Packaging Supply Allocation 101

02/12/21 • 5 min

Three drivers affect the supply chain:

Immediate demand for hand sanitizer and surface cleaners.
A shift from wholesale (restaurants) to retail packaging.
The ripple effect of the long lead-times causing companies to increase inventories based on the unknown future.

Allocation is a secondary result of these areas, especially the hand sanitizer packaging surge that started in March of 2020 and has continued now into 2021.

Three drivers affect the supply chain:

Immediate demand for hand sanitizer and surface cleaners.
A shift from wholesale (restaurants) to retail packaging.
The ripple effect of the long lead-times causing companies to increase inventories based on the unknown future.

Allocation is a secondary result of these areas, especially the hand sanitizer packaging surge that started in March of 2020 and has continued now into 2021.

Previous Episode

COVID-19 and Key Industry Dynamics

As a result of the COVID-19 crisis, we have seen unprecedented disruption of the packaging supply chain, the result of which has made it very tough, and in some cases, impossible to meet customer demand.
Some of the industry dynamics have resulted in under capacity and under supply.
We'll explain a few of the key dynamics happening in this episode.

Next Episode

The Wipes Market and What to Look Out For

Sanitizer gels and liquids seem to be leveling off and with it some of the hysteria. With that, the packaging, fillers, and distribution channels have also settled down to some sense of normalcy.

The emerging need that has hit today’s consumer and thus all of us in the supply chain is the national shortage of wipes.
Like many other products in the market, all wipes are not created equally.

Let's Talk Packaging Industry - Packaging Supply Allocation 101

Transcript

Over the past several days, many suppliers within the packaging industry have announced implementation of structured supply allocations.

Three drivers affect the supply chain:

Immediate demand for hand sanitizer and surface cleaners.
A shift from wholesale (restaurants) to retail packaging.
The ripple effect of the long lead-times causing companies to increase inventories based on the unknown future.

Allocation is a seco