Sonoco’s approach to packaging supply chain management leverages a distribution technique called “postponement.” In this technique, Sonoco holds product in inventory and postpones packaging the product until the retailer places an order in a specified packaging configuration.
For example, Wal-Mart may request Gillette razors in card packs that can be hung on pegs. Sonoco puts the razors into promotional packaging that meets Wal-Mart’s specifications for pegged packaging.
Postponement is growing as an alternative tactic to repackaging. It eliminates multiple handling of product and packaging waste, which both increase costs.
Postponement also curtails obsolete packaging. These are packages that are no longer usable due to a retailer’s last-minute change requirements.
See the story that goes with this sidebar: Packaging 'Payback'
