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How the Pandemic Changed CPG and CM/CP Packaging Relationships

B&G Foods' (Green Giant) Brian Stepowany revisits his 2020 predictions on how the pandemic might affect the CPG and CM/CP relationship. Spoiler: He was spot on three years ago.

Puvak Covid19 5f19a9347f94f

I wrote an article published in this space in 2020 describing how COVID-19 might forever change the CM/CP service provider/end user relationship.

I stated, “Our service provider companies can ease the packaging industry’s manufacturing limitations by assisting and broadening their relationship with end users through the points I have mentioned.”

Where are we three years later? Let’s revisit the four areas I discussed in the service provider/end user relationship to see how the COVID-19 pandemic has affected the supply chain, and how its effects will modify how we look at business models moving forward.

1. My prediction: Secondary sourcing will become critical.
What has happened: The first idea that I brought up when thinking of COVID-19 is the number of people affected. Because of spacing requirements and the number of people not working, the number of workers has been depleted and manufacturing output decreased. This, in turn, affects supply chains and timelines for all aspects of your business. Because some suppliers are not able to meet delivery dates and production schedules, secondary sourcing becomes critical.Brian Stepowany, CPP, Senior Manager Packaging Research & Development at B&G FoodsBrian Stepowany, CPP, Senior Manager Packaging Research & Development at B&G Foods

Companies have been forced to find a secondary or alternate source to ensure they meet their delivery dates and production schedule. They have found another source either within one company or a separate secondary source. They have been forced to avoid putting all their eggs in one basket, because that one basket could not fulfill their requirements.

Companies are now dual sourcing to ensure their production lines are operational and can achieve business continuity. Dual sourcing capability also lends itself to flex capacity to address temporary surges in demand or a seasonal product. Secondary sourcing has opened the doors to additional suppliers and improved service provider/end user relationships.

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