As Paper Bag Supply Chains Suffer, Packaging Supplier Creative Retail Packaging Gets Strategic

HOUSTON, Sept. 6, 2021 /PRNewswire-PRWeb/ -- Consumer demand bounced back better than expected this year, as stores reopened following 2020's COVID-19 closures. Retail sales are through the roof as shoppers rush to make up for the time spent not spending. Yet, while this should be great news for retailers, supply chains worldwide were caught unprepared for the surge. One high-demand inventory item that made the list was – and continues to be – the paper shopping bag.

From raw materials shortages to port congestions and astronomical freight costs, the paper bag shortage is just another part of the aftermath of today's global supply chain bottleneck. On top of that, domestic paper bag manufacturers are adding even more stress to supply chain woes by pushing mid-size companies aside in favor of more lucrative business.

Many retailers have been left empty-handed or scrounging for solutions, desperate to avoid leaving customers with no way of carrying purchased goods out of their stores – or worse, discourage customers from visiting their stores in the first place.

Desperate for solutions, buyers are looking everywhere they can for bags. Many are finding success through outsourcing their packaging procurement to strategic sourcing partners. Creative Retail Packaging (CRP) is one such supplier that pairs mid- to large-scale businesses with custom packaging factories. During the past year, the company has shifted its focus largely to paper bags, flexing their problem-solving procurement and logistics muscles to fulfill their clients' inventories as creatively as possible.

"We're relentless in our search for solutions," reports Steve Smith, VP of business development. "Because of our extensive network of manufacturing partners both domestically and globally, we're able to find opportunities in creative places to meet our clients' needs, both short- and long-term." Their secret? "In many cases it comes down to having a constant ear to the ground and being the first at bat when we know inventory is available through one of our factories," says Smith.

Their team of packaging consultants has been proactive with current clients as well, warning them of the shortages and planning ahead with larger inventory investments to ride out the supply chain wave. In order to support clients in taking in more bags than anticipated, Creative Retail Packaging offers warehousing and distribution services. "We've had so many clients request storage support that we are in the process of expanding our warehouse capacity in Houston. It's been a good problem to have, and we are glad to offer the extra help," states CRP's General Manager Aurora Salajan.

And what about the shipping delays and freight increases plaguing the industry? According to Salajan, "Our team has been proactive and nimble in bringing unique logistics solutions to the table. We understand freight lines and know what ports are congested and which have capacity to load or unload ships."

Another strategic move that has proven successful for companies like CRP is working with their factories' own freight forwarders who have been able to find inroads. But ultimately, Salajan says they are in constant communication with their clients as the landscape shifts. "It's all about communication – we let our clients know exactly what to expect so they can plan accordingly. And of course, we are there to help them pivot however we can."

How long is the paper bag shortage expected to last? CRP's VP of Sales Michael Nass recounts a grim forecast. "Domestic factories are projecting shortages of up to 5 years. We've seen many US manufacturers de-prioritize standard retail bag sizes and drop some clients completely from their production schedules. Buyers who used to go direct for custom shopping bags are being told they are not able to get printed bags, much less bags with custom artwork or, in some cases, elements as basic as handles."

In anticipation of this, Nass says, "we've been actively building our global relationships with paper bag manufacturers and have competitive sources available that will carry us through this wave."

In a period when retail buyers are time-starved and stretched thin, outsourcing the procurement of supply items such as paper bags is proving strategic. The underlying message is this: supply chain challenges require experience and a wide net to navigate. If there was ever a time to network and broaden your reach for solutions, it's now.

Creative Retail Packaging is a custom packaging supplier, based in Houston, TX. With over 40 years of strategic sourcing experience, their team specializes in procuring custom bags and boxes for retailers, restaurants, and ecommerce companies. They also offer warehousing and distribution services through their centrally owned and operated warehouse in Houston.

Media Contact

Kristen Van Veen, Creative Retail Packaging, +1 713.876.9200, [email protected]

SOURCE Creative Retail Packaging

Related Links

http://crpkg.com