Automating recycling processes

More transparency in environmental taxes and excise duties

Grocery retailing must comply with various laws and provisions with large numbers of sales items being subject to stringent environmental standards. Businesses therefore have to pay environmental taxes to their recycling partners, and these differ from one country to another. Based on SAP Recycling Administration, KPS has implemented cross-border management of environmental taxes.

The challenge

To boost its workflow efficiency and reduce costs, the grocery retailer wants to automate its group-wide processes for recycling and for calculating its excise duties using an IT-based solution. In doing so, the group management aimed to achieve greater transparency. In organizational terms, recycling is a complex process and stringent legal requirements need to be met. Automated procedures for the cross-border calculation of these taxes facilitate processing and save costs. The environmental taxes must be mapped individually for each country in the invoices. An arduous task when a branch network is tightly woven and extends over numerous countries.

The solution

KPS experts developed a coherent overall concept based on SAP Recycling Administration. The SAP solution can be used for processing the recycling fees and for managing the excise duties. For recycling, all items whose packing is subject to corresponding regulations are first defined in each country. These classifications also provide a basis for calculating special conditions that are evaluated by the management system used to manage the environmental standards. In addition to SAP Recycling Administration, KPS also configured tailored reporting functions for the customer to better evaluate the requirements for a customs warehouse.

The customer benefit

The solution implemented by KPS has now enabled the retailer to process its recycling fees and excise duties throughout Europe in a consistent manner. The procedures needed to achieve this were automated, saving both time and money. This approach also prevents potential errors and optimizes communication with partners and financial authorities.