There is virtually no area in the entire world that is NOT be affected by COVID19. People, places and things will be, in some cases, permanently changed as a result t of the global pandemic. Today, we are looking at how the cornerstone of our service, corrugated packaging might change, and how we will remain a stable and reliable supplier in the face of such global and far reaching circumstances.
In Some Cases, Supply has been in Danger of Running Short
One of the main concerns in the industry comes from workers having to self-isolate, especially in China where many packaging companies rely on manufacturing facilities.
PA Consulting manufacturing and supply chain expert Tim Lawrence told Packaging Gateway: “The first shock in the supply chain will be caused by the scarcity of supply. Companies should immediately review their inventory levels and policies – and ask suppliers to do the same.”
Procter and Gamble (P&G) chief operating officer Jon Moeller said last month: “We access 387 suppliers in China that ship to use globally more than 9,000 different materials, impacting approximately 17,600 different finished product items. Each of these suppliers faces their own challenges in resuming operations.”
Self-isolation and quarantining as a result of Covid-19 also means that important global packaging events, such as Germany-based Interpak and Amsterdam-based Plastics Recycling Show Europe, have been cancelled or postponed.
Relocating supply chains
A survey conducted by the Institute for Supply Management (ISM) between 22 February and 5 March revealed that production in China fell to an all-time low in February, with manufacturers in China reporting a 50% operating capacity with 56% of normal staff. Most respondents also reported experiencing order delays.
“It is important to avoid clustering of suppliers in one region and particularly around similar supply chains. This will be increasingly critical as the world becomes more volatile through climate change and other man-made impacts. That makes it important to look beyond selecting on lowest price only and understand the overall value and the risks in the supply chain.”
Here at Packaging Design, all of our supply comes from American forestry companies, American paper makers, and American corrugators to us. Not being reliant on foreign raw materials or supplies makes us far less vulnerable to the volatility of the world market.
Corrugated packaging is ESSENTIAL
Corrugated cardboard continues to flow, ensuring not just packaging for fresh foods, but also necessities amidst the fight to contain COVID-19, such as medical and pharmaceutical products, tissue and hygiene products, and more.
“Corrugated cardboard packaging is the backbone of the American supply chain,” said Dennis Colley, President and CEO. “As COVID-19 changes our daily lives, we want to assure consumers that the box industry is continuing to operate and to deliver needed packaging to our customers who supply grocery stores, pharmacies, doctor’s offices, and hospitals with food and medical supplies to keep us all healthy and safe.”
As proud suppliers to crucial clients in the food, pharmaceutical and other vital industries, we want to assure you that we are here for you, we are deemed essential, and we will continue to provide you with the unmatched service and quality that we always have. Please let us know how we can help you today.