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W H I T EB OX E S D E L I V E R O N P R O T E C T I O N , B R A N D I N G ,P A P E R& S U S TA I N A B I L I T Y F R O N T S F O R E - C O M M E R C EWith the rapid growth of e-commerce and customer expectations, it seemseveryone involved with order fulfillment is looking for low-cost solutions tohelp them reliably meet delivery requirements. Technologies like picking robots,drones, real-time locating systems, and Internet of Things (IoT) connectivity areall being examined as a means of dealing with e-commerce pressures.With U.S. e-commerce growth at over 15Corrugated capabilities also are evolving,percent last year, and distribution center (DC)through technology including new coatings andoperators challenged by pressure to hold downon-demand printing that allows boxes to bettercosts, it’s understandable that companiesserve needs such as enhanced temperatureshould evaluate any solution that can help.control and customized branding. In fact, theHowever, the level of fascination with some ofcorrugated box is at the center of trends likethese new technologies may cause people infrustration-free packaging, enhanced brandingindustry to overlook a technology that plays aas part of the “unboxing” experience, andleading role in supporting today’s requirements:critical issues like efficient packing, cube/spacethe corrugated box.utilization, and protection of shipments.Yes, the corrugated box can and should beThe multiple advantages of corrugatedthought of as one of the key technologies forpackaging are explained in this white paper.e-commerce-era fulfillment.According to the Fibre Box Association (FBA),12a non-profit trade association that representsJust think about corrugated material for aNorth American corrugated packagingminute. Corrugated boxes are vital to ordermanufacturers and approximately 95 percentfulfillment and customer satisfaction, but there’sof U.S. industry shipments, corrugated playsalso great technology in the humble box. Aan integral role in meeting today’s distributioncorrugated box gains much of its strength fromchallenges. Corrugated has evolved to deliverits fluted inner layer or “medium,” which isnew capabilities both for e-commerce and forreinforced with linerboard on the outer surfaces.traditional channels.These flutes are based on the arch, one ofhistory’s most successful engineering designs.This paper will highlight several ways thatcorrugated provides value while helping meetThrough the inherent strength of this arch-likedistribution and customer service objectives,fluting, and linerboard’s qualities as a surface forincluding:printing or coatings, corrugated gains many of its F lexibility to “right size” packaging for costdesirable characteristics.efficient shipping. P rotection and insulation of goods intransit. A heightened level of branding andcustomer experience via custom printing,1 U.S. Census Bureau newsrelease, “Quarterly RetailE-Commerce Sales, 4th Quarter2016.” /ecomm/16q4.pdf2 MHI 2017 Annual Industry Report,Figure 4, Top Company logos, easier unboxing. S ustainability benefits.1
W H I T EP A P E RB OX E S D E L I V E R O N P R O T E C T I O N , B R A N D I N G ,& S U S TA I N A B I L I T Y F R O N T S F O R E - C O M M E R C E“There are so many reasons why corrugatedThe ease and reliability of e-commerce haveboxes are the preferred container for deliveringgiven rise to new niches, like gourmet mealgoods to consumers and customers,” stateskits and shaving kit subscriptions. Higher-Rachel Kenyon, vice president of FBA. “There isend corrugated boxes are often used as thethe durability of the packaging and performanceshipping containers for these new markets.with aspects like cushioning, protecting, andCompanies also work closely with corrugatedinsulating the goods being shipped. It’s a natural,box suppliers to create boxes that makesustainable material. And, importantly for today,e-commerce shipping as space- and cost-there is a great opportunity on the outsideefficient as possible, protect the goods fromof the box for branding and providing addeddamage, simplify the process of unpacking forinformation about the product. Corrugated isthe consumer, and utilize graphics on inner andreally an unsung hero for what it can do to meetouter surfaces to enhance the brand.distribution requirements and create bettercustomer experiences.”While e-commerce has changed the types andvariety of corrugated boxes used by shippers,3 Boston Globe article from Aug.12, 2017, “Why EcommerceMight Not Save the CardboardBox.” KXpRhDWoOzmu2CNO/story.htmlVersatile & evolvingthe statistics show it has not led to massiveCorrugated boxes have a long history of meetinggrowth in consumption. According to FBA,distribution needs, adapting to requirementscorrugated production peaked in 1999,3 withalong the way. Order online from one of the1-percent to 2-percent growth in recent years,major e-commerce providers, and it’s likelybut well below the 12-percent to 15-percent rateyour shipment will arrive in a corrugated box,of growth for e-commerce.complete with printed logos or special colors.2
