{"id":10302,"date":"2020-02-28T08:05:12","date_gmt":"2020-02-28T14:05:12","guid":{"rendered":"https:\/\/www.ulprospector.com\/knowledge\/?p=10302"},"modified":"2020-03-13T08:13:23","modified_gmt":"2020-03-13T14:13:23","slug":"pe-packaging-gets-smart-as-cpgs-adopt-new-approaches","status":"publish","type":"post","link":"https:\/\/ulprospector.ul.com\/10302\/pe-packaging-gets-smart-as-cpgs-adopt-new-approaches\/","title":{"rendered":"Packaging gets smart as CPGs adopt new approaches"},"content":{"rendered":"
\"Jabil
Jabil developed this package for Reckitt Benckiser\u2019s Finish-brand dishwasher tabs. The consumer keeps and reuses the black, durable, plastics tub, which contains a sensor in the hinged lid that monitors the amount of product that remains, and signals when it runs low. Refills with more tabs ship in the lightweight tub (in the foreground) that drops easily into the durable tub. Photo by Robert Grace.<\/figcaption><\/figure>\n

It’s a whole new ballgame in the consumer packaged goods (CPG) arena. With the rise of the so-called \u201cconnected home,\u201d a heightened emphasis on sustainability, and an evolution in how people shop and buy their products, brand owners are needing to completely re-evaluate how they design the packaging for products.<\/p>\n

Jabil Packaging Solutions is one of the firms at the forefront of this effort. A unit of contract manufacturing giant Jabil Inc., JPS has the advantage of being able to leverage the design, electronics and plastics molding expertise of its Saint Petersburg, Fla.-based parent, which employs more than 200,000 people at 100 sites worldwide.<\/p>\n

In a Jan. 8 interview at the huge CES 2020 consumer technology show in Las Vegas, JPS leaders provided a progress report on some of their latest smart packaging initiatives. In a private suite on the 30th<\/sup> floor of The Venetian Hotel, Brenda Chamulak, Joe Stodola and Dr. Amanda Williams were among those on hand.<\/p>\n

They showcased a number of examples of JPS\u2019 three-pronged strategy, which it defines as Core, Device and Digital. The Core category, explained Stodola, chief commercial officer and vice president of the JPS global business unit, is essentially the business of former custom molder Nypro Inc., which Jabil bought in 2013. That unit focuses on manufacturing rigid packaging products, said Stodola, who previously worked for Nypro.<\/p>\n

The Device and Digital categories view packaging through the lens of their contract manufacturing parent, leveraging sensor and electronics technology to help measure use of the products in question and with auto-replenishment of those supplies. Additionally, he said, \u201cSustainability has to be built into the entire purchase solution for packaging.\u201d<\/p>\n

\"Jabil
Joe Stodola and Brenda Chamulak, pictured here in their corporate suite at CES 2020, are plotting the Jabil Packaging Solutions strategy that aims to help brand owners adapt to the changing retail climate. Simplifying consumer product auto-replenishment and helping CPGs to build brand loyalty are high priorities. Photo by Robert Grace.<\/figcaption><\/figure>\n

Chamulak joined Jabil Packaging Solutions as its president and CEO in August 2018 after more than eight years at packaging giant AptarGroup Inc., where she most recently had served as president of global market development for Aptar Beauty + Home. She said Jabil approached her because it lacked the kinds of relationships with CPGs that were needed to serve this packaging sector, which was fairly new to Jabil.<\/p>\n

CPGs previously monitored store shelves to assess product sales and popularity. \u201cThe development cycle for new CPG products is typically 18 to 36 months, and it\u2019s super capital-intensive,\u201d Chamulak said. \u201cSo in the past, these companies could always anticipate when a new competitor was coming in, and they could pre-empt that. Also, they communicated with consumers through television ads.\u201d<\/p>\n

The internet, and the rise of e-commerce, has changed all that. Now, she said, \u201cCPGs are losing customers, and they don\u2019t even know who they\u2019re losing them to.\u201d That makes it a priority for CPGs to find new ways to enhance brand loyalty among an increasingly fickle base of consumers.<\/p>\n

Why, as a consumer, do you buy from Amazon?, she asks. \u201cWell, it\u2019s choice, it\u2019s best price, it\u2019s speed. This has changed the scope of how CPGs interact with consumers, and what they need help with.\u201d Out of that was born the Jabil Packaging Solutions strategy, which aims to assist CPGs by taking a different\u00a0 approach.<\/p>\n

\u201cIn our case,\u201d Chamulak says, \u201cthe device is the means to selling more of the product for the CPGs. The device is the way to lock in the loyalty in a lot of cases. So, in our world, the device is often the package.\u201d<\/p>\n

In its CES suite JPS was displaying packaging solutions for various products, including dishwasher tablets, baby formula, coffee and even M&M candies. The first two of those were for U.K.-based Reckitt Benckiser LLC. Reckitt\u2019s Finish\u00ae is the world\u2019s largest brand for automatic dishwasher products, and the company acquired the Enfamil\u00ae baby food brand via its 2017 acquisition of Chicago-based Mead Johnson Nutrition Co.<\/p>\n

\"Jabil
Photo by Jabil Packaging Solutions.<\/figcaption><\/figure>\n

Jabil developed a durable plastic tub (i.e., the device) into which a drops a lightweight, replaceable tub that would hold the product.<\/p>\n

\u201cThis insert,\u201d explained Stodola, \u201cis the shippable, e-commerce-able, sustainable solution. You\u2019re getting away from having to be pretty on the shelf. It just has to be functional.\u201d<\/p>\n

Dr. Amanda Williams, JPS\u2019 smart packaging lead, said, \u201cWe tried to take a platform approach to auto-replenishment. We\u2019ve tried to create modular solutions that work really well for common product form factors.\u201d<\/p>\n

The different examples on display at CES all use basically the same sensor board, she said. The sensor can take the form of a puck that\u2019s placed into a container, or it can be embedded into the lid. The sensors run on very low power, so that one AA battery will last about a year. Jabil also can push software updates to the product\u2019s firmware remotely.<\/p>\n

The sensor measures the distance from the sensor in the lid to the top of the product in the container below. When the container is just 20 percent full, it triggers a refill notice to a smartphone app used by the consumer (who can choose to reset the that trigger level in the app\u2019s settings, if desired). In a variation on that theme, the Enfamil powder formula\u2019s package is based on weight sensing, rather than on volume.<\/p>\n

Jabil designed an app dashboard, which can be used to provide feedback on a daily basis to the brand owner. \u201cIt can provide use data in the aggregate,\u201d noted Williams. If the brand owner notices, for example, that a certain group of customers is using its product less, then it can opt to send them a discount code or a recipe.<\/p>\n

Brands are interested in aggregate data, not about individuals\u2019 use patterns, she stressed. They may care about trends by region or by type of user group (e.g., people with 6-month-old babies use it this way, and people with 10-month-old babies use it that way). That\u2019s the kind of data that brand owners find most useful.<\/p>\n

Still, one could imagine there might be privacy concerns.<\/p>\n

\u201cWe\u2019ve been working very closely with our privacy lawyers,\u201d Williams said, \u201cto ensure that we are in full compliance with GDPR [General Data Protection Regulations], \u201cand that what we are doing is kosher.\u201d Additionally, said Chamulak, a sister unit, Jabil Healthcare, is \u201cpioneering the right way to go about this,\u201d and Jabil Packaging is benefiting from their knowledge.<\/p>\n

And, they noted, consumers can always choose whether to participate or not. Jabil so far is finding that as long as the consumer perceives a benefit to them, they tend to be open to participating.<\/p>\n

\"Jabil
Photo by Jabil Packaging Solutions.<\/figcaption><\/figure>\n

Williams says a key benefit of this system involves simplifying the process of subscription management and product auto-replenishment. She terms the act of having to keep track of one\u2019s product auto-subscriptions as \u201ccognitive overhead,\u201d meaning that someone needs to stay on top of these refills if they are calendar-driven, rather than sensor-driven.<\/p>\n

\u201cSomeone in the household has to think about a lot of stuff that is not gratifying or satisfying,\u201d she said. \u201cYou get in trouble if it goes wrong, but it\u2019s invisible if it goes right.\u201d By only reordering product when it is needed, one avoids over-ordering and generating additional waste.<\/p>\n

\u201cWe integrate with Amazon\u2019s Dash Replenishment Service,\u201d she said, \u201cbut we also can work with various fulfillment providers.\u201d<\/p>\n

Chamulak acknowledged that this type of approach is only suitable for certain types of products. There are particular items and brands that consumers know and like, and never want to run out of, such as laundry detergent or baby formula. But there are other products, such as shampoo, perhaps, that one prefers not to be locked into, so that they can try different brands.<\/p>\n

Jabil also worked with Atlanta-based pulp and paper giant Georgia-Pacific LLC on a paper towel dispenser. \u201cWe used an existing product, using their sensors, to integrate their device with our cloud platform. In a few weeks, we were able to integrate it into our dashboard.\u201d<\/p>\n

Not having to worry about a package\u2019s presence on a store shelf allows package designers and manufacturers such as Jabil to focus on taking weight out of the rigid package and on maximizing sustainability via reusability and recyclability.<\/p>\n

