The UK’s Deposit Return Scheme (DRS) is scheduled to launch on 1 October 2027, introducing a refundable deposit on qualifying drinks containers.
The introduction of the Deposit Return Scheme (DRS) in October 2027 will bring additional requirements for businesses involved in drinks distribution. While much of the attention has understandably focused on the legislation and how the scheme will operate, there is another consideration for distributors: whether their existing business systems and processes can accommodate the changes.
For businesses already managing extensive product ranges, multiple suppliers and customers, complex pricing arrangements and large volumes of transactions, introducing new requirements can create additional work across several departments.
With the implementation date approaching, now is a good time for distributors to review their existing systems, understand where changes may be needed and consider how best to prepare.
What is changing with the Deposit Return Scheme in 2027?
The Deposit Return Scheme is designed to encourage recycling by introducing a refundable deposit on qualifying drinks containers. In England, Scotland and Northern Ireland, the scheme is scheduled to begin on 1 October 2027 and will apply to specified single-use PET plastic bottles and metal drinks containers between 150ml and 3 litres.
A 20p deposit will apply to qualifying containers, with consumers able to reclaim that deposit through the return arrangements established under the scheme. Wales is developing its own arrangements, with differences in scope that businesses operating across the UK will need to consider.
The precise responsibilities of individual businesses will depend on their role within the supply chain. For example, a wholesaler distributing products from established UK suppliers may have different obligations from a business that also imports drinks or places products on the market under its own brand.
Official guidance from the scheme administrator, Exchange for Change, should therefore be the starting point for understanding the regulatory requirements. From an operational perspective, however, distributors can already begin considering how the scheme may affect their existing systems.
Managing product information across the business
Food and beverage distributors often manage thousands of products, with different packaging formats, sizes, suppliers and customer requirements. Maintaining accurate product information is already essential for purchasing, stock control, order processing and financial reporting.
The introduction of DRS adds another consideration, as businesses will need to distinguish between products that fall within the scheme and those that do not. This may require additional information to be maintained within product records, depending on the distributor’s responsibilities and the systems it uses.
For businesses relying on separate spreadsheets or disconnected applications, keeping product information consistent can be challenging. A packaging change recorded by the purchasing department, for example, may also need to be reflected in the information used by sales and finance.
Where product information is managed centrally and shared across departments, changes can be introduced more consistently, reducing the need for repeated manual updates and the risk of discrepancies.
Can your invoicing and financial processes accommodate deposits?
For distributors handling large volumes of customer orders, invoicing is one of the areas worth reviewing as part of DRS preparations.
The introduction of refundable deposits means that businesses will need to understand how the relevant charges should be reflected in their transactions, including how deposits are calculated, presented on invoices and accounted for within their financial processes.
Existing systems may already offer the flexibility to accommodate additional charges, but that doesn’t necessarily mean the process will be straightforward. The way deposits are handled may depend on product information, transaction types, customer arrangements and the requirements established by the scheme.
Credit notes, returns and transaction adjustments may also need consideration, particularly where distributors operate across multiple locations or manage large numbers of customer accounts.
For finance teams, the objective should be to accommodate any additional requirements without creating unnecessary manual reconciliation or administration. Reviewing current processes can help establish whether existing functionality is sufficient or whether configuration, integration or other changes may be required.
Supporting operations across different UK markets
For distributors operating across England, Scotland, Wales and Northern Ireland, differences in scheme arrangements introduce another factor to consider.
Businesses may need to manage different product classifications or transaction requirements depending on the markets they serve. This makes it important to understand whether existing systems can accommodate these variations without requiring separate processes or extensive manual intervention.
The challenge may be particularly relevant for distributors operating multiple warehouses, supplying customers across national boundaries or managing several legal entities.
Rather than reviewing each requirement in isolation, businesses should consider how product information, purchasing, sales, inventory and financial processes work together. A change affecting one area may have implications elsewhere, particularly when different departments rely on separate systems.
The importance of reliable reporting and connected information
Accurate reporting depends on having reliable information available across the business. As distributors prepare for DRS, they should consider whether their systems can capture and retrieve the transaction information relevant to their responsibilities under the scheme.
Where information is held across multiple applications, producing a consistent picture can involve exporting data, reconciling spreadsheets and manually investigating discrepancies. Introducing additional transaction requirements may increase this administrative burden.
Connected systems can make information easier to access and help teams identify inconsistencies more efficiently. They can also provide greater flexibility when reporting requirements change, although the specific capabilities needed will depend on the final scheme specifications and the distributor’s obligations.
For businesses already experiencing difficulties with financial reporting or visibility across departments, DRS may highlight limitations that extend beyond the scheme itself.
Reviewing your existing systems before October 2027
Preparing for DRS doesn’t necessarily mean replacing existing software. For many distributors, the first step should be understanding what their current systems can already support and identifying where changes may be required.
This involves looking beyond individual functions to consider how information moves through the business. Product records, purchasing, invoicing, inventory and financial reporting are closely connected, and changes in one area can affect the others.
Distributors may find it useful to involve colleagues from finance, operations, purchasing, sales and IT in these discussions. Each department will have a different perspective on the processes involved and reviewing them together can help identify potential gaps before they become operational problems.
It is also worth speaking to existing software providers or ERP partners to understand what functionality is available, what may require configuration and whether additional development or integration could be necessary.
How Sage X3 can support changing business requirements
Sage X3 brings together purchasing, sales, inventory and financial management within an integrated ERP system, providing businesses with connected information across their operations.
For food and beverage distributors, capabilities such as centralised product management, inventory control, transaction processing and financial reporting provide a foundation for managing complex operational requirements.
As businesses prepare for DRS, these are among the areas that can be reviewed to determine how existing functionality might support new processes. The specific requirements will depend on the business, and any DRS-related configuration or development would need to be assessed against the scheme’s operational specifications.
At Inixion, we’ve spent nearly 20 years working with businesses to implement, develop and support Sage X3. Our experience lies in helping organisations manage complex processes, improve visibility and ensure their systems continue to support changing business needs.
Is your business ready for change?
The Deposit Return Scheme is one of several changes that food and beverage distributors need to consider as they plan for the future. While understanding the legislation is essential, businesses should also take the opportunity to review whether their existing systems are sufficiently connected and flexible to accommodate changing operational requirements.
For distributors already managing growing product ranges, increasing transaction volumes and more demanding customer requirements, this review may reveal opportunities to improve processes beyond those directly affected by DRS.
How effectively are your existing systems supporting your business?
Our Food & Beverage ERP Assessment Framework helps distributors evaluate their current systems and processes, identify potential gaps and prioritise improvements that support future growth.
Download the Food & Beverage ERP Assessment Framework.
Further information
For official information about the Deposit Return Scheme, including the responsibilities of businesses involved in drinks distribution, visit:
This article considers the potential operational and systems implications of DRS. Businesses should refer to official guidance for their specific regulatory obligations.
