Integrating Reusable Packaging within the Changing Retail Environment

Transcription

1 Integrating Reusable Packaging within the Changing Retail Environment Sponsored by: Presented by: Andrea Nottestad

2 How is Retail Changing? Small Format Retail Growth Over 60% of net new store growth in North America will come from small format stores Consumer trends indicate more frequent, smaller shopping trips Small format stores are being designated as online grocery pick-up points Omni-Channel Distribution Growth Picking/fulfillment happening in the retail stores Growing online click and retail collect operations presents a need for staging of e-commerce product designated for store pick-up Labor Crisis Impacting the Customer Experience High costs associated with benefits, wages Time with customer being impacted Better management of online returns Reduce damage to goods to keep it saleable Housekeeping, workspace --Small-Format Explosion is Coming, Convenience Store News, July 2014 (

3 Omni-Channel Operationalizing omni-channel is, at its core, an exercise in change management. Don t Call it Omni-Channel, Kurt Salmon Customers are shopping from all channels 95% shop both website and store Customers want a seamless experience across all channels 53% offline sales influenced by online behavior Retailers looking to fulfill closest to the customer 60-73% want to order online & pickup in store

4 Labor Crisis According to WorkJam, Today s employees are looking for something more a connection with their company. They want to be proud of the company and what it does. If associates are managing deliveries or merchandising, it takes them away from interacting with customers and boosting sales. If you are not giving customers what they want, through an improved shopping experience,.you have no chance of winning. Al Witteman, VP of Omni-Channel, St John and Partners.

5 What does this mean? Retailers and CPGs are looking to: Allocate store associate time towards customers Reduce load and unload time Turn trucks faster, reduce dwell time Deliver more frequently Customize offering Reduce touches Deliver into different retail formats Standardize packaging for efficient deliveries

6 How are Reusables Changing to Meet the Changing Needs of Retail? Mobility Smaller format platforms Better nestability for better condensed ratio Innovative materials (noise reduction, automation-friendly, etc.) Worker friendly product design for manual handling Improved aesthetics & safety for consumers

7 Mobility at Retail

8 Many Opportunities Within the Retail Supply Chain

9 Packaging Considerations 180-degree turn Bail arm Lids Collapsible Stack-and-Nest Hopper Access doors Hand-Held Tote or Bulk Hopper Front Efficient storage when empty (often 4:1) Provides stable loads for WIP movement Designed for picking, can be used in automation Ability to be palletized for inter-facility movement 42x30: 24x15 40x48: 2416, 2420, x1000: 600x400, 600x500, 300x400 Footprint Equipment often set on these standards Translates to pallet and trailer cube efficiency One-touch at retail Increased spacing for in / out on cart or other tight pick options Increased visibility for shelved systems Ideal for picking and/or staging Mobility Mobile Pallets, Carts, Dollies Adds ability to be versatile anywhere in the supply chain Cuts load/unload time Minimizes need for equipment at retail Efficient deliveries compared to floor loaded approach

10 On-Line Return Management Overall goal is to get product back in saleable condition and help with the processing of returns.

11 How do you get started? 1. Analyze your supply chain and retail channels 2. Design a future state, in collaboration with supply chain partners 3. Prove its economic and environmental value for all stakeholders 4. Implement start with a trial, validate and fully implement 5. Evolve keep looking for continuous improvements

12 Critical Success Factors Balance local needs with an eye towards broader supply chain Local decisions could lead to inefficiencies as more movement occurs between locations Examples: Sizes that don t cube a pallet, products that don t condense well Recognize that fulfillment method today likely will change in the future Establishing standards in certain areas will allow the system to evolve without a complete reset Examples: Picking totes on carts that could transition to belt in future and keep pick unit the same

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14 Sources Clients/IRI-The-Changing-Face-of-Retail-May- 2015_1.pdf

15 For More Information: Speaker Website: Or, visit MODEX 2015 Booth 7123