Production and
products

Continuous quality improvement along the value chain

Management approach

The continual improvement of the quality of all processes along the value chain is a core element of Vetropack’s corporate philosophy and one of five strategic directions of Strategy 2030. According to the motto “Leader in quality”, the company meets rising customer expectations, increases the efficiency of production processes and remains competitive over the long term.

The entire management team at Vetropack holds ultimate responsibility for the ongoing quality improvement, although the continual improvement process is well established and actively supported by the workforce in all plants. For example, internal specialist groups at various facilities work on projects to enhance occupational safety, environmental protection and quality assurance. The Quality Assurance specialist group, which consists of members of the quality assurance teams at all plants, is responsible for improving product quality. The approach utilised by the group is aligned with the Vetropack corporate purpose and values, as well as the corporate strategy, and the group formulates process descriptions and work instructions.

Progress is assessed by means of various quality indicators, such as the number of customer complaints per glass container sold and the number of internal critical defects. Clear annual targets have been set for all indicators.

Digitalisation and automation

Management approach

Vetropack considers digitalisation and automation to be key drivers of the company’s further development and defined the topic as a key element of the strategic direction “Leader in quality” when developing Strategy 2030. The company endeavours to systematically make use of the opportunities offered by digitalisation and automation in order to boost its quality and productivity and reduce costs. Digitalisation and automation also offer additional benefits in that they relieve employees from performing routine tasks, help increase occupational safety, and ensure the efficient exchange of data with suppliers and customers.

The Head of Finance, Controlling, Procurement and Sales, and the Head of Engineering and Production, are responsible for developing and implementing digitalisation and automation projects together with the IT department. Potential for process optimisation is exploited through investment projects, provided the solution in question is expected to lead to an adequate return on investment (ROI). Successful implementation of digitalisation and automation solutions requires Group-wide harmonisation of work and process flows and the continual training and professional development of employees whose job profiles are significantly affected by digitalisation.

Customer-specific products

Management approach

Vetropack aims to create added value and firmly establish its brands by offering its customers innovative, distinctive and sustainable glass packaging. Ensuring a high level of customer satisfaction is crucial if the leading position in its European core markets is to be maintained and steady profitable growth is to be achieved.

Vetropack’s sales team is responsible for a customer-oriented sales and marketing strategy. The information required for this comes from daily interactions with customers and a customer satisfaction survey conducted every three years. The most recent customer survey was carried out in 2019. Vetropack was rated “good” or “very good”, which puts the company above the competitive average. Order processing, customer orientation, reliability and the proximity of production plants were cited as the company’s most important strengths. Knowledge gained from the survey will help Vetropack implement targeted improvement measures designed to increase customer satisfaction even further.

Vetropack also participates in various trade fairs and organises innovation events and exhibitions to find out about customers’ requirements while showcasing its expertise. Due to the coronavirus pandemic, attendance at trade fairs and events had to be suspended temporarily in the reporting year.

For Vetropack, developing new products together with customers is the key to success, as it makes it possible to tailor products to customers’ specific needs and also improves its skills and expertise. In 2020, the overall level of new product launches fell considerably. However, one positive example is the introduction of different bottle sizes for the launch of new whiskey brand “The Busker”. The successful product launch was the outcome of a long-standing connection with the brand owner in Italy, with whom Vetropack worked to develop the designs and various product samples. However, the systematic approach to customer-specific innovations has yet to be fully established. To harmonise the Group-wide product development process, Vetropack launched a new workflow tool in 2020. Enhancements to the tool are planned for 2021.

In 2020, Vetropack developed a new indicator to measure sales of products that are less than one year old, which the company intends to use to track the progress of innovation. Products that have been on the market for up to a year are to make up a growing share of total sales in future. The company also aligns its market strategy so that it can improve the product mix. For this reason, low-margin products are redeveloped with the aim of making them more profitable. If this does not succeed, they are removed from the portfolio altogether. Once every six months, Vetropack reviews profitability as it relates to segments, customers and the countries in which the company operates in order to monitor price levels and the suitability of products on an ongoing basis.