How Innovative Product Packaging Solutions Can Save Money

By Rob Kaszubowski, Packaging Engineering Manager

Who knew you could actually damage a product while placing it into its protective packaging? But that’s the exact problem Chainalytics packaging engineers recently tackled for a construction materials client.

The company’s heavy vinyl lined products were being scuffed and scratched when slid into their secondary packaging for shipment—creating significant costs from damage returns, warranty repairs, and service calls.  But abrasion during loading wasn’t the only problem: Products were often damaged during unloading from sliding the product back out of the box.

Abrasion damage created from sliding product into box

To add to the packaging failure complexity, the product came in multiple sizes and weights and was manufactured on multiple lines. The tact time for the packaging operation was less than 20 seconds, leaving little time to physically add any extra protection components. 

A streamlined solution to a multi-layered packaging problem

The Chainalytics’ packaging team developed a unique testing method to replicate the vinyl product sliding into a box using a variable speed conveyor-like system (think of a treadmill). Only in this case the process was reversed: The vinyl was placed in a fixed position with a determined weight applied and a strip of corrugated material was run across the vinyl at a speed that matched loading speeds on the line. 

Customized abrasion test created to solve for multiple damage solutions.

The test enabled the team to establish baseline damage that was replicable to typical damage seen at the packing line. From there, they were able to test multiple packaging attributes to determine the severity levels of any single variable including:

• packaging substrates
• materials from multiple corrugated vendors
• various board weights
• liner board combinations
• environmental conditions
• corrugation direction
• vinyl colors
• abrasion reducing coatings for corrugated

Solutions testing helps us create the optimal packaging system

After establishing the baseline damage of the current state, engineers ran the same test looking at possible concept solutions. Again, the unique test setup enabled testing multiple possible solution variations in a short amount of time while using minimal sample product for testing.

Following the solutions testing the team identified multiple solutions and was able to obtain quotes and perform costing analysis to determine the most feasible solution that would balance reducing the damage while not increasing packaging costs significantly. 

Ultimately, the innovative test setup and customized test protocol expedited the time it took to solve for damage, balanced extensive damage/returns costs with new packaging costs and created a net savings benefit.  The packaging team was able to identify a cost effective solution that was able to significantly reduce the abrasion damage from loading the product into the secondary packaging and was a transparent change for the operators at the manufacturing line.

If your team is struggling with a packaging issue and in search of a customized solution to help solve a customized problem, contact Chainalytics’ packaging professionals at Packaging@chainalytics.com or give us a call at +1 612 260 7845

Not Enough Product in that Package? Blame It On Slack Fill

By: Rob Kaszubowski, Sr. Packaging Engineer




Food manufacturer, Perfetti Van Melle, was recently handed a hefty $5 Million law suit for a slack fill violation on their Mentos gum (50 count container).  

Essentially, the firm was accused of committing slack fill deception--putting a small product, inside a much larger container to make the product packaging look much bigger and ensure it takes up a bigger spatial/visual footprint on a shelf. 

What Exactly is Slack Fill?

Slack fill is the difference between the actual capacity of a container and the volume of product contained within the enclosed container. While federal laws administered by the FDA regulate slack fill on behalf of consumers, states also weigh in on the issue. 

In California, a slack fill violator is a package that is filled to “substantially less” than its capacity for other than any one or more than the applicable exceptions (California Fair Packaging and Labeling Act, Cal. Bus. & Prof. Code § 12606(c) (1-15)).

Wherever they originate, slack fill laws are aimed at protecting consumers from being duped into buying a packaged product that is misleading. A container that does not allow the consumer to fully view the fill levels is deemed deceptive and misleading unless it contains “functional” slack fill, there are six exceptions which are outlined here. 

A Closer Look at the Mentos Slack Fill in Action

Oftentimes, articles in the business and trade press mention the offending product packaging and the amount the company was penalized or fined, but fail to show exactly “how bad” the slack fill was or exactly what the ratio of product vs. packaging was in these law-breaking products.

We were curious ourselves, so we bought a few containers of this Mentos gum to take a deeper dive.  

Take a look at what we found. Does this packaging deceive you?

Mentos product fill level

Upon opening the container, it looks to be approximately 2/3 full. Further analysis shows this container to be 72% full by weight (28% empty or non-functional slack fill). This is gathered from the ratio of product currently in the container compared to the maximum weight it can hold of the same product. How You Can Measure the Immeasurable

These images above might make the everyday consumer feel deceived upon opening their new purchase and lead them to think “I can’t believe there isn’t more product in this package.” 

The lack of a hard and fast number as to what fill ratio qualifies as “substantially less” than full obviously makes California’s slack fill standard a difficult one to follow. Consumer goods manufacturers must make the judgement call on exactly how much product is enough to meet the minimum requirements—and avoid being penalized. One could argue that the lack of any parameters to define fill levels in a package is similar to driving down the highway with no speed limits posted--only a sign that simply warns “Just Don’t Go Too Fast.”

As a team of packaging engineers, we are focused on optimizing packaging and improving cube efficiencies throughout all supply chain distribution channels—from manufacturing all the way to the retail shelf. We couldn't help ourselves... 

We shortened the Mentos Gum container by 1/2" inch. The original pallet could only hold 3,120 containers. The newly optimized, shortened container allows for a total of 3,744, or 624 more units per pallet - a 20% improvement in pallet utilization! 

With proper packaging, the amount of air space in these individual canisters could be reduced to allow for greater than 20% improvement in pallet counts simply by adding an extra layer of product to the pallet. An incremental change in a package this small can lead to a cascading effect of material savings, logistics savings, warehousing improvements, less out of stocks at retailers, and so on and so forth.

So after reviewing the Mentos packaging dilemma and how much product is actually in the packaging, would you consider 72% full to be bad? What about 28% empty? 

If you feel your products may be a slack fill risk, it’s often a good approach to perform an internal audit and slack fill review. Aside from taking a preventative step to avoid any slack fill penalties, there may be additional cost savings tied to some of those incremental packaging savings. 

The Chainalytics Packaging Optimization practice is a seasoned team of packaging engineers, dedicated to addressing risks and opportunities end-to-end throughout the supply chain.

Questions? Contact us at Packaging@chainalytics.com or give us a call at +1 612.260.7845.

Rob Kaszubowski is a Manager in Chainalytics Packaging Engineering practice. His track record of success ranges from delivering packaging cost savings and damage reduction projects to optimizing packaging throughout clients’ entire supply chains.

4 Trusted Ways to Improve Your Packaging

Is your boss looking to cut costs? Or are you in charge of some packaging changes? You’ve probably touched more than 20 packaged items today without even knowing it. What you should notice is packaging optimization. Optimizing your packaging can drastically improve your business. If your business ships anything at all packaging optimization is worth looking into, and here is why:

#1 Change Your Packaging Design

Your package is the first thing your customer sees. It needs to be attractive enough to be picked off of the shelf instead of your competitors. Packaging optimization can completely redesign your package. So if you need a change in your marketing, packaging redesign is an ingenious way to re-market your product.

Need a handle for easy carrying? Done. Are your wanting to fit more of your product into a truck or box? That can be done too. What is fantastic about packaging optimization is the flexibility. Tasks can range from a small adjustment to a whole new design.

#2 Look at Cost Reduction

Are you spending too much? Packaging optimization can help you reduce the amount of money you spend on packaging. Companies often have “slack”, or extra space, in their packaging that results in them spending extra money to ship empty space. There are many factors that can be changed in the packaging process. Some of the smallest changes can add up, saving you a lot of money in the long run.

#3 Address Damage Reduction

Damage is a huge problem in the shipping industry! Angry customers are no fun. Packaging optimization uses an array of tests to make sure your product arrives to your customers in perfect condition. The strength of the box, the tools that handle your packages, and what type of cushion you are using are all important factors that are considered.

#4 Create Some Sustainability

Packing optimization can help you put more product on your truck, which means you need less trucks to ship. This is a win-win option for your wallet and the environment. You can also chose the “green” option for your packaging by making your packaging from recyclable or degradable materials. Lastly, you can invest in return packaging so you can ship your products in the same container time after time.

Consider bringing up packaging optimization at your next business meeting, it is often an option that companies overlook. A small change in your packaging can save your company thousands of dollars. Want to know more about what packaging optimization can do for your company? 

Check us out or contact our packaging consultants at packaging@chainalytics.com or +1 (612) 252-1830. 

 By Chelsea Hennen 

Image courtesy of atibodyphoto at FreeDigitalPhotos.net

Stickers or Lasers? The Change in Tracking Produce

Recently, I reread a story discussing a technology in which lasers are used to mark produce with the goal of eliminating those little labels on everything from apples to zucchini. 

As with most disruptive technologies, there are often unforeseen hurdles; consumer acceptance, immature technology, integration into business processes, etc. The laser marking technology was getting a lot of press a few years ago and it was projected to replace the produce stickers; aka Price Look-Up code (PLU) labels.  

What is a PLU Code?

The PLU code is a 4 or 5 digit human readable number that represents any of about 1400 unique produce varieties. 

Examples of Fruit Labeled with Laser Technology

The History of PLU’s

Many of you reading this will remember that for most of your life (prior to 1990) there were no PLU stickers on fruits & vegetables.  To add slightly more perspective, it wasn’t until the 1980s that it was common for grocery stores to have barcode check out systems.

So, the two obvious questions are:

• What changed in the grocery industry just prior to 1990 that would have created the demand to add what seems to be an overly obvious label?
• Why do we need a label on a banana or for that matter an apple?

It turns out there are very good reasons for a PLU code label.  

What Changed in the Grocery Industry?

Target announced in 2010 that it planned to add fresh food to half of its stores by the end of 2011.  However, Target is really the upstart big box store in the grocery industry, but growing fast.  Walmart has been into the grocery business a little longer; they started adding grocery sections to their stores in 1988 and boosted their presence in the grocery market with the launch of Neighborhood Market in 1998.  I honestly don’t know the back story, but hmm … that starting date is very coincidental. 

