) it will be kept for the life of the product. Timeline: Product group will be reviewed in January 2018 Plastics PET: A small number of accessory items are packaged in plastics PET material. Items include copy rings for routers, base plates for jigsaws and some selected pads for sanders. Timeline: Product group will be reviewed in March 2018 Fein Brand of power tools: Plastic carry case version tools and accessories: The Plastic carry case is part of the product and in most cases sold to the end consumer with only a cardboard slip with marketing information on it or without secondary packaging at all. As an ongoing plan, we will focus on selling products wherever possible in these plastic carry cases. This will be strongly recommended at point of introducing new products. Timeline: Ongoing Cardboard box version tools: We offer a range of tools which are being sold in cardboard box version. A few of the equivalent Fein tools are also being sold in plastic carry versions. However, to be competitive in the market this cheaper cardboard box version is being offered. Page 5 of 7

6 As part of this action plan, we will endeavour to phased out a range of cardboard box version of our Fein range of power tools but this will involve some communication with Fein themselves as they may not have plastic or metal carry cases for all their tools. Timeline: Angle Grinders to be reviewed in March 2017, Metal Core range to be reviewed in May 2017, Dust Extractors to be reviewed in July 2017 and all other cardboard box versions of tool to be reviewed between September 2017 and June 2018 Metal carry case version tools and accessories: We offer a very limited amount of tools in metal carry cases. The metal cart case is part of the product and in most cases sold to the end consumer without a secondary packaging. The issue with these metal carry cases is that they are all shipped in secondary cardboard box packaging for protection. We would like to review the need for the secondary packaging. Timeline: Drilling Tapper range to be reviewed in November 2017 Paper and cardboard packaging: We offer a complete range of accessories and consumables items for our tool range systems. The items range from saw blades, accessories for dust extraction unit as well as consumables such as dust bags and filters, abrasives/sand paper as well as batteries and chargers for our cordless range. All these products are packaged in paper and cardboard packaging depending on the product. They are retail shelf ready and often have a marketing appeal. Timeline: A review of a selected range will be assessed and reviewed in December 2017 Plastic packaging: As part of the accessory range, we offer an extensive range of drill bits, cutters, blades and other smaller accessories. These are packaged in small plastic containers or tubes which provide good protection and are retail shelf ready. As the containers provide excellent storage for the product. It will be kept for the life of the product. Timeline: To be reviewed in January 2018 Plastics PET: There are a number of Fein accessory items are packaged in plastics PET material. Items include a large range of abrasives and sanding paper, cutters and other shelf ready products. As they are shelf ready, there is a large marketing aspect to consider when reviewing this packaging. Timeline: March 2018 Page 6 of 7

7 Goal 2: The efficient collection and recycling of packaging: Our warehouse team has a strong commitment towards recycling of packaging material. All cardboard, paper and cartons are being re-used. No cardboard goes to waste. As we are not a production site, we don t produce any waste. We have recycling bins on site to accommodate kitchen and office areas. We also take trips down to the local recycling collection centre for metal parts or old batteries from the After Sales service team. Goal 3: Demonstrated commitment to product stewardship: All design and procurement decisions with regards to packaging are made on a Head Office level at our suppliers in Germany. We will endeavour to work with our suppliers and demonstrate collaboration to promote recovery of packaging. TTS Australia organises a yearly clean up day in December where the environmental policies and practices are followed on the day. Waste management systems are in place across the office building. Defining sustainable packaging Four key principles need to be considered in the design or procurement of packaging to improve its sustainability. These principals will form part of negotiations with our suppliers. 4 Principles: 1. Fit-for-purpose: Packaging should be designed to meet market and consumer needs, while minimizing net impact in a cost-effective way 2. Resource efficiency: Packaging should be designed to minimise the use of materials and other resources without compromising product quality and safety. 3. Low-impact materials: Packaging should be designed to minimise the environmental and social impact of materials and components by using materials from responsible suppliers 4. Resource recovery: Packaging should be designed to maximise its potential for recovery and recycling and to minimise the environmental and social impact of its disposal. Executive Summary TTS Australia controls its operations through its management structure and by setting up policies and procedure statements (Work Practice Documents) for all parts of our business. The actions contained within this action plan are fully supported and endorsed by the Managing Partners, Mr Blair Brydon and Mr Holger Schulz, Managing Directors TTS Australia. Managing Partner Holger Schulz Managing Partner Blair Brydon Page 7 of 7