Levels of change and uncertainty beyond compare in the global business community have affected the commercial print market. Surging demand, supply chain disruptions and sharply rising costs have significantly altered the economics of our business. North America’s pulp and paper industry in particular is experiencing a supply/demand imbalance that has raised prices, increased input costs and left some markets unable to produce enough product to keep pace with demand. As we enter the final quarter of 2021, all segments of manufacturing are impacted by record-long raw material lead times. Here we briefly summarize the major factors at work in our industry and how they are affecting the cost and timing of the products we deliver. The following factors are having a direct impact on manufacturing operations:
Extended deliveries
Delivery delays have become commonplace on raw materials and finished goods and are expected to continue for several months. There are several reasons for this:
- A shortage of drivers is the main contributor to extended delivery times.
- On average, there are five shipments that need coverage for every one driver.
- The demand for ocean transportation has increased 30% and outpaced supply due to container shortages. This has resulted in long delays, port congestion and significant cost increases.
Material constraints and allocations amid surging demand
The demand for raw materials has reached historic levels, causing manufacturers to experience bottlenecks in their supply chains. Certain substrates are becoming increasingly difficult to source and are even subject to allocation restrictions in some cases. Though expected to normalize as the months pass, certain supply restrictions and allocations currently still apply.
Rising costs
Most material suppliers (labels, paper, films, adhesives, packaging, pallets, etc.) have announced significant price increases with more expected yet this year. NBSK pulp prices are at their highest point in the past two decades, having climbed steadily over the past three months.
Mitigating the disruption
By working together, there are a few things we can do collaboratively to curtail cost increases and maintain product availability:
- Demand preparedness – ask your Navitor Print Coach for prepaid inventory if you need a specific stock
- Ordering – get future orders submitted in a timely manner and plan for extended lead times
- Risk mitigation – be available to review and approve alternative materials where appropriate to increase supply chain flexibility
- Back-up plans – ensure multiple backup or overflow printers are ready for you
- Communicate – have conversations with your customers to inform them of price changes
We know that your customers are important to you. You want to make a good impression. You need products on time and with excellent quality. We get it. We’ve extended our hours, added experts to our team, and have more inventory ready for you than we’ve ever had – all to mitigate these supply chain challenges. Yet the picture is changing daily and you may experience a 1- to 2-day delay based on this increased demand. Want to go faster? There are ways to make that happen:
- Order online from Navitor.com. Forgot your password? Link here or contact us.
- Stay at the front of the line. Include all the necessary information in your original quote request! We have an online request form for custom requests.
- Upgrade your shipping. The Post Office implemented its slowdown on October 1st.
We’re here to help you drive more sales. We know the supply chain is making business more challenging than ever, but we have more inventory than ever. We are ready for you. Because circumstances change daily, talk to us about print and stock options to make your orders come through faster.
The silver lining
Can supply chain disruptions actually make you MORE competitive? Yes. Our latest webinar illustrates how. In “6 Strategies for Navigating Supply Chain Disruptions” we reveal ways to use print to catapult sales in a disrupted market.
Content you can count on
Our newly updated Supply Chain Thought Leadership piece has up-to-date information regarding our supply chain, pricing and recommended articles to help you remain resilient in a disrupted market.
The takeaway
Rest assured, we are monitoring the supply chain situation continuously and we are working on your behalf to minimize the impact of these issues. Staying on top of market trends and industry conditions gives us the means to help you deliver the best customer experiences. To make sure you’re giving your customers what they need and addressing topics important to them, rely on us as your go-to resource for thought leadership and innovation.
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