Page 33 - Food&Drink Magazine Jan-Feb 2019

complexity to the logistics. Supply chains will continue to be transformed by a raft of technologies, notably radio- frequency identification (RFID) and robotics, boosting efficiency and transparency.
e-retailers are also calling for unique identifiers compatible with the robotic technology used in their warehouse and distribution. Data and full traceability helps them navigate complex logistics and improve efficiency, moving closer to real-time order fulfillment.
Looking ahead, the increased use of robots to pick and pack products for shipment emerged as the number #1 trend for 2025 in our e-retailer survey. In August 2017, JD.com, China’s second-biggest e-commerce player after Alibaba, opened an unmanned sorting centre in Kunshan, near Shanghai, as a key part of its strategy to build an intelligent and highly efficient logistics system.
3. SUSTAINABILITY
HITS THE SPOTLIGHT Packaging is key to e-commerce, with an overwhelming majority of consumers saying it can have a positive impact – or ruin an otherwise positive purchase experience. Its main use is seen to be preservation and protection, but environmental
concerns are growing. The market pressure and expectation now is to reduce packaging materials that are not recyclable and do not disintegrate after being used
The trend is moving towards increasing the life cycle of packaging products and reducing the environmental impact. This is the essence of the circular economy, a buzzword which we are hearing a lot more. Renewable materials are deemed to play an important role in achieving a low-carbon, circular economy. A great example of this is JUST WATER with its 100 per cent recyclable and plant-based packaging, which is made from 82 per cent renewable resources.
and this is being used as a differentiator by some brands and e-retailers. E-retailers report that space-efficient packaging can reduce transport volume by 30 to 50 per cent. It also appeals to urban consumers in small homes with limited storage.
A life cycle assessment of our Tetra Recart package found that it accounted
for five times less CO2 emissions compared with cans and glass jars. Amazon uses Tetra Recart for its Wickedly Prime soup range, marketed with the slogan “time to kick the can”.
4. TECH TAKES
A NEW TURN
Mobile is the omnichannel device of choice, and e-retailers and brands alike need to ensure it’s central to their consumer offering. As online, mobile will become increasingly key to in-store retail, providing extra information, personal
seamless. The brands that win will be those that provide assistance at the right time and place. Social commerce – buying direct from a social media feed – is increasingly common, notably in China through WeChat, but also in the West, with the addition of buy buttons in social posts on the rise here too.
The impact of voice technology is also growing, especially in China. Amazon is the early leader with its Alexa voice service and Echo speakers, and more partnerships are forming . Ocado recently launched its own voice-driven shopping app for Amazon’s Alexa, while Google has partnered with Walmart to offer voice-enabled shopping via its Google Assistant. Meanwhile in China, Alibaba’s low-cost Tmall Genie reported one million sales of its X1 smart speakers in just the last four months,
double analyst estimates. ✷
✷ ABOUT THE AUTHOR
As the move to e-commerce
and omnichannel makes supply
chains more complex, this can
have a negative impact not only
on cost, but also on emissions,
as deliveries become more
frequent and fragmented –
hence both brands and
e-retailers need to be ever
more focused on reducing
carbon footprint.
Lightweight, logistically
efficient carton
packaging has a
valuable role to
play, both in
reducing cost
and carbon
footprint, and
DAIRY PROCESSING
recommendations and offers, and automated cashless
checkout. Convenience is the
main driver as consumers expect
an omnichannel experience
that’s fast, easy
Andrew Pooch is the managing director for Tetra Pak Oceania, a company that provides innovative and integrated processing and packaging solutions for prepared
food and beverages. He can be contacted at Andrew.Pooch@ tetrapak.com.
www.foodanddrinkbusiness.com.au | January-February 2019 | Food&Drink business | 33