Retail Ready Packaging (RRP) has been on a roller coaster ride for the past several years.
On the one hand, retailers are pushing hard for smaller packaging (1/2 to 1 dozen each), preferably with standout graphics to lure the consumer. On the other hand, Consumer Packaged Goods Companies (CPG) are pushing back as they realize there might be a cost increase of as much as 20% for this new packaging material and the associated costs with modifying packaging equipment on the floor. Consequently, the U.S. is not moving ahead quite like Europe (Packworld article April, 2012). Still, major grocery retailers are insisting on innovation by the CPG’s. And, CPG’s are continuing to ask who is going to pay for their increased costs.
RRP benefits to the retailer are many – most importantly:
• Reduced potential for ergonomic and downtime injuries by handling the smaller RRP
• Less warehousing space required at the retail location
• In many instances these new RRPs eliminate the need for box cutters to get into the case, so the job is safer
CPG’s and Retailers must collaborate to bring to shelf RRP that:
• Is not too complicated to execute properly during shelf stocking
• Cost effective to produce, yet able to handle product movement during transit
• Be effective for the retailer’s selected floor space and movement to the checkout counter
Standard vs. Premium
Obviously, package design should be dictated by the type of product being packaged. A promotional line of canned good could go to retail in something as simple as shrink film around a designated quantity. On the other hand, a premium product may get the tray made of E-flute printed in three colors.
We can help.
As CPG’s struggle with this return on investment, Integrated RePack and Logistics can help. Before making costly changes in your production lines why not have IRL repackage your new RRP? This allows you to test the market without a huge capital outlay. We provide automated and hand packaging lines to prepare your RRP for market AND we do it at a fixed unit cost that won’t blow your budget.
Call anytime and we can show you how this has worked for Major CPG’s across the country.