Surveying SAP Responsible Design and Production

Objectives

After completing this lesson, you will be able to:

  • Describe SAP Responsible Design and Production

Solution Overview

SAP Responsible Design and Production solution is SAP’s new flagship product, whose aim is to help producers manage their Extended Producer Responsibility (EPR) obligations and plastic taxes and drive design changes to eliminate waste. Global regulations, EPR schemes and plastic taxes continue to increase worldwide. For instance, plastic taxes are effect in UK in April 2022, Spain in 2023, and they are expected to come into effect in Italy 2024. The EU Green Deal stipulates targets for 70-100% recycling rates by 2030, depending on the material.

The solution capabilities listed in the figure above will help producers comply with the rapidly growing number of Global Regulations, EPR schemes and plastic taxes worldwide. Global obligations are not easily managed by current systems and involve manual data collection. Businesses need to manage costs and design a sustainable portfolio. SAP drives the transition to a circular product portfolio providing RDP solution in order to:

  • Increase precision of payments for Extended Producer Responsibility obligations and Plastic Taxes
  • Manage down cost of taxes and fees
  • Increase customer appeal and demand by redesigning products to be sustainable
  • Simplify reporting of voluntary commitments

SAP Responsible Design and Production is a cloud-native application running on SAP Business Technology Platform.

Please be aware that the list of features and functions above is a Labs Preview and subject to change.

If you are interested to learn more, please consider to visit the following link: SAP Responsible Design and Production

End Users

Sustainability Managers

Sustainability Managers are responsible for creating KPIs and various sustainability reports. With a growing number of companies embracing ESG (environment, social, and governance) targets, it’s crucial to ensure access to good quality data and analytical capabilities to understand areas of focus against voluntary commitments and corporate goals.

Brand Managers and Packaging Engineers

Brand Managers and Packaging Engineers are responsible for developing packaging, working on the replacement of certain packaging material if it doesn’t comply with the company’s strategy. They create and maintain packaging specifications to this effect.

Compliance/EPR Managers

Compliance/EPR Managers (or EPR experts) are responsible for ensuring the correctness of data that contribute to Extended Producer Responsibility reports, as well as for preparing such reports in time for the PRO deadlines. The SAP Responsible Design and Production solution will enable early detection of data issues, prescribe corrective actions for such issues and provide analytical capabilities to allow Compliance/EPR Managers to drill down to any level of detail across different dimensions of choice.

Tax Managers

The role of the tax manager in a business is to accurately calculate and pay taxes. In the context of SAP Responsible Design and Production, they will be concerned with taxes on plastic packaging. SAP Responsible Design and Production can calculate plastic packaging for customers directly, using the information about material used in the packaging composition, and shipment data.

Data and Reporting Managers

Data and Reporting Managers are responsible for configuration and setup of software applications and availability of consistent data across multi-system landscape. This will enable IT or Data Admin to easily manage data coming from heterogeneous sources.

Basic Concepts

Circular Economy

Circular economy is a paradigm that drives new legislative approaches such as extended producer responsibility or plastic taxes that aim to make an economy is sustainable.

The Ellen MacArthur Foundation glossary defines circular economy as "A systems solution framework that tackles global challenges like climate change, biodiversity loss, waste, and pollution. It is based on three principles, driven by design: eliminate waste and pollution, circulate products and materials (at their highest value), and regenerate nature. It is underpinned by a transition to renewable energy and materials. Transitioning to a circular economy entails decoupling economic activity from the consumption of finite resources. This represents a systemic shift that builds long-term resilience, generates business and economic opportunities, and provides environmental and societal benefits."

The concept distinguishes finite materials and renewables. Finite materials are non-biodegradable. A circular economy applies technical cycles to finite materials. Technical cycles ensure that a product is kept in circulation in the economy or that its value is preserved for as long as possible through sharing, maintaining, reusing, refurbishing, or recycling. Renewables are handled in biological cycles. In biological cycles processes are applied to renewables that regenerate their natural capital, such as composting or anaerobic digestion. SAP Responsible Design and Production considers reuse and recycling information, depending on report scopes.

In many countries, companies that place sales packaging on the market are obliged to pay EPR (Extended Producer Responsibility) fees. In order to determine the amount of these fees, the information required for the fee calculation must be provided in EPR reports. As the calculation of fees differs from country to country, the EPR reports must contain different information for each country. The entities that receive EPR declarations are producer responsibility organizations (PROs). Producers cooperate with a single or multiple PROs depending on the country/region. SAP Responsible Design and Production makes it possible to generate EPR reports. An EPR report provides the data that can then be entered into an EPR declaration, usually on the PRO's website. For more information, see Country/Region-Specific Reports.

