Tackling Supply Chain Complexities

The September 12 Evolution of Excellence conference was organized as a way of exploring supply chain collaboration in a disruptive retail and e-commerce environment. Here are two highlights.

As in years past, Frain Integration and the Contract Packaging Association once again convened a day-long industry summit that brought together brand owners, suppliers, and contract packagers to discuss challenges and opportunities in an increasingly divergent marketplace.

The opening keynoter was Jeff Kaiden, CEO of a 3PL company called Capacity LLC. A major theme of his remarks is that yes, Consumer Packaged Goods companies should redouble their efforts where selling through e-commerce is concerned. But he urges CPGs to look seriously and creatively at taking a more direct-to-consumer path than the path that many have taken so far, which is simply to reach e-commerce customers through Amazon.

Kaiden is the first to admit that opting for an e-commerce channel other than Amazon, who practically invented e-commerce as we know it today, is not without its challenges. They own the space, and they’re tough. But they’re not invincible. In fact, they currently are faced with significant hurdles of their own due to an ongoing labor shortage and their need for more warehousing space.

Perhaps the biggest drawback of going through Amazon, said Kaiden, is that “Amazon gets the margin, not the CPG. CPGs sell to Amazon at wholesale price. But when they sell direct to consumers, they receive the retail price.”

That’s why he urges CPG companies to take a more direct-to-consumer approach. “CPGs should put up their own website where consumers can find their products and then engage with a third-party logistics firm to handle fulfillment,” said Kaiden. “Start with products that are most likely to be financially self-maintaining as e-commerce winners. In other words, think small and expensive.”

In addition to improved margins, benefits to CPGs from a more direct approach to consumers include these:

• More opportunities for sampling, both targeted and untargeted

• It’s easier to speak directly to the consumer and control the brand

• Better control over promotional events and special geographic test marketing

Pharmaceutical Innovations Report
Discover the latest breakthrough packaging technologies shaping the pharmaceutical sector. This report dives into cutting-edge innovations, from smart containers that enhance patient safety to eco-friendly materials poised to transform the industry’s sustainability practices. All from PACK EXPO. Learn how forward-thinking strategies are driving efficiency and redefining what’s possible in pharma packaging.
Learn More
Pharmaceutical Innovations Report
Medical Device Innovations Report
Cutting-edge packaging technologies are transforming the medical device sector in PMMI’s “Innovation in Medical Device” report, featuring advanced materials, smart solutions, and evolving regulations. Editors share insights from nearly 300 PACK EXPO booth visits—each product deemed new and truly innovative—alongside video demonstrations of the equipment and materials on display.
Learn More
Medical Device Innovations Report