Guest Post by Miss.Srishti Rishi, Founder of BuzzTiger on Can Packaging Be Eliminated? Maybe. Maybe Not.

Tacit Knowledge I Industry Insights: Guest Post Time to Read: 5 mins.

Srishti Rishi is the Founder of a bespoke branding and marketing agency that goes by the name of BuzzTiger. True to its name and Srishti's personality be sure to have a lot of potential clients to sit up and notice your brand with the noise and buzz created for your benefit. An alumnus of the London School of Economics with a degree of Bachelors of Science in Business management, her clients range from across industries inclusive of the F&B, apparel and cosmetics. Srishti is sure a woman in the branding arena worth taking notice of in the years to come. Looking to build her skills, Srishti is aiming for another degree from the ISB for PGPMAX, Post Graduate Programme in Management for Senior Executives and Entrepreneurs and would be using the theoretical and tacit knowledge inherited from her family's prior businesses in the areas of healthcare and to build her own brand. Srishti's association with the Founder of Done And Done goes back to when they were classmates and while they happened to joke about working and starting their own firms; little did they realise it would essentially hold true over 10 years hence as collaborators instead. While Done and Done's niche lies in the areas of automobile manufacturing; best practices from allied industries are always welcome to build the automobile sector better than what it already is today. Thus Srishti was invited to share her nuances on the packaging industry; given her exposure to various industries' and their product branding and packaging materials: its need or rather lack of it in the logistical and product design aspects; for sustainable and profitable measures that the automobile industry could replicate. 

Note: Views represented are of the guest-author, Done and Done may/not necessarily endorse the same  

Today, as I write this article, there are new ideas being generated that are further shaping the development of a brand that meets a certain need of the masses. These ideas are either innovative or competitive or even both. As these ideas enter the phase of conceptualization, the brand owners always have the urge for the product to 'stand out' from the rest. Let's re-read that and think what comes to our mind when we want our product to 'stand out' and leave an impact.

Is it the utility of the product or is it its pricing? Or even the way the product has been promoted? In today's time, there is another most important factor for any brand to stand out and that is the physical appearance and presentation of the product and how easily accessible it is to its potential customers. Let's talk about packaging and how it affects a supply chain, logistically. Packaging has become an integral part of the product promotion as it does not just revolve around the concept of box/tube/carton packaging but also protects the product effectively throughout the distribution channel, appeals to the customer in buying the product and also takes sustainability into consideration. Any form of packaging that can be reused further for different purposes is already a winner right there.

Let's take the evolution of packaging for milkshakes as an example. While back in the day we would relish every sip of our favourite milkshake either in traditional plastic bags or in paper-based glasses, now we have brands that provide fresh and chilled milkshakes in a glass bottle with a tight lid. Now this is an arrow accurately hit on two targets; one being that it gives back the nostalgic concept of vintage glass milk bottles (marketing) and the other being that this very glass bottle can be reused for various purposes (environment). Some companies offer certain amount of credit if a customer brings back an empty bottle. When we speak about the glass as the packaging performance, even though the quantity of the beverage is lower in a glass bottle when compared to a plastic packaging, but it ensures complete protection of the beverage. Able to handle a wide range of temperatures, glass will not warp under pasteurization.

However, the two major drawbacks in this case are the logistics and costs involved in this form of packaging. When it comes to shipping, glass is typically more fragile and heavier than plastic, leading to higher freight costs. A plastic 2 fl. oz bottle may weigh only .023 lbs. while its glass counterpart weighs .177 lbs. This seems like a small difference when comparing a single bottle. When ordering pallets in bulk though, it can add up to large figures that impact your profit margin. Even with extreme care in shipping, some glass bottles might break during handling. The second drawback is the pricing involved in glass bottles. Not only is glass more expensive to ship, it also costs more to produce primarily due to the amount of heat required during production. Glass manufacturing is energy-intensive accounting for 1% of total industrial energy use in an Energy Information Administration (EIA) survey of the manufacturing sector. Natural gas fuels most of this energy.

In order to achieve a successfully managed supply chain, the packaging system must cover the aspects of marketing and brand recall, the packaging's production process ought to be quick and hassle-free with a convenient logistics. The factor of environment is an important add-on.

The same approach of sustainable and appealing packaging can be implied to certain brands from the cosmetic and skincare industry wherein the secondary packaging (usually either a cloth or a bubble wrap-style zip top pouch) is often effectively protective and reusable, and their tertiary packaging is often in a rigid box with minimalist design of the logo of the brand giving the sense of assurance to their customers about receiving their products without any damage (majorly needed either when there is a bulk order or when the order needs to be shipped).

When it comes to textile industry, there has been a shift observed from traditional plastic bags to paper bags to now either different kind of poly mailers to jute bags. The point here is that there has been an evolution in every industry when it comes to packaging and supply chain management in such a way that packaging logistics has now become a new and an essential part of the supply chain management. It basically is all about how a brand combines its packaging design and strategy to its logistics system in a way to improve their efficiency and value in the eyes of their consumers.

