Stefan Kunzmann Sales, Marketing and Innovation Director DS Smith The e-commerce supply cycle with its up to 50 touch points holds a wide range of risks and challenges. Smart packaging solutions that meet these challenges are key to success in e-commerce. Stefan Kunzmann presents insights and innovative solutions that deliver results to e-retailers: more efficient processes, lower costs and enthusiastic shoppers.

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E-Commerce:
From challenge to opportunity

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European market overview
421mn people
are e-shoppers
4.8bn+
parcels sent
61%
Source: Ecommerce Foundation, Report 2017

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e-commerce
packaging

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The basics

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20% - 30% of items
shipped are returned!
Up to 70% in fashion e-retail
Optimization leads to
40% of cost reduction
in transportation
On avg. 55% of
each box is empty
What are the challenges?
Costs structure per shipment:
Labour
Transportation
Material costs (box+void fill)
55% 40% 55%70%

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41% contained too much
packaging material that
would need to be disposed
of or recycled, but only
53% of the packs assessed
used packaging materials
that were fully recyclable

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30% of the packages
received had been sent in
pack sizes that were either
too big or too small.
10% of the packages tested
were actually damaged

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24% of the packages
assessed were found to be
difficult to open, with
assessors often having to
resort to scissors and knives
to access the contents

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55% of packages had no
information on how to return
the item and the packaging
was not reusable

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61% of the packs had no
branding (inside or out)
and 55% did not reflect the
image of the brand

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Five Easy’s of E-Commerce packaging
Easy to source Easy to pack Easy to ship Easy for consumer Easy to recycle
Delights Customers and Consumers

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E-Commerce specific packaging design
process
for OPTIMUM supply cycle
performance based
packaging specifications

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Conveyor & transit
Movement in transit
Handling & Final Mile
Storage
Handling

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Why do you pay to transport air ?
€4bn
Transportation cost
reduction/void-fill elimination
brings a €4bn savings
opportunity for western
European
e-commerce businesses
Source: Amazon webinar- Packaging for Amazon fulfilment, 2016

16. OUR PROPOSITION
Automated Solution
Right sized packaging
Box on demand
CHALLENGE
Reduce shipping and
void fill costs whilst
reducing risk of damage
OUR TARGET
To provide our customers
with right size
Packaging - on demand
What are the challenges?

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- concept
The process of converting corrugated
blanks into right–size boxes:
Cardboard is erected, filled, closed and
labelled in a single process
Single and multi shipments
~10 million different box sizes
Patented process and box design
Improves operational efficiency,
eliminates void fill & lowers
transportation costs

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What are the key benefits?
• Cover full range of boxes
• Easy to pack single + multi-orders due to efficient fill
process without pre-work for bundling
• Adaptable consumable quality
• Minimal waste generation (average 20%) vs fanfold
or sheet application
• A single point of contact for machine + corrugate
supply

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Designing for people

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The power of social media

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Consumer experience

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Opportunity to create brand value
Makes the brand seem premium
Gets more excited about
receiving/opening the package
Reinforces that the product is
worth the cost
Reinforces that the brand is for
people like me
Other
How does the packaging affect your perception of the brand?
Sources: www.keenpac.com/how-packaging-impacts-brand-perception-in-e-commerce-2

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Creating a seamless experience: from ordering to opening

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Expressing the promise of the brand

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Brand experience & “wow” effect

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Creating a layered discovery

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Omni-Channel Packaging
Omni-channel
TRADITIONAL E-COMMERCE MULTICHANNEL OMNICHANNEL
The good, old-fashioned
bricks and mortar store
Online shopping has
skyrocketed in recent
years
Various, disconnected
channels for customers to
use independently
An integrated, seamless
experience across
multiple devices and
touchpoints
Yesterday today by 2021

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From retail to e-tail: the omni-channel pack
Ready for
In-store
transition
Ready for
e-com

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Future outlook

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Last mile: key driver for innovative packaging
App pick and collect Robovan Drones
Amazon Flex
Autonomous delivery
robot
Shoppers’ trunks
Lockbox Grocery autonomous
vehicle
Self-driving robot

31. Merci
Grazie
Danke
Gracias
Tack
Tak
Köszönöm
Dziękuję
Děkuji
Kiitos
Dank je
Thank You
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