A Comprehensive Guide to Packaging in Global Supply Chains

Streamlining logistics and supply chain is essential when your business deals globally. The significance of packaging can’t be overstated when it comes to the global supply chain. According to Statista:

“The global market volume of the packaging industry is 1.24 trillion dollars.”

This hefty market volume depicts that packaging is in high demand all across the globe. But the question is how packaging makes an impact globally and how businesses can streamline their operations by leveling up their packaging game.

In this blog, we will discuss in detail packaging in the global supply chain. Read on to find out more!

An Overview to Global Supply Chains

Networks that can go all across the globe to source or supply goods and raw materials are global supply chains. Managing such supply chains can be challenging. The reason is that the transport of goods across the border can be affected by various factors like geopolitics, natural environment, labor shortage, etc.

To make this management easier, working on every stage of the process and opting for hassle-free best practices are required.

Benefits of Sourcing From All Across the Globe

Although managing the global supply chain is challenging, opting for global sourcing can bring endless benefits to your business. Some of these advantages are listed here:

• Cost Savings: Sourcing raw materials or goods from a country where the resources are available at an inexpensive price provides monetary benefits.
• Access to new Markets: Crossing the borders offers you access to a new market where you can grow your business. You can also unlock new opportunities that help in business success.
• Creating Room for Innovations: Technology varies from country to country all around the globe. Global sourcing helps you find new technologies and methods that can help bring innovation to your business practices.

Importance of Packaging in the Global Supply Chain

One of the most important components of streamlining the global supply chain is packaging. An appropriate packaging is required that not only packs products but also safeguards products throughout the shipping.

The packaging requirements of each product vary depending on its dimensions and fragility. Packaging boxes that can withstand significant burdens in cargo are always considered preferable. Also, the product packaging box design should comply with the regulations of the state in which it is delivered.

When creating product packaging to ship products across the globe, a special focus on packaging quality and labelling is required. Suitable labeling can protect you from various legal problems and help you deliver your products without a hassle.

Circular Economy Trends in the Packaging Industry

The circular economy is a system that is based on reusing and recycling resources so that they have minimal impact on the environment. When it comes to the packaging industry, the importance of the circular economy can’t be overstated. The reason is that most buyers are moving to sustainable product packaging that contributes to reducing pollution and its impacts.

According to a research report shared by PR Newswire:

“82% of buyers prefer to buy products in sustainable packaging to promote sustainability.”

When it comes to the circular economy in the packaging industry, the prime focus is on biodegradable and recyclable packaging. As the plastic packaging industry is causing a hazardous impact on the environment, the demand for biodegradable packaging has increased. BDP® (biodegradable packaging) tagged plastic bags are biodegradable solutions that leave no carbon footprint behind.

Most businesses are investing in extracting packaging materials from well-managed sources. For instance, endless businesses use FSC® (Forest Stewardship Council) certified packaging materials that are derived from responsibly managed forests.

International Packaging Requirements for Shipping

Understanding international packaging requirements is essential if you want to pack products across the globe. The specific requirements of the packaging vary depending upon the product, legal guidelines, and shipping constraints.

One of the best approaches to design custom packaging that meets international standards is getting suitable certifications. International Standard Organization (ISO) offers different certifications for product packaging that meet global standards.

Whether you want to meet sustainability goals or are looking for hazardous material packaging or ideal packaging for products, ISO can help. Get ISO certified packaging to rest assured that your packaged goods will be easily delivered all around the world.

Effects of the Global Supply Chain Crisis on Packaging

When it comes to packaging in the global supply chain, understanding the effects of the global crisis on the packaging industry is important. Knowing the reasons for and impacts of that crisis can help you rearrange your operations to cope with associated problems in the future.

During the COVID-19 pandemic, the global crisis impacted various industries in many ways. When it comes to the packaging industry, here are some major effects that global crises imposed:

• Shortage of Packaging Materials: During the lockdown, most of the material extracting units were shut down. So, there was a significant shortage of packaging material that turned chaotic in the packaging market.

• High Cost of Raw Materials: With various restrictions in the manufacturing environment, businesses had to invest extra in production. Ultimately, the price of raw materials went up, disrupting the packaging industry.

• Manufacturing Constraint: Packaging manufacturers also faced a chaotic situation during COVID-19. Shut down of manufacturing units resulted in limited production of packaging that disrupted the overall market.

• Delayed Fulfillment Challenges: As most manufacturing units were not working, and the cost of raw materials was high, it was difficult for packaging companies to fulfill the order requirements of their clients.

• Regulatory Guidelines Around Packaging Materials: To minimize the effects of the pandemic, various governments created rules for manufacturing packaging that minimize the spread of disease. Innovative packaging requirements were a challenge for packaging companies to fulfill.

• Labor Shortages Were a Big Problem: The global crisis also resulted in a labor shortage as most companies mandated civilians to stay at home during the pandemic. With limited labor, meeting the market demands was difficult for manufacturers and suppliers.