Automobile manufacturing firms pride themselves in little to no packing materials. Immense focus is on ensuring raw material products reach the manufacturing unit to fasten the production process. Hence, raw materials reach firms in a JIT system where trips are several and hence packing materials do not exist. They are placed into a bin that is used several times during the transportation and is of returnable and reusable in nature. Customised modifications are made to ensure the materials transported are protected from weather, breakage and dust (Eg. a covering layer on top, bubble wrap/newspaper around the product)

Given the packaging industry using plastic, paper and cartons is under the radar of environmentalists-innovating on this would save firms their ethical and Carbon footprint. Interesting to note, consumer durables like toothpastes, cosmetics and shampoos that are in a tube generally have a cardboard case. If one receives it, the carton is opened, the tube is pulled out and the contents used. The carton goes straight into the bin. Vestigial and completely unnecessary, these products are being sold without the exterior cardboard carton packing material; immensely saving costs to these firms, reducing business process operations and a direct impact to the environment.

One end of the spectrum of traditional purchasing behaviour of a consumer at retail outlets was witnessed above; another end of the spectrum is the global trends of the purchasing process of the consumers. E-commerce is now the new tool for sales. A digital footprint is the way to go for quick globalisation and quicker growth. For any product we require, we use different e-commerce platforms at the tip of our fingers to source it out, compare prices and also majorly, check how soon the product can reach our doorstep. This means that for a brand, the growth of e-commerce has had an impact in the following ways:

1. Improves value chain integration by reducing transaction costs, giving rise to JIT delivery and helping the brand build a better database of their customers and the orders placed, hereby improving inventory planning and production planning.
2. Builds a direct communication bridge between the brand and its customers which means instant feedback with regards to the product and the services.
3. With widespread availability and usage of internet, a brand can have access to different countries in order to expand their business

Modern packaging is the result of decades of evolution fuelled by digitalisation. Traditionally, secondary packaging would be used for the purposes of protection, transportation ability and communication (provides complete information to all the channels in the supply chain flow including end-users). Now, we are taking into account brand experience, security and traceability. Talking about brand experience, especially when it comes to the FMCG sector, as more brands are moving online, the significance of packaging has increased and its role has shifted from being physically attractive at a shelf to a direct interaction with the product delivered at their doorstep leaving them with an element of surprise and a great impression. This takes into consideration not just the aesthetics of the packaging but also the strength (in terms of protection) and reusability factor. When it comes to security and traceability, companies use packaging as a tool to avoid uncalled circumstances such as product theft and counterfeiting in the whole execution of transportation going through the channels of the supply chain. Advancements such as real time tracking, trace localization and identity-marking systems are being used for this purpose. Real time track and tracing your product also gives a complete clarity to your customers as to when to expect the delivery (one-time order usually) and how quick is your brand on an average for your product to reach in general. Also when it comes to e-commerce, there are a variety of products being offered right from a small packet of spices to a bicycle to huge furniture. The shipment of the large items (in specific) don't just bring into account careful handling and operational challenges but also require specialized packaging solutions to ensure every part of the product is safe and exhibits the quality of the product that has been promised while placing an order online. As e-commerce is beating the traditional retail experience of consumers, some companies have taken up a new approach for their store which is product innovation and taste-making experience (Example: Apple with their 'store-as-experience' model which turned out to be a huge success). The concept of packaging in this case changes and makes it easy for the consumers to touch and experience the product within. In fact, retail packaging is now growing in terms of consumer experience in such a way that the packaging of the product contains the additional value of the brand for their consumers. How does this happen? Through a QR code or chips that unlock offers, points, information on the consumer's smart phone once the product is purchased and the code is scanned. Certain food and beverage companies provide complete nutritional value of their product through the QR code along with the usage advice. This helps in having minimal information on the carton itself and maximum consumer touch experience. So basically brands don't just have two options of market (which is e-commerce and retail stores). They also have the potential to build a direct connection with their communication without a second party of the SCM in between and having their own in-house logistics team delivering the product to the consumers. When it comes to the packaging in this case, there are more chances of not having a secondary packaging system as it cuts cost, reduces wastage and enhances first hand user experience. Example: P&G sells Tide liquid in an eco-box which contains a tap and measuring cup allowing the product to be easily dispensed. This box is efficient to ship, safe and strong enough to handle a heavy amount of soap within.

To conclude, packaging and SCM are interestingly entering new phases as time changes depending on several factors such as consumer experience, competition, sustainability and easy access of the product to their consumer. They aim to create more value of the product be it being placed on the shelf, delivered at your doorstep or in your warehouse for further manufacturing. As we said in the beginning, the real deal is to make sure that your brand 'stands out'.

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