CPG Companies Contend with Complicated Logistic
by Ken Allen, on February 6, 2017
CPG companies need to invest in better labels, including RFID technology.
In recent years, a big change that has impacted the consumer packaged goods industry has been the slow shift from physical retail to online sales. For some time, most consumers preferred to buy these items in stores, largely for convenience. But thanks to new retailer initiatives - such as Amazon's subscription programs - online sales of CPGs have increased. In fact, Ad Age reported last year that they increased by 42 percent in 2015.
This presents new opportunities for CPG companies, but also difficult challenges. Food Business News pointed out that manufacturers are now making products for both in-store and online sales, and supply chains are struggling with the varied demands of both platforms. Without the ability to closely track products, some are reaching customers in a damaged state.
"Manufacturers are now producing products for both in-store and online sales."
"They've got web sites consumers can go to and buy a bag of chips and a six pack of Coke," Jorge Izquierdo, vice president of market development for the Packaging Machinery Manufacturers Institute, told the news source. "If the condition of those products when they reach the consumer is bad it may reflect badly on the on-line seller, but it also may impact the consumer's perception of the brand."
He added that CPG companies need to invest in better labels, including RFID technology. These types of labels in particular make it easier for automated scanners to identify products and see that they are properly distributed.
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