The past few years have been testing the patience of anyone involved with wholesale packaging and jan/san products. Longer lead times, staff shortages, increased freight charges and unpredictability on whether your PO’s will even be filled. It really has brought a somewhat calm market to its knees. The industry has had a typical pattern of following the price increases up and down, depending raw material and the occasional new convertor creating a temporary shift in product availability and reduced pricing.
What does the market look like today? What will tomorrow bring with supply, demand and pricing?
It is looking like the import market is coming back and the logistical costs have returned to pre-pandemic pricing. Domestic freight continues to stay high, but availability of equipment has reduced the chokehold on carriers.
The most reasonable scenario for the secured supply of materials is to dual source. If your current supplier has not had any disruptions, reward them with continued business. They invested in production and customer service and deserve your dedication. Import products should have a domestic supplier as a backup. The import model has proven that costs and availability can be at risk with any world event. Work with suppliers that bring value. You are paying for training, marketing and communication; if you are not expecting it, you should. Most good suppliers, either import or domestic, have the information to make your company successful and you should demand it today and in the future.
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