Quarterly Packaging Report

14-0508-pkg-strat-spreads2

Quarterly Packaging Report is our quarterly newsletter featuring original content from our subject matter experts, case studies, market trends, and all the latest news in and around Packaging Technology Integrated Solutions.

Issue link: http://havigs.uberflip.com/i/309003

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PRODUCT DEVELOPMENT, INNOVATION & GRAPHICS Our Goals Results We Expect • Strategic packaging development to enable Menu and Marketing initiatives • Identify, develop and deliver innovative packaging materials, designs and technology to optimize portfolio • Deploy standards and frameworks to create system consistency for core menu products and packaging • Gold Standard Packaging delivering Good Food • Improved "speed to market" • Sustainable Packaging Portfolio • Optimal number of SKUs and mix of local and regional suppliers • "Fit for Purpose" Packaging • Assured, Optimized Print Capabilities 5P What We're Executing 2014 2015 2016 Strategic Packaging Development Packaging Enhances Menu Innovation • Development briefed to supplier network in support of the Food Studio's priority development initiatives – Dinner – McSpicy • Packaging engaged in the development process, representation at Culinary Council events, samples to support key product cuttings, scalable solutions deployed to support market "test & learn" activities Build a Pipeline for Longer Term Innovation • Focus development efforts on one "Opportunity" as prioritized by the Innovation Steering committee / Packaging Governance Board Turbo Charging MDS & DT by Closing Key Gaps • Align with MDS 2020 Plan to Win • Execute identified test and learn opportunities • Issue Strategic Brief and manage development in alignment with NPD Process Deliver GTM Initiatives • Support execution of approved Phase 1 initiatives • Focus ideation and development efforts on Phase 2 opportunities in the three areas of "Disruption, Innovation, and Product Design" • Based on prioritization develop, test, and propose Phase 2 opportunities to the GTM leadership team Enable Beverage Expansion • Finalize and deploy APMEA Beverage Packaging Framework – includes overview of cups / graphics by product category (hot, cold) and product level Invigorate the Product Development Process • Review targets and reinforce "Development Process & Timelines" across Menu, Marketing, and Supply Chain teams • Conduct Gap Analysis of existing processes against Project Alliance Enhance Graphic Workflow & Color Management • Deploy Webcenter workflow • Deliver Business Case for Color Sentry and deploy upon approval Packaging Enhances Menu Innovation • Development briefed to supplier network in support of the Food Studio's priority development initiatives • Packaging engaged in the development process, representation at Culinary Council events, samples to support key product cuttings, scalable solutions deployed to support market "test & learn" activities Turbo Charging MDS & DT by closing key gaps • Focus on near and long term innovation to address identified and prioritized business gaps – Deploy approved solutions – Identify additional needs and brief accordingly Build a Pipeline for Longer Term Innovation • Progress prioritized "Opportunity" through the NDP process • Provide "Opportunity" briefs on additional technologies identified by the Innovation Network for review by the Innovation Steering Committee / Packaging Governance Board Deliver GTM Initiatives • Support execution of approved Phase 2 initiatives Invigorate the Product Development Process • Deliver business case based on outcomes from the Project Alliance Gap Analysis Enhance Graphic Workflow & Color Management • Continue deployment of Color Sentry • Develop Business Case for pre-press services Packaging Enhances Menu Innovation • Development briefed to supplier network in support of the Food Studio's priority development initiatives • Packaging engaged in the development process, representation at Culinary Council events, samples to support key product cuttings, scalable solutions deployed to support market "test & learn" activities Turbo Charging MDS & DT by closing key gaps • Focus on near and long term innovation to address identified and prioritized business gaps – Deploy approved solutions – Identify additional needs and brief accordingly Build a Pipeline for Longer Term Innovation • Progress prioritized "Opportunity" through the NDP process • Provide "Opportunity" briefs on additional technologies identified by the Innovation Network for review by the Innovation Steering Committee / Packaging Governance Board Enhance Graphic Workflow & Color Management • Continue deployment of Color Sentry • Deliver Business Case for pre-press services Core Packaging Innovation & Optimization • Identify opportunities to improve overall costs to serve • Identify opportunity to improve portfolio sustainability Optimize the supply chain • Wrap coating optimization • Folding Carton Layout optimization – Validate Supplier Council led solutions and deliver recommendations for expansion Add incremental value • Bring APMEA technologies forward to support GPT activity related to Long Term Innovation in Sustainable Fiber Coatings • Focus on development, per alignment of APMEA stakeholders and priority of GPT for selected technologies Optimize the supply chain • Folding carton coating optimization • Alternative fiber review – Validate Supplier Council led solutions and deliver recommendations for expansion Add incremental value • Bring APMEA technologies forward to support GPT activity related to Long Term Innovation in Sustainable Fiber Coatings • Focus on development, per alignment of APMEA stakeholders and priority of GPT for selected technologies Optimize the supply chain • Focus areas to be prioritized by Supplier Council – Validate Supplier Council led solutions and deliver recommendations for expansion Add incremental value • Bring APMEA technologies forward to support GPT activity related to Long Term Innovation in Sustainable Fiber Coatings • Focus on development, per alignment of APMEA stakeholders and priority of GPT for selected technologies Standards & Framework • Deployment of global Gold Standards across menu items • APMEA Standards development (structure, material, and graphics) and deployment for non-core items across packaging categories Gold Standard products to consumers • Imbed the Packaging Playbook and process for LTOs • Continue to expand Packaging Playbook for Food Studio prioritized / scalable menu items • Align with stakeholders on incremental standards and frameworks development and deliver roadmap Gold Standard products to consumers • Develop new standards and frameworks per roadmap • Business case impacts and propose deployment • Deploy per approval Gold Standard products to consumers • Develop new standards and frameworks per roadmap • Business case impacts and propose deployment • Deploy per approval • Revisit roadmap and align plan with stakeholders Targets 2014 2015 2016 2013 Baseline: • 76% of commercialized solutions are scaled – 17% scaled from Innovation Network • 100% Compliance to Graphics Framework • Cycle time Average for Quarter = 91 days (YTD average = 70 days) Innovation Network Metrics • Number of NPD briefs issued to Network suppliers • Number of new solutions launched by Network suppliers • Percentage of new solutions scaled beyond original launch market(s) Cycle Time Metrics • Total Cycle Time (as current baseline) • PD Cycle Time: Brief Creation Date • Specification Approval Date • Graphics Cycle Time: Brief Creation Date • Artwork Delivered to Supplier • % of projects in line with defined NPD process 6 7 PRODUCT • PROMOTION • PEOPLE & OPERATIONS This document contains confidential information regarding HAVI Global Solutions and/or McDonald's Corporation and its subsidiaries and affiliates. Unauthorized review, use, disclosure, or copying of this communication, or any part thereof, is strictly prohibited and may be unlawful. KEY MILESTONES BY CATEGORY OVER 2013-2015 PLANNING HORIZON

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