E-commerce and the Changing Face of Retail Alison Kim, Sr. Director, - PowerPoint PPT Presentation

November 13, 2018 E-commerce and the Changing Face of Retail Alison Kim, Sr. Director, Strategic Marketing

WestRock At-a-Glance $16B 1 Net Sales. 300+ Operating locations. 45,000 employees. America, Europe and Asia-Pacific. 2 (1) Non-GAAP Financial Measure. See use of Non-GAAP Financial Measures and Reconciliations in our current report on Form 8-K filed with the SEC on August 2, 2018.

E-commerce | Outlook and Impacts E-commerce Supply Chain Packaging Design Outlook Impacts Impacts Impacts 3

E-COMMERCE OUTLOOK

US Chain Sales | E-commerce Outlook Source: kantarretailIQ.com 5

Areas to Watch 6

SUPPLY CHAIN IMPACTS

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[unprecedented] Complexity touches touches (retail) (ecommerce) 9

Supply Chain Impacts E-commerce Driving:  New fulfillment models  More ‘eaches’ touches  Increase in expenses  Need for new automation  More omnichannel packaging 10

PACKAGING IMPACTS

Packaging Demand E-commerce sales growth expected to 15.5% outpace traditional retail (CAGR, 2018-2023) Expect overall packaging, including box demand to increase over next 5 years ……..but threats exist. Source: kantarretailIQ.com 12

Potential Corrugated E-commerce Threats Source: money.cnn 13

DESIGN IMPACTS

E-commerce Design Considerations Structural Automation • Eliminate overboxing • Drive efficiencies • Be protective • Right-sizing • Be right-sized • Late-stage customization • Add modularity Materials Graphics • Fiber-based • Think inside and out replacements • Be engaging • Void fill usage • Customize 15

Key Take-aways E-commerce Supply Chain Packaging Design Outlook Impacts Impacts Impacts • Steady growth • More touches • Corrugated growth • Four levers • Be watchful • Wide impacts • Threats exist • Now and future 16