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COVID’s Impact on Packaging and Supply Chains
How COVID has created previously unknown disruptions and how to navigate future ones.

Source from: https://www.flexpackmag.com/articles/90716-covids-impact-on-packaging-and-supply-chains

COVID at the Helm
 COVID has finally proven that the world is interconnected. What happens in one part of the world can impact what happens in other areas of the world.

For instance, when it comes to the transporting of masks and PPE (personal protective equipment) from China, if China couldn’t meet the worldwide demand or needed the products for its own country, then the rest of the world had no option but to wait. While other countries soon started producing their own materials, they were limited because no Plan B was in place to tackle the challenge.

Another way COVID is different from past supply chain disruptions is its scope. Manufacturers around the world have all been impacted.

When certain raw materials or components are no longer available, it slows — if not eliminates — the production of many other products made by manufacturers globally. And even when supplies once again begin to flow, it’s often stop-and-go.

This requires manufacturers to turn to mapping strategies to have a better idea of when they can expect certain materials, if those materials might be delayed and what is causing the delay. ₁

COVID is also atypical in that the duration of most other supply chain disruptions is finite.  For example, a disruption occurs because of a major storm. However, in a relatively short time, things return to normal — as do supply chains.

With COVID, we’ve had spikes and lulls worldwide, but it is still with us. It took almost two years for the 1918 influenza pandemic (aka, the Spanish Flu) to disappear. This may be true with COVID, or it may last even longer.

 Moving Forward
 We can, and have, learned a lot from this pandemic, and hopefully, it will be the only one most of us experience in our lifetimes. But something almost as serious can happen again.

As we make our way through the current situation and the current “new normal,” manufacturers and distributors must start thinking about what we have learned and what steps we should take if such a situation occurred again. Among them would likely be the following:

Taking care of our employees. Remote working is no longer new. We know what steps must be taken to make it work and work quickly. This means much of the confusion and disruption that occurred earlier in the year when remote working went into place can be avoided.

Staying close to customers. Some customers were caught off guard, needing many supplies that were invariably always in stock. This created much frustration, causing many to jump ship and look for new suppliers. Keeping customers apprised as to what steps are being taken to deliver those supplies can minimize the frustration and help retain them.

Join membership organizations. This applies to distributors. For example, many independent distributors in the professional cleaning industry soon ran out of disinfectants and paper products at the beginning of the pandemic. However, those who belonged to membership organizations were often able to tap into other members’ supplies. Further, membership organizations, whether it is cleaning or packaging, often have business relationships with manufacturers, allowing them to be first in line for products in short supply.

 Cyber technology issues. Most companies have an IT setup that protects the company computer and cloud systems from hackers while workers are in the office. But this security may not apply when workers are working from home and logging into company computers. IT strategies must be expanded to protect from technology threats, whether workers are working in the office or remotely.

Finally, being flexible is crucial — now during COVID and in the future should another crisis arise. Being nimble allows us to move quickly, which can help protect our businesses, our people and our bottom line.