Retailers, particularly big box stores, are demanding more customized packaging of products, which increases demand for contract packaging services, says Dave Mabon, president of contract packaging at Genco. With margins that average 30 to 40 percent, this presents a huge opportunity for service providers.
A world where consumers want the freedom to shop and buy through a variety of channels while receiving the same brand experience and rapid, no-cost delivery, challenges retailers and logistics providers to come up with new and cost-effective solutions.
Trust and a sharing of risk and reward are the hallmarks of an outsourcing agreement that took the two companies beyond the concept of "price per activity," to one that strives for mutual profitability and enhanced customer service.
Consumers today want the ability to purchase and return products via any channel, at any time, at the best price. To meet those expectations, companies that traditionally have had disparate fulfillment models must now merge both the informational and operational aspects of those models into one, says Todd Peters, CEO and vice chairman of GENCO.