clearer pictures, product descriptions and sizing information so that the customer has an accurate idea of what they are ordering. Companies can also innovate to reduce returns. For instance, Sarenza, a French shoe retailer, offers a premium delivery service in Paris whereby two sizes of shoes are delivered so that the customer can try the shoes on when they arrive and then choose the pair they want. 53 The unwanted items can then be processed back into the system directly without having to send a courier to pick up the items on a separate journey.
4.7 Packaging issues – how to respond Impractical packaging hurts the brand Impractical packaging inconveniences the customer either by being a chore to open or dispose of, or through being unnecessarily large. This can negatively impact upon a customer’s shopping experience and the brand image, particularly to the modern, environmentally conscious consumer for whom excessive packaging is seen as wasteful.
Use IT systems to choose between flexibility and cost A retailer must strike a balance between two alternative strategies with regards to packaging options. Retailers could stock a wide range of different sizes and types of packaging in order to make each package order specific. The problem with this process is that as the range of packaging option increases, so does the cost and complexity (of sourcing and stocking materials). Alternatively, a retailer could only hold a limited number of different packaging types and then fill any excess space in the package with foam or other materials. The problem with this process is that it has a negative impact on the environment as well as the practicality and aesthetic presentation of the order. The key to effectively striking this balance is to implement a system that has access to realtime information about the individual orders, an accurate picture of stock levels and detailed profiles of the product qualities that influence packaging. Such a system can then specify the exact packaging required for each order, helping the retailer to minimize the packaging costs of servicing the eclectic demands of a single-order channel such as e-commerce. “There are systems that can actually provide you with real-time information about what stock you have, where it is based, what packaging you use to actually bundle goods into a box. Dependent on weight, size and dimensions, the system can select different packaging for different SKU [stock keeping unit] ranges that you purchase and it can do that real-time. The 40 ability to select packaging after the order has been accepted by the retailer is critical.” Hugo Patten, IT Director for UK and Ireland DHL supply Chain In some countries such a system might be highly labour intensive, but in the UK it is possible to implement an IT system that will automate the entire process. This system will not only ensure that the right packaging is selected, but also ensure the right item is ‘picked’ (through providing clear instructions to staff) and that brochures, flyers and returns instructions are included. It is also crucially important that staff are well-trained in utilizing the system that is implemented.
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