Singapore's Beverage Container Return Scheme Faces Logistical Challenges

Singapore's Beverage Container Return Scheme has been in place for three months, and some retailers and wholesalers are facing logistical problems.

New beverages with deposit marks are appearing on shelves, but managing old and new stock is causing operational issues and incorrect charges for some consumers.

To solve these problems, companies are using different inventory strategies, including manual tracking to ensure they do not overcharge customers or forget to collect the deposit.

By the end of the transition period, retailers and wholesalers hope to resolve these logistical issues and get used to the new processes.

The scheme is now halfway through its six-month transition period, and all regulated beverage containers must carry the deposit mark from October 1.

The Beverage Container Return Scheme is part of Singapore's efforts to increase recycling rates, launched on April 1.

The scheme requires consumers to pay a refundable deposit on eligible beverages, which can be reclaimed by returning empty containers at reverse vending machines.

Checks have found that beverages with deposit marks are starting to appear on shelves, although they are still uncommon.

The National Environment Agency and BCRS Ltd said they are still identifying and addressing issues during the transition period.

Some businesses may have made mistakes resulting in incorrect charges due to unfamiliarity with the scheme's requirements.

When informed of such incidents, the authorities engage with businesses to explain the scheme's requirements and ensure correct deposit charges.

Businesses that have been engaged have promptly corrected the incorrect charges, and the authorities expect less confusion as the scheme matures.

Some wholesalers have separated old and new inventory, while minimarts have delayed collecting the deposit or increased prices to simplify operations.

One wholesaler has already identified mistakes made by its staff during the transition period.

A director of a beverage wholesaler recalled an instance where a staff member forgot to charge customers the refundable deposit for BCRS-labelled products.

The wholesaler does not use a point-of-sale system, making it hard to track which cartons require the additional charge.

The company has temporarily split its operations to keep BCRS products separate from older stock.

A beverage distributor said staff often rely on experience and memory to distinguish between old and new inventory, with only about 10 per cent of its current inventory carrying the BCRS deposit mark.

The store has no formal inventory system, and staff members know which products carry the deposit mark.

A shop assistant said manually adding the deposit charge is manageable for now, but it will become more challenging as more BCRS stock arrives.

There have been instances of customers being mistakenly charged the deposit for ineligible beverages.

A FairPrice hawker stall mistakenly applied the deposit to a beverage that did not carry the deposit mark, but the charge was immediately stopped, and a refund was issued.

The incident was an isolated case, and the group is working to ensure full compliance with BCRS requirements through better education and guidance.

Online platforms like Shopee have also seen instances of incorrect BCRS deposit charges due to system glitches or human error.

A merchant on Shopee said incorrect deposit charges resulted from system glitches and human error, but the deposit charge was eventually refunded.

Shopee's platform allows sellers to indicate whether a beverage product is subject to the BCRS deposit, and eligible listings have the deposit automatically applied at checkout.

Two major supermarkets, Sheng Siong and Cold Storage, said they had not received any feedback or complaints relating to incorrect BCRS deposit charges.

Both supermarkets said their point-of-sale systems identify eligible products automatically, and customers can seek refunds if incorrectly charged.

One business has decided to hold off on selling BCRS-labelled products until it has completely cleared off the old stock to avoid logistical complications.

A minimart group will hold off selling BCRS-labelled beverages at retail outlets until it has cleared existing inventory to avoid confusing customers.

The company will introduce BCRS products in phases over the coming weeks as suppliers transition fully to BCRS stock.

The company intends to roll out BCRS products to a few outlets at a time, with staff familiarizing themselves with the new processes and products grouped on dedicated shelves.

The company will set aside a dedicated section for BCRS products at its warehouse, with labels to distinguish them from older stock.

The firm's warehouse management system will be updated to automatically identify BCRS products and apply the deposit when scanned.

The National Environment Agency will give beverage companies a one-time grant of up to S$2,500 to help comply with the scheme.

The grant can be used to offset product registration fees, producer fees, and the cost of pasting scheme-compliant stickers on beverage containers.

Some wholesalers said customers have shown a preference for older stock that does not carry the deposit mark during the transition period.

Customers seeking old stock would buy from competitors instead after finding out products now carry the deposit mark, as old stocks are cheaper.

The price difference can be significant for F&B businesses, with a carton of 24 cans costing S$15.40 when the deposit is applied, up from S$13.

A worker said customers buy the old stock because they do not want the new one with the deposit mark.

A director said 70 to 80 per cent of his inventory is still old stock, and his business has fallen by about half since the scheme was introduced.

He buys older stock from suppliers where possible, as customers will buy the old stock first if available.

Introducing BCRS products too early could put retailers at a competitive disadvantage if neighbouring shops are still selling older inventory at a lower price.

The transition strategy comes at a cost, with direct costs including extra stickers, labels, manpower, and storage space.

There are also ongoing indirect costs, such as staff training, customer enquiries, and day-to-day resources required to support the new processes.

Neighbourhood retailers have adopted different approaches to manage the transition, with some delaying the collection of the deposit.

A provision shop has delayed collecting the deposit until it clears more of its older inventory and has time to familiarize customers with the new scheme.

Staff explain to customers that the additional charge is refundable, but older shoppers often ask about using reverse vending machines or are reluctant to travel to one.

The store's point-of-sale system requires staff to manually add the deposit for eligible drinks, which can slow down checkouts during busy periods.

Another minimart has taken a different approach by raising the prices of all beverages to account for broader increases in logistics and transportation costs.

The shop manager said customers generally accept the higher prices as they are still cheaper than those at supermarkets.

The minimart has not received any complaints related to the refundable deposit.

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