Packaging as a category has undergone significant changes in the supply market over the last few years. High growth in emerging markets, raw material price volatility, consolidation in the industry, increasing demand for premium and green packaging, and increased regulations are some of the macro factors that have had significant and lasting impact on the packaging supplier market. Further, being core to business operations, the risk associated with the category and impact of price changes on the end product are also significant. Procurement professionals are required to keep pace with these changes to not just control costs but also help growth.
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Controlling packaging spend while meeting expectations of the product marketing groups is a tough task. High exposure to fluctuating raw material prices and lack of risk mitigation options make cost controls difficult. Expansion in newer markets needs local qualified suppliers and therefore local sourcing skills. Financial or capacity failure from suppliers can halt operations and result in millions in losses. Category managers are also expected to be abreast of the latest technological developments and regulatory issues that may warrant a drastic change in sourcing strategies.
GEP's experience in packaging spans across several billion dollars in managed spend, all major regions across the world and almost every sub-category. Some of the major categories we source and manage on a regular basis for our clients include Corrugated, Cartons, Kraft Paper, Pallets, Slipsheets, Films and Flexibles, Plastic and Glass Containers, Shrink and Stretch Wraps, Blister Packs, Labels, Polybags, Adhesives, Metal Packaging and Green Packaging.
Combining Expertise With Infrastructure
Our category expertise and in-depth knowledge of supplier market is augmented by a strong support infrastructure that enables us to execute sourcing activities with greater depth and speed. This includes:
- Dedicated market intelligence team tracking raw material prices, supply and demand trends, and industry developments on a daily basis and providing actionable research on demand
- Several packaging category SMEs on staff and an extended network of SMEs globally
- On-the-ground presence in emerging markets including China, India, Mexico, Prague and Sao Paulo, working with local packaging suppliers
- Highly versatile eSourcing tools including spend analysis, RFx and auction tool with customized templates and models for packaging categories
- Global supplier network of millions of suppliers
Focused and Holistic Strategies
Our sourcing strategies for packaging focus on total cost reduction and incorporate cost breakdown analysis, optimized pricing mechanisms, demand management, specification optimization, "should cost" analysis, order size optimization, formula pricing, SKU rationalization, printing cost optimization and logistics optimization among many others.
We also help our clients with low-cost country sourcing on packaging categories including supplier landscaping, risk assessment, sourcing, supplier development and ongoing supplier management.
GEP has helped numerous market-leading companies across several industries achieve breakthrough savings on their packaging spend, develop stronger supplier relationships and reduce supply and quality risks.