Overview of the Industrial Packaging Industry
Industrial packaging typically involves the storage, protection, handling, and transportation of various industrial products within the industry or with other end-use sectors. Industrial packaging can also be defined as the secondary or tertiary packaging used for packing products required for industrial purposes. The industrial packaging is available in multiple designs and shapes and is suitable for several applications in end-user industries, such as chemical, pharmaceuticals, construction, and food and beverage. Rise in building and construction activities in emerging economies like India and China and improved growth of the food and beverage industry to meet the demands of the growing population are some of the noteworthy factors that are expected to fuel the growth of the industrial packaging industry.
Nevertheless, the growth of the industrial packaging industry is vulnerable to certain factors, which include:
- Regulatory Trends and Pressures: Life cycle analysis is a critical process for estimation and comparison of the environmental impact of diverse Additionally, it is now being recognized that life cycle analysis should not only be performed on the packaging alone but should also be a vital component of the calculation of the environmental impact of the entire packaged product process.
- Assessing Sustainability: Presently, packaging contributes toward the sustainability of a packaged product and must be planned holistically with a product to enhance overall environmental performance and minimize product damage, wastage, and spoilage. However, no packaging solution is entirely sustainable, and packaging materials cannot be classified as good or bad. All the materials have their benefits and shortcomings depending on the tradeoffs, and product application necessary to arrive at an optimum position.
These challenges are compelling industrial packaging firms to leverage the use of supplier risk analysis solutions. Supplier risk analysis solutions help businesses reduce vulnerability and ensure proper continuity in the supply of raw materials. These solutions also help companies in the industrial packaging space to identify, evaluate, and mitigate supply risks across the supply chain.
The Business Challenge and Journey
The client, a leading industrial packaging firm with business operations spread across the globe wanted to ensure that the suppliers are appropriately monitored and managed throughout the supplier lifecycle. Additionally, the client wanted to identify, evaluate, and mitigate supplier risk and gain improved visibility into their supply chain processes. With the help of supplier risk analysis solutions, they also wanted to seek ways to profile the prominent suppliers within the industrial packaging space and devise robust risk segmentation analysis to assess supplier capabilities.
The supplier risk analysis experts at SpendEdge carried out an extensive research methodology to help the client address rising concerns and reduce supply costs. The research methodology included primary research coupled with qualitative and quantitative data collection and interviews and discussions with leading procurement experts within the industrial packaging space.
During the course of this supplier risk analysis engagement, the industrial packaging client gained insights into the supplier contingencies which helped them enhance their visibility into the supply chain patterns. This engagement also helped the client gain real-time insights into the supplier performance from manufacturing of raw materials to the delivery of the finished product to the audiences.
Fundamental questions answered in this supplier risk analysis
With the help of SpendEdge’s supplier risk analysis engagement, the industrial packaging client eliminated the likely bottlenecks including delays in the launch of products and services, discrepancies in supply, and environmental safety and health concerns. This engagement also helped the client reduce the time-to-market for their offerings.