• Effective Training and ESG Goals: We know that various rules and regulations were made at a government scale during COVID-19. To understand and follow these rules, organizing effective training sessions and Environmental, Social and Governance (ESG) goals were difficult for businesses.

Anti-Counterfeiting Measures for Product Packaging

Product brands look for ways to overcome the counterfeits to avoid financial losses and save brand reputation. But the question is how to use product packaging as an anti-counterfeit agent for your brand. Here are some tips that you can pick from to create anti-counterfeit packaging with a breeze:

• Run Campaigns About Brand Markers on Packaging

Most reputable brands add markers of their brand on their product packaging, however, these markers go unnoticed. The reason is that most customers are not aware of these markers. To promote this anti-counterfeit feature of your product packaging, you can run ad campaigns. These campaigns must be intended to educate customers about the specific markers yuo use on your product packaging to showcase originality.

• Incentivize the Regulation for Local Vendors

Promoting your brand among local vendors can help you minimize fake brands copying you. You can offer incentives to local vendors on sales targets. You can even offer a prize to inform you about the fake brands offering your products. This will encourage local vendors to sell the products of your brand instead of fake ones.

• Promote UGC Campaigns Around Anti-counterfeit Efforts

UGC campaigns are included in the most reliable options that you can choose to demote counterfeits. Such campaigns connect with buyers and also help you seamlessly build your brand loyalty. The reason is that buyers mostly develop trust in those brands with positive feedback.

• Add Smart Anti-Counterfeiting Features to Packaging

You can add smart features to your product packaging as well to avoid counterfeits. Some of the most reliable features include QR and AR codes. When it comes to QR codes, they direct your buyers to your official websites or social media pages, depicting that the product is original.

If you think that fake brands can copy QR codes, you can go for AR codes. These codes showcase AR visuals when customers scan them. It is a safer and more reliable anti-counterfeit feature for your packaging.

Packaging for Hazardous Materials in Global Trade

Shipping and packaging requirements deviate from normal packaging when it comes to packaging hazardous materials. Endless goods that need special care during transit are shipped all across the globe. Explosives, gases, flammable liquids, flammable solids, and oxidizers are some common examples of hazardous products.

When shipping such items across the border, you need to follow packaging and shipping regulations. Doing so can protect you from legal matters and business losses. Here are some easy tips that you can consider when packing and shipping hazardous items:

• Understanding the Regulations

When dealing with hazardous products, you need to understand the regulations commended by the law first. Shipping requirements of such goods may vary from state to state and country to country.

If you want to comply with the rules, you can abide by the federal hazardous materials regulations of the FMCSA (Federal Motor Carrier Safety Administration). The regulations are considered credible worldwide.

• Training Staff Members

To ensure the ultimate safety of your products as well as staff members who are handling them, training the staff is a must. You need to guide those who will be loading, unloading, or coming in contact with such materials. Training sessions must also be comprehensive. You should also arrange risk-free exercises to ensure that staff members are ready to handle such goods.

• Packing Products Carefully

Packing such products in appropriate packaging is also paramount. Opt for the material that not only safeguards hazardous products packed inside but also blocks the hazards of such items. For instance, oxidizers are best to be packed inside a non-reactive packaging material. 

• Labeling the Boxes

Once the packaging of such products is completed, you need to label the packaging boxes with warning signs. Labeling helps you inform the shipping services as well as recipients about how to handle, keep, and use the products. Pay attention to getting custom labels with warning signs. You can choose from general warning signs by ISO to avoid confusion by option for standard practices.

Basic Checklist for Packaging in Supply Chain Management

When packing products inside a package, make sure to tickmark the essentials. To streamline your global supply chain’s packaging operations, you can follow the following checklist:

• Verify that the quality of packaging material meets international standards.
• Verify that the order number and product information are correct.
• Verify the visual integrity and look for defects in packaging that can be corrected.
• Verify that the shapes and sizes of product packaging for the product fit.
• Verify that the accurate quantity of products is packed inside the packaging.
• Verify that ingredients and list of products are printed correctly on the packaging
• Verify that special instructions about product handling during transit are mentioned.
• Verify that shipping labels are printed on the packaging and are easy to read.

Where to Get Packaging That Meets International Standards?

Now that we know nearly everything about packaging in the global supply chain, let’s discuss where to get packaging that meets international standards. You can reach out to local vendors or wholesalers to buy such packaging. However, if you want to customize the quality as well as the design of your product packaging, reach out to a custom packaging supplier.

Feel free to partner with OXO Packaging, as we are among the most reputable packaging companies in the US. Our specialty is offering quality packaging with endless customizations. So, if you want custom product packaging that meets international standards and is customized to your brand requirements, partner with us.

Conclusion

The significance of packaging in the global supply chain can be underestimated. The reason is that robust packaging is always required to ship products safely across the globe. We hope the above comprehensive guide provided you with appropriate insights on packaging in the global supply chain. If you have any questions or want to buy packaging to move your products across countries, reach out to us.