THE SURPLUS MANUAL. 2021 EDITION - The Company Shop Group
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THE SURPLUS MANUAL. 2021 EDITION.
SURPLUS SOLUTIONS
3. SURPLUS CATEGORIES 12. REASONS WHY
WHAT’S FOOD AND DRINK SURPLUS OCCURS
INSIDE. 9. SURPLUS CATEGORIES
NON FOOD
33. BENEFITS OF WORKING
WITH US
INTRODUCTION.
HOW TO USE THIS MANUAL
This document is above all else, a manual. Like all manuals REASONS. Stock becomes surplus for a myriad of reasons
it is of interest to the general reader and we hope those and here we explore some of those reasons for surplus as the
LEGENDARY FOOTBALL MANAGER, BRIAN CLOUGH, ONCE REMARKED, interested in the work of the Company Shop Group and the starting point to the surplus solution journey.
“I WOULDN’T SAY I WAS THE BEST MANAGER IN THE BUSINESS. commercial, social and environmental potential of surplus
BUT I WAS IN THE TOP ONE.” will find great value in this information. Like all manuals it is
BENEFITS. This section shows the benefits of working with us,
At Company Shop Group we don’t suggest that we know everything of greatest use to those with some prior knowledge. Over the
years many of our industry partners, who have worked with our unique capabilities and how these provide solutions for
about surplus stock management. We do know that we have learned surplus management.
a few things over the last fifty years. Our combination of heritage and us for decades, are still surprised by our capabilities and the
innovation means that we are as passionate about surplus management types of surplus we are able to provide solutions for. It is for
now as John Marren was when he first spotted the potential in surplus this reason that we have gathered together our knowledge If you know the reason or the category, this is a good place to
stock in the 1970’s. into one accessible document. start. If you have an insight into the capabilities which would
Some people come to this document with a specific product be required to utilise that stock, you can start in the section
This book is a digest of that learning over five decades. We have gathered
or a specific problem in mind. Others have a more general about working with us.
it together for anyone who is interested in our model and who believes,
as we do, that intelligent surplus management is an asset for business, interest in an area or type of stock which seems to pose an In each section we cross reference with other areas of interest
a benefit for the planet, and a force for good in communities everywhere. ongoing problem in their business. so that we are can broaden the insight into how we manage
We have divided this document into three principal sections – surplus to give the maximum commercial, environmental and
More than anything this book is a response to the feedback we have social return.
received so often – “I didn’t know you could do that!” Whatever the
challenge our experience and our innovative, disruptive, culture will find Above all we are a people business. We are built on trust and
CATEGORIES. In this section we have broken down a selection
a solution. Here we have gathered together some examples of those the depth of relationships gained over our fifty years. People
of the categories of products we handle to give in insight into provide solutions to problems and products and if you have
solutions. They are not exhaustive. Each one of our industry partners is some of the things we are able to do to release the potential
unique, each challenge is unique, but we hope here to share a flavour of any questions please drop us an email or pick up the phone
in that stock. and our experienced team will be glad to talk you through the
the solutions we have developed which match our passion with our value
of always aiming for extraordinary. options we can offer you.
2 CALL US ON 0800 211 84 84 SURPLUS@COMPANYSHOPGROUP.CO.UK
SURPLUS SOLUTIONS
SURPLUS CATEGORIES.
FOOD AND DRINK.
BABY & TODDLER. RINKS (INCLUDING CHILLED
D ICE CREAM AND FROZEN DESSERTS.
AND NON-ALCOHOLIC).
BAKERY (INCLUDING UNCOOKED). MEAT & POULTRY
FISH & SEAFOOD (INCLUDING FROZEN).
BEERS, WINES & SPIRITS.
(INCLUDING PREPARED AND FROZEN).
PET FOOD.
CAKES AND BISCUITS.
RUIT & VEGETABLES
F
PIES & PASTRIES (INCLUDING FROZEN).
CEREALS. (INCLUDING PREPARED AND FROZEN).
PLANT BASED AND VEGETARIAN.
CONFECTIONARY & SNACKS. FOOD TO GO.
PREPARED FOODS & READY MEALS
COOKED MEATS. GENERAL GROCERY.
(INCLUDING AMBIENT & FROZEN).
DAIRY. HOME SHOPPING PURGE & RETURNS.
RETAILER OWN-LABEL.
DESSERTS. HOSPITALITY & FOOD-SERVICE.
SEASONAL.
CALL US ON 0800 211 84 84 SURPLUS@COMPANYSHOPGROUP.CO.UK 3
SURPLUS SOLUTIONS CATEGORIES FOOD AND DRINK
FRUIT & VEGETABLES BAKERY MEAT & POULTRY
(INCLUDING PREPARED (INCLUDING UNCOOKED). (INCLUDING FROZEN).
AND FROZEN).
From bread and bagels to waffles Working with major meat and poultry
Pre-farm gate or at any point thereafter, we have and walnut loaf. Alongside branded producers our products come in all shapes
a wide range of solutions for produce. Whether and packaged product, we also work and sizes, volumes, packaging types,
bulk, retail pack, food service, prepared/processed higher up the supply chain where destined for home or hospitality markets.
or temperature controlled, we handle it all. bakery products are a component All products are perfectly good to eat but
within a manufacturing process e.g. sometimes just did not reach the required
“With food waste and how we deal with surplus bread in a prepared sandwich. We specification or weight. From beef to venison,
food correctly at the top of the sustainability also have onsite cooking facilities for chicken to ostrich, our sophisticated UK wide
agenda, we are very proud to be working with fresh and frozen uncooked bakery redistribution solution ensures that the value
Company Shop Group helping them source items that we redistribute through of all products is maximised for the producer
surplus produce from growers. If you have not our deli offer. and for the people it feeds.
heard of them then well worth the research, their
sole objective as the UK’s leading redistributor of “Cranswick are taking action to reduce food
surplus is finding a home for surplus food across waste not just within our own farms and
all categories and they are supported by all of factories, but across our entire value chain,
the leading retailers. Their stores are an amazing with an ambitious pledge to become a zero
example of how the industry can come together edible food waste business by 2030. In order
to tackle this issue. Today we are out-loading 9 COOKED MEATS. to achieve our aims, this means eliminating
pallets including 2 tonnes of shallots and 750kg edible food losses and waste entirely from
of chillies, safe, nutritious and tasty just a little Across the full range of meats; our operations. Company Shop Group are an
imperfect, that without Company Shop would roast, boiled or cured, we provide essential partner in achieving this, supporting
have probably headed for the bin, so instead solutions for products regardless of us to ensure that any surpluses are handled
they now have a home and a sustainable return format or brand. This includes full sustainably, in a food safe way that protects
for the grower.” joints through to remaining gripper our brand.”
ends, whether in final packaging
Stephen Hedderly, (retail/food service) or bulk. Adam Couch,
Managing Director, Bedfordshire Growers CEO, Cranswick
• SHORT SHELF LIFE • SPECIFICATION REJECTIONS • MISALIGNED PACKAGING • DATE CODING ERRORS • OBSOLETE PROMOTIONAL PACKS • NPD TRIALS • FAILED DELIVERIES • UNDER WEIGHTS • FOREIGN LABEL •
4 CALL US ON 0800 211 84 84 SURPLUS@COMPANYSHOPGROUP.CO.UK
SURPLUS SOLUTIONS CATEGORIES FOOD AND DRINK
FISH & SEAFOOD DESSERTS.
