The packaging industry plays a crucial role in the global economy, acting as the backbone of various sectors, including personal care, food and beverage, home care, and industrial chemicals. However, it faces significant challenges due to the ever-evolving global supply chain landscape. Geopolitical factors, economic shifts, and raw material availability have led to unprecedented levels of uncertainty, making it imperative for companies to adopt strategic approaches to ensure a robust packaging supply chain.
Amidst this backdrop, Evergreen Resources has delivered in-full and on-time for all its customers throughout the pandemic. In this blogpost, we will explore the key pillars of packaging optimization that enable companies to thrive in the face of changing supply chain dynamics.
Supply Chain Trends in Packaging
The global supply chain landscape has witnessed substantial transformations in recent years. Capacity limitations, labor shortages, and geopolitical factors are affecting the flow of raw materials and finished products across and within borders. Economic shifts and market disruptions have also prompted companies to continually reassess their supply chain strategies.
Customers’ expectations are also evolving, with a growing emphasis on sustainability and reliability. Companies are under increasing pressure to adopt environmentally responsible practices and materials, driving the demand for sustainable packaging options.
Pillar 1: Supply Chain Redundancy
Supply chain redundancy is a strategic approach that involves diversifying suppliers and production locations to ensure a resilient and flexible supply chain. In today’s interconnected global economy, disruptions in one region can have far-reaching effects on supply chains, leading to delays, shortages, and increased costs. By incorporating redundancy into their supply chain management, companies can proactively address potential risks and uncertainties, safeguarding operations against unforeseen events.
By working with suppliers that have facilities in multiple countries, companies can reduce their reliance on any one source and minimize their risk. This provides a buffer against potential disruptions and strengthens negotiation power with suppliers. Moreover, having numerous production locations allows for a more efficient distribution network, minimizing lead times and improving overall supply chain efficiency.
Successful implementation of supply chain redundancy is exemplified through various case studies. For instance, during the COVID-19 pandemic, companies that had multiple facilities qualified were better equipped to adapt to sudden changes in demand and supply chain disruptions. Those with single-source dependency, especially those sourcing solely from domestic manufacturers, faced significant challenges in securing critical materials and meeting market demands, highlighting the importance of supply chain redundancy.
Packaging companies like Evergreen have successfully developed redundancy strategies for their customers through their global manufacturing network, enabling them to respond swiftly to supply chain disruptions and maintain consistent lead time and product quality.
Pillar 2: Global Quality Management
Global quality management is a fundamental pillar in ensuring consistent product excellence in overseas manufacturing facilities. When working with overseas manufacturers, it is critical to have a partner who has a demonstrated track record of global quality management.
To achieve global quality management across all of its partner facilities, Evergreen adopts a comprehensive approach. The company begins by auditing every facility to be included in its portfolio across 165 metrics across quality management, production control, and safety & environment. Its QA Center of Excellence defines and standardizes quality control processes across all its international facilities. These processes encompass every stage of the production cycle, from sourcing raw materials to the final packaging product. By maintaining consistent standards, Evergreen ensures that the quality of its products remains uncompromised, irrespective of where they are produced.
Compliance with international quality standards and certifications is another essential aspect of global quality management. Evergreen adheres to stringent industry-specific regulations and holds certifications from globally recognized organizations, including ISO, DOT, and UN. These certifications not only validate the company’s commitment to quality but also open doors to new markets where compliance with international standards is a prerequisite for business engagement.
Pillar 3: Quick Development for Custom Packaging
The demand for customized packaging solutions is rising in an ever-evolving market where consumer preferences and branding play pivotal roles. For Evergreen, meeting this demand is an integral part of their packaging optimization strategy, making Pillar 3, Quick Development for Custom Packaging, an essential aspect of their success.
Addressing the growing demand for customized packaging requires a dynamic and flexible approach. Evergreen stays ahead of the curve by continuously innovating its product development process. The company reduces lead times by streamlining this process, ensuring clients receive their tailored packaging solutions promptly. Pilot molds take as little as 10 days to complete, while production molds are built in 25-30 days on average.
Leveraging cutting-edge design and prototyping tools is another essential element of Pillar 3. Evergreen employs advanced technology and state-of-the-art software to create virtual prototypes and 3D models of custom packaging. This accelerates the design iteration process, allowing clients to visualize and approve the final design quickly. By minimizing the time between concept and realization, Evergreen Resources ensures that clients can launch their products with eye-catching and brand-aligned custom packaging on time.
Evergreen collaborates closely with its clients to achieve efficient and rapid custom packaging development. The company understands that each client has unique requirements and branding aspirations. By actively listening to their clients’ needs and involving them in the design process, Evergreen Resources ensures that the final packaging solution aligns perfectly with the client’s vision.
Pillar 4: Vendor-Managed Inventory Program
Vendor Managed Inventory (VMI) is a collaborative strategy in which a supplier, such as Evergreen Resources, takes responsibility for managing and replenishing a customer’s inventory. In this arrangement, the supplier analyzes the customer’s forecast and inventory data, including current stock levels and consumption patterns. Based on this data, the supplier proactively produces, ships, and warehouses the customer’s inventory, ensuring that the correct quantity of products is available at the right time.
VMI is a departure from traditional inventory management practices, where customers are solely responsible for monitoring their inventory levels and placing orders with suppliers when necessary. With VMI, the supplier takes on a more active role, using data-driven insights to anticipate the customer’s needs and provide a seamless supply chain experience.
This strategic approach offers numerous advantages for both the supplier and the customer. For the supplier, VMI allows for better demand forecasting and planning, as they have direct visibility into the customer’s inventory and consumption patterns. This data-driven approach enhances supply chain efficiency and helps suppliers optimize production and distribution processes.
For the customer, VMI eliminates the burden of inventory management and order placement, allowing them to focus on their core business activities. With a reliable supplier taking care of inventory levels, the customer can ensure product availability without the risk of stockouts, reducing the need for safety stock and carrying costs.
Real-life success stories in the packaging industry exemplify the benefits of Evergreen’s Fully Managed Logistics program. For instance, a leading home care company embraced VMI and witnessed remarkable improvements in inventory management, enabling them to access global production capacity across Europe and Asia with the convenience of pulling inventory from the local Evergreen warehouse with a 48-hour lead time.
Evergreen Resources’s VMI program underscores the company’s commitment to providing exceptional service and value to its customers. By offering this inventory management solution, Evergreen empowers its customers to focus on core activities while entrusting the company to handle product needs efficiently. This pillar reinforces Evergreen Resources’s position as a reliable and responsive packaging partner, driving success for customers and cultivating enduring relationships with overseas manufacturers in the dynamic packaging industry.
Conclusion
In the face of global supply chain uncertainty, companies must prioritize strategic approaches to maintain quality excellence and ensure supply stability. The pillars of packaging supply chain optimization — supply chain redundancy, global quality management, quick development for custom packaging, and vendor-managed inventory programs — are crucial to success in a dynamic global market.
Evergreen Resources‘s commitment to quality and reliability exemplifies how packaging companies can thrive amid challenges. By embracing these optimization strategies and staying responsive to market dynamics, the packaging industry can continue to play a vital role in meeting the evolving needs of various sectors and consumers worldwide.
Evergreen Resources will be exhibiting at Pack Expo in Las Vegas September 11-13. Come visit the team of packaging experts at Booth W-9421 to discuss how you can increase your supply chain resiliency.