Distributors: The Value of Experience
From one distributor source, Scruples was able to
assemble different but coordinated packages.
Container distributors have a wealth of packaging know-how to share.
by William MakelyContainer distributors today offer a wide range of services to their customers, from the basic functions for which distributors were originally founded—sourcing and supplying containers and closures—to sophisticated capabilities. Examples include graphic and functional design, manufacturing, global sourcing of containers and materials, financial services, and a choice of strategic manufacturing locations to optimize delivery times and costs.
But the most valuable asset that a distributor possesses, and draws on to advise its customers, is experience—experience far beyond what any single manufacturer of packaging containers may accumulate. Because distributors work with a variety of customers and sources, and across a broad range of market segments, they experience firsthand the design and material trends that shape the evolution of packaging. They also gain a thorough understanding of the challenges that face brand owners and packagers today, and see the solutions that have worked.
Regardless of size or range of sources, capabilities, and services, all distributors share this asset. Brand owners and packagers are increasingly becoming aware of the value it adds to the customer-distributor relationship.
Getting the Best Result
“Traditionally, the term distributor referred to a company that bought packaging in bulk, then sold it to individual customers in small lots at a cost savings,” points out Andrew Berlin, chairman and CEO of Berlin Packaging (Chicago). “We, and our colleagues in NACD (the National Association of Container Distributors), still perform that function very successfully, but that definition no longer adequately describes the total range of what most distributors can offer to their customers. For example, a company buying packaging from a distributor today can obtain much more than a good price; it can—and should—expect the best total cost, including the cost of holding inventory (including warehousing, labor, shrinkage, and obsolescence), the cost of the money invested in that inventory, etc.”
As a result, says Berlin, a company working with a distributor should insist that the distributor quantify in detail the total cost savings that will result from that relationship, in contrast to buying directly from manufacturers and holding substantial inventory onsite.
“Second,” he continues, “the customer should insist that the distributor demonstrate the precision and efficiency of its operation, to be sure it will receive the right packaging components at the time it needs them. What systems of processing orders are in place, and what training supports them? And finally, what is the distributor’s on-time delivery record?”
Early Collaboration
Brett Binkowski, regional vice president, Midwest, for container distributor TricorBraun (St. Louis), recommends that brand owners and packagers planning to launch a new package bring the packaging supplier into the development process early on.
“This is especially important when design and engineering are involved,” he points out. “But even when they are not, being involved early in the development cycle enables us to plan and execute the most effective packaging program for the customer, from identifying the best sources for the package elements to selecting which of our warehouses will be most cost-effective in delivering the packaging.”
According to Binkowski, when a new customer comes to TricorBraun after having already made some packaging decisions, it may later want to change those decisions after the distributor points out some better options. “That can be costly up front, before the packaged product even hits the shelves. It may even mean missing a planned launch date.”
Retailers today, he says, expect consumer packaged goods companies to act quickly in getting new products to their shelves, and speed to market is one of the primary concerns. Binkowski says that TricorBraun’s Design & Engineering division in Illinois can significantly compress development time and shorten time to market. TricorBraun designers can go directly to their workstations, access various design programs, and immediately develop ideas into drawings. Time and container size permitting, they can even create fused deposition modeling (FDM) models.
“We include both engineers and designers,” says Binkowski, “because we focus on what we call ‘functional creativity.’ We design for manufacturability as well as for shelf impact, and that includes sometimes designing for a specific manufacturer’s capability, if the project allows for that.”
Binkowski recommends that customers share as much information as possible about a new project early in the development cycle.
John Koeble, vice president of sales for Continental Packaging Solutions (Chicago), agrees.
“We add the most value to a package the earlier we get involved in a project, for several reasons. First of all, we can be the sole point of contact for all of the elements of the package if we are involved before the customer has made any of those sourcing arrangements. The primary package, closure, label, secondary packaging, even filling and shipping product and secondary fulfillment items can all be accessible to the customer through a single contact. If we get involved after some of those arrangements have been made, the customer doesn’t have the advantage that we offer, of being able to check on the progress of the packaging through a single phone call.”
In addition, Koeble points out, working with a packaging distributor that sources the many parts of a finished package ensures that those parts will work together.
“One of the most important benefits we offer is taking away that headache by taking responsibility for making certain that everything works together and arrives on time. We work with sources we have checked out and trust, and we have been doing this for years, so we know the questions to ask and the details to confirm. For a customer to trust such an important task to its own purchasing department, experienced in purchasing general products and components but not necessarily in the purchasing of packaging elements, which can sometimes be complex and require close tolerances, is asking for complications at least and perhaps inviting a disaster.”
Broadening Horizons
Another important way in which a distributor adds value to its relationship with customers is by sharing its broad experience in packaging.
“I tell customers,” says Continental’s Koeble, “that we are their search engine in the universe of packaging. We see more innovative container designs, materials, closures, and labels than any single packager can possibly encounter. And because they are not our products, but are items we source, we have no vested interest in selling one or the other—except as the best solution for the customer’s need.”
Sally Rothmeyer, purchasing manager of Scruples Hair Care, has taken advantage of that experience on a regular basis.