(INCLUDING PREPARED
AND FROZEN). From tarts to trifles, puddings to
profiteroles. Regardless of brand (retail
We can take all fish and seafoods, whether or food service) and even if the products
chilled or frozen. Our chilled products are are quality/specification rejections, under/
all packaged, but do not need to be in retail over-fills, new product trials, seasonal
formats (e.g. wholesale, retail counter packs desserts or short dated, they are all still
or catering) as we can provide the necessary great to eat.
PREPARED FOODS & READY MEALS DAIRY.
interventions to ensure that they are (INCLUDING AMBIENT & FROZEN).
compliant for onward redistribution through From cheese, to milk, to yoghurt
our network of membership-controlled From cannelloni to sweet and sour, pizza to cottage and from full retail pack, retailer
stores. We have facilities for frozen repack pie, and regardless of brand, we handle them all. branded, hospitality format or
which enable us to handle bulk and We have robust product interventions to deal with unfinished/unlabelled packaging -
unpackaged frozen stock. From cod to trout, a wide range of production issues such as out of we can help. We specialise in mis-
clams to lobster thermidor, we have specification, labelling issues, new product trials, aligned labels/packaging and also
a solution for you. under/over-weights, rejections before foreign-body pre-pack under/over-weights. PLANT BASED AND
“In a volatile market, frozen has an detection; even if the products are short dated. VEGETARIAN.
increasingly important role to play, enabling “As a farmer owned business,
smoother stock flows and better forward “Bakkavor, a leading provider of fresh and we are acutely focussed on Regardless of product brands, shapes and
planning. However, it remains essential prepared chilled food, is committed to running minimising all forms of waste. We sizes, volumes, packaging types, ambient or
for our brands that we have a secure and a sustainable business. It is inevitable that our are proud of our partnership with temperature controlled, destined for home
trusted route - that preserves and protects manufacturing operations generate surplus food. Company Shop Group because it or hospitality markets, we handle them all.
brand identity - should any surpluses occur. We need to ensure that this is used to feed people. is a key enabler to ensuring that From new product development though
Company Shop Group have a proven track Company Shop provide solutions through their we secure farmers futures by to established plant based and meat free
record in delivering for us and we are so scale, flexibility of approach and strong retailer focusing on sustainable supply products, we can provide interventions to
proud to support the life changing work of relationships. They are an ideal partner to ensure chains & minimising waste.” maximise the potential of your products
Community Shop across the country.” this food is efficiently redistributed.” including labelling, check-weigh, foreign
Ash Amirahmadi, body detection and safe tempering and date
Wayne Hudson, Ian Burgess, UK Managing Director, Arla Foods coding of frozen product.
Executive Director, Nomad Foods Europe Group Responsible Sourcing Manager, Bakkavor
• QUALITY REJECTIONS • TEMPERING CHALLENGES • DE-LISTED SKUS • OVER RUNS • DAMAGES • MACHINE BREAKDOWNS • WORK IN PROGRESS • FORECASTING ISSUES • UNDER/OVER WEIGHTS • SHORT DATE •
CALL US ON 0800 211 84 84 SURPLUS@COMPANYSHOPGROUP.CO.UK 5
SURPLUS SOLUTIONS CATEGORIES FOOD AND DRINK
PIES & PASTRIES DRINKS (INCLUDING CHILLED ICE CREAM AND CAKES AND BISCUITS.
(INCLUDING FROZEN). AND NON-ALCOHOLIC). FROZEN DESSERTS.
From custard creams to chocolate coated
From filo to shortcrust, hot water We all hear about food waste, but we should We know that frozen ice cream and desserts biscuits, apple pie to lemon cake, and
to puff, sweet or savoury, across never forget ‘drink waste’ too. From water to are delicious, and we also know that the celebration cakes along the way. Whether
chilled, ambient or frozen - we can carbonates, juices to smoothies, we can handle surplus from this product category is in full retail pack, hospitality format or
redistribute them all. From full it all - from full retail pack, hospitality format or rarely in small volumes. From light fills to unfinished/unlabelled packaging, we
retail pack, hospitality format or unfinished/unlabelled packaging. We specialise de-lists, seasonality to new recipes, we specialise in mis-aligned labels/packaging
unfinished/unlabelled packaging. in mis-aligned labels/packaging and also pre- can redistribute them all. Our scale and and also pre-pack under/over weights.
We specialise in mis-aligned labels/ pack under-fills. infrastructure support producers with
packaging and pre-pack under/ volatile and/or complex surplus frozen
SEE MORE HERE ABOUT HOW WE
over-weights. We also have onsite “Our business is incredibly fast moving and stock volumes, alongside providing tailored WORK WITH BRIGHT BLUE FOODS
cooking facilities for fresh and frozen efficient, but there are rare occasions that redistribution solutions for specialist/
uncooked pastry items that we we experience labelling and packaging errors regional brands.
redistribute through our deli offer. that mean some of our products cannot be
delivered to our customers. However, these HEAR WHAT RICHARD HARROW,
CEO, BRITISH FROZEN FOOD
items are of the same great quality as all of
FEDERATION SAYS ABOUT US
our products and still taste amazing, so we are
committed to ensuring that they do not go to
GENERAL GROCERY.
waste. By working closely with Company Shop
From grocery cupboard staples to those
and utilizing their extensive packaging and re-
FOOD TO GO. occasionally used ingredients, sachets
labelling system, we are able to find a quick and
packets, boxes, tins or jars. Regardless of
Salads, soup, sandwiches and so effective solution to ensure none of our drinks
brand and whether bulk or mixed pallets;
much more. Regardless of brand go to waste and can be enjoyed be even more
if the products have been rejected through
and range we have robust product people.”
the production process, have a labelling or
interventions to deal with the wide weight issue, or have simply not made it to
Clare Bottle,
range of issues that can occur in this Associate Director Warehousing, their end destination in time, we can provide
short-dated category. Coca-Cola European Partners effective redistribution solutions for you.
SEE MORE HERE ABOUT HOW
WE WORK WITH PREMIER FOODS
• UNDER/OVER WEIGHTS • QUALITY REJECTIONS • PICKING/STOCK ROTATION CHALLENGES • FORECASTING ISSUES • FOREIGN LABEL STOCK • SEASONAL PRODUCTS • FAILED DELIVERIES • UNDECLARED ALLERGENS •
6 CALL US ON 0800 211 84 84 SURPLUS@COMPANYSHOPGROUP.CO.UK
SURPLUS SOLUTIONS CATEGORIES FOOD AND DRINK
CONFECTIONARY & SNACKS. BABY & TODDLER. BEERS, WINES & SPIRITS.
From fruit jellies to liquorice, chocolate to toffee, Ambient, chilled or frozen, Handling Beers, Wines & Spirits (BWS)
crisps to nuts, we can take it all. Approved by all and regardless of brand, we is often a challenge, but not for us. BWS
of the UK’s major grocery retailers to redistribute redistribute a wide range can become surplus for many reasons;
their products in full packaging and working of baby and toddler foods. de-lists, expired promotional packaging
with the world’s best-known global brands, our Whether new product (think World Cup), seasonality (think
scale and infrastructure enables us to support development, packaging Mulled Wine), damages where a case
producers with volatile and/or complex surplus changes, specification issues may be smashed and the remainder
stock volumes, alongside providing bespoke or redundant stock, we contaminated and sticky, home shopping
redistribution solutions for specialist/regional ensure that these wholesome returns where the reverse logistics are
brands. Whether in finished packaging or a bulk products reach little mouths not possible. Our interventions such as
component, mixed pallet or large load, we provide as was first intended. in-line bottle washing and redistribution
innovative and easy solutions. through our membership-controlled
“In these challenging times, store network mean that we are an easy
SEE MORE HERE ABOUT HOW with more families struggling partner for dealing with surplus BWS.
WE WORK WITH NESTLÉ to access healthy, affordable
meals, we need to come (Read more about how we do this on
page 30.)
together as businesses and do
everything we can to support We regularly work with leading retailers
our people, our partners and and logistics companies who have
those in society who need surplus BWS which is not suitable for
CEREALS. it the most. We’re proud to their usual charitable redistribution
support the amazing work routes. Company Shop Group are able to
Working with all of the UK major cereal producers,
Community Shop is doing take these products and provide a return
products come in all shapes and sizes, volumes,
to provide greater access to suit you, commercially or socially or
packaging types, retailer branded, destined for
to quality food, drink and even a bit of both! The environmental
home or hospitality markets. From cereal to oats,
household items, for those benefits are a given.
granola to breakfast biscuits, our sophisticated
most in need.”
UK wide redistribution solution ensures that
SEE HOW OUR DONATION ACTIVATION
the value of all products is maximised for the Mark Cuddigan, MODEL WORKS HERE
producer and for the people it feeds. CEO, Ella’s Kitchen
• DAMAGES • PROMOTIONAL PACKAGING • NPD TRIALS • TRADE SHOW STOCK • SPECIFICATION REJECTIONS • MISALIGNED PACKAGING & LABELLING • UNDER/OVER FILLS • PART & MIXED STOCK PALLETS • BULK STOCK •
CALL US ON 0800 211 84 84 SURPLUS@COMPANYSHOPGROUP.CO.UK 7
SURPLUS SOLUTIONS CATEGORIES FOOD AND DRINK
PET FOOD. RETAILER OWN-LABEL. HOME SHOPPING HOSPITALITY &
PURGE & RETURNS. FOOD-SERVICE.
Pets matter too. Whether cats, dogs We are the trusted partner for the UK’s major
or other pets, bags, boxes, cans or grocery retailers, which is confirmed on their We work with home shopping partners to ensure We work closely with H&FS
in tubs, full loads or mixed pallets, supplier portals. We can handle all categories that their products (across all categories), producers and brands to ensure
retailer own-label or global brands, of retailer label products in full packaging, the whether reaching their minimum life on receipt that great food and other products
we handle it all. Purr-fect! product does not need to be defaced or stripped (MLOR), obsolete stock or failed deliveries, do that do not reach their intended
before sending to us. We are approved to receive not end up as waste. use, do not end up as waste. We
product in retailer trays, making redistribution provide a wide range of solutions
easier for you. “Company Shop provide an effective and (including frozen packing) to safely
sustainable solution for redistributing and compliantly redistribute H&FS
“At Tesco, we believe that no good food should unavoidable surplus products. Ocado create products through our membership-
go to waste. Our long-standing partnership with very low levels of surplus which in itself creates controlled store network.
Company Shop Group helps us to achieve this a complexity that a larger volume of certain
goal - the Group has the technical infrastructure, surplus doesn’t. They have developed efficient
“McDonald’s Restaurants Ltd has
SEASONAL. capacity and expertise to help manage surpluses processes to deal with the complexities,
worked with Company Shop Group
arising in our supply chains whilst maintaining the especially for the products that are
since 2017 and is proud to be
Seasonal events and timings touch highest levels of brand integrity and food safety.” temperature controlled or short shelf life.”
able to offer our suppliers a more
on every product category, whether Jo West, environmentally friendly solution
it’s flowers for Valentine’s Day, mince Sarah Bradbury,
Group Quality Director, Tesco
Head of Sustainability, Ocado Retail for surplus products. Working
pies at Christmas, Easter eggs, or with Company Shop Group allows
pumpkins at Halloween. our suppliers to realise a social,
environmental and commercial
When you see Valentine’s bouquets, benefit from their surplus, and we
we see flowers. When you see Easter continue to encourage our suppliers
eggs, we see chocolate. From global to take up the option to redistribute
brands to retailer own-label, mixed as we collaborate to build on our
products or bulk volumes, we can sustainability journey.”
redistribute this product, especially
after the intended event! Helen McFarlane,
Senior Sustainability Consultant,
McDonald’s Restaurants Limited
• MIXED LOADS • SEASONAL PRODUCTS • OBSOLETE STOCK • DAMAGES • DATE CODING ERRORS • TEMPERING CHALLENGES • PICKING/STOCK ROTATION ISSUES • SAMPLES • NPD TRIALS • FORECASTING ISSUES •
8 CALL US ON 0800 211 84 84 SURPLUS@COMPANYSHOPGROUP.CO.UK
SURPLUS SOLUTIONS
SURPLUS CATEGORIES.
NON FOOD.
BABY & TODDLER. HOSPITALITY & FOOD-SERVICE.
CLEANING & HOUSEHOLD. PET FOOD AND PET CARE.
CLOTHING & ACCESSORIES. PHARMACEUTICALS.
FLOWERS AND PLANTS. RETAILER OWN-LABEL.
