A recent packaging trend with the customer determining a
package’s design has changed the way supply chain runs. With the increased
customization of products and packaging, this requires more innovation for the
packaging department in order to satisfy the customers’ needs. Along with
customization there follows the issue of balancing “lower quantity items at a
cost-effective point”, (http://www.logisticsmgmt.com/article/global_packaging_design_emphasizes_convenience_ergonomics_and_customization).
We think that this new level of customization will cause there to be an increase
in the cost of a product and/or the cost of shipping that product simply due to
the tweaks in packaging design.
The “Packaging strategies” article mentions Frito-Lay
offering customers a unique potato chip experience by requesting their own
picture on the bag. This is very interesting, because such extensive
customization on the packaging must be very costly to the business. On the
other hand, by providing the customer with their own input to the final product
of the packaging, this may generate more attention and appeal for the brand. One
question we have for discussion is whether or not companies who offer
customized packaging will benefit more from producing packaging at their own
fulfillment centers or to go with a 3PL? (https://www.packagingstrategies.com/blogs/14-packaging-strategies-blog/post/87894-personalization-and-more-trends-in-packaging)
I think this is a really interesting topic. What stood out to me was the fact that Frito Lay was currently implementing this level of customization. I do wonder how much profit margins are effected by giving Frito Lay customers the option to customize the bag, and I would assume there must be some kind of additional charge for customization. But how much? That being said, I think it is a really creative marketing technique. I wonder if this is an example of something marketing came up with before consulting operations and logistics like Dr.B mentioned in class. Great post! -Darian McIntosh
ReplyDeleteThe idea of a big company like Frito-Lay customizing their products is really interesting. I've always viewed customizable products as something usually fulfilled by smaller companies that focus only on custom products. My only question is, why does Frito-Lay feel the need to do this? Yes, it would be great for marketing and to refresh their brand a bit, but is it necessary? Are they losing profits? Are sales not as expected? I feel like Frito-Lay has been around for so long and people will buy their products no matter what. With that, they'd be better off saving the potential cost increases and just keeping things the way they are.
ReplyDelete-Angie A.