by Fronetics | Jan 28, 2014 | Blog, Logistics, Marketing, Social Media, Strategy, Supply Chain
Social media and social media technologies have rapidly changed the way companies do business across every type of industry. Social media brings businesses closer to their customers, provides a platform for communication and building thought leadership, and when executed properly it can help drive business and provide a significant return on investment. Businesses that ignore social media forgo these opportunities and miss out on potential business development opportunities.
According to The McKinsey Global Institute, 90 percent of companies who were using social media or social technologies for their business reported benefiting from their efforts in 2012. And how could they not? Utilizing a social media technology can increase a company’s reach into their industry and provides optimal channels for communicating with their customers.
The supply chain and logistics industries are two industries that have not adopted social media and social technologies as quickly as others. Business owners in these have a difficult time seeing past the “social” aspect of these technologies and understanding what the implied benefits of using social technologies can mean for their business. Many find themselves asking “why?” instead of “how?” when considering implementing a social media strategy, and ultimately allocate resources elsewhere within their businesses.
The Fronetics white paper, Social Media and the Logistics and Supply Chain Industries: Why Not Participating is a Risk You Can’t Afford to Take, provides meaningful insights into why supply chain and logistics companies need to be using social media and the value of these technologies. Learn how to move past the barriers to adoption, how to leverage social technologies, and learn what a social presence can mean for your business.
To learn more about why your business needs social media, download Social Media and the Logistics and Supply Chain Industries: Why Not Participating is a Risk You Can’t Afford to Take today.
by Elizabeth Hines | Jan 28, 2014 | Blog, Strategy, Supply Chain
This article was previously published on EBN.
Looking for a way to make your supply chain more efficient? You might want to consider reusable packaging.
Reusable packaging includes pallets, racks, bulk containers, bins, dollies, handheld containers, and dunnage typically made from durable materials such as plastic, wood, and metal. Traditional packaging solutions are designed for one-time use, but reusable packaging can withstand the rigors of the supply chain for five years or more.
Using reusable packaging can make your supply chain more efficient from both an operational and environmental standpoint.
Operationally, reusable packaging can help you reduce overall packaging costs, product damage, labor cost, required warehouse/transport space, costs per trip, energy usage, and the number of trips you make. It can improve workplace efficiency and workplace safety. Studies have found that, on average, reusable packaging generates 29 percent fewer greenhouse gas emissions and 95 percent less solid waste than single-use packaging, and it consumes 39 percent less energy.
Let’s look at a couple of examples that offer lessons for the electronics supply chain.
ANG Newspapers (ANG) in California has the largest daily circulation among newspapers in the East Bay and the third largest in the San Francisco Bay Area. Facing the high costs of wooden pallet breakage and waste removal (wood waste) and seeking to improve its distribution system, ANG made the switch to reusable pallets. The switch has reduced annual labor costs by $46,000 and prevented 37 tons of wood waste per year. Additionally, less space is needed to store pallets, and the company has improved operations and worker safety. It realized a return on investment (ROI) of 125 percent.
Another example: Ghirardelli Chocolate Co. was spending $520,000 a year for 580,000 cardboard boxes for internal distribution. The boxes tended to collapse when they were stacked. This damaged the product and generated $2,700 of disposal costs for soiled cardboard. To reduce packaging costs and cardboard waste and to improve its environmental performance, Ghirardelli invested in reusable totes. The investment will provide the company with a net savings of $1.95 million, eliminate 350 tons of cardboard waste per year, and decrease repetitive stress injuries. What’s more, the company has realized an ROI of 325 percent.
Though reusable packaging is generally better suited for closed-loop systems, it is possible to increase your supply chain efficiency by using reusable packaging and working with third-party poolers.
Want to learn more about reusable packaging? Jerry Welcome, president of the Reusable Packaging Association, wrote an article for Packaging Revolution on how to determine if reusable packaging can boost your profits. Also, the Reusable Packaging Association provides calculators to help companies estimate the environmental and economic differences between one-way and reusable packaging systems.
The US market for returnable transport packaging (RTP) is estimated to exceed $1.1 billion. The Priority Metrics Group projects that the RTP market will grow at a compound annual rate of 6.1 percent over the next few years. By 2017, it expects the global market to reach $6.75 billion.
Reusable packaging may not be right for everyone, but the industry is growing, and the benefits can be large.
by Elizabeth Hines | Jan 28, 2014 | Blog, Strategy, Supply Chain
This article was previously published on EBN.
Looking for a way to make your supply chain more efficient? You might want to consider reusable packaging.
Reusable packaging includes pallets, racks, bulk containers, bins, dollies, handheld containers, and dunnage typically made from durable materials such as plastic, wood, and metal. Traditional packaging solutions are designed for one-time use, but reusable packaging can withstand the rigors of the supply chain for five years or more.
Using reusable packaging can make your supply chain more efficient from both an operational and environmental standpoint.
Operationally, reusable packaging can help you reduce overall packaging costs, product damage, labor cost, required warehouse/transport space, costs per trip, energy usage, and the number of trips you make. It can improve workplace efficiency and workplace safety. Studies have found that, on average, reusable packaging generates 29 percent fewer greenhouse gas emissions and 95 percent less solid waste than single-use packaging, and it consumes 39 percent less energy.
Let’s look at a couple of examples that offer lessons for the electronics supply chain.
ANG Newspapers (ANG) in California has the largest daily circulation among newspapers in the East Bay and the third largest in the San Francisco Bay Area. Facing the high costs of wooden pallet breakage and waste removal (wood waste) and seeking to improve its distribution system, ANG made the switch to reusable pallets. The switch has reduced annual labor costs by $46,000 and prevented 37 tons of wood waste per year. Additionally, less space is needed to store pallets, and the company has improved operations and worker safety. It realized a return on investment (ROI) of 125 percent.