W H I T EB OX E S D E L I V E R O N P R O T E C T I O N , B R A N D I N G ,P A P E R& S U S TA I N A B I L I T Y F R O N T S F O R E - C O M M E R C EThere are multiple reasons why corrugated usework with corrugated suppliers to make boxeshasn’t surged at the same rate as e-commerce.with minimal void space, thus lowering shippingFor one thing, slower growth in traditionalcosts. Shippers also collaborate with corrugatedretail lessens the need for packaging goodsbox manufacturers to design inter-pack featuresfor brick & mortar channels. At the same time,that protect shipments from shifting or damagemanufacturers have found ways to downsizein transit. Yet another alternative is machineryThis “right-sizing” of boxesfor e-commerce takes somedata management skillsfrom shippers. They needto know the dimensionsand weights of theirproducts, and commonorder patterns.products (e.g., concentrated liquidthat custom produces the right size box “ondetergents) to reduce the volumedemand” from corrugated consumables.and/or weight of goods, thusreducing the packaging needed.Another major evolution in corrugated boxesis what can be printed on the outside of a box.However, e-commerce shippersWhile linerboard has always been an excellentare turning to corrugated becausesurface for printing, over the last several years,of its versatility and otheradvances in production-speed digital printingdesirable characteristics likeequipment for corrugated have opened newits ability to protect products.opportunities for customizing the informationAccording to research firmprinted on boxes.Freedonia, demand for boxes fore-commerce packaging will grow more than 10While digital printing for corrugated has beenpercent per year through 2020, with 95 percentaround since the early 2000s, it wasn’t untilof box demand to be met by corrugated.42013 that the equipment became much bettersuited to production-speed work instead of justCorrugated is inherently versatile, in that it islimited short runs or samples. With the advancesthe only rigid packaging medium that can bein digital printing, e-commerce shippers andcut and folded into an infinite variety of shapesconsumer goods companies can extend the lookand sizes while offering thousands of possibleof their brand to the shipping container, while forcombinations of board types, flute sizes,the retail channel, digital printing on corrugatedweights, adhesives, treatments and coatings.supports attractive “shelf-ready” packaging andend-of-aisle displays.With the rise of e-commerce, there has been afocus on lighter-weight designs, as well as boxesProtecting the goodsthat serve as both the primary package and theMany of corrugated’s advantages stem fromshipping container. There is also collaborationits ability to cushion and protect goods at abetween e-commerce shippers and boxrelatively low container weight. The key to thismanufacturers to design box sizes that match uphigh strength-to-weight ratio is the arch-basedwith consumer ordering patterns so that therefluted layer. The flutes and linerboard alsois minimal empty or “void” space, while makingnaturally insulate the product from temperaturethe boxes easy to open.variations, while the linerboard providesadditional strength and a great surface for4 Freedonia Group press release,Dec. 19, 2016, “Market for BoxesUsed in E-commerce to Grow10% Annually Through row-10-Annually-Through-2020This “right-sizing” of boxes for e-commerceprinting. Corrugated box suppliers also offertakes some data management skills fromdouble-wall and triple-wall designs to hold andshippers. They need to know the dimensionsprotect heavier goods.and weights of their products, and commonorder patterns. With this knowledge, they can3
W H I T EP A P E RB OX E S D E L I V E R O N P R O T E C T I O N , B R A N D I N G ,& S U S TA I N A B I L I T Y F R O N T S F O R E - C O M M E R C EIn combination with inner-pack separators, afind that corrugated boxes are further improvingcorrugated shipping box provides excellentwhen it comes to their ability to protectcushioning qualities. The better the cushioningperishable goods.provided by the container or box, the lesschance there is of damage to products duringAdditionally, corrugated manufacturers havethe delivery process, which in turn helps reducedevised alternatives to wax-coated corrugatedcostly returns. Studies indicate the expense ofboxes that were once a staple for distributingreturns processing ranges from 20 percent tofood products that required a moisture barrier,65 percent of the cost of goods sold.4 so stepsbut weren’t easy to recycle in the normal paper-to reduce damage via better packaging shouldrecycling stream. There are now more the 50help reduce returns costs.recyclable coatings that replace wax for suchapplications, which has led to a reduction in the“Corrugated doesn’t weigh very much, anduse of waxed boxes, and increased corrugatedthere is a tremendous amount of strength torecycling thanks to these wax alternatives.it,” notes Kenyon. “The other factor is that itcushions and absorbs. These are some of the“Corrugated boxes are proven and reliable,qualities the industry tests for and maintainsbut the industry continues to innovate,”specifications around.”explains Dennis Colley, president & CEOof FBA. “Through new designs and coatingCorrugated manufacturers also are innovatingtechnology, corrugated is becoming evenwith new types of coatings to enhance thebetter at protecting products, while remainingcooling properties of boxes. While the flutedlightweight and right-sized to minimize logisticsmedium of a box and its linerboards naturallycosts—and easy to open for consumers.”insulate, shippers with perishable goods will4