Chamulak says her firm can make durable devices and refill packages out of polypropylene or polyethylene, or basically out of whatever material the client dictates. They then can focus on ensuring that the package\u2019s label is made of a compatible resin, so that the resulting mono-material solution is easily recyclable. Jabil also is striving to incorporate as much post-consumer recycled resin as possible into their packages.<\/p>\n

To that end, Jabil Packaging last summer also introduced a new Sustainable Packaging Solutions program that is designed to help deliver new formats to the market quickly. By doing a life-cycle analysis and considering such factors as end-of-life disposal options during the package\u2019s design phase, the company\u2019s goal is to help steer customers to making optimal material selection decisions.<\/p>\n

Resources:<\/h3>\n

Jabil Packaging Solutions: www.jabil.com\/industries\/packaged-goods.html<\/a><\/p>\n

Jabil Packaging Solutions\u2019 smart packaging approach [VIDEO]: https:\/\/jabil.wistia.com\/medias\/im3ns5yho8<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

It’s a whole new ballgame in the consumer packaged goods (CPG) arena. With the rise of the so-called \u201cconnected home,\u201d a heightened emphasis on sustainability, and an evolution in how people shop and buy their products, brand owners are needing … Continued<\/a><\/p>\n","protected":false},"author":23,"featured_media":10309,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"episode_type":"","audio_file":"","podmotor_file_id":"","podmotor_episode_id":"","cover_image":"","cover_image_id":"","duration":"","filesize":"","filesize_raw":"","date_recorded":"","explicit":"","block":"","itunes_episode_number":"","itunes_title":"","itunes_season_number":"","itunes_episode_type":"","footnotes":""},"categories":[21],"tags":[],"ppma_author":[1244],"class_list":{"0":"post-10302","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-plastics-2","8":"entry"},"yoast_head":"\nPackaging gets smart as CPGs adopt new approaches<\/title>\n<meta name=\"description\" content=\"With the rise of the \u201cconnected home\u201d and a heightened emphasis on sustainability, brand owners need to completely re-evaluate packaging designs.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ulprospector.ul.com\/10302\/pe-packaging-gets-smart-as-cpgs-adopt-new-approaches\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Packaging gets smart as CPGs adopt new approaches\" \/>\n<meta property=\"og:description\" content=\"With the rise of the \u201cconnected home\u201d and a heightened emphasis on sustainability, brand owners need to completely re-evaluate packaging designs. 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He has broad global experience and for more than 35 years has worked as a journalist, editor-in-chief, publishing executive and key connector of like-minded parties. He has launched successful publications and C-level events on three continents. While with Crain Communications Inc., he oversaw the relaunch of the 100-year-old European Rubber Journal in London and helped to start Urethanes Technology magazine there. \u00a0In 1988 Bob returned to Akron, Ohio, to serve as founding editor of Plastics News, an award-winning, weekly business newspaper. In 2005 he oversaw the editorial launch of the bilingual (Chinese and English) PN China e-newsletter and website. For more than a decade at PN he also held the titles of associate publisher, editorial director and conference director, and most recently served as business development director. A long-time affiliate member of the Industrial Designers Society of America, Bob has organized numerous design-focused events, earned a Personal Recognition Award from IDSA in 2013, and constantly strives to help bridge the gap between the design and manufacturing communities. In 2014 he left Crain and created RC Grace LLC in Akron, Ohio, as a consultancy that aims to help companies to enhance their branding and market presence, find business partners, connect with design resources (here or in Asia), secure funding and advance their growth initiatives. 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He has broad global experience and for more than 35 years has worked as a journalist, editor-in-chief, publishing executive and key connector of like-minded parties. He has launched successful publications and C-level events on three continents. While with Crain Communications Inc., he oversaw the relaunch of the 100-year-old European Rubber Journal in London and helped to start Urethanes Technology magazine there. \u00a0In 1988 Bob returned to Akron, Ohio, to serve as founding editor of Plastics News, an award-winning, weekly business newspaper. In 2005 he oversaw the editorial launch of the bilingual (Chinese and English) PN China e-newsletter and website. For more than a decade at PN he also held the titles of associate publisher, editorial director and conference director, and most recently served as business development director. A long-time affiliate member of the Industrial Designers Society of America, Bob has organized numerous design-focused events, earned a Personal Recognition Award from IDSA in 2013, and constantly strives to help bridge the gap between the design and manufacturing communities. In 2014 he left Crain and created RC Grace LLC in Akron, Ohio, as a consultancy that aims to help companies to enhance their branding and market presence, find business partners, connect with design resources (here or in Asia), secure funding and advance their growth initiatives. 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