1. E-Commerce Packaging East Pack 2017

2. Some Items you may know us by…
Sonoco Overview
Some Items you may know us by…
Display &
Sonoco is not a household name but we are in every household. Some of these examples on the table.
Sonoco Confidential, 2014

3. Sonoco Overview Protective Packaging Foam Components
Founded in 1899, Sonoco is an estimated $5.4 billion global provider of consumer packaging, industrial products, protective packaging, and packaging supply chain services.
SONOCO’S FOUR OPERATING SEGMENTS
Consumer Packaging
Industrial Converted
Packaging Services
Protective Solutions
Protective Packaging
Foam Components
Our broad manufacturing experience allows us to provide innovative solutions in a broad array of market segments
Thermal-Shipping Solutions
340+ Plants Globally

4. Adding value by providing total solutions!
Innovation
Protective Packaging
Components

5. How Is E-Commerce Affecting Packaging?
Sustainability: Reducing waste through the entire supply chain. Starting with product packaging, delivery methods, and customer satisfaction, all the way to recycling and/or recovery of packaging.

6. How is E-Commerce Affecting Packaging?
Remember when…. (1995)
Over-Packaging

7. How is E-Commerce Affecting Packaging?
And then……
Increased Value / Increase Fragility
Over Packaging
Protective Packaging

8. How is E-Commerce Affecting Packaging?
And now …
THE QUESTION NOW IS…
WHO ISN’T SELLING ONLINE AND SHIPPING DIRECT????

9. How is E-Commerce Affecting Packaging?
Retailers and Manufacturers now:
Ship by multiple methods (Dedicated Freight, LTL, Parcel, etc..)
Shipping pallet loads and single units
Ship through retail distribution and direct to customer
Have one package that works for all the different distribution methods.
Increased Value / Increase Fragility Increased Weight / Higher Complexity Lower Volumes / More SKUs

10. How is E-Commerce Affecting Packaging?
From a packaging manufacturer’s point of view, this is a collision of different objectives to try and meet the market needs.
E-commerce systems want:
Ability to ship single unit without damage
Ship by Parcel or LTL
Packaging that is more generic (no point of sale effect)
Minimum size and lightest weight to reduce shipping costs
Retail Store systems want:
Unit loads of product
Ship dedicated loads to warehouse and then mixed loads to retail
Graphics for in-store displays
Maximum pallet / container pack out to help reduce freight
And yes that is a toilet…
Businesses want:
One type of packaging for both
No damage for either system
Lowest cost
Less environmental footprint

11. So, we have created an imbalance…
Marketing / Business
Packaging / Manufacturing
Why to be selling through e-Commerce
1. Worldwide, ecommerce is expected to grow by as much as 13 to 25 percent.
2. The ability to earn as you sleep.
3. It's easy to get up and running.
4. Eighty percent of the web population has made a purchase online.
5. You can sell more to customers down the line.
Thomas Smale
Who wins or where is the balance?

12. How do we help resolve these conflicts?
Problem Analysis
Develop
Prototype
Evaluate
Document
Working with our customers..

13. Protective Solutions Independent Material Design
Problem Analysis
Develop
Prototype
Evaluate
Document
“Optimal design, made from different materials that meet the customer’s needs at the best possible system cost, while always considering the environmental impact”

14. Effective E- Commerce Packaging…
By designing for the total system and using the appropriate materials, we can help produce packaging that will:
Reducing over-packaging
Create the right size the package for your product and its shipping environment
Help reduce damage and the impact that damage has to your products, your brand and the environment.

15. Sink - Example Manufacturer of Cast Sinks Outline: Effect:
Problem Analysis
Develop
Prototype
Evaluate
Document
Manufacturer of Cast Sinks
Outline:
Original distribution and sales channel was through pallet loads to retail store – No Damage
Increased ordering through e-commerce and shipping direct to customer – High Damage
They want one package for all shipments
Effect:
Over 2+ years of packaging development and testing with over 3 packaging suppliers
Packaging went from 4 parts to 6 parts
Overall damage numbers have not improved
Now looking into secondary packaging
Customer quote “Not happy with the first one I got via internet order. The online company I used has initially given the impression that I could replace with the same product, change to a different sink or get a full refund. I'll try for a replacement but if something similar happens again, I'll have to rethink my sink choice…”

16. Let’s look at this by the numbers…
Real Cost Of Damage
Current level 6%
But ecommerce orders are increasing
Numbers are for example only and not reflective of actual sales or profits.

17. Coming Soon… Online Analysis Including: Real Damage Cost
Damage Sensitivity
Packaging Performance Impact
Environmental Impact
New Business Development
Marketing and Technology
Jim Lowry
Sonoco Protective Solutions
502 Brick Church Park Drive
Dock 20 (for shipping)
Nashville, TN 37207
Tel:
Mobile: