Logistics & Quality Assurance
Logistics/QA Key Strategies/Initiatives 2012-13 1. Durham Warehouse Outbound Autopalletization 2. Ottawa Warehouse Expansion 3. Enhance receiving function at London Warehouse 4. QA Rollout Sweetness Descriptors
Logistics/QA Key Strategies/Initiatives 2012-13 1. Automatically palletize cases for outbound shipments
Logistics/QA Key Strategies/Initiatives 2012-13 Automatically palletize cases for outbound shipments 1.
Logistics/QA Key Strategies/Initiatives 2012-13 1. Automatically palletize cases for outbound shipments > Roll out prototype to 18 palletization stations > Significant cost savings > Improve throughput > Reduce injuries
Logistics/QA Key Strategies/Initiatives 2012-13 2. Ottawa Warehouse Expansion
Logistics/QA Key Strategies/Initiatives 2012-13 2. Ottawa Warehouse Expansion > Integrate “Depot” with Ottawa warehouse > Increase storage capacity > Split receiving and shipping
Logistics/QA Key Strategies/Initiatives 2012-13 2. Ottawa Warehouse Expansion > Install ergonomic technology > Introduce automation to the receiving side > Improve traffic flow and customer service > Increase productivity and throughput > Reduce labour requirements > Enhance safety
Logistics/QA Key Strategies/Initiatives 2012-13 3. Enhance receiving function at London Warehouse
Logistics/QA Key Strategies/Initiatives 2012-13 3. Enhance receiving function at London warehouse > Introduce ergonomic destuffing platforms coupled to automatic palletizer > Improve productivity, reduce labour costs > Enhance safety
Logistics/QA Key Strategies/Initiatives 2012-13 3. Enhance receiving function at London warehouse
Logistics/QA Key Strategies/Initiatives 2012-13 Rollout Sweetness Descriptors 4.
Logistics/QA Key Strategies/Initiatives 2012-13 Rollout Sweetness Descriptors 4.
Logistics/QA Key Strategies/Initiatives 2012-13 Safety Culture Evolution > Operate in a “proactive mode” by continuous education of staff. Creating and evolving the > Ensure orientation Logistics Safety Culture programs are updated and reflect new focus. > Maximize the use of ergonomic solutions. > Continue to roll out the various components of our safety culture change.
Wine Shopping Made Easy
LCBO Sweetness Descriptors
LCBO Sweetness Descriptors • QA will rollout sweetness descriptors for table wine which will replace the current Sugar Code system. • The new system is science- based and uses descriptive terms to explain how sweet a wine will taste. • The new system will also display the actual sugar content of each wine, expressed in grams per Litre. • New information will be displayed on bin tickets.
Specialty Services Private Ordering Retail Service Centre
Overview 1. The year in Review 2011/12 • 2. The year ahead 2012/13 •
Specialty Services Private Ordering Retail Service Centre Case Sales 2011-12 Fiscal year ending March 31 st , 2012 % Increase TY LY TY vs. LY Private Orders 165,078 141,262 16.9 % Consignment Programs 495,747 465,603 6.5 % Total Case Sales 660,825 606,865 8.9 %
Specialty Services Private Ordering Retail Service Centre Sales ($) 2011-12 Fiscal year ending March 31st, 2012 % Increase TY LY TY vs. LY Private Orders $ 20,952,613 $ 17,307,969 21.0 % Consignment Programs $ 73,273,326 $ 68,223,364 7.4 % Total Sales $ 94,225,939 $ 85,531,333 10.2%
Specialty Services Private Ordering Retail Service Centre Threshold Utilization (Consignment program only) TY LY % Increase (2011-12) (2010-11) TY vs. LY Average, 37,997 36,982 2.7 % Actual On-hand Percentage, 85.1 % 79.4 % 7.2 % On-hand to Threshold
Specialty Services Private Ordering Retail Service Centre Inventory Turns (Consignment cases only, Fiscal 2011-12) % Variance TY LY TY vs. LY Inventory Turns 6.4 6.5 (1.5) % Weeks of Inventory On- 8.1 8.0 1.3 % hand (Inventory turns are calculated by dividing Annual Sales by Average inventory on-hand)
Specialty Services Private Ordering Retail Service Centre 2012-13 Objectives Excellence in: • the Customer Experience • Operational Efficiency
Specialty Services Private Ordering Retail Service Centre How do we plan to achieve these objectives? 1. TECSYS system 2. Ongoing Operational Review
Specialty Services Private Ordering Retail Service Centre Specialty Services TECSYS System • Scheduled go live date is January 2013 • System is comprised of the following three integrated modules: 1. Web Portal 2. Distribution Management System(DMS) 3. Warehouse Management System(WMS)
