Federal regulations and evolving consumer tastes are driving food manufacturers to continuously update their product packaging. One manufacturer enlisted the help of Chainalytics’ packaging consultants to successfully rebrand more than 200 SKUs and roll out new packaging with minimal waste.
Companies are constantly updating their product packaging to respond to ever-changing customer tastes, regulations, and market trends. New FDA regulations require more clear nutritional information for consumers. Single-use product bans are driving package redesign to adhere to tighter restrictions. More than ever, product personalization and SKU explosion require that a product’s packaging attracts attention on a retail shelf. Demand for natural, organic, and healthier products requires packaging to align with socially responsible values. Even further, new business drivers like home delivery services challenge companies to rethink packaging to ensure product freshness to a consumer’s door. As companies address these issues and align their branding with corporate sustainability goals, they are faced with more package decisions than ever before.
Tackling the challenge of rebranding
Chainalytics understands that a fresh package design, when done correctly, will not only help a company sell more products, but can also ensure the customer’s expectations of undamaged, cost-effective, and socially responsible needs are met.
Chainalytics recently helped one such company address these issues. A home delivery company, faced with new FDA labeling standards, growing corporate sustainability goals, and a brand refresh campaign embarked on a corporate strategy to update its packaging. The company internally manufactures food products but also partners with more than 60 third party, specialty food vendors that coproduce items to the food manufacturer’s standards. With hundreds of SKUs across this expansive partner network, the company’s current product packaging lacked consistency and resulted in discordant branding. The overhaul aimed to create brand consistency so customers would recognize the package and know it contained the same high-quality food standards they had grown accustomed to. To succeed, a rebranding effort would require significant synchronization across this immense network.
Chainalytics understands that a fresh package design, when done correctly, will not only help a company sell more products, but can also ensure the customer’s expectations of undamaged, cost-effective, and socially responsible needs are met.
Having worked with Chainalytics for several years on a variety of packaging optimization and engineering-related packaging strategies, the company chose to once again partner with Chainalytics to overhaul the packaging of more than 200 SKUs. Rather than build a team internally, the company leveraged Chainalytics’ Managed Analytics Services (MAS) partnering model for strategic sourcing, inventory management, and packaging engineering support. Our managed services model combined the client’s expertise with our domain knowledge and best-in-class technology capabilities to create the ideal plan for them.
Managed services bridge the gap
A driving factor of the rebranding campaign was to create packaging consistency. This required each supplier partner to use packaging with a consistent look and feel, regardless of the item being packed. The packaging requirements needed to consider manufacturing productivity of both automated and hand-packed items, as well as function for retail and home delivery use. Our team worked with the client to consider packaging options that would adhere to product quality standards while considering package durability and ease of use. As new product packaging options were being considered, Chainalytics helped the company to evaluate package and pallet load configurations to optimize transportation and fulfillment costs as well. Once these package decisions were made, the client needed a process to create and adhere to current and future packaging standards.
After meeting the rebranding goals, the company wanted a seamless transition from outdated to refreshed packaging. As new packaging designs became available, the company hoped to convert each SKU without impacting the customer experience. This further required each individual SKU’s package to be optimized to avoid writing off obsolete packaging waste.
Our methodology
Providing expert talent, proven methodologies, and investment-grade modeling tools, Chainalytics’ MAS model allows each client to better execute packaging decisions and manage packaging changeover. Our team of Certified Packaging Professionals supports product development through all phases of the changeover process. Using our unbiased approach, we identify the optimal package design and appropriate package sources to align with distribution, packaging quality, and brand requirements. By evaluating packaging designs and materials, we create solutions that are innovative, sustainable, and cost-effective.
Additionally, our New Product Launch Support service closely evaluates packaging equipment and capital expenditures associated with operational needs. We provide implementation and change management to navigate product launches and efficiency innovations. Once the right long-term packaging sources are determined, we work with our clients to ensure supplier implementation and first article inspections are properly managed.
Managing beyond the redesign
Chainalytics worked with key stakeholders, teammates, and supplier partners to understand the company’s manufacturing challenges and create a versatile packaging strategy that increased brand awareness, minimized waste, and reduced the impact on the changeover. Several packages were updated from corrugated to paperboard, a thinner material allowing for increased shipping efficiency. Other packages were reconfigured and resized to increase shipping efficiency too.
Once the redesign occurred, we helped our client manage the rebrand rollout to its vast network of supplier partners. MAS bridged the gap between their internal engineering resources and the needs of this project. Since each package had minimum order requirements, our managed service continuously monitored inventory and introduced new packaging at the optimal time, avoiding outdated material reorders. Our process also maintained brand consistency by avoiding shipping old and new packaging together. By rolling out new designs over time, the client reduced their outdated packaging waste by over 90%. Over the course of the rollout, the company improved supplier relations with partner engineers and gained more attention for slower-moving SKUs.
As the initial project wrapped up, we developed and documented packaging specifications for each item to create consistency for future product launches or modifications. We also worked with the client to establish a smooth transition to internal personnel for continued support.
With the help of Chainalytics, this company was able to seamlessly bridge the gap between resource needs and availability, and continue a successful transition. This manufacturer is now looking forward to the benefits their rebranding campaign will provide as a result of having engaged with Chainalytics’ Packaging Optimization team. To learn more about how Chainalytics can maximize the value of your critical business decisions, Contact Us.
