by Elizabeth Hines | Jan 27, 2014 | Blog, Manufacturing & Distribution, Marketing, Supply Chain
This post originally appeared on EBN.
For many customers, both current and prospective, you are your packaging. Take the time to do it right.
I recently read a great piece by Zach Williams, founder and creative director of Venveo, on the role of packaging from a marketing perspective.
Williams puts forth the idea that packaging is a critical element to marketing, and therefore, should become the fifth P in marketing (the other four being Product, Pricing, Placement, and Promotion). He makes the point that “packaging embodies so much more than promotion… [it] can make or break how your company is positioned.”
Williams discusses how packaging can create customer experiences. He offers the example of Apple’s packaging and how getting a box with the Apple logo on it creates an emotional response for customers. So emotional is the response that Williams pointed out that there are videos on YouTube of people “unboxing” their new products. When Williams wrote the article in October 2012, there were “thousands” of videos; when I looked today there were close to 3.5 million. That growth alone says a lot. And, the joy and excitement displayed in the videos speaks volumes to Apple, the product, and to the packaging itself.
Another company whose packaging has become iconic in the realm of creating customer experience is Tiffany & Co… New York Times writer Alice Rawsthorn wrote an articleabout the role Tiffany’s packaging played in her decision to purchase a pendant for her goddaughter: “Would I have bought that pendant without the packaging? I’m not sure, but the thought of Delilah opening that duck egg blue box tied with white satin ribbon certainly clinched my choice.”
Williams also notes that packaging can also serve to justify the price of the product and that “packaging should always aim to increase the perceived value of the product.” To Williams’s point, look at both Apple and Tiffany — their prices are higher than their competitors.
The final point in Williams’s article is that the packaging of a company needs to go beyond the physical and extend to the company’s website — that the website “can be considered packaging as well.” The point is a good one, but I think it should go further. I believe packaging should not only include the company’s website, but should also extend to the company’s Facebook and LinkedIn pages, Twitter account, blog, and any outward-facing materials. If your company does not take the time to create an exceptional package for customers, you will be passed over.
Your company’s physical packaging and online packaging speaks volumes about your company. For many customers, current and prospective, you are your packaging. Take the time to do it right.
by Elizabeth Hines | Jan 22, 2014 | Blog, Strategy, Supply Chain
This post was originally published on EBN.
Packaging optimization is critical to supply chain optimization. To catch big advantages, change your mindset and make packaging a forethought rather than an afterthought.
In a Packaging World article, Elisha Tropper, president and CEO of Cambridge Seals Security (CSS), describes how packaging is typically thought of by manufacturers:
An afterthought… for most [manufacturers of industrial products] packaging is not a consideration. They are manufacturers; they are not packagers. They make an industrial product, and industrial products are dropped into boxes. But whether a box is an inch bigger or an inch smaller, what does it matter?
The truth is, it matters a lot. If you want to optimize your supply chain you need to optimize your packaging. This means changing your mindset when it comes to packaging — packaging needs to become an early consideration.
There are several components of packaging. For example, the product itself, the box or container in which the product is placed to sell, and the box or container the items are placed in for shipping. Each of these components are opportunities for optimization.
Package (re)design
A May 2013 industry study by Freedonia forecasts that pallet use in the US will grow 2.4 percent annually to 2.6 billion in 2017. The study also reported that demand for new pallets is expected in increased by 3.5 percent annually to 1.3 billion units.
The International Organization for Standardization sets the standards for pallet size; there are currently six pallet standards. The most common size used in the United States is Grocery Manufacturers pallet, which measures 48 inches by 48 inches. The dimensions of a pallet are not always considered with respect to packaging; this is a costly mistake.
Let’s look at an example previously highlighted in Supply Chain Digest. Adalis (now H.B. Fuller Adhesive Coated Solutions) worked with a telecommunications company to redesign their packaging to optimize pallet use. By reducing the size of each unit package by 1.5 inches in one dimension, the company was able to increase the number of units that could fit on the pallet by 150 percent (from 120 to 300 units). The result was a signification reduction packaging (materials) costs and transportation costs.
Product (re)design
Product design or redesign is another way to optimize packaging to optimize your supply chain.
Let’s go back to Elisha Tropper. Tropper was the former owner of a packaging convert and his packaging consultancy, T3 Associates, acquired CSS in 2010. When Tropper took over at CSS he challenged the company to take packaging optimization into consideration at the point of product design. The company took the challenge and redesigned the product. A significant reduction in package size and materials usage resulted. According to Trooper: “A standard pallet of our boxes can hold about 120,000 seals, while that same pallet will hold only about 80,000 of our competitor’s seals.”