Producers of goods can also cooperate with NGOs that collect packaging data. Cooperation with NGOs is voluntary. NGOs of this kind provide forms where producers need to fill in their packaging data. SAP Responsible Design and Production makes it possible to generate reports that provide the data. This data can then be entered into NGO reports. For more information, see NGO-reports.

To be able to generate reports, business data and configuration data must be provided. For more information, see Integration and Data Replication.

In the default business process for SAP Responsible Design and Production three types of business users are necessary.

Administrators

  • Collect the necessary business data (either through manual excel import or automated data integration), fill out the file templates, and import data to SAP Responsible Design and Production.
  • Resolve data issues such as wrong file types, corrupt files, or missing or inconsistent data.

Packaging experts/engineers

Verify and review packaging data such as packaging elements and packaging compositions.

Report experts (EPR Expert/Sustainability Manager)

This role contains ERP expert or sustainability manager.

  • Enable the report categories that are needed by the producer.
  • Configure and generate reports.

Quick Tour of SAP Responsible Design and Production

Watch this video to take a quick tour of SAP Responsible Design and Production.

Process Flow Diagram

This diagram shows the standard process flow for EPR declarations in SAP Responsible Design and Production.

Note: In the software solution, the various end users are grouped into a generic "Reporting", "Packaging Engineer", and "Admin" roles.

EPR Reports – Example Netherlands

SAP Responsible Design and Production facilitates EPR reporting for companies, on a country-by-country basis.

The following standard EPR reports are supported:

  • Canada: CSA (Blue Box Ontario)
  • France: Citeo
  • Germany: Duale Systeme
  • Italy: CONAI, Form 6.2: Import of Filled Packaging
  • Netherlands: Afvalfonds Verpakkingen
  • United Kingdom: Extended producer responsibility for packaging

Reporting Requirements

  • Reporting Frequency: Companies obligated to the Packaging Waste Management Contribution are required to file annual reports containing information about the packaging of one sale unit by the consumer, a collection of sale units or the packaging due to transporting of sale units to prevent damage.

  • Reporting Deadline: Companies need to file their annual report for a calendar year by March 31 of the next calendar year.

  • Payment of Fees: Based on the information in the reports they file, companies receive an invoice in the year after they file the report, and are expected to make a payment within the stipulated timeframe (currently, 30 days) to Statiegeld Nederland.

Note:

  • The report supports regular fees only.
  • The report currently does not support all packaging of material types other than glass, paper and carton, plastic, wood, and metal.

Packaging Composition

Packaging composition is a concept in SAP Responsible Design & Production that is used to bring together details of packaging elements used to pack a product at different packaging levels (primary, sub-primary, secondary, tertiary). A packaging composition can be assigned to one or more products.

Example: Chocolate Cookies

Packaging – Every product is packaged to ensure it remains intact or doesn’t get damaged during transport, storage or handling. Packaging can be of the following types:

  • PRIMARY & SUB-PRIMARY: Packaging that stays in contact with the product and in most cases is the end-consumer packaging. For example, multiple chocolate cookies are packed in a box consisting of an upper and lower part, 2 pieces of plastic inlay and 2 pieces of plastic film. All these different components (box, plastic inlay and plastic film) belong to primary and sub-primary packaging categories.
  • SECONDARY: Packaging that is mainly used for grouping multiple primary packaged units together. 6 box of chocolate cookies are packed in a carton, which is sealed using an adhesive tape.
  • TERTIARY: Packaging that helps protect secondary packaging or individual units during transportation (e.g. pallets, pallets shrink wrap). 40 cartons (which has 240 boxes of chocolate cookies in total) are packed together in a pallet using a stretch film.

Look at packaging composition for 40 cartons of cookies. 1 pallet consists of 40 cartons of chocolate cookies and every carton consists of 6 boxes of chocolate cookies. In other words, 1 pallet will consist of 240 boxes of chocolate cookies

Primary & sub-primary packaging:

  • Lower part of box: 240 pcs (sub-primary)
  • Upper part of box: 240 pcs (sub-primary)
  • Plastic inlay: 480 pcs (2 pcs in each box)
  • Plastic film: 480 pcs (2 pcs in each box)

Secondary packaging:

  • Carton: 40 pcs
  • Adhesive tape: 80m (2m tape for every carton)

Tertiary packaging:

  • Pallet: 1 pc
  • Stretch film: 5 m (5m for each pallet)

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