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Another look at print-related digital tech and the packaging supply chain

What’s causing SKU proliferation, and what competitive issues are surfacing as print-related digital technologies continue to make inroads into packaging?

Pw 74629 Supply Chain Charts Figure1

In this month’s issue we look again at some of the highlights of “Innovation in marketing through packaging technology,” the survey conducted jointly by Packaging World and the Graphic Communication Institute (GrCI) at Cal Poly. Last month the focus was primarily on levels of awareness and use where print-related digital technologies are concerned. This time we look at SKU proliferation and some of the competitive issues that might shape the package printing supply chain of tomorrow.

As with last month’s Part One coverage of this survey, we asked a small group of print-related technology experts for commentary on some of the data. Our experts include:

• Jay Dollries, President of Innovative Labeling Solutions, a Cincinnati-based converter of packaging materials that was among the earliest to embrace digital printing

• Malcolm G. Keif, Professor and Graduate Coordinator Printed Electronics & Functional Imaging, Graphic Communication Department, Cal Poly State University

• Colleen Larkin Twomey, Assistant Professor at Cal Poly State University

• Carl Joachim, a well-respected printing industry veteran who has been following print-related digital technologies and their impact on packaging as closely as anyone on the planet.

A good place to begin is with (Figure 1), where CPG company respondents picked the top reasons for packaging SKU proliferation at their company. The top vote getter at 45% was introducing more product variations. Not far behind at 36% was retailer demand for more package sizes and configurations, and third at 28% was a desire to better tailor marketing messages to specific demographic groups.

A look at (Figure 2) shows that converter respondents favored the same reasons in the same order when asked what is causing SKU proliferation among their customer base. The other thing that Figures 1 and 2 confirm is how widespread SKU proliferation is, as only 13% of Converter respondents and 10% of CPG company respondents said they are not seeing an increase in SKUs.

With SKU proliferation so widely recognized as a fact of business life today, the results shown in (Figure 3) should come as no great surprise. When the number of SKUs increases, print runs of packaging materials grow shorter, so naturally a CPG company would see a plateless, quick-change technology like digital printing as being a uniquely suitable solution for coping with short runs.

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