Ikea provides another example, which Colin White outlines in his book Strategic Management. When Ikea first began manufacturing its Bang mug, 864 mugs could fit on a pallet. Ikea redesigned the rim of the mug so as to maximize pallet efficiency — Ikea was able to increase the number of mugs per pallet to 1,280. The company decided it could go further. Another redesign increased the number of mugs per pallet to 2,024. As a result of the product redesign, the company reduced shipping costs by 60 percent.
Outside the box
Ikea has taken packaging optimization for supply chain optimization even further and has created a system called OptiLedge, which eliminates pallet use. Retailers using OptiLedge have realized a savings of been $200 to $300 per container.
Major factors for cost savings include a reduction in man hours to off-load (a savings of between 15 to 23 hours or more of labor per container), space savings (one truckload of OptiLedges would be the equivalent of 23 truckloads of traditional pallets), and weight (OptiLedge weighs under two pounds as compared with the 50 to 75 pounds that a traditional pallet weighs). In addition, OptiLedge eliminates underhang and increases fill rates.
Too often, everyone thinks of packing as the thing that gets thrown away. Smart manufacturers, though, will ensure that good money isn’t tossed out with the box or pallet.
by Elizabeth Hines | Jan 22, 2014 | Blog, Strategy, Supply Chain
This post was originally published on EBN.
Packaging optimization is critical to supply chain optimization. To catch big advantages, change your mindset and make packaging a forethought rather than an afterthought.
In a Packaging World article, Elisha Tropper, president and CEO of Cambridge Seals Security (CSS), describes how packaging is typically thought of by manufacturers:
An afterthought… for most [manufacturers of industrial products] packaging is not a consideration. They are manufacturers; they are not packagers. They make an industrial product, and industrial products are dropped into boxes. But whether a box is an inch bigger or an inch smaller, what does it matter?
The truth is, it matters a lot. If you want to optimize your supply chain you need to optimize your packaging. This means changing your mindset when it comes to packaging — packaging needs to become an early consideration.
There are several components of packaging. For example, the product itself, the box or container in which the product is placed to sell, and the box or container the items are placed in for shipping. Each of these components are opportunities for optimization.
Package (re)design
A May 2013 industry study by Freedonia forecasts that pallet use in the US will grow 2.4 percent annually to 2.6 billion in 2017. The study also reported that demand for new pallets is expected in increased by 3.5 percent annually to 1.3 billion units.
The International Organization for Standardization sets the standards for pallet size; there are currently six pallet standards. The most common size used in the United States is Grocery Manufacturers pallet, which measures 48 inches by 48 inches. The dimensions of a pallet are not always considered with respect to packaging; this is a costly mistake.
Let’s look at an example previously highlighted in Supply Chain Digest. Adalis (now H.B. Fuller Adhesive Coated Solutions) worked with a telecommunications company to redesign their packaging to optimize pallet use. By reducing the size of each unit package by 1.5 inches in one dimension, the company was able to increase the number of units that could fit on the pallet by 150 percent (from 120 to 300 units). The result was a signification reduction packaging (materials) costs and transportation costs.
Product (re)design
Product design or redesign is another way to optimize packaging to optimize your supply chain.
Let’s go back to Elisha Tropper. Tropper was the former owner of a packaging convert and his packaging consultancy, T3 Associates, acquired CSS in 2010. When Tropper took over at CSS he challenged the company to take packaging optimization into consideration at the point of product design. The company took the challenge and redesigned the product. A significant reduction in package size and materials usage resulted. According to Trooper: “A standard pallet of our boxes can hold about 120,000 seals, while that same pallet will hold only about 80,000 of our competitor’s seals.”
Ikea provides another example, which Colin White outlines in his book Strategic Management. When Ikea first began manufacturing its Bang mug, 864 mugs could fit on a pallet. Ikea redesigned the rim of the mug so as to maximize pallet efficiency — Ikea was able to increase the number of mugs per pallet to 1,280. The company decided it could go further. Another redesign increased the number of mugs per pallet to 2,024. As a result of the product redesign, the company reduced shipping costs by 60 percent.
Outside the box
Ikea has taken packaging optimization for supply chain optimization even further and has created a system called OptiLedge, which eliminates pallet use. Retailers using OptiLedge have realized a savings of been $200 to $300 per container.
Major factors for cost savings include a reduction in man hours to off-load (a savings of between 15 to 23 hours or more of labor per container), space savings (one truckload of OptiLedges would be the equivalent of 23 truckloads of traditional pallets), and weight (OptiLedge weighs under two pounds as compared with the 50 to 75 pounds that a traditional pallet weighs). In addition, OptiLedge eliminates underhang and increases fill rates.
Too often, everyone thinks of packing as the thing that gets thrown away. Smart manufacturers, though, will ensure that good money isn’t tossed out with the box or pallet.
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?
