Flevy Management Insights Case Study
Live Event Packaging Strategy for Eco-Friendly Packaging Solutions


Fortune 500 companies typically bring on global consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture, or boutique consulting firms specializing in Supplier Relationship Management to thoroughly analyze their unique business challenges and competitive situations. These firms provide strategic recommendations based on consulting frameworks, subject matter expertise, benchmark data, KPIs, best practices, and other tools developed from past client work. We followed this management consulting approach for this case study.

TLDR A small to medium-sized business unit specializing in eco-friendly packaging faced rising supply costs and declining customer retention amid a volatile market. By implementing a Supplier Partnership Program and operational frameworks, the organization successfully reduced supply costs by 15% and increased market share by 10%, highlighting the importance of Strategic Supplier Management and Operational Excellence.

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Consider this scenario: A small to medium-sized business unit specializing in eco-friendly packaging solutions for the live events industry is facing challenges with Supplier Relationship Management.

This organization is encountering a 20% increase in supply costs and a 15% decline in customer retention rates over the past fiscal year. Externally, the rise of digital events and the volatility of the live events industry due to health concerns have drastically reduced demand. Internally, procurement processes and supplier quality management have been inconsistent. The primary strategic objective is to optimize supplier relationships to enhance cost-efficiency and customer satisfaction, thereby improving market competitiveness in the eco-friendly packaging niche.



The organization is navigating a tumultuous phase marked by escalating supply costs and diminishing customer loyalty, suggesting that the core issues may stem from inadequate Supplier Relationship Management and procurement inefficiencies. A deeper inquiry into these areas is essential to identify actionable solutions.

Market Analysis

The eco-friendly packaging market for live events is in a state of flux, influenced by growing environmental awareness among consumers and businesses alike. However, the unpredictability of live event schedules has introduced volatility into demand forecasts for sustainable packaging solutions.

Examining the competitive forces reveals:

  • Internal Rivalry: High, with numerous providers competing on innovation, price, and sustainability credentials.
  • Supplier Power: Moderate, as the availability of sustainable materials grows, but with significant variances in quality and price.
  • Buyer Power: High, given the increasing number of alternatives and the ease of switching suppliers in search of better deals or more sustainable options.
  • Threat of New Entrants: Medium, due to the specialized nature of eco-friendly materials but offset by relatively low barriers to entry in the packaging industry.
  • Threat of Substitutes: Low, as the demand for sustainable packaging solutions is driven by regulatory pressures and consumer preferences, with few direct substitutes available.

Emerging trends include a shift towards biodegradable materials and the integration of digital elements into packaging for enhanced customer engagement. These trends signal:

  • Increased demand for innovative and sustainable packaging solutions, offering the opportunity for differentiation but also the risk of commoditization if innovations are not protected.
  • The necessity for strategic partnerships with material suppliers and technology providers, presenting opportunities for cost savings and product enhancement but requiring careful management of supplier relationships.
  • Growing regulatory scrutiny on sustainability practices, posing a compliance challenge but also an opportunity to lead the market in eco-friendly packaging.

For a deeper analysis, take a look at these Market Analysis best practices:

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Internal Assessment

The organization has demonstrated a strong commitment to sustainability, with a portfolio of innovative packaging solutions but struggles with operational efficiencies and supplier management.

SWOT Analysis

Strengths include a solid brand reputation for sustainability and innovation in the live events market. Opportunities lie in expanding the product range and entering new markets. Weaknesses are evident in supply chain management and cost control, while threats come from increasing competition and market volatility.

VRIO Analysis

The company’s dedication to eco-friendly solutions and innovative designs provide a competitive edge that is valuable, rare, and costly to imitate. However, operational inefficiencies undermine these advantages, indicating a need for improved processes and supplier relationships.

Capability Analysis

Success in the eco-friendly packaging market requires excellence in innovation, supply chain management, and customer engagement. The organization excels in innovation but must strengthen its supply chain and customer service capabilities to sustain its competitive position.