The fresh produce section of your local grocery store has gone through a pretty incredible transformation in the past 25 years.  In the old days the most exotic thing we could get were bananas, and sometimes supply was a little sketchy.  Sure, seasonal fruits and vegetables were available, but the seasons were very short.  Today, we have fruits and vegetables from all over the world with the biggest transformation in a supply chain of produce from Latin America and South America.  We can now get grapes and berries any time of the year, with very extended seasons for almost everything else along with a vast array of other regional and ethnic specialties. 

What Makes the PLU Label so Important? 

The PLU not only exactly identifies the produce with a human readable number, but there is a special barcode and a lot of information on the label.  Sure, the number identifies the specific type of apple (in case you’re wondering, there are 208 individual PLU code numbers for apples alone), but if the number is 5 digits and starts with ‘9’, then it is an organic apple and an ‘8’ indicates genetically modified produce … who knew?   

So how does all this tie together?  The short answer is that the PLU code label provides granular and timely information to the grocer that drives supply chain efficiencies.  The simplest benefit for the grocer is accurately charging the consumer.  There is now so much efficiency and information in the system that the grocer can offer a huge variety of products and bring them in just-in-time (JIT); they know what sells and what doesn’t.  The grocery check-out system provides pull through information to the supply chain to generate automated JIT re-supply from a central warehouse with minimal loss to ensure my local market will have fresh stock.

The PLU code label is just the visible component of this huge change in supply chain prowess; increases in computer processing power, broadband connectivity and let’s not forget to give a nod to the chemists.  Scientists have been tinkering for years with the chemical cues that ripen and delay ripening using ethylene gas and other molecules.  The modern day supply chain consists of many impressive elements, especially the packing & ripening warehouses that tailor the exact amount of ripening agent to certain varieties of produce just prior to shipping to the grocer.

I am not entirely sure how those labels are applied, but that is an operation I would very much like to tour.  Although I don’t like the inconvenience of peeling the PLU label off prior to use, I most definitely like the variety in my local grocery store.  

So what is hampering the laser etching technology from being implemented in some categories of the produce marketplace?  I imagine thin skinned products like plums or nectarines might be an issue, but think what about bananas and melons?  Perhaps this laser technology can even add local grower information alongside the standard PLU data to influence consumers to pick a farmer branded produce

. By Eric Carlson, CPP - @EricPkg

Pic from http://modernfarmer.com/2013/06/will-laser-tattoos-replace-sticky-labels/




Eric Carlson is a Senior Packaging Engineer on the Chainalytics Packaging Optimization team. His track record of success ranges from developing packaging solutions for high cost and complex systems to implementing net cost savings through supply chain damage reduction. 

Product Packaging Strategies to Maximize Profitability

by Kyle Ous
@PKGPlaymaker
Chainalytics

When it comes to designing products for the marketplace, it seems there are countless tasks to complete before products are introduced and available on the retail shelves. While speed to market is important, packaging design is a critical component to the overall profitability of the product and is important to evaluate before entering the marketplace. Does this mean companies need to follow a rigorous packaging engineering design process and justify each added cost?

Companies that are best in class are doing iterative package design analysis and testing before phasing in new packaging. Although this is an involved process, this task prepares the packaged product for distribution year-over-year and enables companies for future growth within their categories.

Profit margin is a key metric for success. As it relates to packaging, there are a handful of ways to maximize this metric. It is important to understand the supply chain channels that your customers are using to buy their new products. Online retail sales are a growing channel and seem to be a popular buying experience across many demographics.

Keurig 2.0 On Shelf Retail Package for Consumers

Keurig 2.0 coffee maker systems are using customized packaging strategies for different supply chain channels through to the customer. Out of the box, Keurig utilizes high-end lithographic labels with an integrated carrying handle for sales at the retail shelf. Although the packaging is more expensive, it tends to differentiate from other products on shelf and offers enhanced customer experience in the final mile. Contrary to popular belief, the same packaging does not need to be used for online sales or replacement parts that are sent directly to the consumer. Kraft corrugated with direct print on the outside of the shipper box is a cost effective alternative to retail packaging. Typically a 15-30% cost-take-out can be achieved in this simple, yet operationally challenging opportunity.

Online direct to customer packaging of similar product

Companies that utilize best-in-class packaging strategies are continuously analyzing different ways to maximize profit margin. One simple truth behind packaging is the most successful design concepts plan for transportation efficiency and minimize the amount of packaging related damage through package testing. Inside the box, Keurig uses an engineered cushioning design made out of molded pulp for the Keurig 2.0 system. In this example, retail sales and online sales use the same style and type of cushioning to protect the product. While the supply chains are different, the performance of the cushion was likely tested for both shipping environments. 

If you are looking to become ‘best-in-class’ in your category, packaging strategy and alternatives are a ‘must-have’ on your packaging design check sheet. Feel free to reach out to kyle.ous@chainalytics.com if you’d like to sound out alternatives and logical steps in your design process with our Packaging Consulting Services at Chainalytics.