Efficient Returnable Transport Packaging (RTP) Stefan Schweiger Director International Business Development

ZERO WASTE ZERO LOSS

1. Executive Summary

2. Challenges in supply chain today

3. About HOREN

4. Develop new solutions

5. Contact HOREN EMEA

• The world of manufacturing becomes more global and is challenging Supply Chain Management

• Transport needs to be more cost efficient, sustainable and reduce carbon footprint

• One measure to achieve this is to decide for efficient returnable transport packaging (RTP)

• HOREN is an innovative company focusing on developing smart RTP solutions

• We focus on bulk containers for the segments automotive, retail and food processing

• HORENs RTP solutions are developed based on a TCO (total cost of ownership) approach

• Due to our R&D capacities we are able to develop customer specific products in short time

• As a solution provider HOREN offers beside genuine products complementary services

• We are actively seeking for new markets where we can replace non-efficient RTP

Executive Summary

CHALLENGES FOR GLOBAL SUPPLY CHAIN MANAGEMENT

Trends in Europe

• Importance of logistic, transport and packaging management increases continuously

• Logistics and Supply Chain gets in focus for cost reduction programs

• There will be more pressure from the EU commission to reduce carbon footprint

• Taxes for high CO2 consumption will be put in place and will drive up costs

• Due to this pressure alternatives in transport will be preferred (e.g. intermodal transport)

• Companies are sourcing out responsibility for transport packaging to 4 PL suppliers

• Mobile applications and the internet of things will become much more important in SCM

• Sustainability becomes very important for the buying decision of end customers

• End customer buying behavior changes and creates impact on supply chain (e.g. online shops)

Reduce costs

Act “green”

Global Trends

Globalization Price erosion for products Increased variety of products Increased environmental awareness Internet of things

Global trends and main impact on SCM

Be digital

The Magic Question

Question How can we reduce significant costs in transport/storage, be more sustainable and reduce CO2 footprint

One possibility Change to efficient and smart RTP

Efficient and sustainable transport packaging

How we define it:

• Multiple use instead of one time use

• Optimizing space to fill transport medium (e.g. sea container, truck, rail wagon) up to 100 %

• High inner volume whilst having standard outer dimension

• High folding ratio saving costs during reverse logistic

• Light but in the same time very stabile (e.g. impact on storage)

• Easy to operate, wash, repair and service

• Track and Trace-able as well as added value information (the intelligent container)

• Long life time and on top recyclable

Total Cost of Ownership approach

The Iceberg Model of transport packaging

• We recommend to decide for transport packaging not only based on “price” • Efficient transport packaging might be more expensive at point of invest but will save costs, reduce CO2 and increase sustainability

• Efficient transport packaging safes money through out the whole transport, filling and storage process

• Efficient transport packaging is easy to operate, maintain and repair through service orientated design

• Filling, Loading, Transport • Unloading, Store, Empty, • Store, Return

Transport on road

Impact on ICEberg costs • Weight of transport packaging • Dimension of transport package • Load capacity per unit • Amount units folded / erected • Volume of transported “air” • Folding ratio of transport package • Time to load / unload • Amount of processes to load / unload • Storage space for empty / full units

Example: impact of efficient RTP

container 20000

trips per year 3

average Kilometer 400

total usage time in years (TUT) 5

Transport Empty container HOREN OF 1040 Industry Standard IBC Delta

Pieces on truck 182 130 -52

Truck Loads for existing container 110 154 -44

Trips per year 330 462 -132

Km to drive per year 131'868 184'615 -52'747

CO2 consumption in kg 124'404 174'165 -49'762

Costs in fuel 68'571 96'000 -27'429

Cost fuel in lifetime 342'857 480'000 -137'143

CO2 consumption kg in lifetime 622'019 870'827 -248'808

Consumption truck / 100 km Average cost Diesel Cost per 100 km

40 1.3 52

1.06 kg / Km

Smart transport and storage solutions from HOREN

ZERO WASTE ZERO LOSS We are committed to develop high efficient RTP solutions and complementary services enabling our customers to reduce transport, storage and total operating costs whilst protecting our environment. There is only one world for us.

• HOREN was founded in 1998 and has it’s headquarters in Shanghai / China

• Privately owned company with a strong financial background

• Our R&D and design department is made up of more than 40 skilled engineers

• We own over 120 patents for our FLCs, IBCs and accessories (e.g. Valves and Clips)

• We are actively selling in Asia, Europa and US based on continent needs

• We are constantly inventing and developing new solutions and have the ambition to bring

each year at least 3 new added value product to the market

• HOREN is flexible enough to go into customer specific developments within short time (e.g 8

months from idea to first produced sample)

Facts about HOREN

We develop RTP solutions

– Material Polypropylene (PP) or Polycarbonate (PC)

– recyclable, durable and multiple use

– high folding ratio, high stability with low weight

– easy to operate, maintain and repair

– individual solutions for specific segment needs

– intelligent through usage of modern IT technology

Core Competence of HOREN

efficient – cost saving - sustainable

We want to

– eliminate non efficient transport packaging

– develop new innovative transport packaging

– be a full solution provider for our customers

– adapt transport packaging to global changes

– use the power of Internet and mobile solutions

– be a leader and not a follower

Company targets

We are different

– We are focused to bring you solutions rather then products

– Because we focus on added value transport container

– We spend a lot of time and money in R&D and innovation

– We are fast in developing and delivery to market

– We develop for specific segment needs

– We offer full service instead only “a container”

– We support customers to change from old to new

Our differentiation

We develop for 3 main customer segments

Food / Fruit processing

In these 3 segments there are huge global flows of raw / semi-finished and finished goods. With our RTP solutions we can support to transport on container / truck and rail goods more efficient, cost saving and economical

Automotive Retail

FLCs

RDUs ALCs

IBCs

Our complementary services

Product

Services

Business Model

Buying Pooling* Renting* Leasing*

IBC Valves FLC ALC RDU

Consulting Repair Take back Upgrade Recycling Sell Used Non HOREN

* in co-operation with global active partners

See more about us

www.horenplastic.com

Our Webpage YouTube Channel

www.youtube.com/user/horenplastics

Your HOREN contact in EMEA region

Stefan Schweiger Director International Business Development / EMEA

Address: Maximilianstrasse 13, 80539 Munich / Germany

E-Mail: schweiger@horenplastic.com

Mobile: 0049-176-80469864

Skype: schweigerhoren

Stefan Schweiger RTP expert Master of Business and Engineering