by Elizabeth Hines | Feb 21, 2017 | Blog, Consumer Electronics, Manufacturing & Distribution, Strategy, Supply Chain
Will sustainability trends from the consumer packaging industry have an impact on electronics manufacturing this year?
As we wrap up the first big consumer holiday of 2017, it’s interesting to think about how innovation in packaging never stops. While many of the newest ideas are hitting consumer applications first, perhaps they will point to new directions for electronics manufacturing as well.
Packaging trends suggest a wide range of startups, researchers, and big companies are committed to finding solutions that match the buzzwords du jour — sustainable, bio-degradable, natural, and eco-friendly.
Here are some sustainability trends in packaging that I think will gain momentum in 2017.
2017 packaging trends to watch
1) Multiple uses
Great packaging protects not only your product, but also your brand. But what if the packaging is part of the product itself?
That is the case with innovations such as the expandable bowl by Swedish design studio Tomorrow Machine. Using 100% bio-based and biodegradable materials, the company created a cellulose wrapper that hugs freeze-dried food and morphs into a bowl when hot water is poured into the spout. The bowl ― a sustainable packaging award winner ― is now in good company, and I expect more will follow.
2) Unconventional materials
Egg shells, fermented sugars, barley, and wheat ribbons — those were the materials used to create, in turn:
- Bio-compostable films: Nano-particles from waste eggshells helped researchers at Tuskegee University in Alabama make a plastic film that is completely sustainable and 700% more flexible than other bio-plastic blends. Film made of the new material could be used in retail packaging, grocery bags and food containers.
- A prototype PHBottle: The European PHBottle project aims to initially create a bottle, cap, and sleeve, although use in other applications (non-food packaging and non-packaging uses) will be tested. The bio-plastic material used to make the bottle comes from the transformation of organic matter found in juice processing by-products.
- Edible six-pack rings for beer: Imagine washing down the six-pack ring with your favorite beer. Although that moment is not quite here yet, the future is looking up for a piece of plastic that is notorious for ensnaring wildlife. The first bio-degradable edible six-pack ring for beer is the result of a partnership between Saltwater Brewery; We Believers, an advertising agency; and Entelequia, Inc., a small startup in Mexico. Made from barley and wheat ribbons spent grain from the brewing process, the rings are safe for wildlife to eat and sturdy enough to support the cans.
3) Reusable packaging
The throw-away culture is not for everyone. In fact, Mintel’s Global Packaging Trends 2017 shows 63% of U.S. consumers actively seek out packages they can re-use. More than half of consumers also say they would prefer to buy foods with minimal or even no packaging. With such great demand for waste reduction, innovation is bound to pick up even more momentum.
What do you think 2017 will bring in terms of sustainable packaging for the electronics industry? Let us know about promising innovations you’ve seen.
This post originally appeared on EBN Online.
Related posts:
by Elizabeth Hines | Sep 7, 2015 | Blog, Strategy, Supply Chain
Multi-channel distribution is likely to fuel the demand for on-demand packaging as companies continue their search for more cost-effective solutions.
Only 7% of companies are making their boxes on demand. However, that figure is set to grow quickly. The explosive rise of e-commerce and all the uncertainties it entails in terms of order fulfillment will likely prompt a growing number of companies, especially those serving multiple sales channels, to seek the answers in on-demand packaging.
The potential savings of always getting the right-sized box at just the right time should speak to all those multi-channel distributors. In a Peerless Research study, distributors were asked to name the areas where fulfillment costs have gone up. The three most popular answers were transportation, labor, and packaging and materials.
A corporate manager at an e-commerce business said about trends in packaging automation, “We are able to consolidate multiple orders from one customer into as few boxes as possible. This saves on time and shipping costs.”
That study talks of the “ripple effect” felt throughout the supply chain as packaging optimization drives down the number of cases on a pallet, as well as storage space requirements and shipping costs, and ultimately has the power to increase a company’s sustainability rating.
In numbers, some of the advantages cited by on-demand packaging proponents include:
- A 28% reduction in the quantity of corrugate
- An 80-90% reduction in filling material
- Savings of 20-35% over conventional supply chains
- A 75% reduction in footprint required by two laborers to pack dunnage, seal, and label a box
Packsize, one of several companies behind the new automated technology, says it actually takes less time to make packaging on demand than going the conventional route of locating and moving packaging purchased from a vendor. Stockouts and obsolete inventory also become relics of the past when boxes can be made minutes before they are needed. In an industry chasing next-day or even same-day delivery, any gain in timely execution counts as a victory.
Though 80% of the 322 top materials handling, logistics, and supply chain managers surveyed by Peerless still purchase and store their corrugated boxes, the trend is pointing in favor of the new solutions. Industry familiarity with on-demand packaging is increasing while the desire for new packaging solutions continues to grow. “We currently have to order in advance custom size boxes for upcoming orders, and it would be better to make them on the fly, adapting to changes,” an engineering manager said. “We are considering some form of on-demand packaging to prevent the storage of cartons,” another said. “We can use the space better.”
It all sounds promising, but is it the way of the future?
Fronetics Strategic Advisors is a leading management consulting firm. Our firm works with companies to identify and execute strategies for growth and value creation.
Whether it is a wholesale food distributor seeking guidance on how to define and execute corporate strategy; a telematics firm needing high quality content on a consistent basis; a real estate firm looking for a marketing partner; or a supply chain firm in need of interim management, our clients rely on Fronetics to help them navigate through critical junctures, meet their toughest challenges, and take advantage of opportunities. We deliver high-impact results.
We advise and work with companies on their most critical issues and opportunities: strategy, marketing, organization, talent acquisition, performance management, and M&A support.