Strategic Initiatives

Based on the insights gained, the following strategic initiatives are proposed over the next 18 months :

  • Supplier Partnership Program: Develop a structured program to foster long-term relationships with key suppliers, aiming to secure competitive pricing and ensure material quality. This initiative seeks to reduce costs and enhance product quality, creating value through improved margins and customer satisfaction. Resource needs include dedicated personnel for supplier relationship management and analytics tools for performance monitoring.
  • Product Innovation and Diversification: Launch a research and development initiative to explore new materials and technologies, diversifying the product line to cater to emerging market needs. The intended impact is market differentiation and growth in new segments. This will require investment in R&D and marketing to communicate the value proposition of new offerings.
  • Operational Efficiency Enhancement: Implement process improvements and technology solutions to streamline operations, particularly in procurement and supply chain management. Expected benefits include reduced operational costs and improved responsiveness to market changes. Resources needed encompass process re-engineering expertise and technology investments.

Supplier Relationship Management Implementation KPIs

KPIS are crucial throughout the implementation process. They provide quantifiable checkpoints to validate the alignment of operational activities with our strategic goals, ensuring that execution is not just activity-driven, but results-oriented. Further, these KPIs act as early indicators of progress or deviation, enabling agile decision-making and course correction if needed.


Measurement is the first step that leads to control and eventually to improvement.
     – H. James Harrington

  • Supplier Performance Scorecards: To evaluate the effectiveness of the Supplier Partnership Program and identify areas for improvement.
  • Product Development Cycle Time: To gauge the efficiency of the R&D process in bringing new products to market.
  • Operational Cost Reduction: To measure the impact of efficiency enhancements on the bottom line.

These KPIs offer insights into the health of supplier relationships, the organization’s agility in innovation, and the effectiveness of operational improvements. Tracking these metrics will enable data-driven decision-making and continuous improvement.

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Supplier Relationship Management Best Practices

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Supplier Relationship Management Deliverables

These deliverables represent the outputs across all the strategic initiatives.
  • Supplier Partnership Program Framework (PPT)
  • Product Innovation Roadmap (PPT)
  • Operational Efficiency Improvement Plan (PPT)
  • Supply Chain Management Toolkit (Excel)

Explore more Supplier Relationship Management deliverables

Supplier Partnership Program

The Supplier Partnership Program was underpinned by the application of the Kraljic Portfolio Purchasing Model. This framework, developed by Peter Kraljic, assists organizations in classifying their suppliers based on the risk and impact of their supply items, thereby strategizing the supplier management process effectively. It proved invaluable in optimizing the supplier base, focusing on strategic partnerships that ensure both cost-efficiency and supply reliability. The organization embarked on this path by:

  • Classifying suppliers into four categories: strategic, leverage, bottleneck, and non-critical, based on the risk associated with their supply and the financial impact of their goods or services.
  • Developing tailored strategies for each category, such as forming strategic alliances with key suppliers and seeking alternatives or innovations for bottleneck supplies.
  • Engaging in regular performance and risk assessments to adjust strategies as market conditions and organizational needs evolved.

The Balanced Scorecard was another framework deployed to align supplier performance metrics with the organization's strategic objectives. This approach facilitated a comprehensive evaluation of supplier contributions beyond cost, incorporating factors like quality, delivery timeliness, and innovation. Following this framework, the organization:

  • Identified critical performance indicators across financial, customer, internal process, and learning and growth perspectives.
  • Implemented a supplier scorecard system to regularly assess and communicate performance against these indicators.
  • Used scorecard outcomes to foster continuous improvement discussions with suppliers, aligning their performance with the organization’s strategic goals.

The results of implementing these frameworks were transformative. The organization not only optimized its supplier base, leading to improved cost-efficiency and product quality, but also fostered stronger, more collaborative relationships with key suppliers. This strategic approach to supplier management significantly contributed to enhancing the organization's competitive position in the eco-friendly packaging market for live events.

Product Innovation and Diversification

For the Product Innovation and Diversification initiative, the organization leveraged the Blue Ocean Strategy framework. This approach, which focuses on creating uncontested market space and making the competition irrelevant, guided the team in identifying and executing on opportunities for differentiation through innovation. By applying this framework, the organization:

  • Conducted a comprehensive analysis of the current market landscape to identify overserved and underserved needs within the eco-friendly packaging sector.
  • Engaged in cross-functional brainstorming sessions to ideate new packaging solutions that could address these needs in unique ways.
  • Developed prototypes for these solutions and tested them in select markets to gather feedback and refine the offerings.

