Pandemic, shipping costs, supply chain disruptions, what’s next?
The world has seen dramatic and profound upheaval over the last several years. This has led to unprecedented demands on supply chain organizations and the people that manage those chains. Consumer demand has contracted, expanded and shifted from month to month and year to year.
How does a manufacturer cope with this?
Contract packaging and especially domestic based co-manufacturing is a large part of the answer.
Now there is global uncertainty due to the crisis in Ukraine and the disruptions that may flow from it. Energy prices and transportation costs are sure to rise and all types of parts and supply will be disrupted or repurposed for Europe and from Europe. First there were shocks due to container shortages and costs from Asia, now the world holds its collective breath to see what transpires in Europe.
With a trained and ready workforce in place here in the states, the case becomes ever stronger to move manufacturing home. This can be done quickly and with limited Capex by employing co-mans. It is a highly efficient, cost effective and quick way to ensure you will have product when needed and gives the ability to quickly pull back when demand changes.
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