How paper packaging buyers are managing procurement risk

Private Papers: candid conversations with packaging procurement professionals

Sourcing paper packaging material is becoming more and more complicated for consumer goods companies, especially in this historic moment when unprecedented gas prices are posing serious problems for – and in some cases even existential threats to – paper mills and packaging production sites.

Packaging buyers have had to deal with high and volatile prices for the past couple of years, stemming from skyrocketing production costs, disruptions in the supply chain and high transport costs. As a consequence, packaging buyers are struggling to prepare their budgets and forecasts and sometimes have to adapt their packaging needs by postponing production or by temporarily switching to other materials. Obviously, inflation in the packaging segment also contributes to higher prices for consumers, which, when tallied up with rising costs across the board, ultimately lowers demand and erodes margins.

In Europe in particular, skyrocketing gas and energy prices are forcing some paper mills to temporarily halt production, and this will further tighten the market, increase lead times and possibly bring further price increases.

In this special report, “How paper packaging buyers are managing procurement risk”, we will look at how big multi-national FMCG companies across Europe and North America are being affected by and responding to this complex set of procurement risks. To do so, we spoke to a number of senior procurement managers across the profession, representing different sectors, to understand how they are dealing with the many challenges the market has thrown at them in the past couple of years.

What’s inside this special report?

  • Candid conversations with senior procurement professionals working for some of the world’s biggest buyers of paper packaging
  • Five of the most effective procurement risk mitigation strategies, according to our interviewees
  • A look at how packaging buyers prepare for win/win price negotiations
  • And much more

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