Xavier Goube

Consultant

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Pressure on the transport packaging market: is your company ready?

Published on 07/12/2022

The transport packaging market is under pressure! This means that companies that use transport packaging to move and deliver their products will have to adapt quickly if they want to remain competitive. If your company isn’t ready for this change, you could find yourself falling behind. The good news is that there are many ways to stay in the game. In this article, we will discuss the current state of the transportation packaging market and its impact on businesses. We’ll also offer advice on how to adapt your business to ensure you remain competitive in this ever-changing economy.

What is the pressure on the transport packaging market and what is the cause?

The transport packaging market has been under pressure for many months due to various factors that have accumulated, starting with the increase in the price of raw materials, including wood, or new regulations. In recent months, the dramatic increase in the cost of raw materials such as wood and plastic has had a strong impact on the price of transport packaging. These increases were then combined with an increase in fuel for transport and a shortage of truck drivers. In addition, the post-Covid economic recovery means that companies have needed an increased volume of transport packaging to meet the high demand from their customers… At the same time, companies are shifting their preference to more sustainable and environmentally friendly transport packaging options such as recyclable materials for plastic pallets or leased reusable packaging for wood pallets. Finally, new global or European regulations and standards add constraints that have an impact on the cost price of packaging.

How does this growing pressure affect companies and their customers?

The transport packaging market is changing rapidly, forcing companies and their customers to adapt quickly. For companies, this means investing more time and resources to understand the new transportation packaging options available to them. They must also take the time to analyze how these options can be properly optimized to meet their needs and constraints, while reducing costs. They must also consider investing in new technologies or materials that will make transport packaging more efficient and cost-effective. Customers feel the pressure too! Some have to pay higher prices for transport packaging or products due to the complexity of complying with regulations or accessing limited transport packaging options due to their location and transport availability.

How can you maintain your company’s competitiveness?

Companies all over Europe have to be prepared. Input prices such as energy will remain high and are expected to keep the costs of raw materials and transport packaging such as pallets high in the short to medium term. Therefore, if you want your company to remain competitive, you need to put in place an appropriate strategic plan and define your packaging policy.

First, you need to make sure that your transport packaging solutions are perfectly optimized and adapted to the needs of your production line and the demands of your customers. This means investing in transport packaging that is durable, cost-effective and capable of meeting safety and hygiene standards.

You can also consider a combination of solutions for your transport packaging supply, such as pallet pooling, exchange or private yards. A Strategic Packaging Plan that integrates these types of complementary solutions will allow you to avoid shortages that have an impact on your customers’ production and deliveries.

Investing in new transportation technologies or materials will also help improve the supply chain, transportation efficiency and reduce costs. Finally, it’s important to monitor regulatory developments to ensure that you are in compliance with all relevant rules and standards. By following these tips and understanding the current issues impacting the transportation packaging market, your business will be well positioned to thrive under pressure!

The future of transport packaging

The packaging and transportation markets are under pressure, constantly changing, but the future holds many challenges and opportunities. For companies, this means understanding the different options and solutions available and, where appropriate, investing in consulting services, new technologies or new materials that will make your supply chain more efficient and profitable. E-commerce continues to grow, costs are rising and affecting more and more commodities, customers are turning to the most economical options possible, and industry regulations are making it difficult for companies to use certain transportation packaging solutions due to security concerns. Manufacturers and distributors will also have to pay ever higher transport and purchase prices as raw material prices rise. Finally, as regulatory changes continue, companies will need to ensure that they stay informed to ensure that their transport packaging meets all applicable requirements.

By keeping up with industry changes and ensuring that your transport packaging meets your internal needs as well as those of your customers, you can ensure that your business remains competitive even when the transport packaging market is under pressure. If you want to improve your supply chain and transportation efficiency while reducing costs, it’s time to take your transportation packaging solutions to the next level! As an expert in the management and optimization of transport packaging, Elemsys is at your side to advise you and help you meet these new challenges. From the audit of your supply chain to the proposal of new and creative solutions to reduce costs and limit risks, we can also accompany your teams during the implementation of your new supply system and your Strategic Packaging Plan. Want to know more about our services? Do not hesitate to contact us!

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