The Coronavirus and Covid 19 has everyone scrambling for available medical supplies like N95 masks, surgical gloves, eyewear and even hand sanitizer.  The problem is the US suppliers have dried up and now they are looking overseas to fill the void.  As a company well versed in sourcing globally, this can either work seamlessly or become a disaster.

While we are all dealing with the Coronavirus lockdown, this eBook and subsequent info is a good overview of the different plastic packaging alternatives that came onto the scene in 2019 and now 2020.  We've had advancements in barrier film that will biodegrade, plastic bottles that can break down under certain conditions at landfills, and even some of the most innovative designs for packaging liquids and semi-liquids we've seen in years.  While 2019 was the year of people hating plastic, we don't hate it, and know that it is hear to stay.

Especially during this global pandemic, US companies need to be flexible when it comes to sourcing their retail packaging.  A year ago it was the tariffs and trade fighting with China, now the Coronavirus has the global supply chain in turmoil.  The point, domestic suppliers are at full capacity and their backups are at full capacity and in a very short period of time--March 2020--US factories could be forced to close.  But...you have a business to run.

I don't care whether you are in the pet treat business, or your company makes spices for BBQ rubs, your company needs to compete.

While buying from domestic (North American) suppliers has been the norm, the retail landscape has become brutal... and there are no signs of it  letting up. Competition for shelf space at Walmart, Target, Petco or even the local independent grocery is fierce.

In a perfect world, companies could easily source their ingredients, blend and make whatever they are selling, fill it into beautiful retail packaging they purchased at a reasonable and fair price and have everything arrive on time, with time to spare for this company to deliver to the retailer, get paid promptly and happily move on to the next customer opportunity...

This just doesn't happen.  Or if it does, it's once in a blue moon.  Retailers are heartless.

If you have a problem with quality or delivery time, within 24 hours they have enacted charge backs to recoup what they consider (and you agreed to by taking the order in the first place) are lost sales, lost profit and lost retail shelf space.

Any amount of explanation will fall on deaf ears, and this money will be deducted from future invoice payments or just credited immediately. It is heartless, ruthless, fierce and unforgiving (sounds like a Western novel!). But it's true. The retailer cares about what works best for them and their company, and if anyone and anything gets in the way, forget it.

We already determined that a perfect world of making a healthy margin on your products and all the pieces/parts (i.e. ingredients, blending, manufacturing, filling, packaging and delivery) working seamlessly is rare. Let's also agree that while retailers can be the lifeblood to your company, they do not have your best interest in mind. They are looking out for themselves.

In short, you need your margins too, and you need to compete and be able to not just keep your lights on, but also thrive! But you say, "We've tried everything. We've leaned on our suppliers and pushed for cost reductions, better payment terms and more bang for our buck. Where are these margins you are referring to?"

Over the past 15 years, we've discovered lost margins in packaging, from down-and­ dirty cello bags and rollstock, to 10-color printed stand up pouches, vacuum bags and everything in between.

North American companies have neglected to look at their packaging for a number of reasons:

One, it's not something that is particularly flashy. It's a necessary evil handled by someone in purchasing who has been in your company for years, and it's always been this way.

Two, there is the assumption that your packaging is every bit as good as your competitors' and it cannot make that much of a difference to your brand awareness, sales or bottom line.

Three, no one cares about your packaging. It's your product customers are buying. This line of thinking has crippled U.S. manufacturers for years.

It's so true: Packaging is the voice of your brand, the signature you leave everywhere and the tangible billboard that advertises your company and product over and  over again, from the retail shelves, to the consumer's home, on their commute, in their office, to evening functions and so on.

Consumers want convenience in every facet of their lives, and product packaging is no different. Consumers want pour spouts, Velcro zip locks, easy-open tear notches and lightweight but durable containers they can take on the go, among other features. What's also true is that retailers want those features and functions as well.

Historically, for every Method Soap or Seventh Generation, there are 50 other brands on retail store shelves that are just like the majority. Rigid bottles, boxes with inner bag liners inside, metal tins, glass jars, etc. We call this The Sea of the SameTM and it's not letting up. We believe brands are still doing things this way for a few reasons.

A reported 95 percent of North American companies think of their packaging at the last minute. They have a general assumption that the price difference between how their product is packaged, and how their competitor's is packaged, can't be that much. They also think no one really cares. However, there are those using their packaging as a competitive advantage, and not only are they building their sales, their margins and brand equity have soared.

Using an agent or doing it yourself can both work effectively.  However, doing it yourself is much riskier, unless you have an experienced person in whichever overseas country you are dealing with to manage the project

The key difference between the "big boys" in any industry, and those who are always one step behind when dealing with offshore suppliers, is the fact that the latter does not have what is referred to as "boots on the ground."

There will always be companies that feel squeezing every penny from every part of an order is the best way to run a business. Unfortunately, these companies also think this will work with freight from overseas suppliers. However, one of the most misunderstood and frustrating components is shipping.