Previously, we looked at a what a potential DRS model could look like for drinks producers in Europe. The stated aim of DRS is to increase the amount of single use packaging that is recycled and increase the amount that is brought back into the economy. Without a shadow of a doubt, DRS will cause discontinuity for producers and distributors alike but what can you do now to pave the way for a smoother adoption of the DRS regulation?
You will have to make changes in every single department in the company. DRS is not a supply chain problem (rather like S&OP) but it is very much a cross-functional responsibility (very much like S&OP). Ahead of those changes, there are many initiatives you can take now to make your own supply chain simpler and reduce the impact of DRS. You could potentially gain a competitive advantage.
Here are just a few portfolio related opportunities you may consider. There are many more!
As an FMCG leader you must be careful not do just enough to tick this “irritating’’ DRS box and then relax. DRS is the first of many similar pieces of legislation that will promote a real circular economy and materials not in scope now, almost certainly will be in time. Learn from this DRS legislation and your business will be better prepared for the next initiative.
DRS will come as a shock to many producers but now is the time to start your engagement with internal and external stakeholders. Consider professional, external help now before it is too late to influence DRS.
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