Another example: Ghirardelli Chocolate Co. was spending $520,000 a year for 580,000 cardboard boxes for internal distribution. The boxes tended to collapse when they were stacked. This damaged the product and generated $2,700 of disposal costs for soiled cardboard. To reduce packaging costs and cardboard waste and to improve its environmental performance, Ghirardelli invested in reusable totes. The investment will provide the company with a net savings of $1.95 million, eliminate 350 tons of cardboard waste per year, and decrease repetitive stress injuries. What’s more, the company has realized an ROI of 325 percent.
Though reusable packaging is generally better suited for closed-loop systems, it is possible to increase your supply chain efficiency by using reusable packaging and working with third-party poolers.
Want to learn more about reusable packaging? Jerry Welcome, president of the Reusable Packaging Association, wrote an article for Packaging Revolution on how to determine if reusable packaging can boost your profits. Also, the Reusable Packaging Association provides calculators to help companies estimate the environmental and economic differences between one-way and reusable packaging systems.
The US market for returnable transport packaging (RTP) is estimated to exceed $1.1 billion. The Priority Metrics Group projects that the RTP market will grow at a compound annual rate of 6.1 percent over the next few years. By 2017, it expects the global market to reach $6.75 billion.
Reusable packaging may not be right for everyone, but the industry is growing, and the benefits can be large.
by Elizabeth Hines | Jan 27, 2014 | Blog, Manufacturing & Distribution, Marketing, Supply Chain
This post originally appeared on EBN.
For many customers, both current and prospective, you are your packaging. Take the time to do it right.
I recently read a great piece by Zach Williams, founder and creative director of Venveo, on the role of packaging from a marketing perspective.
Williams puts forth the idea that packaging is a critical element to marketing, and therefore, should become the fifth P in marketing (the other four being Product, Pricing, Placement, and Promotion). He makes the point that “packaging embodies so much more than promotion… [it] can make or break how your company is positioned.”
Williams discusses how packaging can create customer experiences. He offers the example of Apple’s packaging and how getting a box with the Apple logo on it creates an emotional response for customers. So emotional is the response that Williams pointed out that there are videos on YouTube of people “unboxing” their new products. When Williams wrote the article in October 2012, there were “thousands” of videos; when I looked today there were close to 3.5 million. That growth alone says a lot. And, the joy and excitement displayed in the videos speaks volumes to Apple, the product, and to the packaging itself.
Another company whose packaging has become iconic in the realm of creating customer experience is Tiffany & Co… New York Times writer Alice Rawsthorn wrote an articleabout the role Tiffany’s packaging played in her decision to purchase a pendant for her goddaughter: “Would I have bought that pendant without the packaging? I’m not sure, but the thought of Delilah opening that duck egg blue box tied with white satin ribbon certainly clinched my choice.”
Williams also notes that packaging can also serve to justify the price of the product and that “packaging should always aim to increase the perceived value of the product.” To Williams’s point, look at both Apple and Tiffany — their prices are higher than their competitors.
The final point in Williams’s article is that the packaging of a company needs to go beyond the physical and extend to the company’s website — that the website “can be considered packaging as well.” The point is a good one, but I think it should go further. I believe packaging should not only include the company’s website, but should also extend to the company’s Facebook and LinkedIn pages, Twitter account, blog, and any outward-facing materials. If your company does not take the time to create an exceptional package for customers, you will be passed over.
Your company’s physical packaging and online packaging speaks volumes about your company. For many customers, current and prospective, you are your packaging. Take the time to do it right.
by Elizabeth Hines | Jan 27, 2014 | Blog, Manufacturing & Distribution, Marketing, Supply Chain
This post originally appeared on EBN.
For many customers, both current and prospective, you are your packaging. Take the time to do it right.
I recently read a great piece by Zach Williams, founder and creative director of Venveo, on the role of packaging from a marketing perspective.
Williams puts forth the idea that packaging is a critical element to marketing, and therefore, should become the fifth P in marketing (the other four being Product, Pricing, Placement, and Promotion). He makes the point that “packaging embodies so much more than promotion… [it] can make or break how your company is positioned.”
Williams discusses how packaging can create customer experiences. He offers the example of Apple’s packaging and how getting a box with the Apple logo on it creates an emotional response for customers. So emotional is the response that Williams pointed out that there are videos on YouTube of people “unboxing” their new products. When Williams wrote the article in October 2012, there were “thousands” of videos; when I looked today there were close to 3.5 million. That growth alone says a lot. And, the joy and excitement displayed in the videos speaks volumes to Apple, the product, and to the packaging itself.
Another company whose packaging has become iconic in the realm of creating customer experience is Tiffany & Co… New York Times writer Alice Rawsthorn wrote an articleabout the role Tiffany’s packaging played in her decision to purchase a pendant for her goddaughter: “Would I have bought that pendant without the packaging? I’m not sure, but the thought of Delilah opening that duck egg blue box tied with white satin ribbon certainly clinched my choice.”
Williams also notes that packaging can also serve to justify the price of the product and that “packaging should always aim to increase the perceived value of the product.” To Williams’s point, look at both Apple and Tiffany — their prices are higher than their competitors.
The final point in Williams’s article is that the packaging of a company needs to go beyond the physical and extend to the company’s website — that the website “can be considered packaging as well.” The point is a good one, but I think it should go further. I believe packaging should not only include the company’s website, but should also extend to the company’s Facebook and LinkedIn pages, Twitter account, blog, and any outward-facing materials. If your company does not take the time to create an exceptional package for customers, you will be passed over.
Your company’s physical packaging and online packaging speaks volumes about your company. For many customers, current and prospective, you are your packaging. Take the time to do it right.
