We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • INDUSTRY PRESS ROOM
  • ABOUT
  • CONTACT
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • One-Off Sound Off
      • Global Logistics and Risk
      • Empowering Your Performance Edge
      • Analytics & Big Data
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • Parcel Forum 2022
    • MODEX 2022
    • Upload Your Video
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • One-Off Sound Off
      • Global Logistics and Risk
      • Empowering Your Performance Edge
      • Analytics & Big Data
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • Parcel Forum 2022
    • MODEX 2022
    • Upload Your Video
Home » Packaging industry reprioritizes amid inflation, supply chain disruption

Packaging industry reprioritizes amid inflation, supply chain disruption

90% of companies surveyed say they have changed how their packaging is sourced due to market forces.

box-g981dc06e0_640.jpg
June 22, 2022
DC Velocity Staff
No Comments

A survey of 300 packaging industry decision makers shows that most are shifting their priorities in response to inflation and supply chain disruptions over the past year, with 90% saying they’ve changed how their packaging is sourced.

Printing and packaging provider R.R. Donnelley & Sons Co. (RRD) released the Unpackaging Reality Report today, which explores how converging disruptive issues including supply chain volatility, inflation, labor shortages, and increasing sustainability pressures have affected the industry.

The study found that material price hikes and supply shortages presented the biggest hurdles for the industry over the past year, with more than half of respondents reporting they have been strongly affected.These challenges, among others, forced organizations to reprioritize packaging materials (68%), budget (52%), packaging design and aesthetics (49%), and sustainability goals (45%). Despite the challenges of the past few years, the study also found that, overall, the packaging industry proved resilient and continued to move toward a more sustainable and innovative future.

Screen Shot 2022-06-22 at 8.51.19 AM.png

“There’s no disputing that rising costs, supply chain snares, and talent pinches have posed major challenges to the packaging industry, but that doesn’t mean this reality is all doom and gloom,” RRD executive Lisa Pruett said in a press release Wednesday. “These challenges actually transformed the industry into a more innovative, agile, and environmentally conscious sector. Organizations responded with diverse strategies, as there is not a one-size-fits-all approach to tempering disruptions.”

Some of the report’s key findings underscore the industry’s shift toward innovation, its response to e-commerce pressures, and its “surprising strides in sustainability despite cost pressures.”

On the innovation side, 62% of respondents said they have diversified suppliers, 42% have outsourced manufacturing and fulfillment, 39% have consolidated suppliers, 30% have substituted specs, and 26% have reshored their manufacturing to the U.S. What’s more, there is “broad willingness to pivot to different packaging materials in light of supply chain sourcing challenges, with over one-third (36%) saying they were extremely willing to use alternative materials. As for guidance and information, 78% of respondents looked to suppliers, vendors or direct manufacturers,” according to the report.

When it comes to online ordering, the majority of respondents (57%) said they experienced an increase in e-commerce orders in the past one to two years and, for nearly all of them (92%), this resulted in an increase in packaging needs. Packaging professionals responded to the growth in e-commerce orders by increasing inventory (55%), expanding warehousing (53%), changing materials (52%), and increasing staff (51%).

On the environment, the authors said the survey findings contradict the sentiment that sustainability initiatives fell to the back burner as companies grappled with other pressing priorities. Almost all respondents (94%) agreed that sustainability is a key consideration in packaging and label decisions, with two-thirds saying they shifted to more sustainable packaging than what they used previously. When considering sustainability, budget is the top influencing factor—more so than external regulations or consumer preferences—suggesting that cost-effective eco-friendly materials are in high demand.

“Of note, the majority of packaging decision makers (55%) believe recent supply chain disruptions moved their companies closer to their carbon emissions goals, suggesting sustainability initiatives may prove versatile and resilient,” according to the authors.

The full report is available on the RRD website.

Order Fulfillment & Packing
KEYWORDS RRD
  • Related Articles

    Elemica Showcases "Embracing Disruption in the Supply Chain" with Industry Veteran Lora Cecere

    LLamasoft Announces Offerings to Accelerate Recovery from COVID-19 Supply Chain Disruption

    RETAINING SUPPLY CHAIN FLUIDITY AMID CHINESE NEW YEAR SHUTDOWNS

Recent Articles by DC Velocity Staff

Sloppy thieves botch trailer heist

Freightos completes plan to go public on NASDAQ exchange, raises $80 million

Retailers lose visibility as they outsource last-mile delivery, FarEye says

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • Outlook 2023: What’s in store for logistics/supply chain?

  • Ports, maritime operators see tide turning as ocean freight tsunami subsides

  • In Person: Steve Beverly of Penske

  • Fred Smith is not worried about Amazon

  • InPerson interview: Rob McKeel of Fortna

Now Playing on DCV-TV

89cfed30 8aac 4284 960d c8c8c1886e16

Have you checked your read rate lately?

DCV-TV 4: Viewer Contributed
No reads. Unaccounted for boxes. Boxes sent to the wrong place. A logistics nightmare! But this nightmare doesn’t have to come true. SICK’s linear line scan camera is what dreams are made of for your logistics operations. And if you’re worried about motion and vibration from conveyor belts...well, there’s no reason...

FEATURED WHITE PAPERS

  • The five best applications for robotic lift trucks in warehouse environments

  • Fulfillment Facility Improved Efficiencies by 4x

  • 3PLs: Complete Orders Faster with Flexible Automation

  • Reusable Packaging for the New Wave of Supply Chain Automation

View More

Subscribe to DC Velocity Magazine

GET YOUR FREE SUBSCRIPTION
  • SUBSCRIBE
  • NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2023. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing