Vendor Consolidation in Packaging: Why One Supplier Beats Ten
Vendor Consolidation in Packaging: Why One Supplier Beats Ten
Like everything in your business, managing several packaging suppliers is part of the normal order of operations. Right up until the moment it isn’t, and you realize how much it is costing you in time, money, and your mental well-being to control. One vendor boxes, one vendor labels, one vendor wraps, next thing you know, you are working on the impossible task of invoice reconciliation, stash the quality is up to par, and endless omnidirectional invoice chasing.
Ring a bell? This is a a-1 case scenario for “too few cooks in the kitchen”
“If you only have one supplier, pivot the entire shipping logistics for the vendor’s shipping problem. Untangle the entire solution from the shipment of the vendor.”
Too many suppliers are:
- Conflicting delivery schedules that slow your operations
- Inconsistent packaging quality that frustrates customers
- A mountain of paperwork and admin that steals focus from what really matters
- Missed volume discounts because your purchases are spread too thin
The simple act of gaining volume discounts saves a lot of effort, time, and, in the worst case, un-optimization.
More intelligent companies are uniting. This is the only thing that really works in communication: consolidation.
Why One Supplier is More Than Just Convenience
Business communication with one packaging supplier is like sticking with a single coffee shop, mentally framing the barriers to switching other denouncing other coffee vendors as limbs to one’s main body, and keeping the other vendors as ‘parts’ that do not connect to the body of coffee culture.
Vendor and its single packaging supplier enjoy, and, hence, bring to market, innovatively framed buzzword terms rationalizing vertical integration as single-source convenience and as a one-stop shop:
- Unmatched Value: Block contracts, where a buyer is locked into a minimum offtake, are a widely used profit maximization strategy, utilized in addition to value-based pricing, in value chain systems that embrace single vendor integration.
- Unsurpassed Excellence: One supplier handles a complete server, and hence, has to manage server spillover, on which a coffee vendor has little control, which means server parts and assembly are unified with the packaging vendor.
- Streamlined Communication: The need for fewer invoices and contracts to manage is reduced, and hence, with direct savings on administrator expenses, spending time defending the invoices and contracts is considered a trivial savings.
- Fast Cash: Hend to dispenser simplification results in cash to cash in moments to sip the coffee.
- More Additive Solutions: A valued engineer bringing synergy with others elongates the new component system in the value chain of the supplier.
The key is not to single out the absence of non-linked coffee shops as limbs, and embrace all other coffee to solo-frame holding cups as limbs to value-chain optimized systems.
What About Variety? Don’t You Need Multiple Vendors?
People are often skeptical about working with a single supplier out of concern that it may limit choice or flexibility. However, it seems that many packaging partners today offer a full suite of solutions under their roof, from eco-friendly boxes to custom inserts and specialty tapes.
Many of these suppliers have long-standing partnerships with raw material suppliers and are able to easily access nearly anything that is needed. Additionally, these suppliers’ pragmatic understanding of your products and processes means they are able to offer smarter packaging solutions that are much more efficient than what most people would expect when working with disparate suppliers.
Yes, you still get a lot of variety. You get it with less disarray and more tailored service.
The Real Numbers: What Consolidation Can Do For You
Let’s discuss outcomes, because it is not a theory that there are positive outcomes to vendor consolidation. Firms have reported positive outcomes, which include the following:
- Lower Administrative Expenses: A team of people managing the same contract is more likely to work efficiently than a team of people managing multiple contracts. Many report that operational efficiency increases by more than 15% when there are fewer contracts.
- Less Excess Packaging Waste: Accurate forecasting leads to better bulk ordering, which directly correlates to less obsolete material.
- Increased Negotiating Leverage: When the budget is consolidated, you are able to negotiate better pricing and terms because of the larger spending capacity.
- Improved Quality and Delivery: Improved supplier collaboration translates to decreased levels of damage and enhanced predictability of shipping schedules, and these are two very important metrics of customer satisfaction.
A mid-sized retailer disclosed eliminating eight packaging vendors to two leading to almost 10% in savings on packaging in the first year, and the cost in time to procure packaging was also decreased significantly.
How to Consolidate Without the Stress
If vendor consolidation sounds appealing and ‘doable,’ you are not the only one. Finding new suppliers and especially eliminating old ones can seem like a lot of work. It does not, however, need to be this way, as simplifications can be made:
- Map Your Current Spend: Reconfigure your budget to include all essential variables: what are you spending on what, and who are you spending it with. Identify any duplications or voids.
- Define Your Must-Haves: Clearly document all features you need from a packaging supplier. This can include anything from sustainability to speed, or the ability to produce specialty products.
- Perform Tenders: Identify and approach one or two suppliers who can meet all your requirements, and procure samples, brochures, or other relevant materials from them.
- Pilot First: Try consolidating one category or product line initially, so you can test the relationship and iron out any issues.
- Communicate Openly: Share your goals, timelines, and challenges with your supplier. Collaboration is key to success.
