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Production waste may be the biggest single issue the point-of-purchase (PoP) sector faces. Depending on what report you read, the proportion of printed temporary point-of-purchase displays that makes it onto retailers’ shop floors is somewhere between 50% and 70% of what is actually printed. The rest is baled for recycling or disposal without ever being used – and this figure has been the same for a decade.

Taken at face value, that would seem to offer the industry a potential saving of anywhere up to 50%, not to mention reducing PoP’s environmental impact. With this in mind, it’s incredible that the problem persists.

Gimmicks abound claiming to alleviate the issue, from store-friendly packaging tape and assembly helplines through to auto-assembly of the displays. These have been developed with the aim of making it easier for the retailers and their store staff. But they just address the symptoms rather than the root cause.

This is perhaps understandable because the cause varies. Sometimes, it’s as simple as not gaining retailer approval for the space for the display. It can be poor communication within the retailer itself, breaching restrictions for size or branding, damage in transit or missing promotional slots.

The unused proportion of printed material is the most visible form of waste and it tends to be the focus of attention. But other forms exist. These include double-handling and excessive fuel costs in the supply chain, duplication of packaging, over-ordering in production and misallocation, that is, sending the wrong display. However, it is very difficult to assign a cost to these areas, which is perhaps why they are, to a large extent, left untouched.

Tackling the problem
There is a lot of discussion in the industry about the more strategic role PoP should be playing within the marketing mix. Our own research seems to indicate that clients want an approach that is about delivery. And that delivery embraces responsive service, speed and dependability of production and quality of creative.

Meeting these objectives is the first step to strategic partnering with clients on an operational level, which is necessary to meet the new targets for cost and sustainability, as brand owners now have targets for reducing a product’s carbon footprint.

The most obvious area in which to address this is product packaging, but how products are promoted is also bound to feature. This was also identified in our research, with 100% of clients expecting a huge increase in the importance of sustainability to their supplier selection over the next three years. This includes the carbon neutrality of the supplier operation as well as the product they supply.

In my opinion, the only guaranteed way of eliminating any waste through compliance is through live product packing – a display is extremely unlikely to be baled if it is packed with 72 DVDs, for instance. This is already done successfully in the grocery and health and beauty sectors.

It can be a combination of factors: available promotional windows, shelf life of the product and the configuration of the supply chain. More fundamental, however, is the nature of the supplier-client relationship that is left after the procurement selection process. There is a reluctance to add any value because that value wasn’t acknowledged during the process.

The challenge is obvious. We are all feeling the impact of the brand owners’ and retailers’ drive to reduce costs and maximise budgets, and it’s only a matter of time before the environmental impact exerts a greater influence. Waste is the next logical area for improvement as it addresses both cost and environmental targets. But the approach must be commercially viable.

In order for us to continue to deliver the savings our clients and their shareholders demand, there needs to be a sea change in the approach from both sides. Truly collaborative partnerships need to be developed to unlock the potential in the supply chain and create the efficiencies that are available. There’s even a chance that everyone will feel good about it too.

Richard Saysell is managing director of retail marketing group Creo

30-SECOND BRIEFING ON... POINT-OF-PURCHASE WASTE

• Between 50% and 70% of temporary point-of-purchase displays that are printed make it onto retailers’ shop floors. This has remained broadly unchanged for the past 10 years
• Other forms of waste include double-handling and excessive fuel costs in the supply chain, duplication of packaging, over-ordering in production and misallocation
• Clients expect a huge increase in the importance of sustainability to their supplier selection over the coming years. This includes the carbon neutrality of the supplier operation as well as the product they supply
• Clients want delivery that embraces responsive service, speed and dependability of production and quality of creative
• Live product packaging reduces waste because retailers don’t bale displays that contain saleable items. This technique has been applied successfully in the health and beauty and grocery sectors
• Companies and clients should form collaborative partnerships to realise the potential for environmental and financial savings in the supply chain