A ‘behind-the-scenes’ deposit system. Technology designed to handle millions of returns

What were the biggest challenges involved in introducing the deposit scheme to the Polish market?

The key was to ensure the smooth operation and coordination of all the processes involved in managing the deposit scheme – from collecting data on packaging placed on the market and the deposits collected, through to accepting returnable packaging from consumers, right through to settling the returns.

The greatest challenge for the organisations involved in this project – whether in the areas of IT, process organisation or the restructuring of business models – was the imminent deadline for the launch of the deposit scheme on 1 October 2025.

Another challenge was the fact that a DRS (Deposit Return Scheme – ed.) had not previously operated in Poland on a similar scale. All parties involved in managing the deposit scheme faced similar uncertainties – which system to choose, how to configure it and how to adapt it to statutory requirements.

According to various forecasts, the deposit scheme in Poland will cover several tens of billions of packaging items per year, perhaps even close to 100 billion. Such figures therefore entail significant demands in terms of the stability and operational efficiency of the IT solution. Furthermore, the DRS system must be capable of operating on such a scale from the very first days following the introduction of the deposit scheme.

Such systems are already in operation in other markets, including Germany from 2023.

That is true. In practice, however, it turns out that we are dealing with different processes. Whilst the basic functionality of the DRS appears similar, these are significantly different solutions when taking Polish conditions into account. Significant differences can be seen, for example, in the context of packaging registration and settlement. This is, in fact, the fundamental mechanism of the entire system.

The scale of the scheme is also of great importance. According to various forecasts, the deposit-refund scheme in Poland will cover several tens of billions of packaging items per year, perhaps even close to 100 billion. Such figures therefore entail serious requirements in terms of the stability and operational efficiency of the IT solution. Furthermore, the DRS system must be capable of operating on such a scale from the very first days following the introduction of the deposit-refund system.

Omecon has so far specialised primarily in serving the logistics sector. How does the &UP® platform perform in the context of supporting a deposit-refund system?

Very well. The advantage of the &UP® platform is that it is a solution which has been handling similar transaction volumes in logistics, distribution and retail for years. We have extensive experience on a scale comparable to the projected workloads of the deposit system. From our perspective, this guarantees the stable operation of our platform even under full load. We have tried-and-tested solutions. We do not need to experiment with the technology.

Let’s return to the challenges associated with managing deposits.

The number of packaging items that need to be registered, transported and settled – in other words, the scale of the deposit processes – translates into the volume and complexity of the underlying financial operations. The deposit for each item of packaging covered by the system must be correctly paid out and settled.

Logistical operations, of course, are a separate matter. In the context of a deposit-refund system, there is talk of the need to transport as many as 300,000 parcels containing packaging per day. Operations on this scale are on a par with those of a large logistics firm, which must coordinate the movements of thousands of vehicles and their routes, as well as the operations of hundreds of sorting centres. In this context, too, there is no room for experimentation.

With a logistics operation on this scale, cost optimisation becomes of paramount importance. Even minor improvements can translate into significant cost savings. Omecon’s expertise in this area is a major strength of the &UP® platform. Our solutions support the management of similar volumes of logistics operations at the largest transport companies.

How is the process of settling deposits and collecting packaging organised?

There are currently several key deposit operators on the market. One of our clients is Kaucja.pl, which – like others – works with manufacturers of packaging covered by the deposit scheme that is placed on the market. In practice, these are the largest companies, such as Maspex, Coca-Cola, PepsiCo, Nestlé and Żywiec Zdrój. They offer their products in plastic, metal and glass packaging covered by the deposit scheme.

When a manufacturer places a product on the market, they are obliged to contribute to the deposit-refund scheme an amount corresponding to the number of containers sold. The role of deposit operators is to settle the deposits based on sales data provided by manufacturers and information on packaging collected from tens of thousands of retail outlets.

Please bear in mind that the deposit scheme is mandatory for shops with a floor area of over 200 square metres, although smaller outlets also participate in it. They see this as an opportunity to attract or retain customers. We are therefore talking about a high degree of complexity and diversity in the outlets covered by the system and the technological solutions involved.

Extensive integration mechanisms on the DRS system side, as well as the performance of the entire platform, are therefore of great importance here. This is compounded by issues relating to the need to ensure the verification and control of settlements, data security, and the prevention of potential abuse.

In the context of the deposit-refund system, there is talk of the need to transport as many as 300,000 parcels containing packaging per day. Such a scale of operations is on a par with that of a large logistics firm, which must coordinate the movements of thousands of vehicles and their routes, as well as the operations of hundreds of sorting centres. In this context, too, there is no room for experimentation.

What sort of safeguards are we talking about?

Throughout the system, great emphasis has been placed on the issues of security and data separation. This presents another paradox, as we are, after all, talking about waste and recyclable materials. Please note, however, that access to our system will be granted to various, often competing, companies that place packaging on the market.

By reporting the number of such packaging items, manufacturers are effectively reporting the sales figures for individual products. For such companies, there is no data more valuable than that relating to sales. The same system will also contain information on the number of specific packaging items accepted at individual collection points, which in turn allows inferences to be drawn about the value and volume of sales of specific goods on a regional basis.

It is hard to imagine more valuable trade secrets in the FMCG sector. In this context, the stringent security requirements come as no surprise.

How are containers collected from consumers?

Most outlets currently handle deposit refunds manually. A shop assistant is responsible for accepting and sorting the packaging and processing the deposit refunds. Some outlets have RVM (Reverse Vending Machine – ed.) machines at their disposal. These automate the process. Customers insert the returnable packaging into them themselves.

It is likely that, ultimately, it will be through such machines that we will most frequently recover packaging. The importance of integrating and automating the collection of information on collected packaging and calculated deposits will therefore be all the greater.