Heads Up: Engage Your Backup Vendors
Wholesalers having one supplier is one thing, but having backup vendors on contract and ready to go is much more prudent. There are disruptions in supply chains. There are unexpected spikes in demand. There are quality-assurance issues. Alternative vendors insulate your business against these shocks.
Wrapping It Up: One Supplier Can Change the Game
No, a single supplier for your packaging does not equate to a loss in revenue. There is also the question of making the whole packaging approach strategically automated and hassle-free.
Reduction in the number of suppliers makes the communication more straightforward, quality assurance more consistent, and the business partner supplier better understands the business. Increased focus on growth revenue, minimizing stress, and more time to spare is the winning recipe.
When your packaging is accompanied by a constant feeling of juggling, it is very likely time to evaluate your suppliers. Handing complete control to a single vendor tends to smooth the process.
Delivering to Every Corner: How Packaging Reaches 25,000+ PIN Codes Reliably
Delivering to Every Corner: How Packaging Reaches 25,000+ PIN Codes Reliably
Anyone who’s shipped a product across India knows the drill. Delivering across the country isn’t just about logistics-it’s a test of durability, planning, and real-world problem solving.
You’re not just shipping to metros with paved roads and proper addresses. You’re also reaching small towns, far-flung villages, coastal zones, hilly terrains, and places where the weather can flip in a day.
And somehow, some brands are doing this consistently-reaching over 25,000 PIN codes with minimal damage, delays, or customer complaints. The not-so-secret weapon? Smarter, more reliable packaging.
The Delivery Struggles No One Talks About
Let’s be real. Delivery failures are rare because the product didn’t leave the warehouse. The problems happen in transit.
Packages get dropped. They ride on bumpy roads in overloaded trucks. They sit in the rain outside a local depot. Labels peel off. Boxes cave in. Items shift and break.
Now imagine the same product has to survive this across 25,000 different locations. One-size-fits-all doesn’t work. And that’s exactly why packaging needs to be purpose-built for scale, diversity, and chaos.
How Packaging Makes (or Breaks) Nationwide Delivery
If you want to ship anywhere and everywhere in India without holding your breath every time a parcel leaves your warehouse, your packaging has to be more than just functional. It has to be dependable.
Strong outer packaging matters. Corrugated boxes with the right ply strength, protective layers at pressure points, and boxes that can handle stacking-these aren’t luxuries. They’re essentials when your shipment might be at the bottom of a truckload headed to a Tier 3 town.
Internal protection isn’t about stuffing in bubble wrap and hoping for the best. It means using inserts, trays, or padding that hold the product firmly in place, even if the box flips upside down or gets dropped from waist height.
Right-sizing also plays a big role. Oversized boxes invite damage because items move around too much. Undersized ones offer no protection. Packaging that’s tailored to the product size and shape improves both safety and efficiency.
Moisture control is another big one. Monsoon season doesn’t care about your delivery timelines. And in coastal areas, even a light drizzle or high humidity can mess with packaging adhesives, labels, or the product itself. Waterproof layers, sealable polybags, and humidity-resistant materials go a long way here.
Even your tape matters. Regular tapes may come loose in transit, especially in dusty or humid conditions. High-quality packaging tapes that seal tightly are a small investment that prevents big problems.
What Reliable Delivery Looks Like Behind the Scenes
Brands that consistently deliver across the country without issues do a few things differently.
They test their packaging against real-world scenarios. Not just lab tests, but actual shipping routes. They drop boxes, stack them, expose them to rain, and leave them in the sun. If the packaging survives that, it’s ready for the real world.
They don’t use the same packaging for every product. Electronics get custom foam inserts. Cosmetics get snug boxes to avoid rattling. Glassware gets cushioning that doesn’t shift around. The packaging adapts to the product-not the other way around.
They review and update packaging regularly. As the logistics network evolves, delivery partners change, and customer volumes grow, so should the packaging. What worked two years ago might be costing you returns today.
They also work with packaging partners who understand pan-India shipping. Vendors who know what a 7-day journey to Northeast India does to a cardboard box are better equipped to suggest the right materials and formats.
Common Delivery Issues Packaging Can Solve
Damaged goods aren’t just bad luck-they’re usually the result of under-engineered packaging. Weak boxes, loose interiors, or poor labeling lead to replacements, complaints, and refunds.
A wet label can mean a parcel gets lost in the system or is sent back. That’s a packaging issue, not a logistics one.
Melted or deformed products during summer? That’s preventable with heat-resistant or insulated packaging.
Pieces missing from the box? Usually because of movement inside or torn external packaging. Proper fitments and secure sealing solve that.
If you’re tracking a high rate of delivery failures, there’s a good chance packaging is playing a bigger role than you think.
What Scaling Delivery Really Involves
Reaching every corner of the country isn’t just about getting more orders or more vehicles. It’s about building systems that can scale without breaking. Packaging is one of the easiest systems to get right-and one of the costliest to ignore.
Good packaging reduces the need for repacking at hubs, speeds up sorting, prevents damage in manual handling, and minimizes returns. That means faster deliveries, lower costs, and happier customers-even in remote PIN codes.
