Food companies constantly update their product packaging to respond to dynamic customer tastes, regulations and market trends. Along with that, new FDA regulations require more clear nutritional information for consumers and single-use product bans are driving package redesign to adhere to tighter restrictions.
For one food home delivery company, these factors drove an effort to rework product packaging. Not only does the company internally manufacture food products, but it also partners with more than 60 third-party specialty food vendors that co-produce items to the food manufacturer’s standards.
With that in mind, the company enlisted the help of NTT DATA’s packaging consultants to successfully rebrand more than 200 SKUs and roll out new designs with minimal waste.
Faced with new FDA labeling standards, growing corporate sustainability goals and a brand refresh campaign, the company embarked on a corporate strategy to update its packaging. With hundreds of SKUs across 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 were accustomed to. To succeed, a rebranding effort would require significant synchronization across an immense network.
Rather than build a team internally, the company leveraged NTT DATA’s Managed Analytics services (MAS) partnering model for strategic sourcing, inventory management and packaging engineering support. This managed services model combined the company’s expertise with NTT DATA’s domain knowledge and best-in-class technology capabilities to create the ideal plan.
- Makes a seamless transition from outdated to refreshed packaging
- Creates consistency and strategy for future product launches
- increases brand awareness, minimizes waste and saves money
Tackling the challenge of rebranding
Having worked with NTT DATA for several years on a variety of packaging optimization and engineering-related packaging strategies, the company chose to partner again with NTT DATA to overhaul the packaging of more than 200 SKUs.
Managed services bridge the gap
Packaging consistency was a driving factor of the rebranding campaign. This required each supplier partner to use packaging with a consistent look and feel, regardless of the item. 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. The teams considered 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, the teams evaluated package and pallet load configurations to optimize transportation and fulfillment costs. Once these package decisions were made, a process was created for 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 required each individual SKU’s package to be optimized to avoid writing off obsolete packaging waste.
Providing expert talent, proven methodologies and investment-grade modeling tools, NTT DATA’s managed analytics services model allowed the execution of packaging decisions and manage packaging changeover. Certified packaging professionals supported product development through all phases of the changeover process. Using an unbiased approach, the teams identified the optimal package design and appropriate package sources to align with distribution, packaging quality and brand requirements. Then they created innovative, sustainable and cost-effective solutions.
Additionally, new product launch support services closely evaluated packaging equipment and capital expenditures associated with operational needs. NTT DATA delivered implementation and change management to navigate product launches and efficiency innovations. Once the right long-term packaging sources are determined, the company could ensure supplier implementation and first article inspections are properly managed.
Managing beyond the redesign
NTT DATA 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.
After the redesign, the teams rebranded rollout to a vast network of supplier partners. MAS bridged the gap between the internal engineering resources and the needs of this project. Since each package had minimum order requirements, managed service continuously monitored inventory and introduced new packaging at the optimal time, avoiding outdated material reorders.
The process also maintained brand consistency by avoiding shipping old and new packaging together. By rolling out new designs over time, the client reduced its 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, packaging specifications were developed for each item to create consistency for future product launches or modifications. The company seamlessly bridged the gap between resource needs and availability and made a successful transition, and looks forward to the benefits a rebranding campaign.
About this case study
A home delivery company meets federal regulations while aligning its branding and corporate sustainability goals.