No Packaging Material? No Problem
While the supply instability for packaging material has been causing headaches for chief procurement officers (CPOs), new research from Gartner says three tactics can go a long way toward helping companies navigate the resulting rising costs, delayed deliveries, and sustainability concerns:
1. Centralize packaging specifications and build a packaging supply ecosystem: This allows CPOs better visibility and enables improvements such as harmonizing similar materials, establishing more sustainable alternatives, and fluidly switching suppliers in the event of a shortage.
2. Collaborate with suppliers: Working closely with vendors, collaboration can take the form of agreeing on suitable material substitutions, alternative production facilities, incentives, or streamlined supplier onboarding.
3. Segment packaging: Each level of packaging has its own set of risks, so CPOs must factor that into strategies to mitigate supply shortages. Segmenting packaging across the organization provides a better base for decision-making.