E-Commerce and beyond—packaging’s role in the omnichannel supply chain

Originally posted 11/15/2018

The spotlight is on packaging professionals to succeed in protecting products delivered to your door, while using less materials.

In a new report from PMMI Business intelligence, “E-Commerce 2018: Think Inside The Box,” CPGs weigh in on e-commerce challenges.

“E-commerce is changing product handling and the supply chain needs to change; it’s archaic but more robotics will help,” says one Packaging Manager, consumer goods.

The majority of CPGs polled report changing secondary packaging, but close to 40% are looking at changing primary packaging as well. “There is no magic wand for e-commerce, no standardized solutions,” says one CEO of a package design firm. “Every company that works with e-commerce has had to rethink their strategy.”

Breakage and leaks remain a problem, with CPGs paying up to fifty cents per package to Amazon for prep work. Thirty to forty percent returns for damaged goods is not a sustainable model. In some cases, brand owners of extremely delicate or large and heavy items may have to reach the conclusion that their products do not fit the e-commerce model.

To meet the challenge, many companies (46% of those polled) are creating special positions or departments. Others are turning to contract packagers for help. According to the new report, contract packagers are predicting double digit growth (11.9%) to meet e-commerce demand.

For more information on CPGs, 3PLs and packaging OEMs, download the FREE Executive Summary below. PMMI members can access entire 56-page report here.

To see all ten articles in this series, click here.

Make plans to visit PACK EXPO Las Vegas, September 23-25, for machinery and materials to tackle your e-commerce and omnichannel challenges.