You can’t control everything—but you can give your business more peace of mind.

The past two years have been a perfect storm for supply chain disruptions. From pandemic lockdowns to a massive freighter blocking passage through the Suez Canal to a major war in Europe, it’s been a challenging environment to run a business. Supply and demand were completely upended by changing buying patterns as consumers shifted from going out to ordering in—and laser-focused on their health, safety, and wellness while looking online for everything from toilet paper to treadmills. And then they burst back out in the world—putting new stresses on the supply chain.

In a McKinsey article on future-proofing the supply chain, the authors note that “the plumbing of global commerce has rarely been a topic of much discussion in newsrooms or boardrooms, but the past two years have pushed the subject to the top of the agenda.” The nuts and bolts of running a business have never been so exposed.

None of this is news, of course, for consumer packaged goods companies in Year 3 of global supply chain whiplash. It’s getting a little better now, but what’s next?

Smart forecasting and good planning can help to mitigate future supply chain disruptions. While you can’t control everything, you can give your business more peace of mind. Here are some strategies to deploy.

Start with sophisticated and smart forecasting.

While no one was prepared for COVID disruptions, the companies that fared best were able to pivot their planning processes quickly to tackle the unexpected. How can you forecast effectively to mitigate your supply chain risks?

One key step: budgeting for disruptions. Having enough liquidity can help manage the price shocks of higher commodity, freight, and labor costs. It’s also important to have enough inventory in stock. Even a short-term weather disruption can have a major impact on manufacturing, as evidenced when hurricanes hit the US Gulf Coast or a heat wave hit Shanghai.

Another key step to smart forecasting is to analyze your company’s risks—and recognize and address your pain points. At TricorBraun, we help our customers assess and then manage all elements of their supply chain, from raw materials to manufacturing, warehousing, and transportation. By understanding your business, we can work proactively to protect you from market fluctuations and global supply chain challenges.

Hedge against the unexpected.

Forecasting is an important strategy when it comes to hedging against the unexpected—but it’s only one strategy. All the planning in the world won’t help if you don’t have the partners and processes in place to execute when times get tough.

The right partner can help you manage all your sourcing and operational needs. For example:

• Supplier Diversity—Do you have suppliers who can keep you in raw materials when spot shortages arise? At TricorBraun, our deep network of domestic and international vendors ensures we can find our customers a wide range of quality options, from glass to plastic, flexible to aluminum, sustainable materials, and a large selection of closures.
• Shipping—Do you have freight partners to help you locate capacity when ocean carriers are full or driver shortages divert trucks to hot spots?  We have contractual relationships with shippers and other freight companies, and we’re constantly negotiating the best rates for our customers.
• Warehousing—Do you have warehousing where and when you need it? At TricorBraun, we have over 4.4 million square feet of warehouse space—and we keep adding more locations to ensure supply availability for our customers.

In addition, having multiple manufacturing partners will help you maintain continuity of production. We can help with that too.

Always have a Plan B.

Even with all the right pieces in place, things can go awry. But you can mitigate your risk by qualifying alternative vendors and materials. The more options you have upfront, the easier it is to flip the switch and keep you in supplies. Similarly, having a warehousing partner (and warehousing space close to you) allows you to stock inventory and can help you buffer against supply disruptions.

Finally, supply chain disruptions may be inevitable—but how you forecast, prepare, and manage them can mean the difference between a short-term problem and a crisis that threatens your business.

When it comes to packaging, we’re ready to handle all your sourcing and operational needs—even in cases of changing or unforeseen circumstances. Ask us how we can help you manage your supply chain.

TricorBraun’s proven process will guide your packaging decisions from napkin sketch all the way to the retail shelf. Click below to get started.