HOME & GARDEN. SEASONAL.
HOME SHOPPING PURGE & RETURNS. TOILETRIES, HEALTH & BEAUTY.
CALL US ON 0800 211 84 84 SURPLUS@COMPANYSHOPGROUP.CO.UK 9
SURPLUS SOLUTIONS CATEGORIES NON FOOD
BABY & TODDLER. FLOWERS & PLANTS. HOME SHOPPING
PURGE & RETURNS.
From nappies to toiletries, from teething Christmas Poinsettias, Roses
rings to teddies, we handle a range of at Valentine’s, we understand Increases in home shopping activity, the extended
baby and toddler products that for some it’s sometimes difficult to range of products being bought and reduced
reason have become surplus. New product match sales with demand. Our capacity to deal with returns are all factors as to
launches, packaging design changes, range members love flowers and why surplus can occur. As a result, you may have
refresh, across Company Shop Group we plants any time of the year, so stock that is short on life, discontinued lines, or
protect your brands and make sure these we always have a home for perfectly good returns stock that needs a new
great products do not end up as waste. your surplus. home. At Company Shop Group, we can support
you with a solution for both your purged and mixed
returns stock, through our Home Shopping Surplus
CLOTHING & Processing Centre of Excellence located in Leicester,
ACCESSORIES. as well as create a commercial, environmental and
social return for you too.
Seasonal clothes, range refresh, the latest
fashions, samples and more. At Company
Shop Group we have our ‘surplus rails’ so
HOME & GARDEN.
CLEANING & we can make sure your skirts and scarves,
It’s not all about food, we can
HOUSEHOLD. your tops and trousers don’t end up as
handle your home and garden
waste. High Street brands or own-label
products too. Hanging baskets
Polish and dusters, washing powder and retailer brands, we protect them all
to planters, cushions to cutlery,
conditioner, bin liners to foil, we have a through our membership stores.
garden gnomes to suitcases, all
home for all of these great products if, for have a place at Company Shop
We can offer you a commercial return
whatever reason, they become surplus for Group. Don’t let your surplus
for your products, but we can also do so
you. Faulty packaging, formula changes, stock take up valuable space in
much more. Take a look at our donation
we have labelling capabilities to make sure your warehouses, give us a call
activation model and see how we could
your brands are safe and legal when they and we can help to find your
feed your clothes to people in need.
go on our shelves. Our members like to products a good home.
spring clean at any time of the year! WATCH DAVE & DEBBIE EXPLAIN
HOW OUR MODEL WORKS
• BRANDING & PACKAGING CHANGES • UNDECLARED INGREDIENTS/ALLERGENS • SEASONAL STOCK • SPECIFICATION REJECTIONS • SHORT SHELF LIFE • FORECASTING ISSUES • NPD TRIALS • FOREIGN LABEL •
10 CALL US ON 0800 211 84 84 SURPLUS@COMPANYSHOPGROUP.CO.UKSURPLUS SOLUTIONS CATEGORIES NON FOOD
HOSPITALITY & PHARMACEUTICALS. SEASONAL.
FOOD-SERVICE.
Whilst we do not undertake direct product Seasonal events and timings touch on every
We work closely with the H&FS intervention on pharmaceutical products, we product category, whether it’s flowers for
sector who, as well as a core can handle all retail unit surplus products from Valentine’s Day, baubles at Christmas, scary
business in food, also have a large the pharmaceutical general sales list, such as outfits at Halloween or eggs at Easter. When
non-food product range that can paracetamol, ibuprofen, cough remedies and you see Valentine’s bouquets, we see flowers.
also become surplus. From napkins antiseptics. Surplus occurs in this category for When you see Easter eggs, we see chocolate.
to party balloons and crockery to many reasons such as packaging changes, short From global brands to retailer own-label,
crackers, we can handle it all. shelf life, brand refresh and forecasting challenges. mixed products or bulk volumes, we can
Our members love to see new redistribute these products, especially after
products on our shelves knowing the intended event!
they are stopping great products
from going to waste.
TOILETRIES, HEALTH
RETAILER OWN-LABEL. & BEAUTY.
PET FOOD AND PET CARE. We are the trusted partner for the UK’s Health & beauty products come in all
major grocery retailers, which is confirmed shapes and sizes suited to meet all different
Pets matter too. Whether for cats, on their supplier portals. We can handle all needs. With the category complexities of
dogs or other pets, packaged in categories of retailer label products in full formula changes, forecasting challenges,
bags, boxes, cans or tubs, we can packaging, the product does not need to new product development, retailer branded
redistribute full loads or mixed be defaced or stripped before sending to lines, seasonal gift sets, packaging changes,
pallets, retailer own-label or us. We are approved to receive product in surplus does inevitably arise. At Company
global brands, pet food, toys and retailer trays, making redistribution even Shop Group we have a home for these great
accessories, we handle it all. easier for you. Contact our team to find products and can deliver a great commercial,
Purr-fect! out more. environmental, and social return for you.
• UNDER/OVER FILLS • UNLABELLED/NON-COMPLIANT EXCESS COMPONENTS • MIS-ALIGNED PACKAGING • SAMPLES • MIXED LOADS • DE-LISTS • QUALITY REJECTIONS • TEMPERING CHALLENGES • SHORT SHELF LIFE •
CALL US ON 0800 211 84 84 SURPLUS@COMPANYSHOPGROUP.CO.UK 11SURPLUS SOLUTIONS
REASONS WHY
SURPLUS OCCURS.
DATE ISSUES 15. NPD, TRIALS & SAMPLES 25.
FINISHED PRODUCT 17. PACKAGING & LABELLING 27.
FORECASTING/SKU CHANGES 19. STORAGE & DISTRIBUTION 29.
GROWERS AND PACKERS 21. WIP, INGREDIENTS & COMPONENTS 31.
MANUFACTURING PROCESS 23.
CALL US ON 0800 211 84 84 SURPLUS@COMPANYSHOPGROUP.CO.UK 12SURPLUS SOLUTIONS REASONS WHY SURPLUS OCCURS
DATE ISSUES. FORECASTING/SKU
CHANGES.
Short dated stock can arise for
many reasons, from stock rotation FMCG manufacturing is complex, and for those
challenges through inaccurate producing products with a short shelf life even
forecasting to slow moving more-so as often production has started before
sales. The reasons differ across the manufacturer receives an order saying how
categories but the outcome, if left many to make. If the final orders are lower than
unaddressed, inevitably becomes forecasted, maybe because of the weather or
an unnecessary waste stream. a competitor promotion on a similar product,
then surplus can occur.
FINISHED PRODUCT. GROWERS AND PACKERS.
