A shortage of cardboard is putting additional pressure on the supply chain ahead of the holidays.

Promising: The Covid-19 pandemic has exposed flaws in the method of managing stocks on time. Looking ahead, we suspect supply chains will do a better job of keeping stock to avoid repeating this mistake in the future.

Don’t look now, but our holidays are missing another product of modern society. NBC News reports that, as with computer chips, there is a shortage of packaging materials made of paper, plastic and cardboard, and prices have skyrocketed.

Andrew Hogenson, Infosys Consulting Global Managing Partner for Consumer Products, Retail & Logistics, said it all comes down to supply and demand. In this case, you have a limited amount of raw materials and an increase in demand.

How did we get here, you ask?

It’s actually a chain reaction that began with the Covid-19 closure orders last year that slowed production at manufacturing plants. People have also changed their shopping behavior by ordering more items online so they don’t interact with others in public. This has only increased the demand for packaging and shipping materials.

And lest we forget the winter storm that hit Texas in February, halting the production of plastics used as materials for transportation. This prompted shippers to increasingly turn to alternatives such as cardboard and paper, further increasing the pressure on the supply chain. In addition, there is a delivery bottleneck that slows down imports of goods such as paper pulp from China.

Hogenson believes this holiday season will be an eye-opener for everyone.

Image Credit Tanya Melnichuk

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