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Holistic Packaging Optimization = productivity plus

Times are changing quickly for packaging in so many ways: open innovation on the rise, sustainability designed in, social media, shelf impact, and the consumer/shopper and retailer focus on lower-cost, more value-minded solutions.

Ready, fire, aim is not going to get it done. A broader, deeper perspective is needed to optimize both packaging costs and packaging productivity. Companies need to look at more than light-weighting, substitution, and removal. Assessing the entire value chain can deliver “innovation” cost savings, not just “efficiency” or traditional material savings. Getting started at a higher level with a collaborative, unbiased, and holistic systems approach is crucial.

Examples include new system solutions like General Mills’ Hamburger Helper, where a change in the shape of the pasta permitted a switch to a 20% smaller carton. Kraft also looked more broadly and used systems thinking when they refreshed their pourable dressing bottle—providing an improved consumer experience, significant material savings, cost savings, and SKU rationalization. In other words, you may need to invest money to save bigger.

Why not innovate your way to packaging cost reductions? Just don’t forget to assess the full lifecycle. You don’t want to do a cost savings project that cuts packaging material costs up front but results in increased landfill waste. Take the time up front to do it right the first time and consider the many tools available. Here are some you should definitely keep in mind:

• Start with the consumer in mind and look to enhance his or her experience with the package.

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