CORRUGATED IS IN VERY HIGH DEMAND
Solutions to Work Around the Rising Cost
HOW IT STARTED:
Corrugated industry typically plans for approximately 2% growth during peak times. By March 2020 actual shipments were already up by 3.4%
HOW IT’S GOING:
By December 2020 actual shipments leapt to a historical high of 11.4%. That is approximately 400% higher than anyone anticipated.
THE USUAL MARKETING DRIVERS:
Seasonality: Box demand peaks in September as holiday merchandise lands in stores**
Price/Sustainability: Consumers/manufacturers/ government have continual desire for cost-effective, environmentally friendly packaging solutions***
MARKETING DRIVERS NOW:
E-commerce Expansion: As a result of COVID-19:
- Consumers turned to e-commerce — activating two years’ worth of growth in a short time
- Box demand prematurely hit above peak levels by March of 2020 and continued climbing
- Box industry is in overdrive:
– Paper mills running at full speed
– Producers capping orders
– E-retailers and brick-and-mortar stores adapting to delivery****
We’re Tracking The Marketing Changes
Between June & October, box shipments met 34 billion square feet — an industry record each month **
- The containerboard industry hiked prices by $50 per ton on the shipments in November**
- An even higher price hike in the first half of 2021 is expected — anticipated even more e-commerce demand**
Shorr Has The Solutions To Mitigate Rising Costs
Automation — achieve growth and savings through customized automation solutions that will ramp up the volume to increase your output and decrease costs per order without adding labor.
STAMP Analysis — a step-by-step procedure that identifies “gaps” between your current packaging operations and your goals. We examine all areas of your packaging process to identify prime areas for packaging optimization.
Carton Right-Sizing — a precise and robust approach to uncover opportunities for improvements and noticeable cost savings.
- Freight Savings
- DIM Weight
- SKU Count
- Void Fill Reduction
WE HELP UNCOVER SAVINGS WHERE IT MAKES SENSE FOR YOU
- Inventory Management + Just-In-Time Programs
- Contract Packaging + Kitting
- Packaging + Material Redesign
- SKU Justification + Rationalization
If we could do any of this for your organization, wouldn’t that be worth a call? 888-885-0055