Feature Article

Innovation

E-commerce creates global opportunity for packaging machinery and materials
Asia is leading the world with 47.4 percent of the e-commerce packaging market, compared to North America in the number-two spot with 25 percent.

In the U.S., clothing, accessories and footwear is the largest category in electronic shopping sales. Drugs, health aids and beauty products is the 5th largest category, with food, beer, wine coming in 12th.

All these facts are compiled and available in a new report from PMMI Business Intelligence, “E-Commerce 2018: Think Inside the Box.”

The grocery industry in particular is poised to see a burst of growth in the next decade. Currently, online grocery orders are estimated to make up between 2% and 4% of the entire grocery industry, but that number is expected to swell to nearly 20% by 2025.

There is no doubt that e-commerce growth is driving packaging machinery and materials sales growth. The report found that 60% of respondents are increasing purchases of machinery specifically for e-commerce. Machinery purchases will include equipment for secondary packaging, warehouse handling, marking and coding, primary packaging, and vision/sensors.

Corrugated has the largest share of the e-commerce packaging materials market, with a commanding 80% of market share. Flexible films capture 15% of the materials market, followed by protective packaging components such as air pillows bubble wrap, paper fill and loose fill combined for 3.5%.

An Executive Summary of the report is FREE and available below. PMMI Members can access the entire 56-page study here.

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E-COMMERCE: THINK INSIDE THE BOX

E-COMMERCE: THINK INSIDE THE BOX

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Feature Article

Innovation

The e-commerce dilemma
A new study from PMMI Business Intelligence examines the impact the omnichannel is having on packaging materials.

While some CPGs have to deal with altering their primary package, especially in the case of leakers, most efforts are focused around improving the secondary package to survive a supply chain with multiple touches and up to 30% returns for damaged goods.

There are a variety of reasons for the need to change secondary packaging (see chart) with half of the respondents citing smaller pack counts and almost 30% looking at reducing carton size and unnecessary filler. Box on demand gets a lot of attention, but the process is slower than traditional cartoning line operations.

And while corrugated and molded pulp are expected to grow, according to “E-Commerce 2018: Think Inside the Box,” a whopping 72% of those polled  “are looking for materials with greater durability to prevent product damage.”

All involved in the study know things need to change. And that e-commerce has totally disrupted traditional production and packaging operations.

“Our entire distribution center is not working for us any longer for direct orders and e-commerce sales” said a Project Manager for a fragrance firm.

“E-commerce products need to be more durable and stronger to survive the distribution channel”  remarked a Packaging Engineer of nutritional supplements.

Some of those in the study are already taking steps to achieve a more efficient supply chain. “We did some special packaging for international shipping; added protection on the shipper and more appealing visuals on the primary package,” offered a Project Engineer for a nutrition company.

But many are still trying to figure it out. “We just went through packaging redesign for consideration of e-commerce; we need to protect the fitment, but it’s still showing signs of fragility issues,” said one Sr. Packaging Engineer for an industrial products company.

For more information on the impact of e-commerce on CPGs, 3PLs and packaging OEMs, download the FREE Executive Summary below. PMMI members can access entire 56-page report here.

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E-COMMERCE: THINK INSIDE THE BOX

E-COMMERCE: THINK INSIDE THE BOX

By submitting this form, I consent to PMMI collecting and storing my information and consent to receive emails as well as sponsored advertisements from PMMI Media Group.

 

I have read PMMI Media Group's privacy policy and I understand that I can unsubscribe or opt out at any time, and I can reach your Chief Privacy Officer at [email protected] with any inquiries around privacy policies or practices.
Feature Article

Innovation

E-coE-commerce is stressing the supply chain as retailers struggle to solve logistics problems mmerce
Only one in four manufacturers are fulfilling e-commerce in-house, while another 40% are using 3PL warehouses, according to a new report from PMMI Business Intelligence.

