Packaging Gateway examines some of the key issues facing the industry as a result of the Covid-19 coronavirus pandemic, including the effects caused by self-isolation rules, companies moving sourcing away from China, and reconsidering materials used in packaging.
The Covid-19 or coronavirus pandemic has had a considerable impact on the packaging industry. Self-isolation rules have resulted in short supply and event cancellations, and supply chains are looking to move sourcing away from China following manufacturing and production disruptions. Packaging Gateway examines some of the key issues facing the industry.
Stocks have been in danger of running short
One of the main concerns in the industry comes from workers having to self-isolate, especially in China where many packaging companies rely on manufacturing facilities. This month, Australian supermarket heads warned that packaging supplies were in danger of being hard to obtain due to factory closures in China.
PA Consulting manufacturing and supply chain expert Tim Lawrence told Packaging Gateway: “The first shock in the supply chain will be caused by the scarcity of supply. Companies should immediately review their inventory levels and policies – and ask suppliers to do the same.”
Procter and Gamble (P&G) chief operating officer Jon Moeller said last month: “We access 387 suppliers in China that ship to use globally more than 9,000 different materials, impacting approximately 17,600 different finished product items. Each of these suppliers faces their own challenges in resuming operations.”
Packaging specialist site Lumi last week stated: “All of the factories in the Lumi network are operational; however, some factories in China are experiencing one to three-week delays as they catch up the backlog from Lunar New Year and the coronavirus closures.”
Self-isolation and quarantining as a result of Covid-19 also means that important global packaging events, such as Germany-based Interpak and Amsterdam-based Plastics Recycling Show Europe, have been cancelled or postponed.
Relocating supply chains
Covid-19 has caused considerable disruptions for companies and, as a result, many are looking to relocate away from China.