Space is an invaluable commodity, particularly in-store. Retail and Food service Operators typically do not explicitly address space considerations in their packaging selection process. Shrink is also an area of concern and may not be understood and tracked in sufficient detail so that specifications can be changed or established to reduce. Disposal of packaging is another area of cost and potential disruption to in-store processes and should be explicitly considered in defining these processes. A holistic approach to space and waste will yield bottom line savings, greater efficiencies, improved employee satisfaction, fewer injuries/workmen’s comp and a smoother flow of goods and fewer stock-outs.
Supply chain management for Retail and Foodservice operators should originate with the supplier and extend through distribution through the store to the consumer. This will ensure that space and waste (shrink and disposal) are addressed. PR generally recommends that it facilitate a partnership between manufacturers, distributor and retail/foodservice operator to ensure that issues are addressed in a holistic manner and specifications developed that make sense to all partners.
Analyze storage (and shelving) requirements in distribution center and store. Work with operations and designers to develop the required packaging specifications and storage systems, e.g. racking systems. Convenience and space versus cost are the trade-offs.
For Foodservice Operators, analyze how product is processed in-store and how packaging can facilitate the process (and certainly not impede). Issues to be addressed are storage, reuse/resealable packaging, disposability.
Does packaging leave with consumer or remain in store for disposal? Are there opportunities to sell disposed packaging rather than pay to have it hauled away? Consider alternative materials for increased revenue in addition to all the other packaging considerations. Consider recycling options in conjunction with the consumer.