As the Covid 19 surge began to end, the Market seemed to thrive. But for Corrugated Packaging Industries, it was not the case. The sharp increase in the price of raw materials and cost of production has forced this industry to plunge into trouble. The coal crisis further made it stringent for the industry to come back on its feet. The global market also saw increasing costs of raw materials and energy supply which reflected upon open economies.
From the very initial stage of manufacturing to the end of the distribution, the cost of manufacturing has made a tremendous impact on the packaging industry. Coal, which is the main source of energy for the packaging industry is now increased to Rs. 15,000 per tonne and the news of the shortage of coal stocks has shaken up the industries depending upon it.
China is also on a losing edge due to electricity shortage which implies pressure for finished goods from the Indian Packaging industries for the rising demand. Also, wastepaper imported is skyrocketing every day due to sustained self-consumption. The price of starch also increased to Rs. 4000 per tonne which is considered an important raw material for the corrugated packaging industry, threatens the very production of the end products.
Key takeaways from raising crisis in Corrugated Packaging industry that can be avoided if proper management and preplanning were made at the right time.
- Proper supply chain management
- Cost control from the initial production
- Inventory management
- Crisis policy
- Neglecting market predictions
- Implying on the alternate energy source
Crisis and solutions are like rain and umbrella. You have to foresee rain even before it rains by checking the weather. Similar is the situation with ‘crisis’, you have to predict it coming to you. That is when solutions to your problems emerge. Since, the opening of markets after covid, the economists predicted crisis before handed and warned businesses and manufacturers to build a proper contingency plan to meet the needs and demands of the market. Well, some did plan, while others just skipped the planning part and dived into the profit-making part rather than saving themselves from possible setbacks.
Faber Infinite Consulting provides the best tangible solutions to overcome the business crisis and increasing cost of production with the tools for transformation of organizations through micro-level management analysis and strict improvement action plans. Guarantee results and transformation towards the success of industry-neutral businesses has become an important parameter of services delivered to all our clients and we continue to assist them in their transformation journey.
Written by Faber Aleena Thomas & compiled by Faber Mayuri Pandya