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How to minimise losses of a fulfillment operation

With UK web sales to overseas markets expected to hit £28bn in 2020 the pressure is intensifying for retailers to up their multichannel game. Whilst there is a lot of investment made in the digital technologies such as functionality and content investing in improving supply chain and fulfilment can quickly increase profitability. Managing a profitable fulfillment operation lies in how to scale for future growth. So, how do you minimise the losses and streamline fulfilment operations for growth? 

Protect your products - Warehouses are busy, dusty environments. Products can easily be damaged marked or torn and therefore cannot be sold. If these garments are accidently sent to customers, they can result in increase in returns and damage to brand reputation. Profit down the drain.

Design for speed - When it comes to picking and packing, speed and efficiency is key. Packing benches should be arranged so all packaging items can be easily reached to make packing fast and easy. Postal packaging should be well-fitting, durable and easy to erect.

Pack Smart -  When it comes to postal costs, keeping number of parcels and size of the parcel to a minimum is key. Investing in a larger postal packaging to allow for multi item packing can significantly reduce spend on postage plus increase customer satisfaction by all goods arriving together. 

Sustainability named top purchase criteria for packaging

CLOSED LOOP_4

An independent research study commissioned by the Steel Market Development Institute (SMDI), a business unit of the American Iron and Steel Institute (AISI), revealed 65% of decision makers at Fortune 500 consumer product companies view packaging sustainability as a high priority. The survey was conducted by MindClick in January and February and included packaging decision makers from major consumer packaged goods companies.

According to the research findings, the challenge for consumer products firms is the lack of meaningful information available to evaluate and compare the sustainability performance of competitive packaging materials. Packaging executives define sustainability as the way individual materials contribute to the environmental and social story of products and brands. Key contributors to determining sustainability include recycling and the energy required to transport, store, use and dispose of the packaging.  

Polythene is a flexible packaging material selected by many buyers as it is a sustainable, future proof substrate. Polythene after its first use, is to be recycled and preferably into a product that can be recycled again.  Duo has invested in a closed-loop recycling system which re-processes waste polythene back into its raw pellet form. This pellet is then used to produce new, polythene packaging products such as refuse sacks, mailing bags and film.

Click here for more information on closed loop recycling. 

SOURCE Steel Market Development Institute

How to set up a lean fulfilment operation

Conversion

When you set up an e-tail business, making sure your back of house operation is a smooth, well-oiled machine may not seem like the most obvious priority.

However, ironing out the wrinkles here can improve customer experience, boost repeat ordering and ultimately up your profit margins. The big retailers have been quick to realise this and we've advised many traditional retailers on how to hone their e-tail back of house operations to help them realise these benefits. Here are our top tips on how to run the most effective back of house operation for your online business:

Speed is king - consumers have high expectations when it comes to order fulfilment. Put simply, the quicker your turnaround and slicker your operation the more you will impress your customers. In this environment time is, quite literally money.

What have you got to lose? - The answer is a lot. Back of house environments tend to be busy, dusty and generally unsuited to delicate garments, particularly light summer collections. Marked or torn garments cannot be sold and this is profit straight down the drain. If these garments are accidently sent to customers, they can result in reputational harm. To protect garments many brands including Oasis, Warehouse, and Harvey Nichols invest in funnel-necked garment covers, which completely encase a garment while also controlling levels of static.

It's all in the detail - Achieving a set-up which promotes speed means every stage of the process needs to be carefully considered. A good starting point is talking to manufactures about how garments arrive; if they are properly protected at this stage it can prevent issues further down the line. Similarly ensuring pickers have the right tools for the job can pay dividends - packing benches should be thoughtfully arranged so all your packaging items can be easily reached to make packing fast and easy.  Similarly, postal packaging should be easy to handle, well-fitting and up to the rigours placed upon it. This is an area we've advised many big brands on.

And what about the rubbish? Ensuring waste is disposed of efficiently is all part of running a slick back office. Brands like Harrods use colour coded waste sacks for different in-house processes and distinguish between different types recycling and landfill. Clear sacks can also reduce pilfer.

With 25 years experience in the packaging industry our packaging experts applying their technical know-how to review our customers current packing operation and create the best packaging solution to optimise your back of house processes. To arrange a site visit please contact Duo.

 

Article featured on Drapers Online 26th March 13.

 

Behind the Scenes: BBC Radio 5 Live Budget Special At Duo

On Wednesday 20th March, Duo's warehouse was taken over by BBC 5Live and transformed into a radio studio to host their special budget edition of their show live from Duo.

Despite the freezing temparatures, the debate was lively and spirts were high. Take a look at all the behind the scenes action from the show.

