pack with impact
When moving down the value stream from start to finish, boxes get handed over from one stakeholder to the other - within companies and between organisations. Every step in the chain brings a new and different set of requirements in order to maximise impact on the specific activity. (chart)
Being an expert in all of these areas is impossible. But having sufficient understanding of the significance for the area, relate this to box functionality and performance adds value already. To subsequently combine with other stakeholders and find ways of balancing interests and optimising overall performance is an expertise in its own right.
Retail & boxes
Instore performance of secondary packaging is subject to a lot of discussion lately. And rightfully so.
Boxes have a huge impact on availability, distribution and handling costs and they play an ever increasing role in the sales process. Customer marketing, merchandising activity and promotion are determining success factors and require boxes to be tuned to the local needs of the moment. Time and again.
Useful collaborative initiatives by ECR Europe and country platforms have shed light on the subject and stimulate agreement on guidance and principles. But Europe remains a complex marketplace, and embedding latest understanding in day to day company life is still a different matter. On top of that, each company needs to develop its own policy in line with objectives and possibilities.
- What is instore performance of secondary packaging?
- What is the significance of retail guidelines of secondary packaging?
- What is behind these guidelines? What do retailers really want to achieve?
- What are similarities / differences between countries / retailers / formats?
- Is Tesco different from Carrefour? How? Why?
- Is Germany different From The Netherlands? How? Why?
- Can I use my Lidl box in Real as well?
How does it impact suppliers? A threat or an opportunity?
How can secondary packaging enhance product/brand positioning and presentation?
And how does all of this relate to boxes and box design?
Retail Ready Packaging / RRP (will follow shortly)
Shelf Ready Packaging / SRP (will follow shortly)
Business Impact
Supply Chain & Logistics
Boxes have a significant impact on distribution efficiency. Volumetrics and unit load optimisation are seen a key drivers for efficiency. Logistic managers drive SKU reduction and standard solutions. But market acts differently. A boost in differentiation, shelf ready and promotional items as well a stream of changes and new introductions are the cause of logistic nightmares.
So what is really important? Which KPI's are really significant effiency drivers? And are they realistic or no longer applicable for the business? How can diverse and flexibly applied pack solutions blend seamlessly into standard processes? Where do we need to re-think and re-define; how can we communicate better with customers and suppliers?
Manufacturing efficiency
Usually production facilities benefit from standard processes. Machines do standard jobs at high speed. Direct packaging and production costs dominate investment decisions often without considering overall supply effects or thinking long term. A headache when market conditions evolve and other options are required. Hand packing is not always the best alternative. Flexible yes, but also expensive, not only from a labour but also from a packaging point of view. And some features are difficult to achieve with hand packed solutions. And what is the impact on indirect cost, labour and development cost if every change is treated as new project? A full supply chain perspective and a portfolio approach can help build a robust process and invest sensibly: not only more effective but cheaper in the long run as well.
Sourcing
Companies lean heavily on their packaging suppliers for advice and design. Rightfully so - a supplier is best at designing products their facilities can do easily. Still, suppliers can only be a good as the briefing the yet. And quite often briefings are not well thought through resulting in long and complex decision processes. Companies are extremely good at firing off requests like "we like you to be innovative." Or "Show us the best ideas you have."
But most packaging companies do not "do" products, they rent out capacity and capabilities. They go to great lengths to render service, especially design. They have database full of ideas, but which one is suitable for your business? And why? How do you select the best ones? Do you go for unique solutions or generically applicable ideas? One idea or an entire family?
