Can packaging be an opportunity for your business?
1 June 2017
Retailers in e-commerce must prepare for millions of individual customer requests and deadlines.
Stephen Rector, Managing Director, Ribble Packaging
It is extremely difficult to manage the fulfilment process, when product shapes and sizes, the demand for them and the combination of them vary from order to order. Retailers often fall victim to the chaotic customer demand. They try to overcome these challenges through inefficient solutions such as investing in larger packages than needed, running half empty trucks on the roads, or trying to compensate unhappy customers, who return their goods as they arrived late, damaged or in the wrong packaging. These wasteful and inefficient coping mechanisms incur billions of pounds of entirely avoidable cost resulting in huge waste and expense for the retailer and an extremely disappointed customer. Not to mention a disaster for the environment.
Since the advent of e-commerce, retailers have also seen a huge increase in product returns due to distance selling regulations, exceptionally liberal returns policies and mobile apps making it easy to order on impulse and quickly regret. Unfortunately, retailers do not always deal very well with this uplift in returns resulting in recovery rates as low as 20% in certain product categories. In many cases this loss of profit it purely due to the fact that the product has been returned in a damaged box.
Ribble believe that they can help to put millions of pounds back on the retailers’ bottom lines by providing automated packaging systems that produce ‘optisized’ packs to perfectly fit each individual product. This minimises waste corrugated board and unnecessary void fill. It also helps to maximise vehicle utilisation by massively increasing the number of boxes that one vehicle can carry. These systems can also be used to re-package pristine returned products and put them back on the retailers’ shelves quickly, recovering 100% of retail value. The total retailer cost saving is measured in millions.
Find out how much you could save on your packaging and returns processes. Visit us at ribble-pack.co.uk