W H I T EB OX E S D E L I V E R O N P R O T E C T I O N , B R A N D I N G ,P A P E R& S U S TA I N A B I L I T Y F R O N T S F O R E - C O M M E R C EThe “unboxing” experienceAnother way corrugated boxes can help improveCompanies known for their technology innovation,customer service is through enhanced productsuch as Apple and Amazon, have another thing intraceability. Using bar code or radio frequencycommon: their innovative use of corrugated boxesidentification (RFID) technology, a box can serve asfor branding and customer experience purposes.a platform to track product location in the supplychain, providing crucial information such as howApple, for instance, has been along perishable items were in transit. Using Cloud“A tremendous amount ofcorrugated is recovered—people have been gettingthe message, but because ofbuying behaviors shifting tomore goods going directlyto consumers’ homes, wewant to make sure therecovery rate continues toimprove.”leader in using high quality boxesnetwork traceability solutions in conjunction withand graphics for its technologyUPC or QR codes on boxes, enhanced chain ofproducts. Amazon uses browncustody information can be achieved at lower costcorrugated boxes in shipping,than was possible in the past.—Rachel Kenyon, vice president of FBAbut has made its smile logo andbranded sealing tape a familiarStrong on sustainabilityand reliable part of its customerAny shipper using corrugated boxes can beexperience. Additionally, Amazon’sassured that the material itself has a positive“Frustration Free” packagingsustainability story to tell. Corrugated has aninitiative focuses on streamliningexcellent recycling rate.the unboxing process by workingwith product manufacturers toIn 1993, the recovery rate for corrugated wasdesign a primary package that also54 percent, but thanks to better infrastructure,doubles as the shipping carton.recycling programs and awareness efforts,that rate has steadily climbed to 93 percentWith digital printing allowing for vibrant colors,for 2016.5 The corrugated recycling symbol—alogos, and product information to be quicklybox with a recognizable chasing arrow aroundand beautifully produced on corrugated, theit—was introduced in 1993. Use and awarenesshumble box is now shaping up as a platform forof the symbol, along with efforts by corrugatedan enhanced customer experience. “Companiesmanufacturers, recyclers, local governmentsare finding that corrugated is a great way toand others to create a healthy recyclingextend their brand as part of the unboxinginfrastructure, have helped improve this recoveryexperience,” says Kenyon. “And, by doing thingsrate. The rate is especially high for corrugatedlike allowing the shipping containers to doublematerials being collected from commercialas a product box that minimizes the need forfacilities such as stores and factories.extra materials, the experience is improvedfor the customer because it eliminates the“A tremendous amount of corrugated isfrustration that can happen with opening somerecovered—people have been getting thee-commerce shipments.”message, but because of buying behaviorsshifting to more goods going directly toconsumers’ homes, we want to make sure therecovery rate continues to improve,” statesFBA’s Kenyon. “We want to work with industryand consumers to ensure that when peopledo receive deliveries at home, they take that5 Corrugated.org website,Recycling Corrugated Packagingpage. http://www.corrugated.org/recycling/extra step to recycle.”5
W H I T EB OX E S D E L I V E R O N P R O T E C T I O N , B R A N D I N G ,P A P E R& S U S TA I N A B I L I T Y F R O N T S F O R E - C O M M E R C EThere’s long-held industry belief that the fibersAbout Fibre Boxin corrugated boxes can be recycled about sevenThe Fibre Box Association (FBA) is a non-profitor eight times before they begin to lose theirtrade association that represents North Americanperformance characteristics. While researchcorrugated packaging manufacturers and strivesindicates that fibers could be used up to 30to grow, protect and enhance the overall well-Corrugated’s high recyclingrate has led to a reductionin greenhouse gasemissions by 35 percentbetween 2006-2014 due toless methane emissions.6or more times, it’s a given thatbeing of the industry by providing member-valuedthe industry will always needprograms and services.some of its material to comeE: fba@fibrebox.orgfrom harvesting trees. Undersustainable forestry practices, newtrees are planted to offset thosebeing harvested. Currently, theaverage corrugated box contains48 percent recycled content.Corrugated manufacturers also have improvedtheir sustainability performance at the milland manufacturing levels. Mills are nowusing cleaner fuels like natural gas, with a27 percent increase in the industry’s useof natural gas since 2006.5 The energymanagement and process control systems inmills are more efficient than in the past, as istheir use of water. Corrugated’s high recyclingrate has led to a reduction in greenhouse gasemissions by 35 percent between 2006-2014due to less methane emissions.6“Corrugated holds a sustainability advantageas a material for packaging and shipping, in partbecause of the recycling efforts that have beenmade, but quite simply, because it’s a renewableresource,” states Kenyon. “Corrugated is madefrom natural, plant-based fibers that can bereliably recycled. When you combine that qualitywith its advantages in strength, in productprotection, and versatility in right-sizing boxesand customizing them to improve the customerexperience, it is clear why corrugated is theperfect package for e-commerce. People inindustry have used corrugated for a long time—6 Corrugated.org website,Corrugated Packaging Recyclespage. http://www.corrugated.org/recycles/now it’s time to fully appreciate how it can helpmeet current and future fulfillment objectives.”6
the corrugated box. Yes, the corrugated box can and should be thought of as one of the key technologies for e-commerce-era fulfillment. Just think about corrugated material for a minute. Corrugated boxes are vital to order fulfillment and customer satisfaction, but there's also great technology in the humble box. A corrugated box gains much .