Still not had chance to listen to the show? You still have 2 days left to listen online at: http://www.bbc.co.uk/programmes/b01rk56h

Dave and Max

Duo Managing Director David Brimelow with BBC 5Live presenter Max Rushden

Dave, Paul, Dale

Director Dale Brimelow with Finacial Director Paul Teasdale and Managing Director David Brimelow

Team - BBC

Max BBC

Group BBC

Dave and Paul

Luke and Paul

Duo Finance department manager Luke Kness and apprentice electrical engineer Paul Brown

A huge thanks to all the BBC 5Live team,Labour MP Lucy Powell, Conservative MP David Mowat, Leader of the Liberal Democrats for Liverpool City Council Richard Kemp, property expert Robert Reed, and Children's nurse and Royal College of Nursing council member Mike Travis.

Also a special thank you to Neilson Reeves Photography Manchester for the covering the event and producing some great PR and Editorial Photography for external and internal communications.

 

What are you hoping to see from the budget today?

BudgetBox 

Only a few hours to go until the budget is announced. Duo Managing Director, David Brimelow discusses what he is hoping to see from the budget today:

Government support for manufacturing

I would love to hear that UK manufacturing is to get support. We can, given the right assistance provide jobs which in turn would help to reduce the welfare bill and provide income for the Treasury, as we say in Business this would be a win win situation.

Reintroduction of capital allowances

Like many Companies Duo have never sought handouts but perhaps there needs to be some consideration to rewarding Companies that have achieved growth and job creation in these times of austerity. Perhaps a return to increased Capital Allowances could be considered.

Buy British, support UK manufacturing

Duo are a Company that believe we should not look to the Government to provide all the answers but we also believe British industry has a role in pulling together in such hard times. We should look to BUY BRITISH, protect and develop our UK skills, our workforce and help us grow strong now in order that we are ready for the future.

Many of our customers are big high street retailers who by buying from us as UK manufacturers and are supporting their own economy, but why not more?

BBC Radio Five Live from Duo Tonight

BBC Radio Five Live will be hosting a special budget edition of the Tony Livesey show at Duo's Manchester headquarters tonight from 10:30pm.

You can listen to Radio 5 in the following ways:

· On DAB and analogue radio (909/693 AM)

· Online, via iPlayer: www.bbc.co.uk/5live

· Virgin  media 905

· Sky 0105

· Freesat 705

 

Don’t throw money in the bin: Minimise Packaging Waste

 SCRAP BUNDLE_2

Packaging is a must have item for any retailer but it's also an expense - albeit a necessary one. Packaging can cost retailers dearly in landfill tax and collection charges and excess waste can also damage a brand's green credentials, so what can be done to minimise it?

There are two basic rules; firstly minimise the waste you create and secondly recycle the waste you do:

Minimise waste

Make sure your mailing bags are the right size: If goods are packed in bags that are too big, you are automatically creating waste. A clever range of sizes will ensure you have the right packaging for your entire range of products, with the added advantage that goods will arrive neatly presented to the customer. A packaging audit can help identify the sizes you need, Asos is just one brand we work with to ensure their packaging range is always best fit.

Consider all your packaging expenses: Don't forget to factor in expenses such as storing and transporting your packaging; lightweight, compact packaging such as polythene can offer cost savings over bulkier and heavier materials like paper or card.

Maximise packaging reuse: If customers can use your packaging to return goods you are automatically boosting your company's green credentials - and you have more material to recycle (see below)

Boost recycling quality

Investigate closed loop recycling: This type of recycling involves a firm's waste being returned to its raw form and then used to manufacture a new product. This saves the scrap being sent to landfill and many firms pay you per tonne for your scrap which can counteract the cost of your packaging spend.

Avoid contamination: To maximise the quality of your scrap packaging and sell at a higher price, it's important to avoid contamination. With polythene packaging this can include paper labels or tape, so consider using polythene labels.

Print carefully: Excess ink can also reduce the value of your scrap packaging. Clever design, typically taking up less than 10% of the surface area, ensures you achieving a higher price per tonne for your scrap.

Article featured on Drapers Online 12th Feb 13.

 

Wouldn’t return friendly packaging make the returns issue worse for retailers?

Returns and Refund

Returns are a real headache for almost all online retailers, with some analysts quoting a return rate of 30%, so why on earth would any businesses want to make returning goods easier?

Well the answer is simple; research we commissioned shows that 95% of consumers are more likely to make a purchase if they know they can return it easily.  In other words, an awkward returns policy equals lost sales.

Our research went on to examine which part of the returns process was most irritating for customers and, perhaps unsurprisingly, the majority, 56%, identified a trip to the post office. However a significant minority, 30%, said repacking goods was the most annoying part of the process, with men and younger adults particularly averse to doing battle with the sellotape.