At the point that a product is finished, Creating a balanced eat well plate requires us
the costs associated with ingredients, to go the extra mile, not only at the factory
MANUFACTURING PROCESS.
processing, packaging, labour and gate but at the farm gate. Increasing the
storage have all been borne. When, Manufacturing environments are complex
consumption of fresh fruit and vegetables is
for whatever reason, these finished and fast paced. From the sourcing and
not only good for our wellbeing but good for
products do not reach their intended storage of ingredients and components,
business. Growing and cultivating produce is not
market they should not go to waste. through the processing, preserving and
easy and the weather can have a big impact; too
Whether a shelf-life issue, a SKU packaging of the products, it is inevitable
much rain, too little rain, wind, temperature.
change, a logistics challenge, we that waste occurs. But much that seems to
All these factors can influence when the crop
can redistribute these products be waste is actually surplus which, through
is ready and the size and quality, which is a
and provide you with a commercial, identification and appropriate intervention,
particular challenge for seasonal produce such
environmental and social return. can be redistributed and fulfil its intended
as pumpkins at Halloween and sprouts and
purpose, whether that is to eat, use or wear.
satsumas at Christmas.
• FRESH • CHILLED • FROZEN • AMBIENT • GROCERY • DRINKS • BWS • TOILETRIES • HOUSEHOLD • PET • SEASONAL • FLOWERS • BEAUTY • CLOTHING • CEREALS • COOKED MEATS • DIARY • PET FOOD • FOOD TO GO •
13 CALL US ON 0800 211 84 84 SURPLUS@COMPANYSHOPGROUP.CO.UKSURPLUS SOLUTIONS REASONS WHY SURPLUS OCCURS
NPD, TRIALS & SAMPLES. STORAGE & DISTRIBUTION.
In a competitive retail/supply chain Every day, complex management of
environment, set within an ever- multiple brands with thousands of SKUs
changing consumer landscape and creates a challenging environment for
in a world where products have to storage in warehouses and especially those
‘buy their space’ and ensure that that are temperature controlled. This is
they meet the constantly evolving before we ever consider the intricacies
agendas around health, value of the inbound and onward logistics.
and sustainability, new product Understandably, these factors can result
development is essential. in stock being picked out of rotation and
creating shelf life issues, or the need to
move slow moving stock out.
WIP, INGREDIENTS &
COMPONENTS.
PACKAGING & LABELLING. Surplus ingredients, components and
work in progress (WIP) all arise well before
Packaging and labelling issues can a manufacturing process is complete.
arise for many reasons, the product Sometimes you may have a WIP item
may be perfect but the label is wrong that doesn’t meet the specification or
or non-compliant, or the product is ingredients that run out of internal shelf
not quite as described on the pre- life. At Company Shop we work hard to find
printed pack. a solution for these surplus products that
occur higher in the supply chain.
• BABY & TODDLER • BAKERY • CAKES & BISCUITS • CONFECTIONARY & SNACKS • DESSERTS • FISH & SEAFOOD • FRUIT & VEGETABLES • GENERAL GROCERY • HOME SHOPPING PURGE & RETURNS • HOSPITALITY •
CALL US ON 0800 211 84 84 SURPLUS@COMPANYSHOPGROUP.CO.UK 14SURPLUS SOLUTIONS REASONS WHY SURPLUS OCCURS
DATE ISSUES.
SHORT DATED STOCK CAN ARISE FOR MANY REASONS, FROM STOCK Here are some examples: • To enable manufacturers to meet seasonal high-volume
ROTATION CHALLENGES THROUGH INACCURATE FORECASTING TO demands, food products are often produced in advance.
SLOW MOVING SALES. THE REASONS DIFFER ACROSS CATEGORIES • Managing complex products, multi component recipes,
Some are pre-dated, coded and frozen, ready to be tempered in
BUT THE OUTCOME, IF LEFT UNADDRESSED, INEVITABLY BECOMES different processes and varying work in progress (WIP)
AN UNNECESSARY WASTE STREAM. line with customer orders. If the stock is taken out of freeze, and
life is a demanding job for the planning teams. When you
also out of stock rotation, this can create product challenges as,
then factor in variances in forecast and actual orders it is
Here are some reasons why surplus occurs: once tempered, there may be insufficient shelf life, based purely
inevitable that ingredients or WIP may run out of minimum
on the pre-printed packaging rather than the actual life of the
life to use in production.
• Cancelled Orders • Picking Issues (Part Pallets/ product.
• Component Ingredients Pick to Zero) • In short shelf life products, most production runs are
• Short dated products often occur in frozen supply chains, the
(multiple shelf-lifes) • Production Over-Runs underway based upon forecasts and well before actual
stock is predominantly found in external cold storage long after
orders are received. Inaccuracies in forecasting, due to a
• Date Coding Errors • Promotional Packaging the end retailer MLOR has passed.
myriad of reasons (such as a change in weather, competitor
• De-Listed Products • Samples/Trade Show Stock promotions) means that core production and any over-runs
• Failed Deliveries • Seasonal Products result in surplus.
• Forecasting Challenges • Stock Purge • Retailers require a minimum life on receipt (MLOR) into
• Machine Breakdowns • Stock Rotation Issues depot or stores to give the end consumer ample shelf life
and to reduce waste in stores. So, sometimes perfectly good
• Minimum Life On Receipt • Temper Product
products can get left behind, not because there is something
(MLOR) Challenges
wrong with them, but because they are just not quite young
enough to make it to shelf.
• Stock rotation challenges, and the residual products
Which can lead to: generated from not picking to zero.
•E
xcess Chilled Stock Suitable • Part & Mixed Pallets • Producers have rigid time slots for delivering stock into
for Freezing retail and collation depots, and a whole range of transport
• Unused Ingredients
challenges can result in a load arriving late and being
•F
rozen Product Requiring & Components
rejected.
Temper
15 CALL US ON 0800 211 84 84 SURPLUS@COMPANYSHOPGROUP.CO.UKSURPLUS SOLUTIONS REASONS WHY SURPLUS OCCURS
DATE ISSUES.
CASE STUDY. EXPERTISE.
We are specialists in the redistribution
ONE OF OUR MANUFACTURING PARTNERS SHARED WITH US HOW SHORT SHELF- of short shelf-life products, whether
LIFE PRODUCTS AFFECT THEM AND THEIR OPPORTUNITIES FOR REDISTRIBUTION: fresh, chilled, frozen or ambient.
The products can be mixed pallets,
“A lot of the products we sell have a short shelf life, and the customers we sell to bulk stock, fully packaged or packed
have minimum requirements for shelf-life. There is also the issue of weather – in plain packaging and unlabelled.
the British weather is very unpredictable and we sell a lot of meat for BBQs... Approved by all of the UK’s major
We also do promotions that sometimes don’t go as well as expected and we have grocery retailers and working with
a lot of stock left over from them. With all these waste products there is nothing global brands, we can redistribute
actually wrong with them – it is the shelf-life that becomes too short… their products in full branded
packaging.
