Introduction

"Men shop more", I read the other day. And: "men shop differently" That's me, I thought, although my frequent field trips are no ordinary shopping. My deformation is a peculiar cross-functional view on retail packaging. Products on supermarket shelves are meant to get sold, I assume. So I judge how packaging supports this, and whether the efforts to get them there are worth their while. Preferably on a busy day when shelves are half shopped.

There are basic shopper functions (visibility, product access) to assess, then the fit with retailer or channel format (merchandising strategy), the competitive environment (category width and layout), clarity or consistency in perception and information (communication) and handling complexity (shelf stacking). All of these determine shopper impact and sales value.

The value chain expert in me immediately adds packaging efficiency, distribution and instore operations to the equation. No in-depth analysis needed to frequently identify a massive improvement potential in delivered performance, end-to-end costs, time to market and sustainability. Brands and private label alike, time and again.

Having worked with numerous FMCG clients all over Europe, I have grown to understand why it is so hard to get it right. This white paper first explores some of the root causes of wasted resources and missed opportunities. Which takes us to a more challenging vision: how to do better. Given the competence of individual stakeholders to define their objectives, the key is to translate these into the right set of functionalities and balance between them.  So the second part of the paper provides a framework for a process of continuous improvement.

Highlights: 

• Grocery retailing implies a transition in units, communication and function in the chain from supplier to consumer.
• Instore operations and POS functions set specific success criteria which are of increasing importance.
• Channel developments drive dynamic demand and a proliferation of solutions.
• Control over execution is a key task for stakeholders in the business chain.
• Challenges of packaging management require advanced leadership.

The paper as published here reflects a stage in the development of a more strategic  approach to packaging management in a complex business environment. I hope some of the ideas provoke a debate that will help all of us advance. Smart packaging is effective, economic and green. Which is not the same as creative, cheap or reusable. Unfortunately, it is slightly more complex than that. Excellence in retail packaging combines sensible design with a balance of interests in the business chain. Which has got to be managed properly to achieve effective and sustainable distribution of packed consumer products. Click the Paper's front page on the right to open the pdf in a new window. Click here to go to the executive summary.  

I look forward to your feedback!

Michiel Bouvy

March 2011