Gartner has identified 3 actions CPOs can take to navigate packaging shortages due to supply instability and rising costs. Read the press release to learn more: GartnerSC CPO Procurement
Packaging specifications are traditionally linked to a stock keeping unit or bill of materials . However, this practice prevents CPOs from being aware of all the packaging specifications across the organization. A better way is to centralize all specifications across the organization.
Collaboration can take the form of agreeing on suitable material substitutions, alternative production facilities, incentives, or a streamlined supplier onboarding. “Suppliers with limited capacity will prioritize customers with the most favorable commercial conditions. CPOs must align the interests of the suppliers with the internal requirements of manufacturing and R&D to chart the best path forward,” Blake said.
For example, primary packaging is in direct contact with the product and must ensure quality over the product’s shelf-life and might require additional certification by the supplier. However, primary packaging carries a unique set of needs that can result in longer lead times or increased upfront effort to qualify alternative materials or suppliers. On the other hand, transport of packaging such as pallets, crates and stretch wrap is often standardized.