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How to Choose the Right Packaging Supplier for CPG Companies 

How to Choose the Right Packaging Supplier for CPG Companies

The consumer goods space has not only expanded significantly in recent years but has also shifted towards more eco-friendly practices. With environmental sustainability driving consumer purchasing decisions, CPG companies are increasingly turning to paper-based packaging as a viable and renewable alternative.  

But how do you know if you're choosing the right packaging supplier?

Suppliers must offer top-notch products, show commitment to sustainability, ensure compliance, and be financially stable. Choosing the wrong partner could potentially disrupt the supply chain or harm a brand's reputation. 

Picking the Right Packaging Supplier: A Crucial Step

When selecting a supplier, CPG companies often consider many factors like transparency, pricing, lead times, and sustainability. However, long-term supplier viability is often overlooked. 

CPG companies need partners that can withstand economic changes, industry shifts, and environmental regulations. This can lead to questions such as, how can you choose a reliable, low-risk supplier? How do you know if your current supplier is at risk of shutting down? 

Access to historical data, accurate raw material price forecasts, and industry knowledge helps answer these questions. Analyzing these insights ensures success during uncertainty and keeps businesses competitive. 

Using the Viability Module

ResourceWise’s Viability Module is a powerful tool to identify reliable, sustainable packaging suppliers. 

It offers predictive insights based on extensive data, forecasting the sustainability of pulp lines and paper machines. The module offers in-depth assessments of individual assets, mills, and companies. 

By utilizing the Viability Module, CPG companies gain insight into how exposed a mill within their existing supplier network is to a potential closure.

Strategic Decision Support 

By utilizing the Viability Module, CPG companies receive valuable support in their decision-making processes. It provides a clear view of each supplier's strengths and weaknesses, enabling businesses to mitigate potential supply risks and align themselves with partners that foster long-term, low-risk relationships. 

To get a better understanding, let’s look at a hypothetical case study. Let’s say company ABC is looking for a packaging supplier in the US Southeast. Using the Viability Module, we can pull up all containerboard mills located in this region – represented by the bars.

Merger Containerboard Mills Worldwide - Rank Curve by Mill

After analyzing the data provided, ABC should consider the suppliers situated on the left side of the graph as potential suppliers. They should also investigate if they have any partnerships with those positioned on the right side of the spectrum.

From there, ABC can also look further into different elements that make up their selected mill such as their CO2 rank, average viability rank, total capacity production, and more.  

Make sure you're subscribed to our Forest Products blog to ensure you don't miss our next post in this series focusing on how CPG companies can benchmark the carbon emissions of current and prospective suppliers.

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Laying a Steady Foundation for CPG Success 

Sustainable packaging is not just a trend; it's a business imperative that shapes consumer perception and loyalty. Choosing the right packaging supplier is a crucial step towards a sustainable future and ensuring operational resilience.  

FisherSolve's Viability Module equips CPG businesses with the necessary foresight to make informed, strategic decisions that can endure the dynamic landscapes of the industry. In a marketplace where change is the only constant, the Viability Module provides preparation and intelligent foresight.  

Learn more about how FisherSolve can elevate your strategic packaging procurement. With our commitment to providing reliable, data-driven insights, we ensure that your CPG company can thrive, even in the face of uncertainty. 

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