Introduction
Successful collaboration between brand owners and packaging suppliers has been a challenge for many decades. Both parties have different objectives, priorities, and approaches, which can create barriers to creating effective solutions and better business outcomes. However, with the right collaboration tools and processes, both parties can work together to bring innovation, new ideas, and solutions to the market. PTIS has documented and implemented over 25 tools and processes for brand owners and packaging suppliers to collaborate effectively and achieve the greatest business results. Third party resources are often needed to assure unbiased prioritization of ideas, as well as recognizing we are all trying to do more with less, and contracting this specialized work takes time. Here are some examples, worth considering as we start 2024!
Select suppliers with a history of innovation
When choosing packaging suppliers, it’s essential to look for companies with a history of innovation. These suppliers can bring new ideas, approaches, and technologies to the table that can help improve your products’ performance and marketability. Whether you’re working with incumbents or new suppliers, selecting companies that have a proven track record of innovation can help create a strong partnership.
Scan and monitor new technology of suppliers’ suppliers
To create effective packaging solutions, it’s important to look beyond your suppliers and scan their suppliers’ new technologies. This approach helps identify new trends, opportunities, and threats that may impact your business. By staying up to date with the latest developments in the industry, both parties can collaborate to create innovative and effective solutions.
Set up long-term supplier research programs
Long-term research programs are an excellent way to encourage innovation and collaboration between brand owners and packaging suppliers. These programs help set well-defined, focused objectives driven by the business, such as procurement, supply chain, product development, and others. To set up a long-term research program, both parties must work together to define the goals, objectives, and resources needed to achieve success.
Make long term research program a requirement for all key suppliers
To make these research programs successful, it’s essential to make them a requirement for all key suppliers. This approach ensures that all suppliers are focused on your key business priorities to achieve shared goals and objectives. Additionally, request suppliers to evaluate appropriate new technologies as part of the program.
Ensure organizations are set up for collaboration
Successful collaboration requires a set-up of organizations that are focused on establishing and fostering relationships between brand owners and packaging suppliers. Ensure that both parties have dedicated teams and processes to help overcome any obstacles that may arise and help create a productive and successful partnership.
When it comes to developing innovative packaging solutions, brand owners must be prepared to pay more. Suppliers who invest in state-of-the-art equipment, research, and development are more likely to deliver innovation. However, relying on just the suppliers’ reputation for innovation could sometimes be risky. Therefore, another best practice is to conduct due diligence and check out supplier claims of innovation before finalizing a contract.
Another thing that brand owners need to be aware of is that suppliers are not always open to the idea of talking to raw material suppliers or other players in the value chain. Converters do not like brand owners talking to raw material suppliers, but it is vital that brand owners forge a relationship with them too. This can lead to a more collaborative process and development of new products and packaging solutions.
Measure Success
“What gets measured, gets done” – Peter Drucker
To measure progress on innovation, it is advisable to classify all new packages under development. This makes it easier to track and set goals for new product development. The five classifications to consider include: innovative, novel, new, follower, and common. By setting annual goals for each classification, the teams involved can track progress and make any necessary adjustments throughout the year.
To measure progress on innovation, classify all new packages under development as follows:
- Innovative – entirely new; the first individually wrapped cheese slice
- Novel – new to the industry; condiments in a toothpaste tube
- New – new to the category; individually wrapped bologna slices
- Follower – new to company y; PET bottle for salad dressing
- Common – copy of a currently used package
- Set annual goals for each of the top five classifications and track quarterly
- For individuals a goal can be set and traced to bring a number of new packages to the consumer test stage (business relevance)
- Try to have Brand / Marketing organization aligned and on similar goals
To measure progress on new technology assessment and implementation:
- Set and track individual and group annual goals of the number of new technologies to be assessed
- Set and track an annual goal of the number of new technologies implemented
It is important to note that the collaboration process should be aligned with the brand/marketing teams. Having everyone on the same page regarding goals and objectives can streamline the collaboration process and avoid misunderstandings. In particular, brand owners
must share their strategy with their packaging suppliers. A topline strategy is fine, but it is important to give specific guidelines and expectations. This way, the packaging suppliers can come up with packaging solutions that are aligned with the brand’s values and vision.
Conclusion
Collaboration between brand owners and packaging suppliers is critical to creating innovative, effective, and high-performance solutions in today’s competitive marketplace. Over the past three decades, PTIS has benchmarked and documented best practices for Brand Owners (CPGs, Private Brand Retailers, etc.) and Packaging Suppliers (Raw materials, converters, contract manufacturers, /OEMs/equipment manufacturers, etc.) when collaborating for greatest business results. Dozens of these have been documented and applied successfully by numerous leading companies. Now is a good time to meet with suppliers and encourage them to bring innovation, new ideas and solutions to your company – and for suppliers to challenge the thinking of your customers with new ideas. By following these best practices, both parties can work together to achieve business objectives and drive growth for individual companies and the industry as a whole. Here’s to the future!