We have deep expertise and a proven track record in a broad range of industries including: supply chain, real estate, software, and logistics.
by Elizabeth Hines | Jan 21, 2014 | Blog, Logistics, Strategy, Supply Chain
This post was originally published on EBN.
Summer is over, fall has arrived, and winter is right around the corner. As the days grow shorter and colder, don’t let inertia take over. Instead, put your packaging on a diet.
Here are three reasons why a packaging slim down will improve the health of your company’s supply chain and the world:
1. You can save money. By reducing the amount of packing you use for a product and/or by using right-size packaging, you can reduce transportation costs and materials costs.
For example, the packaging used for Apple’s iPhone 5 is 28 percent smaller than the packaging that was used for the original iPhone. The reduction in the size of the packaging translates into being able to fit 60 percent more iPhones on each shipping pallet. Apple points out that this saves the company one 747 flight for every 416,667 units they ship.
Poland Spring provides another example. Poland Spring has reduced the amount of resin that goes into the making of their bottles by a significant amount — from 14.6 grams of resin per bottle in 2005 to 9.2 grams of resin per bottle in 2012. Not only is the bottle 40 percent lighter (read: reduced transportation cost), the company also saves a sizeable amount of money each year in materials. In a recent Slate.com article Kim Jeffery, CEO of Nestle Waters North America (Poland Spring’s parent company), is quoted as saying:
You can’t be a public company and ask shareholders to bear the burden of higher costs just so you can be green. It has to be consistent with creating shareholder value. There needs to be a return on these investments. So, for example, when you use 200 million fewer pounds of resin a year, at 90 cents a pound, that’s a huge savings.
By my calculations, that’s a savings of $180 million annually.
2. It is better for the environment. Putting your packaging on a diet can reduce the amount of waste, CO2 emissions, deforestation, water use, water contamination, and hazardous material use.
In a September 2013 Packaging Digest article, Ron Sasine, senior director of packaging for private brands for Walmart, wrote that as a result of the company’s efforts to reduce packaging it was “able to reduce the overall greenhouse gas impact of our packaging by an average of 9.8 percent in our Walmart U.S. stores, 9.1 percent in our Sam’s Clubs in the U.S. and 16 percent in our Walmart Canada stores.”
3. It makes your customers happy. A 2012 survey conducted by Packaging World and DuPont Packaging & Industrial Polymers found that the primary focus of the packaging world over the next 10 years will shift from cost to sustainability. Specifically, the report found that 45 percent of those surveyed believe that perceived “greenness” will be important to consumers.
Additionally, a 2012 study released by Perception Research Services reported that in 2011 significantly more shoppers were more likely to choose environmentally friendly packaging than in 2010 (36 percent versus 28 percent), and that half of shoppers surveyed were willing to pay for environmentally friendly packaging.
Tell us your thoughts on packaging trends in the electronics industry. What’s important to you and your customers?
by Elizabeth Hines | Jan 21, 2014 | Blog, Logistics, Strategy, Supply Chain
This post was originally published on EBN.
Summer is over, fall has arrived, and winter is right around the corner. As the days grow shorter and colder, don’t let inertia take over. Instead, put your packaging on a diet.
Here are three reasons why a packaging slim down will improve the health of your company’s supply chain and the world:
1. You can save money. By reducing the amount of packing you use for a product and/or by using right-size packaging, you can reduce transportation costs and materials costs.
For example, the packaging used for Apple’s iPhone 5 is 28 percent smaller than the packaging that was used for the original iPhone. The reduction in the size of the packaging translates into being able to fit 60 percent more iPhones on each shipping pallet. Apple points out that this saves the company one 747 flight for every 416,667 units they ship.
Poland Spring provides another example. Poland Spring has reduced the amount of resin that goes into the making of their bottles by a significant amount — from 14.6 grams of resin per bottle in 2005 to 9.2 grams of resin per bottle in 2012. Not only is the bottle 40 percent lighter (read: reduced transportation cost), the company also saves a sizeable amount of money each year in materials. In a recent Slate.com article Kim Jeffery, CEO of Nestle Waters North America (Poland Spring’s parent company), is quoted as saying:
You can’t be a public company and ask shareholders to bear the burden of higher costs just so you can be green. It has to be consistent with creating shareholder value. There needs to be a return on these investments. So, for example, when you use 200 million fewer pounds of resin a year, at 90 cents a pound, that’s a huge savings.
By my calculations, that’s a savings of $180 million annually.
2. It is better for the environment. Putting your packaging on a diet can reduce the amount of waste, CO2 emissions, deforestation, water use, water contamination, and hazardous material use.
In a September 2013 Packaging Digest article, Ron Sasine, senior director of packaging for private brands for Walmart, wrote that as a result of the company’s efforts to reduce packaging it was “able to reduce the overall greenhouse gas impact of our packaging by an average of 9.8 percent in our Walmart U.S. stores, 9.1 percent in our Sam’s Clubs in the U.S. and 16 percent in our Walmart Canada stores.”
3. It makes your customers happy. A 2012 survey conducted by Packaging World and DuPont Packaging & Industrial Polymers found that the primary focus of the packaging world over the next 10 years will shift from cost to sustainability. Specifically, the report found that 45 percent of those surveyed believe that perceived “greenness” will be important to consumers.
Additionally, a 2012 study released by Perception Research Services reported that in 2011 significantly more shoppers were more likely to choose environmentally friendly packaging than in 2010 (36 percent versus 28 percent), and that half of shoppers surveyed were willing to pay for environmentally friendly packaging.
Tell us your thoughts on packaging trends in the electronics industry. What’s important to you and your customers?