THE SANDWICHES THAT GET LEFT BEHIND Another opportunity is for us is where we have been doing new product
development and have small batches of new products that aren’t ready to go to Even if the products are short dated
Sandwiches naturally have a short shelf-life, so when we discussed
the retailers yet. Often, we do a batch and perform various tests (shelf-life tests, and/or temperature controlled, we
how we could assist a leading sandwich food manufacturer with
cooking tests and validations) on a portion of the stock and then we are left with have the infrastructure and technical
their waste, we were able to offer a solution.
the rest…” expertise to deal with these. We also
Due to the short shelf life and multi-components, the manufacturer have capability for check weighing,
starts producing sandwiches based upon a forecast order so that foreign body detection and correcting
they can meet the delivery schedules. If there is remaining stock domestic and foreign labelling issues
that cannot go to the retailer then those products, that are often along with addressing mis-aligned
in a mixed pallet format, come to Company Shop for redistribution packaging challenges.
through our membership-controlled store network.
Alongside our BRC accredited
As we are able to handle short dated, mixed products in full own processes, we always protect your
label branded packaging, we provide the manufacturer with an brand as if it was our own.
easy, safe and secure redistribution route, getting great sandwiches
to people’s plates as first intended.
CALL US ON 0800 211 84 84 SURPLUS@COMPANYSHOPGROUP.CO.UK 16SURPLUS SOLUTIONS REASONS WHY SURPLUS OCCURS
FINISHED PRODUCT.
AT THE POINT THAT A PRODUCT IS FINISHED, THE COSTS ASSOCIATED Here are some examples: • Packaging and labelling issues can arise for many reasons,
WITH INGREDIENTS, PROCESSING, PACKAGING, LABOUR AND the product may be perfect but the label is wrong, or the
STORAGE HAVE ALL BEEN BORNE. WHEN, FOR WHATEVER REASON, • Short dated stock can arise for many reasons, from stock
product is not quite as described on the pre-printed pack.
THESE FINISHED PRODUCTS DO NOT REACH THEIR INTENDED MARKET rotation challenges through inaccurate forecasting to slow
THEY SHOULD NOT GO TO WASTE. WHETHER A SHELF-LIFE ISSUE, A moving sales. The reasons differ across categories but • Often, product is destined for international markets, with
SKU CHANGE, A LOGISTICS CHALLENGE, WE CAN REDISTRIBUTE THESE
the outcome, if left unaddressed, inevitably becomes an the labelling following different compliance regulations or
PRODUCTS AND PROVIDE YOU WITH A COMMERCIAL, ENVIRONMENTAL
AND SOCIAL RETURN. unnecessary waste stream. in a foreign language (or both). Not all such product reaches
its intended destination and instead is retained in the UK but
• Surplus often occurs at the end of production runs where
Here are some reasons why finished product surplus can occur: not compliant for sale.
there are not quite enough units to make a full case, or there
is an over-run using up the materials on the line. • Factories have control procedures in place to make sure the
• Brand & Packaging Changes • Picking / Stock Rotation right date code is applied on a product. However, sometimes
Issues • When new products are developed, beyond the initial small-
• Damaged Products mistakes do happen, and the products are then rejected.
scale concept trials there are many other stages depending
• De-listed Products • Promotional Packaging This doesn’t mean that the products are waste, it is simply
on the type of product. There are production trials, packaging
Challenges the label that is wrong.
• End of Production / Over-Runs trials, transport trials, testing the product for shelf life,
• Samples and Trade Show stability, quality etc. Surplus stock is often generated from • The everyday complex management of multiple brands
• Failed Deliveries
Stock each of the trials as you work through the whole process. with thousands of SKUs can be a challenging environment,
• Forecasting Issues
• Seasonal Products even before we think about the order picking and onward
• Foreign Label Stock logistics. This can result in stock being picked out of rotation
• Short Dated Stock
• Minimum Life on Receipt creating shelf life issues or the need to move slow moving
• Stock Purge
(MLOR) Challenges stock out.
• Store Closures
• NPD and Product Trials • FMCG manufacturing is complex, and for those producing
• Tempering Issues
• Pack Weight Errors (Under / products with a short shelf life even more so, as often
Over Weights and Fills) production has started before the manufacturer receives
an order saying how many to make. If the final orders are
lower than forecasted, maybe because of the weather or a
competitor promotion on a similar product, then
surplus occurs.
17 CALL US ON 0800 211 84 84 SURPLUS@COMPANYSHOPGROUP.CO.UKSURPLUS SOLUTIONS REASONS WHY SURPLUS OCCURS
FINISHED PRODUCT.
CASE STUDY. CASE STUDY. EXPERTISE.
WEIGHT IS NOT AN ISSUE DON’T WASTE YOUR BRAND Throughout our 50-year heritage,
we have invested in our business
Set weight/price point packs inevitably create Businesses invest heavily into brand creation, brand promotion and loyalty and brand
to ensure that we continually
challenges, but they never need to be waste. protection, which can on occasions conflict with a wider sustainability agenda.
provide the UK’s food and wider
We work closely with a major meat processor We worked with a leading plant based spread manufacturer during a significant packaging FMCG industry with progressive,
and packing business which packs set weight re-brand project. Not wanting to cannibalise new brand sales they were considering all brand sustainable and scalable
and price point packaged meat for many of the protection options for the ‘old’ packaged products, including waste. This was perfect product redistribution solutions.
UK’s grocery retailers. As part of this process, with significant remaining shelf life. Our infrastructure and logistics
non-compliant under-weights and over-weights enable us to handle high volumes
Company Shop Group provided a brand secure outlet for the high volume of ‘old’ branded
are rejected. These products, fully finished of product, alongside providing a
products through our membership-controlled store network, then allowing the manufacturer
in packaging, are collated and collected by wide range of innovative, safe and
to maximise their brand launch across mainstream retailers.
Company Shop. compliant product interventions;
The manufacturer’s brand was protected, they received a commercial return for the product ensuring that great products do
Through our investments in line machinery
and the knowledge that their product was reaching people’s plates as first intended. not needlessly go to waste.
(within temperature-controlled environments)
we are able to check weigh and apply a new
label showing the correct weight, ensuring legal
compliance.
This solution provides the processor with a
secure redistribution route, regardless of product
brand and the mixed nature of the rejected
products, a financial recovery for the stock and
the knowledge that these great products are
getting to people’s plates as first intended.