A separate, yet important issue for shops is also setting aside space for storing collected packaging, particularly that used for perishable goods.

The advantage of the &UP® platform is that it is a solution which has been handling similar transaction volumes in logistics, distribution and retail for years. We have extensive experience on a scale comparable to the projected workload of the deposit scheme. From our perspective, this guarantees the stable operation of our platform even under full load. We have tried-and-tested solutions. We do not need to experiment with the technology.

In other words, does the DRS system facilitate the exchange of information between manufacturers, the operator and the shops that collect packaging from consumers?

In the context of the deposit-refund system, the life cycle of each piece of packaging begins with the sale of, say, a drink, which is then consumed. The plastic bottle is returned to the shop. It is packed into a bag, which is then sent to a sorting centre. Finally, the recovered bottles are sent to a plastics processing plant. They are turned into granules, from which another bottle can be produced. In theory, this is almost a closed-loop system.

Plans envisage the reuse of 95 per cent of the raw material. The situation is similar for aluminium. When discussing the complexity of the process, it is worth noting that plastic packaging should be sorted, amongst other things, by colour. The process for handling glass packaging, however, is somewhat more complex, as it is often returned to the manufacturer. It must, however, be grouped according to factors such as the bottle design or the colour of the glass.

The aim of the deposit scheme currently being implemented is to ensure operational universality. Packaging can be returned at any shop, regardless of where it was purchased. This represents a significant improvement compared with the solutions used until recently, for example in the case of beer bottles. But it also presents new challenges linked to the need for data consolidation and centralised accounting. Meticulous financial control is also essential, as are sophisticated fraud detection mechanisms, both at the stage of collecting packaging and during its transport and sorting.

Any fraud – for example, the repeated return of the same packaging – means that someone else will not receive the funds they are due. Transparency of the solution is therefore crucial here.

How does the &UP® platform address these requirements?

In response to the regulator’s requirements, but also based on our own observations, we have expanded the &UP® system to include anti-fraud measures. These features are crucial at every stage of the DRS process. I am referring, amongst other things, to analytical mechanisms that detect unusual transactions and anomalies in the operation of individual system components – from the collection of packaging, through logistics, to the payment of deposits. Highly effective analysis is essential here. After all, we are potentially dealing with a huge number of transactions of relatively low value.

Comprehensive monitoring is also essential during the transport of packaging. In some areas, the logistics processes involved in transporting packaging are subject to even stricter restrictions and formal requirements than pharmaceutical distribution.

Such processes must be comprehensively addressed at the DRS system level. This is precisely how the &UP® system operates for Kaucja.pl.

We have also implemented extensive financial logic on the &UP® platform covering invoices, settlements and statements. Even during the implementation phase at Kaucja.pl, we adapted our solution to the changing regulations governing the deposit system. This is important because even simple legislative changes often have an impact on financial settlements and reporting.

What sort of changes were made to the &UP® platform – previously known mainly from the logistics sector? What additional requirements of the deposit system did it have to meet?

Over the years, our solution has proven its worth in the context of numerous logistics processes of varying scales and characteristics. To accommodate the specific requirements of DRS, we had to simplify, to a certain extent, the processes embedded in the standard functionality of the &UP® platform. We are, of course, still ready to expand them should the need arise.

By utilising the standard functions of the &UP® system, we were able to significantly speed up the implementation of the DRS solution. At the same time, however, we expanded it to support EAN codes, as well as integration and communication functions with shop systems and reverse vending machines.

Naturally, we have also implemented comprehensive financial logic on the &UP® platform covering invoices, settlements and statements. Even during the implementation phase at Kaucja.pl, we adapted our solution to the changing regulations governing the deposit system. This is important because even simple legislative changes often have an impact on financial settlements and reporting.

We have also significantly expanded the anti-fraud mechanisms mentioned earlier. Experience from other markets shows that the scale of fraud in deposit systems can reach as high as 10 per cent.

To prevent fraud, we have built a dedicated component of our analytical data warehouse. Its role is to analyse all operations on an ongoing basis and detect deviations from the norm – whether at the stage of settlements, deposit refunds or transport. If an anomaly is detected, settlements at a given location may, for example, be suspended pending a more detailed analysis.

What is the market potential of the &UP® solution in the context of the broader needs of the deposit ecosystem?

We have tailored the &UP® system to the specific nature of DRS processes for Kaucja.pl. We have also won a tender to supply one of the key components of the central packaging management system.

Our solution will serve as the central database for all packaging introduced by manufacturers operating on the Polish market. As Omecon, we therefore hold a very strong position within the Polish deposit-refund system. Furthermore, we see further prospects for growth in this area.

There are unlikely to be many more deposit-refund operators on the market, but we have a great deal to offer logistics operators who wish to become involved in this ecosystem. I am convinced that the lion’s share of the DRS market will be accounted for by logistics companies specialising in the handling of returnable packaging.

It will certainly not be a single logistics firm, but rather an entire network of interdependent operators with integrated TMS systems. In this area, too, we have the edge thanks to our many years of experience and a tried-and-tested solution. Our advantage lies in our extensive logistics functionality, covering not only transport management but also mechanisms for identifying consignments, as well as process control and optimisation.

The handling of deposit-based shipments, like other processes involved in managing returnable packaging, cannot be carried out without a suitable IT system. Automated tools for identifying and tracking bags of packaging, as well as comprehensive reporting, are essential. Without such solutions, the operator will not know what they are transporting or how to account for it, not to mention responding to fraud. In the context of these needs, Omecon has a great deal to offer.

We plan to draw on our experience in international markets. We have a ready-made solution that we can adapt to the specific nature of DRS processes in other countries.