The Design Thinking framework was also instrumental in this initiative, particularly in ensuring that new products were not only innovative but also deeply aligned with customer needs and usability. By empathizing with customers and iteratively testing product concepts, the organization:

  • Gathered insights from live event organizers and attendees through interviews and observation, focusing on their experiences and pain points with existing packaging options.
  • Utilized these insights to prototype and iterate on new packaging designs, incorporating sustainability and user-friendliness as core features.
  • Conducted pilot launches of finalized products, using customer feedback to make final adjustments before a full-scale rollout.

The deployment of the Blue Ocean Strategy and Design Thinking frameworks led to the successful launch of several groundbreaking eco-friendly packaging solutions that captured new market segments and redefined customer expectations. This strategic focus on innovation and customer-centric design significantly bolstered the organization's market leadership and brand reputation in the eco-friendly packaging domain.

Operational Efficiency Enhancement

In addressing Operational Efficiency Enhancement, the organization applied the Lean Six Sigma framework to streamline processes and eliminate waste. Lean Six Sigma's dual focus on efficiency (Lean) and quality (Six Sigma) provided a structured approach to identifying and addressing operational inefficiencies. The process unfolded as follows:

  • Mapped out all core operational processes, identifying non-value-added activities and bottlenecks that contributed to inefficiencies and increased costs.
  • Implemented targeted improvement projects to streamline these processes, utilizing Six Sigma tools to reduce variation and improve quality.
  • Established a continuous improvement culture by training staff in Lean Six Sigma principles and empowering them to identify and propose further efficiency enhancements.

The Theory of Constraints was another critical framework employed to systematically identify the most significant limiting factor (constraint) that stood in the way of achieving the organization's goal of enhanced operational efficiency. By focusing on this constraint, the organization:

  • Identified the procurement process as the primary bottleneck, causing delays and increasing costs.
  • Reengineered the procurement process to streamline supplier selection, ordering, and inventory management, thereby alleviating the bottleneck.
  • Monitored the impact of these changes on overall operational efficiency, adjusting strategies as necessary to ensure continuous improvement.

The application of Lean Six Sigma and the Theory of Constraints led to significant improvements in operational efficiency, reducing waste and lowering costs. These enhancements not only improved the organization's bottom line but also enabled it to respond more agilely to market demands, further strengthening its competitive edge in the eco-friendly packaging market for live events.

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Key Findings and Results

Here is a summary of the key results of this case study:

  • Secured competitive pricing and ensured material quality through the Supplier Partnership Program, reducing supply costs by 15%.
  • Launched groundbreaking eco-friendly packaging solutions, capturing new market segments and increasing market share by 10%.
  • Achieved a 20% reduction in operational costs through Lean Six Sigma and Theory of Constraints frameworks.
  • Improved supplier performance scorecards, enhancing product quality and delivery timeliness by 25%.
  • Reduced product development cycle time by 30%, accelerating the introduction of innovative products to the market.

Evaluating the results, the strategic initiatives undertaken have been largely successful in addressing the core challenges faced by the organization. The implementation of the Supplier Partnership Program, leveraging frameworks like the Kraljic Portfolio Purchasing Model, directly contributed to a 15% reduction in supply costs, showcasing the effectiveness of strategic supplier management. The launch of new eco-friendly packaging solutions, guided by the Blue Ocean Strategy and Design Thinking, not only expanded the product line but also significantly enhanced market share and brand reputation. Operational efficiencies realized through Lean Six Sigma and the Theory of Constraints frameworks underscored the importance of process optimization, leading to a noteworthy 20% cost reduction. However, the results were not without shortcomings. The anticipated improvement in customer retention rates was not explicitly mentioned, suggesting potential areas for further focus, such as customer engagement and service quality. Additionally, while operational costs were reduced, the report does not detail the impact on employee satisfaction or potential over-optimization that could affect product quality or innovation pace.

Based on the analysis, recommended next steps include a deeper dive into customer relationship management, with a focus on leveraging data analytics to understand and predict customer needs and satisfaction levels better. This could involve developing a more robust feedback loop and engagement strategy to enhance customer retention and loyalty. Furthermore, to sustain innovation and market competitiveness, it is advisable to explore strategic partnerships or collaborations with technology firms, enhancing product offerings with digital features that meet evolving customer expectations. Lastly, ensuring that operational efficiencies do not compromise product quality or employee morale is crucial; thus, a balanced approach to process optimization should be maintained, possibly through regular reviews and adjustments to the continuous improvement frameworks employed.

Source: Live Event Packaging Strategy for Eco-Friendly Packaging Solutions, Flevy Management Insights, 2024

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