Strategic Packaging Review for Clarks
02 June 2009
Challenge
To review Clarks packaging systems from point of manufacture to point of sale (and beyond) in order to recommend to the Main Board packaging strategy for the next 5 to 10 years.
Approach
With rising costs associated with packaging disposal and with future potential warehousing development in mind, Clarks asked Pira to undertake a broad review of their packaging systems.
Pira examined change issues, costs and improvement opportunities from point of shoe packing (in the Far East, South America, India) through the whole chain to point of sale, and beyond to cover post-consumer packaging use factors.
The project examined alternative pack formats (primary packs and distribution formats, single trip and returnable) and generated cost models for three favoured alternative designs/formats and supply systems.
Project work included design, management and analysis of a detailed in-store customer survey, covering more than 70 Clarks stores in the UK and gathering consumer views on a range of packaging and related issues from over 1200 customers.
Recommendation
The work undertaken and the packaging and supply systems investigated were presented to the Main Board Directors and Senior Logistics team. The presentation included an overall recommendation for packaging within Clarks, which was adopted by the business.
Project findings also served to increase awareness of the impact of packaging on the business such that various areas of change that offer business improvement related to packaging are now being considered.
Benefit
The exercise culminated in an overall company-wide recommendation for Clarks packaging strategy for the next 5 to 10 years. The work also contributed to strategic decisions regarding future warehousing practice within Clarks.
'Pira's expertise was very helpful in understanding a surprisingly complex area. Pira were able to produce a practical analysis of our complex packaging requirements. This helped us make strategic decisions for the area going forward.'
Dean Collier, Logistics Development Manager & Tim Parker, CEO - Clarks