The newly-released 56-page report, “E-Commerce: Think Inside The Box,” covers CPGs, 3PLs and OEMs and how each community is addressing the challenges posed by the rapidly growing and rapidly changing e-commerce environment.

Sixty-five percent of respondents are using etailers to market their products, with 54% reporting selling through Amazon. Thirty-three percent are selling direct to consumer.

“Our supply chain is for high speed mass production and e-commerce requires customization to meet delivery demands,” said one Packaging Manager, for an industry-leading CPG.

3PL companies interviewed predict their businesses to grow, on average, by 31% in the next two years. Growth fueled by the rise of e-commerce.

Every logistics supplier is looking for technology advancements to meet the challenges of e-commerce. Forty-four percent of logistics suppliers reported using wearable technology to improve pick and ship accuracy and authenticate the product.

Bringing fulfillment in-house would require more automation. “Bringing e-commerce fulfillment and shipping in-house would require sufficient quantities, enough for high speed automation,” said a Sr. Specialist, Engineering, for an over-the-counter drug manufacturer.

“Bringing e-commerce fulfillment in house would be done to achieve greater cost effectiveness,” said a Sr. Packaging Engineer for a consumer goods operation.

Another option is having Amazon right in your own plant handling fulfillment. “Amazon is inside our operations now and have a spot they use for collating products and shipping. They are a critical partner and know e-commerce will spike within the next 10 years,” offered one CPG product manager.

There are pros and cons to handling fulfillment in-house or outsourcing to a 3PL. (See chart).

For more information on how e-commerce is impacting CPGs, 3PLs and packaging OEMs, download the FREE Executive Summary below. PMMI members can access entire 56-page report here.

Filed in

Topic » Topics » Innovation
Image: 
E-COMMERCE: THINK INSIDE THE BOX

E-COMMERCE: THINK INSIDE THE BOX

By submitting this form, I consent to PMMI collecting and storing my information and consent to receive emails as well as sponsored advertisements from PMMI Media Group.

 

I have read PMMI Media Group's privacy policy and I understand that I can unsubscribe or opt out at any time, and I can reach your Chief Privacy Officer at [email protected] with any inquiries around privacy policies or practices.
Feature Article

Innovation

E-COMMERCE: THINK INSIDE THE BOX
The spotlight is on packaging professionals to succeed in protecting products delivered to your door, while using less materials.

In a new report from PMMI Business intelligence, “E-Commerce 2018: Think Inside The Box,” CPGs weigh in on e-commerce challenges.

“E-commerce is changing product handling and the supply chain needs to change; it’s archaic but more robotics will help,” says one Packaging Manager, consumer goods.

The majority of CPGs polled report changing secondary packaging, but close to 40% are looking at changing primary packaging as well. “There is no magic wand for e-commerce, no standardized solutions,” says one CEO of a package design firm. “Every company that works with e-commerce has had to rethink their strategy.”

Breakage and leaks remain a problem, with CPGs paying up to fifty cents per package to Amazon for prep work. Thirty to forty percent returns for damaged goods is not a sustainable model. In some cases, brand owners of extremely delicate or large and heavy items may have to reach the conclusion that their products do not fit the e-commerce model.

To meet the challenge, many companies (46% of those polled) are creating special positions or departments. Others are turning to contract packagers for help. According to the new report, contract packagers are predicting double digit growth (11.9%) to meet e-commerce demand.

For more information on CPGs, 3PLs and packaging OEMs, download the FREE Executive Summary below. PMMI members can access entire 56-page report here.

Filed in

Topic » Topics » Innovation
Image: 
E-COMMERCE: THINK INSIDE THE BOX

E-COMMERCE: THINK INSIDE THE BOX

By submitting this form, I consent to PMMI collecting and storing my information and consent to receive emails as well as sponsored advertisements from PMMI Media Group.

 

I have read PMMI Media Group's privacy policy and I understand that I can unsubscribe or opt out at any time, and I can reach your Chief Privacy Officer at [email protected] with any inquiries around privacy policies or practices.
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