Avoiding common procurement pitfalls is key to successfully launching an innovative package

What aspect of Consumer Packaged Goods (CPG) typically catches the attention of consumers? The answer is simple: packaging of course. Be it soft drinks, toiletries, or processed foods, one can't help but note their attractive packages.

Change is the only constant in CPG package formats. Brand owners, who in the past decade had focused primarily on product safety and visual appeal, are now prioritizing sustainability even while managing to compress the cost. All this calls for constant innovation.

Brands that could come up with innovative packaging formats, which are interactive, smart, functional as well as convenient, would be better placed to face the competition in the long run.

For example, P&G with the help of its supplier Folmex, has developed a new polyethylene-based, high-gloss package for its laundry detergent Ace, which improves sustainability and reduces cost. This structure was down gauged by 21% from their initial packaging, which eliminates 245,670 pounds of material per year. The down gauging has also helped P&G increase their product-to-package ratio by 27% and decrease CO2 emissions from transportation by 22%

The flipside to innovations, however, is that they are not easy to pull off. On an average, only 1 out of 20 new packaging concepts make it to the store shelves. The other 19 fails to go beyond the factory floor.

It goes without saying that bringing an innovative package into the market comes with multitude of procurement challenges. Companies will have to scout for suitable suppliers as well as requisite machinery when they go for new package innovations -- steps that are not easily achievable.

Reducing the lead time as well as overall costs are critical for the success of newly designed packages.

During the Webinar scheduled for July 9, Beroe's packaging experts P. Malligeswari and Sherjin Joel will talk about ways to efficiently manage time and cost across supply chain. The success rate of those packages which are just launched or which are in the production stage is only about 50 percent. The webinar will particularly focus on this critical stage.

Malligeswari and Joel will also explain as to how involving the procurement teams right from the design stage will help avoid some of the common pitfalls faced by the category managers.

Key Takeaway

• Evolution of packaging formats and how does the future look like
• Has the package aged? What are the key influencing factors that drive innovation in packaging?
• What are the current success rates in bringing out an innovative package to store shelves?
• Key procurement challenges in successfully bringing an innovative package format into the market
• How to efficiently manage cost and lead times in the commercial production stage
• How to successfully bring innovative package from design to store shelves?
• Case-based scenarios analysing impact of innovative packaging format

To watch the webinar Click here