“First of all,” she says, “if I need to source a new cap or other package ele-ment, for me to explore all the sources available would be very expensive for Scruples. I may be looking for a special dispensing closure that gets the product effectively down to the roots of the hair, for example. If I call Continental and tell them the neck size, thread, and other specifications, and describe how it will be used, they share their expertise and experience to find what I need. Sometimes they bring in samples, and sometimes they suggest options that I may not have considered.
“In my experience over more than 20 years in packaging, the more people you can involve in the process, the better the result will be,” says Rothmeyer.
At other times, Continental will bring in something new—a closure with a stylish new look, or a new way of evacuating the product, for example—and Scruples may develop an entirely new package around that element.
“Our products are used in salons,” Rothmeyer points out, “and they like gimmicky, fun things that show they are at the cutting edge. So seeing new possibilities is very important to us. Continental’s experience working in many industry segments and with packaging designed to appeal to and be used by a wide range of end-users means they see more variety than we could possible see on our own.”
Specialization
The varied experience of some larger packaging suppliers working within the increasingly complex world of packaging—O. Berk Co. (Union, NJ), for instance—has led them to form specialty groups within their organizations. Steven Nussbaum, O. Berk director of marketing, says that this adds significantly to the company’s ability to respond to each individual customer’s needs.
“We also have other specialty packaging groups: the food/beverage packaging group, the healthcare packaging group, and the chemical/industrial packaging group,” Nussbaum points out. “Each of these markets has very specific needs, and our group structure enables us to have a good idea beforehand what will be required in a package for a particular market, such as cosmetics and personal care.”
Going to Market
Lee Tobin, president of All-American Containers Inc. (Miami) and president of the National Association of Container Distributors (NACD), emphasizes that one great advantage offered by a distributor such as All-American, which has been sourcing rigid packaging for years, is great awareness of what is available from a wide range of sources.
“If a customer comes in with an idea of the package he wants to create,” Tobin says, “we might be able to say ‘we know someone who makes a bottle very much like that.’”
If so, creating the final package will be less expensive—even if the mold for that bottle has to be partially modified—and time to market may be considerably shortened. Today, packaging specialists everywhere agree, speed to market is the “hot button” for brand owners and packagers everywhere.
More common today than in the past is crossover from one industry segment to another: for instance, a skin care product packaged in a container that was originally designed for a spirits product.
“This is where our experience of working in many market segments pays off,” says Tobin. “Packaging shapes, sizes, and decorations vary in different markets to meet the needs of the products and trends and preferences in the marketplace. But what is a standard package in one market can be adapted to become an innovation in another.”
Packaging by Distributors: Sarkany Deluxe and Men
To find packaging for the new Sarkany Deluxe and Sarkany Men fragrances, Argentine designer Ricky Sarkany and TVG S.A. turned to distributor New High Glass (Miami). Using its Delacroix stock bottle, New High Glass helped to create different looks for each fragrance by varying the design and decoration of the caps, cartons, and fragrance colors.
For Sarkany Men, the distributor gave the bottle cap a glossy black alligator skin texture. For Sarkany Deluxe, New High Glass used shiny metallic studs to decorate the cap’s black leather finish.
Packaging by Distributors: Neil George Salon Hair Care Line
This spring, the upscale Neil George Salon wanted to add new items to its existing product line: a volumizing spray, a detangler, and treatment oil. It employed the services of Kaufman Container (Cleveland), whose team members helped to create a cohesive packaging look for the new products.
According to Kaufman Container, the packaging for the added items needed to be modern and simple in appearance, but also be easy to use. Sprayers that dispense the right amount of product, as well as a pump, helped to make this possible.
Visibility of the product was also important, so Kaufman chose clear PET bottles and a frosted glass bottle to house the products. The Neil George logo was screen printed on at Kaufman’s in-house decorating facility. Color matching was also done by the distributor.
Kaufman was involved from the very early stages of package development, helping to source a variety of packaging shapes, sizes, and components. Providing numerous packaging options while still meeting a smaller volume requirement was another key to the project’s success, says Kaufman.
“Kaufman played such a large role in sourcing packaging,” agrees Brad Jones, director of operations for Neil George Hair Care. “We asked them for a ton of different shapes and sizes. And they delivered, getting us a lot of amazing components to select from. Another thing that Kaufman helped us with was getting the components we wanted in terms of the volumes. We are a very small, new prestige brand, so we are not looking to purchase 100,000 units to start. They made it work.”
Packaging by Distributors: TESS Skincare Line
The Teen Everyday Skincare System line, also known as TESS, chose Cosmetic Packaging Group (Union, NJ), a division of O. Berk Co., to supply its packaging.
The TESS packaging incorporates the distributor’s 2- and 4-oz clear and white PET Boston Round bottles, topped with white disc dispensing caps or fine-mist sprayers. In addition, 4-oz clear wide-mouth PET jars with white smooth-sided caps were used. The simple, streamlined package shapes provided the perfect canvas for the brand’s colorful artwork.
William Makely is a freelance writer specializing in packaging machinery, materials, and industry trends.