A quick internet search revealed 129 examples where the initials DRS are used to describe something or a body or a process. While many are obscure, very obscure, two from the sporting arena and one from IT will be familiar to many readers.
If you are not interested in sport then the DRS in 1 and 2 may mean little to you and can be forgotten. The IT related DRS should not be ignored but it is a business decision you take on risk versus expense - it’s your call.
Then there is DRS 130. DRS number 130 cannot be ignored, forgotten or swept under a carpet if you are an FMCG Producer selling drinks in any form of packaging.
The aim of DRS is to increase the amount of single use packaging that is recycled. The proposition is that if consumers pay a deposit for a drink container they are more likely to return it for recycling as they want their deposit back rather than toss the empty pack and their money into a waste bin.
Similar but unregulated DRS schemes have been in place for soft drink/beer glass bottles, plastic crates and kegs for many years but applying similar government driven legislation to all plastic and metal containers really is a game changer for producers of all sizes. Just take a moment to think about that. Every single piece of drinks packaging which you currently wave goodbye to at the factory gate will be your responsibility on which to apply a deposit and effect the return of empties for recycling.
The aim of this article is not to present a detailed way of working but perhaps to direct your awareness to the discussions and negotiations taking place across the continent which will impact your business. If you wish to influence government debates on the legislation then now is the time to do this. Similarly, now is the time for producers to understand what DRS may mean for the business and to start the process of defining your DRS Operating Model.
While final DRS legislation may be consistent across the geography, the ways of working will be dictated by local market conditions and constraints. Below is an example of how your DRS Operating Model could look.
The supply chain and route to market operations are likely to be well established in your business but they will form a relatively small part of your new circular economy for drinks packaging. The new activities will require freshly designed ways of working, policies & procedures plus recruitment and training to establish the circle. An enormous change management challenge.
DRS will come as a shock to many producers but now is the time to start your engagement with internal and external stakeholders.
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