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The impact on packaging and printing companies
Packaging and printing companies are greatly impacted by the supply chain and pricing, especially in terms of paper supply. By its very nature, the paper supply chain is very global, with companies in different countries and regions around the world basically needing raw materials such as paper for production, coating and converting. Companies around the world are dealing with labor and epidemics in different ways, on the supply side of paper and other materials. As a packaging printer, one way to deal with this crisis is to fully cooperate with distributors and make good forecasts of material demand.
Many paper mills have reduced capacity, leading to a shortage of paper supply in the market and driving up its price. In addition, freight costs have generally increased, and the situation will not end anytime soon. Together with delayed demand, logistics and rigid production processes, all of which have had a huge negative impact on paper supply, perhaps the problem will gradually get problems over time, but in the short term, it is a headache for packaging printers, so packaging printers should stock up early.
Supply chain disruptions caused by the 2020 New Crown outbreak continued into 2021. The global epidemic continues to affect manufacturing, consumption and logistics and transportation, and with rising raw material costs and freight shortages, companies in many industries worldwide are under significant pressure, and while this situation continues into 2022, there are steps that can be taken to mitigate the impact. For example, plan as far ahead as possible and communicate needs to paper suppliers as early as possible. Flexibility in the size and type of paper inventory can also be useful if the product of choice is not available.
It goes without saying that we are in the midst of a global market change that will have an impact for a long time to come. The immediate shortages and price uncertainty will continue for at least a year. Those companies that are nimble enough to work with the right suppliers through difficult times will emerge stronger. As the raw material supply chain continues to influence product prices and availability, it is forcing packaging printers to utilize a variety of paper types to meet their customers' printing deadlines. For example, some packaging printers are using more super waxed, uncoated papers.
In addition, there are many packaging printers that conduct comprehensive studies in different ways depending on their size and the markets they serve. While some purchase more paper and maintain inventories, others use processes that optimize paper usage to adjust the costs required to produce orders for customers. With many packaging printers unable to control their supply chain and pricing, the real way forward lies in creative solutions that improve efficiency.
From a software perspective, it is also important for packaging printers to carefully evaluate their workflow and be clear about the time that can be optimized from the time a job enters the print and digital production plant to the time of final delivery. By reducing errors and manual processes, some packaging printers have even reduced costs by as much as six figures. This is a sustainable cost reduction that also opens the door to more throughput and business growth opportunities.