Specialty Services Private Ordering Retail Service Centre Web Portal Agents will be able to access the Specialty Services system through the web portal using their internet browser 1. User-friendly environment 2. 24/7 user access 3. Value-added functionality
Specialty Services Private Ordering Retail Service Centre Distribution Management System > Integration with LCBO systems > Expedient processing and fulfillment > Value-added functionality > Easy access to robust and flexible reports
Specialty Services Private Ordering Retail Service Centre Warehouse Management System Operational efficiencies gained will translate into: > Improved service levels > More accurate inventory > Improved order-pick accuracy > Reduced wait times for Agents and Customers at the dock
Specialty Services Private Ordering Retail Service Centre The degree to which we are able to meet our objectives will depend on the level of: • Agent buy-in and use of the system • Acknowledgement that success will be achieved through ongoing LCBO Specialty Services/Trade partnership • Mutual understanding that we will continue to face limitations such as program space, building capacity and externalities outside of our control
Specialty Services Private Ordering Retail Service Centre Ongoing operational review to maximize efficiencies > Effective task management > Cross-training > Resource Allocation
Thank You
Quality Assurance Updates Drinks Ontario Meeting Stephen Cater April 19, 2012 Director; QA Departm ent Logistics/ Quality Assurance Division
PART 1: ALLERGEN AND REGULATORY UPDATES
Allergen Legislation Canada Gazette II of Feb 16, 2011 > Amendment to Food and Drug Regulations > Requires declaration of priority allergens > Enforcement date of August 4, 2012
Priority Allergens Nuts Eggs Peanuts Milk Sesame seeds Fish Mustard Crustaceans Wheat, kamut, spelt or Shellfish triticale Soybean
Equivalent to Priority Allergens Gluten Sulphites
Allergens in Beverage Alcohol Impact of Allergen Legislation on Beverage Alcohol?
Sulphites > Bilingual declaration for non-vintage and 2012 and later vintage dated wines > Exempt for USDA organic seal or “no added sulphites” claim- confirmed by lab testing
Sulphites Declaration Options Contains statement: > Contains sulphites; contients des sulfites Ingredient list (not for wine) > Ingredients: Alcohol, water, sulphites, flavour > Ingredients: Alcool, eau, sulfites, arôme
Fining Agents > Bilingual declaration for non-vintage and 2012 and later vintage dated if contains residues of: > Albumen (egg) > Casein (milk) > Isinglass (fish) > NISS attestation > Non-turbid wines considered to be low risk for fining agents- turbidity confirmed by lab testing: white wine: 5 NTU red wine: 10 NTU
Fining Agents Declaration Options Contains statement: > Contains: sulphites, milk (fining agent) > Contient: sulfite, lait (agent de collage) Ingredient list (not for wine) > Ingredients: Alcohol, water, sulphites, flavour, milk (fining agent) > Ingrediénts: Alcool, eau, sulphite, arôme, lait (agent de collage)
Standardized Spirits Whisky & Vodka - no issues Other spirits especially liqueurs can have flavour added possible source for added allergens
Unstandardized Products Required to have ingredient list “Flavour” may include an extract of an allergenic item
Unstandardized Products Declaration Options Contains statement: • Ingredients: alcohol, cream, sugar. Contains milk Ingredient list: • Ingredients: alcohol, cream (milk), sugar
Beer Temporary exemption When exemption terminated will require gluten warning (name gluten grain, e.g. barley, wheat) Exemption does not apply > If ingredient list present > If standard of identity not met
Beer Declaration Options Contains statement: • Contains barley, wheat. Contient orge, blé Ingredient list: • Ingredients: Water, malted barley, hops, yeast, flavour • Ingredient: Eau, malt d’orge, houblon, de levure, arôme
Further Information LCBO Trade Letters CFIA Website http://www.inspection.gc.ca/english/fssa/labeti/allerg/2011 0216inde.shtml Health Canada Website http://www.hc-sc.gc.ca/fn-an/label-etiquet/allergen/index- eng.php
ORGANIC UPDATE
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