Procurement managers, particularly those trying to find sustainable packaging solutions can ease the pressure but planning is key.Supply chain disruptions are something that businesses are familiar with, particularly after the last two years. However, the newest challenge has arrived in the packaging sector where businesses are struggling with longer lead times and material shortages.
In a series of reports by Supply Chain Dive, packaging supply is expected to remain tight through the 2022 holiday season and likely stretch into 2023.
With the increase in demand for sustainable packaging, both from consumers and regulations, one of the most effective ways to lessen the risks of shortages and disruptions in your own supply chain is to work directly with suppliers to build longer lead times. Collaborating with suppliers can also help businesses and procurement managers adjust their packaging orders and specifications to reflect what suppliers can realistically provide.
Resource shortages and supply chain disruptions have made building and maintaining supplier relationships more important than ever before. This is particularly true in small and medium sized businesses who are feeling the impact of these disruptions more acutely.
Here are our four tips for helping weather these challenging times:
Being resilient and able to adapt has become somewhat of a habit for SMEs lately
Work with your suppliers as your partners: Collaborate and coordinate. Aligning your business’s needs and deepening your relationship with your suppliers will give you more insight into what’s feasible and what you will need to compromise and plan for. This also allows space for innovation and sustainable incentives as relationships are purpose driven and cooperative.
Continuously assess your suppliers: Know what’s changing in your supply chain and stay informed about whether your suppliers are still on track and able to meet your needs.
Be ready to change: Being resilient and able to adapt has become somewhat of a habit for SMEs lately but it's also what has allowed businesses to consistently and continuously troubleshoot. Have contingencies, plan ahead, and be ready to move fast.
Plan and plan: In the face of raw material shortages, remember that suppliers are also feeling the pressure and as a result their lead times are increasing. Place orders months ahead of time to reduce your risks in face of volatility.
Mehrnaz Tajmir is the Co-Founder and Chief Science of Greener
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