Love Thy Trader –Retailers perspective on Shelf-Ready Packaging
In our previous post, we explored what makes good shelf-ready packaging (SRP), and how it affects consumers and retailers. We mentioned five requirements necessary for packaging to be considered shelf ready: easy identification, easy to open, easy to dispose, easy shelf and easy shop. We also mentioned that most SRP solutions are made of corrugated cardboard and typically consist of a tray and a TI 1300
Since retailers and distributors are important stakeholders in practically any industry, we decided to do some further research on the topic of shelf-ready packaging from the distributor’s perspective and offer some insight on how the use of SRP can improve your success with your distributors.
The use of SRP is different when it comes to discounters and full-line distributors. The implementation rate of discounters is about 90%, which is considerably higher than the 37% implementation rate for full-line distributors (Bergmann, H, 2007, Stand und Umsetzung von Shelf Ready Packaging). The differences are also present among full-line distributors regarding the use of SRP. Some full-line distributors are not very fond of SRP because of aesthetic and image-related reasons. Other full-line distributors like to use SRP extensively because of the easy handling and lower personnel costs. The decision whether to use SRP or not depends on the variety of goods provided in the market, apart from the strategy followed by individual markets. It is important to emphasize; both the cost savings and the best possible presentation of the products are possible. There are cases where revenue could be increased up to 35%, partly thanks to the use of SRP. Besides an increase in revenue, SRP simplifies the work processes, which leads to an increase in productivity. In-store logistics, such as storing, unpacking, labeling products and filling the shelves is 70% to 80% of the daily activities in the food sector. Obviously, potential savings can be accomplished through the implementation of SRP. Selecting stock becomes easier, thanks to printing on the SRP. Because of easier and faster replenishment, the largest potential savings result from this improvement in in-store logistic activities. Depending on container size, 10 to 60 products can be placed at once on a shelf. To exploit the full potential savings of SRP, it may be removed from the shelf when the last article has been removed. True, this leads to empty gaps in the shelves that can affect the behavior of customers during the purchase process. Integrated product system, which pushes the remaining products to the front of the SRP whenever one product has been taken from it, can help to reduce shelf gaps.
In the supply chain, good shelf-ready packaging can generate savings not only in cash, but in carbon as well. More products per pallet can be dispatched, which leads to fewer pallet movements. Easy transport leads to fewer delivery vehicles on the road. Easy stacking means less warehousing for empty packs and goods waiting to be dispatched. Since there is no extra collation packs inside shelf-ready trays, shelf placement requires less time and energy. The use of shelf ready packaging can also make packing operations more efficient, whether automated or not.
Do not hesitate: the use of shelf-ready packaging can greatly improve your business and your relations with distributers, so if you haven’t yet done so, you should do some research on available tray packaging systems. You can start here, by checking out Tishma Technologies’ TI 1300 case & tray packaging system.