Successful implementation of shelf ready packaging (SRP) requires a cross-functional team approach. The team first scopes the opportunity and risks of converting a key product category to SRP. They engage packaging suppliers and design experts to develop the new SRP format. Finally, the team tests, educates employees on, trials, and implements the new SRP design. Core measures of success include ease of identification, opening, shelving, shopping, and disposal of the SRP. Global retailers have driven SRP adoption since the 2000s to improve in-store efficiencies.

1. PACK INNOTECH CONFERENCE
Thursday 23rd May 2013
Successful Implementation of Shelf Ready
Packaging into the Global Retail Environment
Ralph Moyle
Packaging Solutions with Ralph Moyle Pty. Ltd. //
National President of the Australian Institute of
Packaging.

2. Successful SRP Implementations in Global FMCG
• Global Supermarket growth drives the
advances in Retail Ready Packaging.
• Development of supermarkets in China, India,
Brazil, Africa and South America.
• Cost focus in USA, Australia.

3. Successful SRP Implementations in Global FMCG
• UK and European start in 2004.
• Focus on Food FMCG.
• Australia start in 2005.
• USA (Walmart and Costco) start in 2010.
• Retailer driven.
• Asia, India, now!!!!

4. • Retail Ready Packaging Materials.
• Corrugated board is about 75% the material of
choice.
• Flute size has reduced.
• Printing standard has leaped into high quality,
multi-coloured presentation.
• External paper is often white.

5. Successful SRP Implementations in Global FMCG
• The roll-out of Retail Ready Packaging (RRP) has been a key
requirement for Australian retailers since 2004 and prior to that
in Europe.
• 2005. AFGC Supply Chain subgroup starts a group of packaging
experts to adapt the ECR guidelines into a Retail Ready Toolkit.
• 2006 through 2008. Woolworths pursue the transition
aggressively. Coles involved but not as aggressive. The concept
gains increased traction as retailers focus on improved
operating efficiencies as part of a broader cost focus.
• 2009 – 2010. Coles replace Woolworths as the drivers of SRP
into their stores.
• 2009 – 2010. AFGC refines the Retail Ready Toolkit with
adaptions towards retailer functionality.
• 2009 – 2010. Coles issued their own SFP guidelines to stress
their requirements
• 2011. AFGC interaction develops to include Environmental
implications of SRP.
• 2011. Coles impose deadlines on FMCG to implement or lose
shelf position.

6. Successful SRP Implementations in Global FMCG
• The core of Retail Ready Packaging is
waste and cost reduction.
• The Global supply chain for FMCG
goods is long and aggressive.
• Safe transport of the secondary
package has not changed.
• Additional challenge to look good on
shelf, attract a buyer and
complement the primary pack.

7. Successful SRP Implementations in Global
FMCG
• What is successful implementation
of shelf ready packaging?
• How do you go about achieving it?

8. Successful SRP Implementations in Global
FMCG
• SRP impacts on all parts of the supply chain.
• SRP is a basic requirement for doing business
in the Global retail environment.
• Where and what is success?
• How do you measure it?

10. Consumers
Environmental
Financial
Packaging
Supply Chain
Retailers
SRP success is the intersection of all six elements.
Successful SRP Implementations in FMCG

11. SRP / SFP / RRP
• Shelf Ready Packaging.
• Shelf Friendly Packaging.
• Retail Ready Packaging.
• Replenishment Ready.
• Display Ready.
– This is not limited to changing cartons.
» Pre-prepared end of aisle displays (promotions).
» Quarter size pallets of soft drinks wheeled directly into store
(Aldi)
» Angled baskets on mobile trolleys (Bread)
» Trolleys prepacked from producer (Milk)
– All have a primary purpose "Improve in-store efficiency through increased speed
of replenishment leading to better on-shelf availability and increased sales."

12. Components Procurement Manufacture Transport Warehouse Transport Retailer
•New Artwork
•Packaging Design
•Quality Assurance
•Packaging Costs
•Die & Setup Costs
•Demand Forecast
•Run-size
•Transition
•Unit Cost
•Site Capability
•Production Planning
•Capacity / Utilisation
•Run-Rates
•Pallet Configuration
•3rd Party Contracts
•Capital Investment
•Demand Increase
•Load Capacity
•Logistics Cost
•Transport Contracts
•Warehouse Capacity
•Pallet Configuration
•Carton Pick %
•Case Count
•Warehouse Contracts
•Warehousing Cost
•Load Capacity
•Price Models
•Logistics Cost
•Transport Contracts
•Reduced labour costs
(customer)
•Product Facings
•Product Distribution
•Case Weight
•Shelf Depth
•Sales Orders Process
•OOS Management
•Waste
•Rotation
SRP - S SRP Implementations in Global FMCG
Business

13. Successful SRP Implementations in Global
FMCGe
• Core (Non Financial) Measures of Successful
SRP.
– Easy to Identify.
– Easy to Open.
– Easy to Shelf.
– Easy to Shop.
– Easy to Dispose / Recycle.

15. RRP Misconceptions
Case cutting to
create off-shelf
displays
Store colleagues
improvise to create
their own RRP
solutions
Case stability
and integrity for
stacking as soon
as it is cut for
display
Products on j-
hooks or peg
boards are
amongst most
difficult to
replenish
UN - Successful SRP Implementations in Global
FMCG.
Slide courtesy of IGD

18. Successful SRP Implementations in Global
FMCGhe• Shape and Size.
• The retailers have two agendas which are combined into what we
call SRP.
• The first is time efficiency gains in store by easy open and placing
the entire contents in one move.
• The second is having the carton size reflect the rate of sale of the
product. That is 1 week’s sale equals one carton. This means many
of the cartons will be reduced in size.
• Ideally, the depth of the carton shall be half the depth of the shelf,
so two cartons can fit.
• The height of carton must allow easy access and replacement by
the consumer when positioned on shelf.
• The design will have to be approved by your retailer.

