Longspacs A Case Study in Financial and Environmental Success

1. LongspacsA Case Studyin Financial and Environmental Success Presented on Thursday, 1 March 2012 At the EasyFairs Packaging Innovations Show, NEC, UK

2. Longspacs are: • Unique, reusable polypropylene boxes used to transport long kitchen items such as pelmets, plinths and cornices from B&Q’s Fulfilment Centre to their customers within a home delivery network nationwide • Highly cost-effective andenvironmentallyefficient • Made from part-recycled content and are fully recyclable at life-end • Winners of the prestigious 2011 UK Packaging Awards in the category‘Supply Chain Solution of the Year’

3. Longspacs History • Success of Starpack double award-winning Carrierpacs hinted at further opportunities to innovate:

4. Longspacs History • Success of Starpack double award-winning Carrierpacs hinted at further opportunities to innovate:

5. Longspacs History • Success of Starpack double award-winning Carrierpacs hinted at further opportunities to innovate • Single-trip corrugate packaging on a trip-by-trip basis is much less expensive than reusable, returnable packaging • But when: • Reduced box preparation time within the Fulfilment Centre • Reduced customer door-step damage rates • Reduced After-sales Order costs • Were all taken into account, reusables were clear financial andenvironmentalwinners

6. Longspacs Development • Multiple development stages presented many opportunities to prove the concept and improve the design • Early versions were glued – but glue not robust enough. Later versions sewn construction • Early versions were fold-flat – but were reluctant to stay in usable box shape due to PP ‘memory’. Now made preformed and delivered as boxes, ready to use • Strong support from WRAP and Outpace very beneficial

7. Longspacs Development • Incremental rollout across whole network important: • Allowed in the change confidence to grow • Allowed good ‘value container’ tracking • Allowed management to see very early if the forecast benefits were real • Allowed a large distribution network to be informed about the changes

8. Longspacs Development • Incremental rollout across large distribution network: • Firstly, introduced within Burton upon Trent Fulfilment Centre collocated with transport Outbase serving central region of UK

9. Longspacs Development • Incremental rollout across large distribution network: • Firstly, introduced within Burton-based Fulfilment Centre collocated with transport Outbase serving central UK • Secondly, run through several more distant locations

10. Longspacs Development • Incremental rollout across large distribution network: • Firstly, introduced within Burton-based Fulfilment Centre collocated with transport Outbase serving central UK • Secondly, run through several more distant locations • Finally, rolled out across the whole of the UK except for locations where return logistics too costly to achieve (e.g. Scottish outer islands)

11. Longspacs Current • 3 metres long • 3kgs of recyclable PP

12. Longspacs Benefits Annual savings exceed £80,000 435 tonnes of packaging a year removed (87 EEUs)

13. ‘87 EEUs’ (Elephant Equivalent Units)

14. Longspacs Benefits  Annual savings exceed £80,000 435 tonnes of packaging a year removed Packing and handling time greatly improved Personal injury from using knives fully eradicated Packaging impact protection substantially improved 457,000 kg of carbon dioxide equivalents eliminated each year Provided supporting evidence during our ISO 14001 accreditation process Deemed so effective by B&Q that they have been rolled out into full national use

15. Longspacs Benefits Above: UK Environment Minister Caroline Spelman being shown reusable packaging, including Longspacs, on the B&Q contract last year.