CALL US ON 0800 211 84 84 SURPLUS@COMPANYSHOPGROUP.CO.UK 18SURPLUS SOLUTIONS REASONS WHY SURPLUS OCCURS
FORECASTING/SKU “Forecasting issues will remain an issue until there is a
CHANGES.
consumer shift for the whole industry – one of the by-
products of giving consumers great choice and availability is
surplus. To restrict surplus further, we have to restrict choice.”
Leading UK Retailer
FMCG MANUFACTURING IS COMPLEX, AND FOR THOSE PRODUCING Here are some examples: • Promotional packaging is timebound, regardless of the shelf life
PRODUCTS WITH A SHORT SHELF LIFE EVEN MORE-SO AS OFTEN of the product within. From competition stock to the last series
PRODUCTION HAS STARTED BEFORE THE MANUFACTURER • Short-dated stock can arise for many reasons, from stock
reality TV stock, to the fallen celebrity face, the promotion may
RECEIVES AN ORDER SAYING HOW MANY TO MAKE. IF THE FINAL rotation challenges through inaccurate forecasting to slow
ORDERS ARE LOWER THAN FORECASTED, MAYBE BECAUSE OF THE end but the product doesn’t have to.
moving sales. The reasons differ across categories but
WEATHER OR A COMPETITOR PROMOTION ON A SIMILAR PRODUCT,
the outcome, if left unaddressed, inevitably becomes an
THEN SURPLUS OCCURS.
unnecessary waste stream.
Here are some reasons why surplus can occur: • De-lists are common placed within a competitive retail
environment, set within an ever-changing consumer
• Brand & Packaging Changes • Promotional Packaging landscape. In a world where products have to ‘buy their
• De-listed Products Challenges space’ and ensure that they meet the constantly evolving
• End of Production / Over-Runs • Seasonal Products agendas around health, value and sustainability, de-listed
• Short Dated Stock SKUs are inevitable and common place.
• Foreign Label Stock
• Hospitality & Food Service • Stock Purge
Format • Storage & Distribution
• Ingredients and Components Challenges
• Minimum Life On Receipt • Tempering Challenges
(MLOR) Challenges • The unpredictability of seasonal products; think rain when the
forecast was based upon a sunny bank holiday weekend.
• In chilled depots, best practice is to pick to zero every day. There
Which can lead to: is no stock holding, but there are “overs” e.g. where a retailer
orders 96 cases and a supplier delivers 100, because that is a
• Excess Chilled Stock • Excess Private/Own Label/ • Often, manufactured product is destined for international full pallet for them.
Suitable for Freezing Retailer Branded Stock markets, with the labelling following different compliance
regulations or in a foreign language (or both). Not all such • Long lead time sourcing creates volatile demand for short dated
• Part & Mixed Pallets product reaches its intended destination and instead is produce/protein, much of which is based on forecasts provided
retained in the UK but not compliant for sale. months in advance.
19 CALL US ON 0800 211 84 84 SURPLUS@COMPANYSHOPGROUP.CO.UKSURPLUS SOLUTIONS REASONS WHY SURPLUS OCCURS
FORECASTING/SKU EXPERTISE.
CHANGES. Our scale and infrastructure enable us to handle the significant volumes
of surplus that often arise as a result of forecasting challenges.
Whether long or short-dated, food or non-food, temperature controlled
and regardless of brand and volume, we can handle it all.
CASE STUDY. Approved by all the UK’s major grocery retailers and working with global
brands, we can redistribute their products in full branded packaging.
VOLATILITY IN THE SUPPLY CHAIN
A manufacturer is servicing their customers (the
retailers), and therefore their volumes will be just as
volatile as that of the end consumer behaviour.
CASE STUDY.
We work with a leading manufacturer specialising in CASE STUDY. THE CONFLICT OF FORECASTING
chilled, short shelf life food. Every week, they bring AND SHELF LIFE
in 90 lorries of food from across Europe and are GAMMON IS NOT JUST FOR CHRISTMAS
During a site visit, we identified
dependent upon a six-day cycle for green leaves. They a large volume of bottled water,
We can provide cost effective solutions for the
have to grow and contract crops 18 months in advance created by a specialised water
unintended and often high volumes of surplus arising
- harvest dates can move a little, but not much. producer for a retailer, which had
from forecasting challenges due to weather shifts or
under-performing seasonal promotions. become short dated due to the lower
than expected sales performance.
A leading meat processer producing gammon joints The retailer no longer required the
for a seasonal promotion had too much stock as product due to the short shelf life
the end retailer demand volumes were lower than and rejected the load.
expected. Company Shop worked with them to
understand the volume, shelf life and if the product This product was in cases of 6, each
was suitable for freezing. We were able to take all bottle containing 750ml, totalling
of the stock and freeze the joints through our ‘Chill 25,000 units and was destined for
If there is a little left over, then that is manageable. If to Freeze’ process, just one of our Assured Advice anaerobic digestion.
it’s a massive variance, then the product is left outside. processes with our Primary Authority.
The product was collected, sorted
If it rains, the product can’t be bagged, and at that
This solution extended the life of the product, and disclaimed (to meet the retailer’s
point the options for redistribution are vastly reduced.
enabling all of the stock to be redistributed in a food requirements), and redistributed
Company Shop Group are no strangers to handling safe and brand secure way, and provided a financial through our controlled-membership
vast volumes of short shelf life products. recovery for the processor. store network.
CALL US ON 0800 211 84 84 SURPLUS@COMPANYSHOPGROUP.CO.UK 20SURPLUS SOLUTIONS REASONS WHY SURPLUS OCCURS
GROWERS
AND PACKERS.
CREATING A BALANCED EAT WELL PLATE REQUIRES US TO GO THE
EXTRA MILE, NOT ONLY AT THE FACTORY GATE BUT AT THE FARM GATE.
• Promotional Packaging Challenges
CASE STUDY.
INCREASING THE CONSUMPTION OF FRESH FRUIT AND VEGETABLES • Quality Rejections
IS NOT ONLY GOOD FOR OUR WELLBEING BUT GOOD FOR BUSINESS. • Samples MARROWS
GROWING AND CULTIVATING PRODUCE IS NOT EASY AND THE
WEATHER CAN HAVE A BIG IMPACT; TOO MUCH RAIN, TOO LITTLE RAIN, • Seasonal Products When our specialist HHRS advisor met with a leading grower
WIND, TEMPERATURE. ALL THESE FACTORS CAN INFLUENCE WHEN THE • Short Dated Stock and walked through some of the fields, the supplier pointed out
CROP IS READY AND THE SIZE AND QUALITY, WHICH IS A PARTICULAR an issue they had with some marrows, they were too big and did
CHALLENGE FOR SEASONAL PRODUCE SUCH AS PUMPKINS AT • Specification Rejections
not meet the customer specification, there were also quite a few
HALLOWEEN AND SPROUTS AND SATSUMAS AT CHRISTMAS. • Storage & Distribution Challenges
that were mis-shaped - would we be able to help? The supplier
• Trade Show Stock explained that the out of specification vegetables would either be
Here are some reasons why surplus occurs:
• Undeclared/Mis-declared Ingredients, Instructions ploughed back into the field or chemically burnt if they could not
and Allergens find a home for them. Marrows are not something we had regularly
• Brand & Packaging Changes • Minimum Life On Receipt
in store and are not the most common vegetable people purchase
• Bulk / Unwrapped products (MLOR) Challenges
and know what to do with, so we had to think on our feet.
