Vendor Managed Inventory and the E-tail Delivery Race

With the continued competition retailers face because of online shopping, as well as the constant struggle to meet customers’ rising demands, the speed of delivery has become a key factor for success for many e-tailers. Drones, one-hour delivery, overnight delivery - these are all made possible thanks to vendor managed inventory and proper supply chain management.

Check out this great whitepaper featuring recent research done by Cognizant. This study found that nearly 24% of customers shopping online think that same-day shipping is important, and for most respondents, delivery time and cost ranked as a four on a scale of 1-5 with regard to the decision to purchase.

Check out the full whitepaper here.

As more and more shoppers head online to make their purchases, the expectations change compared to selling on the store floor. Now, instead of having to ensure shelves are stocked well (of course you still have to do this), if you offer online sales you now have to ensure that your own shelves are stocked - you can’t very well offer overnight delivery if the product is not available. However, this still remains one of the biggest stumbling blocks for retailers without the space to accommodate the sales.

The best way to combat these challenges is to start at the very beginning of the process design. Proper supply chain management, specifically vendor managed inventory, are key to this equation.

Want more on inventory management? Check out this video.

When searching out vendor managed inventory programs offered by suppliers, look for the ability to have product stored at the preprint or finished goods stage, as well as the ability to have it released on an “as needed” basis - this will really help with just-in-time delivery. Also look for a company that can offer you prescheduling to manage orders no matter the size. Keeping this inventory on hand, but offsite, allows you to be sure that the product is available on very short notice, but still remains cost effective by removing the need for increased overhead by reducing warehousing costs.

Don’t get stuck with floundering sales because you can’t meet customers’ demands. Keep your product on-hand, but offsite, always ready when you need it.

For more information on how a vendor inventory management system can help you compete in the e-tail delivery race, please contact Packaging Technologies Inc. today by calling 1-800-303-5883.

Goodbye Target: Customer Loyalty & The Retail Industry

By now we’ve all heard that Target in Canada was, essentially, a pipe-dream - one that sounded great for those with something to gain - and for those consumers looking for the same Target experience they received south of the border. But this was not meant to be, and, as Target formally announced in January, Canada will say goodbye.

When Target announced it would open stores in Canada, this was met with much fanfare - customer loyalty with this retail giant was strong - and Canadians couldn’t wait for the doors to open. So what happened?

Well, customer loyalty is a two-way street, and in this case, Target seemed to be slow on the uptake. After opening 133 stores across Canada, the reviews started to come out and they were less than stellar. One of the biggest problems - empty shelves. Supply chain issues may have been the problem, but when customers were entering the store but being greeted by empty aisles, many chose not to return.

Pricing was also an issue, and customers expecting competitive pricing were sorely disappointed, finding the Canadian version of the chic discount retailer far more expensive. Customer loyalty was also sorely tested last year with the data breach that saw 40 million customers’ information stolen.

But wait - it wasn’t just the regular operations that caused customer loyalty to be tested. Just a few weeks ago, during their “store closing” sales, customers were again treated to some less than expected results. Customers expecting big sales were sorely disappointed when they found the sales were not so much door-crashers as door-whispers: http://www.huffingtonpost.ca/2015/02/07/target-canada-liquidation-sale_n_6633616.html.

According to the Huffington Post, people turned up in droves, once again waiting in line for what was supposed to be the deal to end all - only to find that “sale” prices were actually no lower (or, in some cases, higher) than pre-sale, and again customer loyalty was severely strained as people flocked to social media to complain.

As a case study in customer loyalty, the example of the Canadian Target experiment says a great deal. Customers have expectations - based on previous experiences or thanks to standards set by the competition. In order to compete, these expectations need to be met or exceeded.  Although Target Canada was a great idea on paper, when it came to implementation, customers’ needs just didn’t seem to be a core concern.

For strategies and marketing tips to help build your own brand and customer loyalty, please contact Packaging Technologies Inc. today by calling 1-800-303-5883.

