Navigating Long Lead Times

Long Lead Times and High Prices: How to Combat Packaging Supply Chain Issues

Throughout 2021 the packaging industry has been rocked by rapidly increasing costs and a limited supply of resin and other materials companies need to package their products. Reasons for the higher prices and supply issues range from container and labor shortages to overloaded ports, plus accidents and extreme weather events.

Companies that require packaging materials have found themselves in a very difficult situation. On the one hand, they want to purchase large quantities of packaging materials when they can to protect themselves from further bottlenecks and extremely long lead times. But on the other hand, they prefer to avoid buying large amounts of supplies at the current high prices, in case the inflation is temporary, and they can purchase at a lower price once the market volatility subsides.

The question facing many businesses is, what is the best strategy for their company?

Packaging supply chain issues may continue for some time

The problem is that no one can be completely sure when the supply problems and inflated packaging costs will subside. Some experts predict that the situation will get worse before it gets better, and that the current transportation bottlenecks, labor shortages, and related issues may last for up to another six months to a year.

The uncertainty and volatility of the situation makes it difficult for companies requiring packaging supplies to balance the needs for shorter lead times and reasonable prices. Fortunately, at Pioneer, we have several ways that we can help keep your packaging costs under control while ensuring you get the supplies you need.

How Pioneer helps you navigate the current packaging situation

Pioneer helps customers realize shipping and material cost savings and ensures they have access to the critical supplies and materials they need for their businesses. In other words, we don’t make you choose between very long lead times and buying huge quantities at inflated prices.

  • Pioneer’s Preferred Protection Program – This program protects our customers from packaging supply chain volatility like extreme price increases, unpredictable supply shortages, and surprise billings and fees. We store the packaging materials you need at our facilities and ship them to you at your request, giving you stability and predictability for inventory, budgeting, and planning. By dealing in bulk, we help you realize material and shipping cost savings.
  • Custom supply agreements – In addition to our Preferred Protection Program, Pioneer can also help you overcome lead time and pricing issues with supply agreements tailored to your needs. We can give you access to the materials you need, without making you purchase large quantities at once. In other words, we hold and own the materials, ensuring they are available for you when you need them.
  • Using suppliers here and abroad – We have multiple suppliers in different regions to help us maintain flexibility for our customers. With sources both here and abroad, we can import packaging products affected by U.S. labor issues and source some products domestically that are currently difficult to import. Either way, we keep your supply chain moving.
Overcome long lead times and high prices

The immediate future of pricing and supplies in almost every industry is difficult to predict now, including packaging materials. Whether the disruptions and increases are temporary or longer term, your business must go on. You can’t simply wait for products to arrive or postpone ordering products with the hope of prices decreasing soon.

That’s why Pioneer has worked hard to develop practical solutions to the current problems. With our Preferred Protection Program, combined with supply agreements and our innovative supplier network, we can help you overcome the bottlenecks and get you the materials you need right when you need them.