What is happening with logistics packaging for retailers in 2018 | RAJA
5min read
27/11/2019
Deliverwas an opportunity for RAJAto ask more than 200 European retailers about their packaging strategy. The results are sometimes surprising and deserve to be examined. Deliver closed its doors after 2 days of meetings between supply chain logistics experts and European retailers and e-retailers. We asked them about their logistics strategy and how they integrate packaging. Answers and analysisA majority of the decision-makers present believe that packaging has been taken into consideration in the company’s overall strategy… yet packaging seems to have been excluded from the company’s global strategy
strange when you consider that the greatest successes come from companies that offer a seamless, omnichannel customer experience. Are retailers or e-tailers making a mistake by forgetting about packaging in their overall strategy?
a 2016 Shorr study shows the impact of personalised packaging: generating a positive feeling and even the desire to buy again. The more regularly the customer buys, the greater the positive impact of personalised packaging.
Tip: An easy way to test the effect of personalised packaging is to reserve it for your VIP or premium customers #RAJAtips #experienceclient #unboxing
– RAJA Emballages (@RAJA_Emballages) March 2, 2018
The three priorities of the decision-makers regarding packaging
- Packaging should protect the goods
- Packaging should improve customer satisfaction
- Logistics managers drive the cost of packaging
the choice of packaging in the cost of transport has become an increasing concern in recent years. Why? Because weight is no longer the only criterion for carriers, the volume occupied by the packaging is also. Proof, in our opinion, that internationalisation (otherwise known as e-commerce transborder) is intensifying. Indeed, the weight/volume ratio or volumetric weight is becoming the means of calculation for international carriers
As you have also noted, the second reason for packaging is to become a driver of customer satisfaction. Once purely functional, packaging must now become part of the customer experience and contribute to customer loyalty.
decision-makers are therefore aware that packaging must be a satisfaction lever… without integrating it into the global business strategy (see question n°2)
The vast majority of companies do not skimp on the quality of packaging when it comes to protecting the goods they ship
indeed, we can see that sales of double flute (double thickness) cases and boxes are constantly increasing to the detriment of single flute cases.Moreover, the following question confirms that breakage is not really an issue for European retailers and e-tailers who have reached a certain level of maturity (64%)
Even though… a third of them admit that breakage is still a major reason for returning orders
Beware: damaged goods mean loss of a customer in 73% of cases (Pregis study 2016)
saving a few cents and/or not taking the time to validate your order picking process can therefore cost youa lot.
Tip: “When testing new packaging, send it to several employees via different carriers to assess the strength and condition of the package upon arrival” – Etane Derhy #RAJAtips #delivery #customerexperience
– RAJA Emballages (@RAJA_Emballages) March 2, 2018
Half of respondents are aware that same day delivery is a customer expectation
they are in line with the latest British Retail Consortium and Internet Retailer Magazine cross survey (2017). 52% of UK e-shoppers say they prefer a retailer offering same day delivery
with the UK often leading the way in terms of trends, one can imagine that the proportion of harried e-shoppers is lower in continental Europe – for now
Tip: There are some very simple and inexpensive ways to speed up order picking https://t.co/ncmV7s7M9b #logistics #delivery #RAJAtips
– RAJA Emballages (@RAJA_Emballages) March 2, 2018
Order returns divide retailers
a third think it’s an important element to incorporate into the customer experience
while 39% of European retailers think that order returns are not a priority. We were unable to break this down by industry or country of origin – unfortunately.The Schorr 2016 study shows that the more the online shopper spends, the more they return orders. Making order returns more seamless helps build loyalty
Personalised packaging will clearly be a priority for retailers and e-tailers over the next 12 months
54% of European retailers surveyed believe that personalised packaging will be key to the growth of their business
Finally, where will retailers focus their efforts to improve the experience of their customers when they receive their packages?
- Easy to dispose of and Easy to open equally!
- Easy to throw away (no bulky packaging in your bin or in the communal bin)
- Easy to send back ( order returns have become a major issue)
yet noted as a growth lever in the previous question, personalised packaging is not on the podium by a short margin. Partly because personalisation is still the domain of the marketing manager and outside the scope of logistics/supply chain managers.As long as customer experienceisnot a cross-functional business function, there will be inconsistencies that will reflect on the offline and online customer journey.
This desired operational excellence will require the integration of packaging into a global logistics strategy #RAJAtipsDownload our FREE GUIDE to mastering the preparation and shipment of your merchandise https://t.co/XfB7CxHWMQ…
– RAJA Emballages (@RAJA_Emballages) March 2, 2018
As a bonus feature on Linkedin quotes from RAJA country managers about their experience at Deliver.