21. Successful SRP Implementations in
Global FMCG
• What is successful implementation of
shelf ready packaging?
•How do you go about
achieving it?

22. Successful SRP Implementations in
Global FMCG
Successful SRP
Implementation

23. Successful SRP Implementations in Global FMCG
Successful SRP
Implementation
Key Category
to Change

24. Successful SRP Implementations in Global FMCG
• Benefits
– market leader
– rewards for first-to-market.
– drives labour savings at the customer .
– facilitates sales negotiation - ability to control dialogue
– provides leverage at total category
– builds partnership with customers and buyers
– improves “on-shelf” product presentation and availability
– increases distribution and space preference
• Risks
– profitability - inability to achieve a sales benefit whilst incurring the a cost
– capacity, capability and efficiency for production processes
– scale of change – ability to achieve
– becomes mandatory / threat
– no reward for “followers”
– impact on distribution and wholesalers
– sustainability / packaging covenant

25. Successful SRP Implementations in Global FMCG
Successful SRP
Implementation.
Cross functional
Team.
Key Category
to change

26. Successful SRP Implementations in Global FMCG
• Select the Project Team.
• Project Leader.
• Marketing.
• Category Development
• Sales.
• Operations
• Procurement
• Demand Planning
• Data Management
Fixed thinkers need not apply.

27. Successful SRP Implementations in Global FMCG
Successful SRP
Implementation
Scope the Opportunity
And Risk.
Build a cross
Functional team
Key Category
To Change

28. Successful SRP Implementations in Global FMCG
– Scope the Opportunity & Risk
• What is the reason the project is being undertaken?
• Define the unique selling point?
• Is this package part of a range of products?
• How is this package to be used?
• Where is this package to be stored?
• Does this package have to meet any safety standards?
• Are there any eco-friendly needs for this package?

29. Successful SRP Implementations in Global FMCG
Successful SRP
Implementation
Scope the
Opportunity & Risk
Build a
Cross functional
team
Key category
To Change
Engage Packaging
Supplier

30. Successful SRP Implementations in Global FMCG
Select the Packaging Supplier.
• The scope document will lead you to a short
list of Packaging Suppliers.
• Selection of Primary Package material is a key
but unique selling point is a major factor.
• Shared history, understanding of brand
strategy, consistent innovation, consistent
economic supply.
• High risk development may require JV
approach.

31. Successful SRP Implementations in Global FMCG
Successful SRP
Implementation
Scope the
Opportunity & Risk
Build a Cross
Functional team
Key Category
To Change
Packaging / Design
Expert
Engage Packaging
Supplier

32. Successful SRP Implementations in Global FMCG
–Select the Packaging Expert / Designer.
•Key selection who must know both
Brand Owner and Packaging Supplier.
•Knowledge of the focus category.
•Knowledge of the brand.

33. Successful SRP Implementations in Global FMCG
Successful SRP
Implementation
Scope the Opportunity
& Risk
Build a Cross
Functional team
Key Category
To Change
Packaging / design
Expert
Test, Educate, Trial,
Implement Engage the Packaging
Supplier

34. 34
Successful SRP Implementations in Global FMCG
Observations at Store Audit
 There were some good examples of suppliers leveraging SFP to communicate branding
 There were many bad examples where SFP offered suppliers little branding benefit
 The more effective examples used
 colour to differentiate variants
 consistent formats and fonts across their ranges
 neat perforations
 Uncluttered communications
 Some good examples of effective SFP observed were
 Create a brand block presence in a very cluttered category
 Clever design that maximises branding across SFP’s
 Reinforced the logo or brand theme.
 Clear branding as well as usage suggestion icons
 Some bad examples of SFP were
 Just bar code showing
 Many examples of no branding, plain cardboard
 Many examples of adhesive tap issues on short end
 Inconsistent heights across Sku’s within the same range
 No examples sighted where a supplier had used SFP to support a promo campaign

35. Successful SRP Implementations in Global FMCG
Question:
Is Shelf Ready a package or a Point
of Sale item?
Answer: Both.

39. Successful SRP Implementations in Global FMCG
Connect with your Consumer.
• Find a front lip shape that you can
call your own. Take a distinctive
shape of a core aspect of your logo
or primary pack.
• Colours must be complementary.
• Eye tracking behavioural research.

41. •Useful Tools.
• Design and Project Guidance: AFGC / ECRA Retail Ready Toolkit works.
• External Agencies: Packaging Institutes in your country provide a great network.
• What do the Retailers look for in SRP?:
• Retailer’s own SFP Guidelines. Go to the Buyers’ Ready Reckoner for guidance.
• Take your team into store.
• Work with your own merchandisers in store.
• Must understand how the store fillers have to cope.
• Adhesive Tape.
• If you use tape on the bottom of cartons, get rid of it. It will prevent your SRP design
from being used and looking good.
Successful SRP Implementations in Global
FMCG

43. Key Take Home Points.
Know your packaging. Work with your supplier
Keep your front message simple – KISS.
SRP must compliment the primary pack.
Know your supplier options!
Know your consumers needs!
Work in store – often.
Find the knowledge. Get support.

44. Thank you
Ralph Moyle
Packaging Solutions with Ralph Moyle
Pty.Ltd.
National President – Australian Institute
of Packaging.

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