Intel 2015: Creative Packaging Makes an Impact

For all retailers, knowing what customers want is essential. We all know this. And yes, sometimes finding out exactly what a customer wants/needs is a challenge in itself - but it isn’t the only challenge. It isn’t so much what you know, but how you use it!

There are a number of ways that retail intelligence can be beneficial:

• Analyze store traffic
• Improve customer experience and build customer loyalty
• Personalize rewards and offers
• Understand buyer behaviour and preferences

For many retailers, understanding buyer behaviour and preferences is the key place to start.

For example, according to the 2014 POPAI Mass Merchant Shopper Engagement Study, over 80% of shopping decisions are made in-store. 80%! That means that people are routinely buying items based on what they see once they are in the aisle. So, how are you using this information?

What about making lists? The same study found that 47% of shoppers make mental lists, and 20% make either a written or a digital list, whereas 34% head to their local supermarket with no list at all! Again, this can also mean great opportunity to attract and entice.

Both of these stats, as powerful as they are, mean nothing if you are not using them. The potential here exists when you use this knowledge and apply it to your own marketing strategy.

Creative Packaging: when a customer heads to the shelf and sees 5 boxes of the same thing, but then one box that stands out, which box will their eye automatically turn to? Creative packaging continually proves to be a major player when it comes to buyer behaviour. The use of colour psychology to create an emotional connection and the use of sustainable packaging to show your concern for the environment are just two examples of the current trends that seem to be making a big impact.

Point of Purchase Displays: Since 82% of decisions are made in-store, why not take your piece of that pie with a POP display that really catches your target’s attention. The use of technology can also be great when it comes to eye-catching in-store displays - garnering not only attention but increasing engagement!

With such stiff competition in the CPG industry, making the most of retail intel can be tough. That being said, sometimes a few changes can make a world of difference. A new creative packaging strategy or POP display design might be just the ticket to capturing those big numbers.

For more about creative packaging that uses consumer data for real results please call Packaging Technologies Inc. today at 1-800-303-5883.

Beacon Technology Improves Retail Customer Engagement

In 2012, the ground-breaking Shopper Engagement Study done by POPAI found that 76% of shoppers’ purchase decisions are made in-store. 2014’s study found that this number increased to 82%! This means that your biggest opportunity to sell continues to come directly from your packaging and display marketing strategy.

Recognizing the role played by technology when it comes to customer engagement, many companies have developed various new methods to try and attract attention. One company has taken insight such as this and attempted to use it to their advantage using beacon technology.

House of Fraser, a retailer in the UK, announced back in August that it was going to start using beacon technology, in the form of beacon-equipped mannequins, in an attempt to further engage shoppers. Once a customer (with an enabled smartphone app) gets within 50 metres of a mannequin, a signal is sent via Bluetooth to that individual, providing them with details about the items on display.

House of Fraser isn’t the only retailer - Michael Kors and Waitrose also said they planned to introduce this technology, which has been celebrated for its many benefits. Not only can it provide a great source of communication between a retailer and a consumer, as well as providing additional means to purchase items, it can also provide that retailer with important data regarding shopping habits, etc.

However, this amazing technology is not without its pitfalls. Firstly, people need to have (as mentioned) an enabled app on their smartphone to receive and access these signals, and a fair majority are still unaware that this technology is being used. Secondly, one size does not fit all, and while some customers may be ok with downloading a unique app for each store, others will choose perhaps their top 5 and the others lose out to the competition.

Check out the full article here.

We have yet to see beacon technology spoken about in the CPG world. In the grocery industry specifically, mannequins may not make much sense, but interactive displays are no less useful! Thinking again about the POPAI results, and how many decisions are made on the store floor, integrating technology into your displays can be huge when it comes to customer engagement. Your marketing and packaging strategy should be taking this into consideration!

For more about how to use your packaging and displays to ramp up customer engagement please contact Packaging Technologies Inc. today at 1-800-303-5883.