While it's tricky for internet retailers to control a customer's experience at the post office, helping consumers to repackage goods can boost the customer experience as well as offering other business benefits:

  1. Make your packaging reusable: Adding a double glue strip to your mailing bag allows consumers to re-use the packaging to send their unwanted product back to you in the post. This improves the customer experience and is environmentally friendly.
  2. Reduce damage caused by inadequate packing: Make sure your packaging can withstand the weather and the rough and tumble of the sorting office. Damaged packaging can lead to damaged goods and poor impressions; almost 95% of consumers claim poor quality or damaged packaging negatively impacts on their perception of a business.
  3. Recycle your returned packaging: While cardboard is widely perceived as a recyclable commodity, other types of packaging, including polythene are also easily recycled. In the UK there is a shortage of good quality polythene scrap leading to an increase in the price per tonne, this means recycling makes economic sense as well as fulfilling CSR aims and reducing landfill tax.

Article featured on Drapers Online 28th Jan 13.

Featured Article: Does your postal packaging damage your brand?

Postal packaging has the potential to be a fantastic marketing tool for online retailers, but it's one which is underutilised by many brands. At best, this means missed opportunities to promote your business, while at worse company's risk inadvertently damaging their own brand.

Research we commissioned proves just how attuned consumers are to the impact of packaging - 70% view postal packaging as integral to the customer experience. If packaging is poor quality, 95% sat it negatively impacts on their perception of a company and 50% admit they are more likely to return goods.

When viewed from a consumer's viewpoint, the reason for placing such importance on packaging becomes obvious. For those buying from online-only retailers, packaging may be the first physical contact they have with a brand, while individuals who buy from multi-channel retailers expect the online service to mirror the glossy in-store experience that retailers invest heavily in.

Here are our top tips to develop really effective postal packaging:

  • Think beyond logistics - seek your marketing team's expertise to ensure your packaging reflects your brand. F+F at Tesco's new packaging range mirrors fashion trends while John Lewis has chosen packaging that is of sufficient weight to convey the high quality so associated with the brand.
  • Bridge the gap between online and offline - consider including QR codes, brand messages or social media details to really engage customers.
  • Bespoke packaging is cost effective and fast - UK-based manufacturers can be extremely competitive, boast short shipping times and can reduce your company's carbon footprint.
  • Don't neglect the practicalities - best-fit packaging reduces your overall spend and improves presentation. Packaging that makes returning goods easier enhances the customer experience and is environmentally friendly.
  • Consider the whole order cycle - choosing the right packaging for your business will aid outbound packing, protect the product during posting, delight your customer and streamline the returns process.

As featured on Drapers Online - In Business Section, 16th January 2013

www.drapersonline.com

The colour of the year for 2013 is….Emerald!

Emerald

Emerald is a "lively, radiant, lush green", Pantone said, emerald will be seen during the next 12 months across the fashion industry, beauty, interiors, print, graphic design, plastics and packaging.

Emerald is a "vivid, verdant green" which "enhances our sense of well-being further by inspiring insight, as well as promoting balance and harmony", Pantone said in a statement.

Is your brand lively and radiant? If so, consider using emerald as the base colour for you mailing bag packaging range in 2013. Emerald is a great colour for packaging, it is opaque and serves as a fantastic base material for designs featuring metallic silver and gold, white, blue and black. Introducing a touch of emerald ink to your packaging design looks striking and bold when printed onto a silver of light base substrate and is cost-effective option to revitalise your packaging design.

Did you know that almost three quarters of consumers now view the packaging that their goods arrive in as an integral part of the customer experience? Revitalising your packaging to introduce a new vivid base colour such as emerald green could improve the aesthetics of your packaging and improve the overall perception of the goods purchased reducing the returns rate.

For more information on the benefits of branded packaging visit: Bespoke Packaging.

ATTRACTive Packaging: how to create compelling packaging driven by customer insights

Well designed packaging can enhance desirability of a product and establish brand identity. Using techniques that engage consumers senses creates a memorable experience. Combine this with consumer insights to create a design that appeal specifically to the desired target audience = recipe for packaging success.

Knowing customer preferences and designing with this in mind enables a brand to create distinctiveness through a product's packaging. This means businesses have to be forward thinking, utilize their consumers' insights creatively and know their target market.

Appealing to Gen I

GEN I IMAGE

Generation I refers to the children of the youngest baby boomers. These individuals were born in the age of the internet. Although research on this demographic is still ongoing, many companies are finding that combining a clear and strong marketing message with new technological features, such as QR codes stimulates their interest.

Targeting Gen Y

GEN Y IMAGE

Also known as millennials, Generation Yers have birthdays ranging from around 1985 to 2003. This generation grew up with computers most of their life and are therefore especially responsive to internet campaigns and social media. They process information quickly, are brand loyal and respond to outside-the-box humor packaging and advertising efforts.

The Baby Boomers

BABY BOOMERS IMAGE

Born during the demographic post World War II baby boom between the years 1946 and 1964. This group are big spenders and many packaging designs are created to appeal to this mass market. This group do not want to be referred to as old, they are drawn to packaging that appeal to their youthful side, while offering real benefits from a product.

Source: Packaging Digest and Lightening Labels 

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