According to Think Inside the Box, a recent study on e-commerce published by PMMI’s Business Intelligence, 61.9% of contract packagers/contract manufacturers surveyed are “somewhat active in e-commerce,” while 4.8% are “very active in e-commerce”—a greater number than anecdotal evidence might suggest. For those exploring this new opportunity, distribution/logistics—in particular return logistics—appears to be the greatest area of interest. Responding to the question, “Enterprise wide, what are the TOP TWO areas where you are concentrating your e-commerce efforts and budget?” 60% said “improve warehouse processes/operational efficiency,” followed by 40% who said, “adding automation/equipment.”
Among the other results:
When asked, “What are the top two factors in secondary package material/design selection, specific to e-commerce?”:
- 45 said fulfillment velocity/ability to increase yield
- 40% said end consumer/unboxing experience
- 35% said minimizing footprint needed for warehouse storage
- 30% said protective value
- 25% said desire to optimize freight weight
When asked, “What best describes the secondary packaging you use for e-commerce applications?”:
- 55% said corrugated
- 30% said shrink wrap
- 15% said pouch (including bubble pouch)
When asked, “What best describes your plant for primary packaging in e-commerce?”:
- 35% said, “We will develop a new primary package (size, design, or material) for both retail and e-commerce (omni-channel package design)”
- 45% said, “We will not make any changes to our current primary packaging”
- 15% said other
- 5% said, “We will develop a new primary package (size, design, or material) for e-commerce channel”
When asked, “What are the top two biggest problems you experience with e-commerce freight and delivery?”:
- 50% said damaged product
- 40% said delivery carrier management
- 40% said delivery delays
- 20% said return logistics
- 15% said loss/theft
- 15% said other
- 10% said, “We don’t have problems”
Methodology
In a series of online studies conducted in January and February 2019, Contract Packaging magazine sister publication Packaging World asked its online readership about their approach to e-commerce. There were 297 responses, 21 of which were contract packagers/contract manufacturers. See results from the full study here.