• Damaged Products • Mis-aligned Packaging &
Labels We agreed to take the out of specification marrows to sell in our
• Date Coding Errors stores. We engaged our team of chefs at Head Office to make two
• New Product Development
• De-listed Products dishes with the marrows and serve them to our colleagues, so they
(NPD)
were more informed to speak to our members in store. The recipes
• End of Production / Over-Runs
• Pack Weight Errors (Under / and full supporting ingredient packs were made available to our
• Excess Private / Own Label / Over Weights and Fills) members, encouraging them to try something new.
Retailer Branded Stock Since raising the profile of food waste, thankfully, much
• Packaging & Labelling Issues
This was a great success and provided the supplier with a case
• Failed Deliveries has changed for produce which would previously never
• Part & Mixed Pallets study that could be used for future products that did not quite fit
• Forecasting Issues have seen a retail shelf. Reduced cosmetic standards mean
• Picking / Stock Rotation the retailer specification but were perfectly good to eat.
that wonky is just as good as straight, best before dates
• Foreign Label Stock Challenges have almost vanished and produce that still looks good is Conversely, products that do make it from field to packhouse are
• Hospitality & Food Service • Product Trials just ‘too good to go’. All welcome change, but what about part way there, but still may not make it to retail shelf or home
Format (e.g. Production, Packaging the edible produce that is still left behind that will either with a consumer.
• Machine Breakdowns and Transport) be used for animal feed or ploughed back into the ground?
21 CALL US ON 0800 211 84 84 SURPLUS@COMPANYSHOPGROUP.CO.UKSURPLUS SOLUTIONS REASONS WHY SURPLUS OCCURS
GROWERS
AND PACKERS.
CASE STUDY. EXPERTISE.
with any blemish. This removed the risk of escalating Working alongside growers and packers, we can redistribute all edible
customer complaints, but it also escalated the volumes surplus products, regardless of brand, in packaging and/or bulk format.
of waste. The first answer was not dealing with the real
We have developed a range of cost recovery options to support
problem. When it comes to understanding systems
the harvesting, logistics and onward distribution. The products are
change, that wasn’t the right place to start.
redistributed through our network of controlled membership stores,
You must start with ‘why?’
supporting key workers and disadvantaged communities across the UK.
The visual training delivered around quality and what
was acceptable hadn’t changed. That wasn’t the why.
The visual inspections the production operators were
carrying out were the same. That wasn’t the why.
Through discussions and observations within the team,
the labour on the line was discussed.
TOMATOES – THE WHY? The site had always celebrated its skilled multi-cultural
workforce, but in recent months there had been a labour
As part of our HHRS project we worked closely with a
shift from Polish to Romanian speakers. Whilst training
leading fruit and vegetable processor and packer. They
was happening, the key operational messages were quite
had very good yields, well established partnerships
literally getting lost in translation – so tomatoes with
with growers and their customers, and a very low level
black spot were not being picked out, and consequently
of customer complaints.
were being packed into the punnets. That was the why.
They then started to receive an increase in customer
A re-think was required. Working with the new
complaints about their cherry tomato punnets.
workforce, training content, materials and delivery styles
Nothing had changed in the processing and the quality
were updated. Now, customer complaints have reduced,
of the produce coming in was the same, so it was not
unnecessary waste has reduced and product and packing
clear why this was happening. The first response was
costs have reduced.
sensible, tighten the specification - remove all tomatoes
CALL US ON 0800 211 84 84 SURPLUS@COMPANYSHOPGROUP.CO.UK 22SURPLUS SOLUTIONS REASONS WHY SURPLUS OCCURS
MANUFACTURING
PROCESS.
MANUFACTURING ENVIRONMENTS ARE COMPLEX AND FAST Which can lead to:
PACED. FROM THE SOURCING AND STORAGE OF INGREDIENTS AND
COMPONENTS, THROUGH THE PROCESSING, PRESERVING AND • Bright Cans and Plain Packs • Excess Chill Stock Suitable
PACKAGING OF THE PRODUCTS, IT IS INEVITABLE THAT WASTE
• Downgrade / Rejected for Freezing
OCCURS. BUT MUCH THAT SEEMS TO BE WASTE IS ACTUALLY
SURPLUS WHICH, THROUGH IDENTIFICATION AND APPROPRIATE Product • Excess Samples
INTERVENTION, CAN BE REDISTRIBUTED AND FULFIL ITS INTENDED
• Excess Bulk / Unwrapped • Part & Mixed Pallets
PURPOSE, WHETHER THAT IS TO EAT, USE OR WEAR.
Products • Unused Ingredients and
Here are some reasons that surplus can occur during Components
manufacturing processes:
• Damages to Products • Product Trials Here are some examples: • Factories have rigorous planned maintenance systems in place
• Date Coding Errors (e.g. Production, Packaging, for their machinery, however machine breakdowns do still
Transport and Samples) • Products are produced to meet a customer specification and happen. With lines in full flow, an interruption
• End of Production / Over-Runs quality checks are undertaken throughout the process. This results in products at all stages
• Quality Rejections
• Forecasting Issues means that products can be rejected at any stage; the wrong of the line being rejected.
• Specification Rejections ingredient is used, the viscosity is amiss, the colour or texture
• Impact of Seasonal Products
• Storage Challenges isn’t as expected, the decoration
• Machine Breakdowns isn’t the right pattern, the
(From Ingredients through
• Mis-aligned Packaging to Finished Product) flavouring didn’t get added.
& Labels
• Tempering Challenges
• Pack Weight Errors (Under /
• Undeclared/Mis-declared
Over Weights and Fills)
Ingredients, Instructions
• Packaging & Labelling Issues and Allergens
• Picking / Stock Rotation • Work In Progress
Challenges • When producing products (especially multi-component ones) to a
• Process Waste set weight specification to accommodate pre-printed packaging,
it is inevitable that there will be some weight and/or fill issues.
23 CALL US ON 0800 211 84 84 SURPLUS@COMPANYSHOPGROUP.CO.UKYou can also read
