• The global supply chain industry has recently experienced unheard-of obstacles; as a result, it must change to remain effective and endure upcoming catastrophes. 
• Supply chain management requires visibility into all supply chain tiers, including Tier 3 vendors. 
• The risk of unanticipated issues can be decreased, and potential interruptions can be protected by diversifying sourcing regions, suppliers, and near-shore operations.

The global supply chain industry has received a loud wake-up call over the last few years. The COVID-19 epidemic and the Russian invasion of Ukraine impacted the packaging sector in 2022. Worldwide supply chains have been disrupted due to these events, which have caused manufacturing delays, material shortages, and labor scarcity. While it is anticipated that these interruptions will eventually end, it is unlikely that the sector will return to its pre-pandemic state. For supply networks to be effective and whether upcoming crises, they must adapt to the current developments. This means that the sector must consider and take precautions for the elements that will likely influence supply chains in the upcoming years.

Knowledge of the entire supply chain beyond packaging

Companies must have visibility at all supply chain levels to guarantee their operations' success. Supply chains have grown more intricate in recent years, incorporating extensive supplier networks in numerous places. However, it became evident during the COVID-19 epidemic that many businesses required more information about what was happening in their supply chain outside of their direct partners. Only 2% of organizations had visibility into their Tier 3 suppliers, according to a 2021 McKinsey analysis. Visibility is crucial for supply chain management since shortages frequently happen further along the supply chain. It enables businesses to recognize possible dangers early and take the necessary precautions. This requires regular supply chain mapping, information gathering from all supplier tiers, and the application of data analytics to spot problems as soon as they arise.

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Diversification of your packaging supplier portfolio

Supply chains need to be adaptable to preserve efficiency, and diversity is one method to do this. The COVID-19 disruptions have emphasized the value of various sourcing options for locations and providers. By having a variety of solutions, businesses can defend themselves against potential disruptions and lower the chance of unforeseen issues. Companies increasingly use near-shore production to anticipate and handle problems as the supply chain landscape grows more unstable. Diversifying sources could necessitate more resources, but it will be worthwhile in the long run if issues develop. In the end, being ready is preferable to be caught off guard.

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Sustainability efforts of you and your packaging partners

For a good reason, sustainability is a popular topic today. Despite the difficulties caused by the COVID-19 epidemic, 85% of firms boosted their efforts to achieve sustainability goals, according to a report by EY. Because businesses must pay attention to sustainability, this is the case. Governments are passing new laws worldwide to advance sustainability. Customers and employees want businesses to satisfy sustainability standards, and stakeholders need information on sustainability goals. Companies can create a code of conduct for their suppliers, check that their supply chain complies with sustainability requirements, and improve communication with internal and external partners to guarantee that all levels of their supply chain comply with sustainability standards. Companies may ensure everyone is on board with their ESG objectives by implementing these actions.

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Appropriate Forecasting of Customer Demands

The abrupt shifts in consumer demand during the COVID-19 epidemic posed one of the major problems for supply networks. For instance, during lockdowns, people hurried to purchase necessary household items like packaged foods and cleaning supplies but drastically cut their expenditure on cosmetics and electronics. Due to this, some products were in short supply while others had extra stock. To remain competitive, businesses must keep an eye on and be ready for rapid changes in client behavior. To do this, companies can employ artificial intelligence and machine learning to spot trends in customer behavior and switch to on-demand production to handle unexpected surges in demand.

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Strengthen your packaging supply chain resilience

Increasing resilience is one of many supply chain trends' primary objectives. This is not shocking because recent events have demonstrated how dangerous it can be to concentrate on daily operations without making plans for disruptions. Although most businesses are familiar with the idea of resilience, it has gained importance in recent years as supply chain disruptions have grown more frequent and unexpected. Building resilience entails building a significant competitive advantage and addressing risks as they arise. To do this, businesses can test how well-prepared their company is to handle different scenarios, pinpoint problem areas, expand their stock of necessary goods and materials, diversify their supplier base, and improve communication and information sharing with suppliers. These steps can all contribute to a more resilient supply chain.

In summary, the global supply chain industry has recently encountered enormous pressures and must effectively adjust to weather upcoming crises. The packaging sector's main areas of focus are as follows: 

• knowing the supply chain at all levels 
• increasing the variety of sources and vendors used 
• the supply chain's sustainability is ensured 

Forecasting client demand and prioritizing resilience are two other crucial factors. Companies can strengthen their supply chains and preserve a competitive edge in the market by keeping an eye on these developments and taking the necessary precautions to prepare for what's to come.

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If you want us to help you increase diversification of your supplier portfolio, reach out to us and speak to one of our procurement and packaging experts at Packmatic.