Packaging production and supply chain update: May 2022

Welcome to our latest supply chain update. Given the ongoing challenges facing global supply chains, our aim is to give you the information you need to help you plan ahead and minimize disruption to your business.

In this update we cover these topics:

• Global supply chain trends in the packaging industry
• Production and sea freight lead times
• Tips to help make sure you don't run out of packaging.

Global supply chain trends in the packaging industry

The great supply chain disruption continues with ongoing port congestion particularly in the US, equipment shortages, and delays to departure dates (refer to November 2021 Grounded update). Rising fuel costs are continuing to put pressure on logistics costs.

Grounded has been working hard to ensure there are no impacts on our customers' orders. In response to the pandemic-related raw material shortages, we have significantly increased our raw material inventory holding across all of our key product sets, resulting in shorter production lead times and increased price stability for our customers.

Production and sea freight lead times

Over the past few years we have seen demand for production ramp-up around the middle of the year. We are starting to see this increase again this year. To help avoid delays, we recommend you give yourself extra time and place your next order ahead of schedule.

Tips to get ahead

Get ahead

Factor in an additional 4-6 weeks' lead time on your orders to avoid the impact of freight delays.

Explore

Identify and mitigate any new risks and implications to your supply chain services and ecosystem. This might include holding additional safety stock you can draw from should you experience any unforeseen delays.

Scenario planning

Identify “what if” scenarios and develop protocols for each. The question to keep asking is what measures are in place to overcome the scenarios identified? Planning should cover: sourcing, production, distribution and service implications. Build freight delays into your planning and diversify your carrier options to cater for unexpected events.

Customers

We believe good customer service really gets to shine in times of adversity. Keeping your audience informed - even if it's not the news they want to hear - allows them to not only plan ahead but also builds trust.

Preparation

We recommend having a contingency plan in place and confirming order requirements early.

Contact

Our team is in daily contact with our partners right across the supply chain to monitor movements and mitigate risks.

If you have any questions, please contact your Grounded Account Manager.