Certain packaging materials, such as display pallets, serve a double function: they help carry merchandize from a central pooling warehouse to the store and serve as in-store marketing materials for the optimal presentation of products. This match between functionality and design helps companies save money. Some of these are still spending logistics budgets both on packaging and marketing display materials. In this case study, we will discuss exactly one such case.
A Beverage Pooling Company with An Expensive Problem
The beverage market is one with the highest levels of competition. International corporations and local companies are battling for market share and the battle involves complex and expensive marketing strategies.
An European beverage pooling company was taking the full brunt of this marketing battle and decided that they needed to make a change in their approach to packaging and retail display. They contacted Logistic Packaging requiring an evaluation of their current batch of packaging materials and suggestions for improvement.
Our packaging experts visited the pooling warehouse and noted the sturdy closed deck pallets, worn from over-use, and the stacks of frail display packaging which needed continuous replacement. It was clear that this customer needed a brand new batch of pallets and a solution to stop the continuous expenses with display packaging.
Understanding the Customer’s Needs Is the First Step Towards the Right Solution
After visiting the premises, our consultants had an in depth discussion with the logistics manager of the company. Their key problem was finding a packaging solution which offers stability to the bottles and cans of beverages during transport and also doubles as a display solution in stores.
The current batch of pallets was just beyond its useful life, and the particular model could not be displayed in stores. The display materials they were currently using were made of cardboard, easily damaged by accidental spillage and not stable enough to be loaded with the products in the warehouse and then transported to the store.
Although one of the key requirements for the new packaging solution was the design, the logistic manager also insisted on the loading capacities of 1000 kg static and 500 kg dynamic, the requirements for handling the loaded pallets with forklift trucks and in-store hand trucks.
Armed with these data, the Logistic Packaging experts had their solution ready.
Customized Display Pallets – A Reliable Choice for The Customer’s Problem
Display pallets are a specific range of plastic pallets. They are not as sturdy as closed deck pallets for long distance transport, but they have a polished design which makes them adequate for displaying merchandize in store
The display pallets model we recommended our customer fits their technical requirements to the letter:
- they have a static load of 1000 kg and a dynamic load of 500 kg;
- they are provided with 6 feet, facilitating handling by forklifts and hand trucks;
- the stack/nest design allows loaded pallets to be placed one on top the other in store, and saves space for the storage of empty pallets.
Taking into consideration the customer’s requirement for increased friction to keep the beverage stable during transport, we equipped each of the display pallets with custom made anti-slip mats. These accessories provide excellent grip to smooth surfaces, such as shrink wrapped bottles and prevent them for slipping and toppling during handling and transport.
A Happy End for a Dire Situation
Before contacting our company, the beverage distributor was right to be worried about the state of their market and financial position: the ongoing expenses with display packaging were reflected in their service prices and even loyal customers started expressing their concerns. With so many competitors in their industry, our customer was on the brink of losing their market share and a sizable percentage of their revenues.
The decision to switch to display pallets with anti-slip mats meant a significant investment. However, it was a one-time cost, compared to the continuous expenses they used to incur. The new packaging solution replaces both the transport and in-store packaging materials they used before and will serve the customer for a long period of time, allowing them to get a full return on investment.
As we are speaking, the display pallets are fully implemented in the beverage pooling process, and our customer is able to renegotiate prices with their customers, offering them more attractive deals.