Brands like Moglix Business treat packaging as a strategic function, not just a cost, tend to scale more smoothly and with fewer surprises.
Building Packaging That Reaches Anywhere
If you want to consistently deliver across 25,000+ PIN codes, the packaging has to be:
- Strong enough to survive real-world transit, not just warehouse handling
- Sized correctly so it’s efficient for both shipping and storage
- Resistant to rain, dust, and heat during long journeys
- Securely sealed and clearly labeled for fast, error-free sorting
- Adaptable by product category and region
This doesn’t mean overpacking or overspending. It means thinking smart and planning for real delivery conditions, not ideal ones.
Final Word
Smart packaging doesn’t just protect your product. It protects your reputation, your delivery timelines, and your bottom line.
Reaching 25,000 PIN codes isn’t impossible. But doing it consistently, without damage or delays, means treating packaging as part of the delivery system, not just the box it ships in.
When done right, packaging becomes your delivery partner. Silent, reliable, and always on time.
Cut Packaging Costs by 10–12% in 2025-Without Cutting Corners
Cut Packaging Costs by 10–12% in 2025-Without Cutting Corners
Let’s be honest-packaging used to be an afterthought. Box it, tape it, ship it, move on. But that mindset? Pretty much extinct now.
These days, packaging is front and center when it comes to smart business strategy. And here’s the kicker: companies across industries are quietly shaving 10-12% off their packaging costs, and their customers can’t even tell the difference. No downgrade in quality. No flimsy boxes. Just smarter choices.
So, what’s the secret? It’s not about doing less. It’s about doing it better-rethinking your materials, streamlining your designs, and getting real with your suppliers.
Let’s dig into what’s actually working right now.
The Packaging Landscape Is Changing-Fast
Green Is the New Cheap
Surprise: going sustainable doesn’t cost more anymore. In fact, in places like Europe, recycled paperboard is now 15-18% cheaper than the virgin stuff.
Production of recycled materials has seriously leveled up-more supply chain, better tech, tighter regulations. And with more demand, the economies of scale have finally kicked in.
Bonus: Sustainable materials are often lighter. And lighter means cheaper to ship. One consumer goods brand cut freight costs by 8% across the board just by switching to lighter recycled materials.
That’s a win-win.
Design Tools That Actually Do Something
Modern packaging software isn’t just for engineers or designers anymore. These tools can flag where you’re wasting material, using the wrong size boxes, or adding unnecessary protection.
One electronics company put its entire product line through a design audit and found they could shrink packaging by a third without affecting protection. That meant less material and lower shipping costs. All from tweaking a few designs.
The truth?
Most packaging hasn’t been updated in years. Products change. Shipping methods change. Packaging… usually doesn’t. Running a design check today can uncover real, fast savings.
Automation That Pays for Itself
Packaging automation used to be a “big company” move. Now? Not so much.
Today’s systems are more about precision than speed-using just the right amount of tape, cutting materials properly, and placing labels where they belong. Sounds small, but when you’re moving thousands of units? That adds up.
Most companies see a 20-25% boost in efficiency, with full ROI in about 12-18 months. And here’s the kicker: fewer mistakes, fewer returns, less waste.
Stop Guessing-Start Using Data
For years, packaging decisions were based on gut instinct and experience. But now, there’s better data-and it’s changing the game.
New tools track everything: not just material prices, but storage costs, handling, shipping, and even disposal. Companies that dig into this data often find their “cheapest” packaging option is actually 15-20% more expensive when you zoom out.
Even smarter? Some platforms help you predict when material prices are likely to rise or fall, so you can plan your buying instead of reacting to them. That alone can save you 5-8% annually.
Real Strategies That Actually Work
1. Make Design Reviews Routine
Most businesses design packaging once and then never touch it again. That’s where money leaks out.
Quarterly reviews using modern design tools can lead to savings of 8-15% per product category. It doesn’t have to be a big lift-just check whether your packaging still makes sense based on current shipping needs, product dimensions, and material costs.
Want to stay sharp? Track a few key metrics like:
- Cost per unit shipped
- Material usage
- Damage rates
That’ll tell you fast whether your packaging is working or just… old.
2. Try New Materials (On Purpose)
Packaging materials are evolving fast. But most teams don’t test anything new unless a supplier comes knocking.
Companies that get ahead of the curve make it a habit to test 3-4 new materials a year. Not just for price, but for handling, durability, storage, and shipping. Sometimes a material that looks more expensive ends up being cheaper once you factor in freight savings or fewer returns.
The key: build a system for testing, not just one-off experiments.
3. Don’t Get Too Cozy with One Supplier
Sticking with one packaging supplier might feel easy, but it’s rarely the cheapest route.
Companies with 2-3 solid options per packaging category tend to see better pricing-often 10-15% than those relying on just one vendor.
It’s not about playing hardball. Just having options keeps everyone honest. Even if you don’t switch, the simple act of reviewing contracts and talking to the market often leads to better terms.
4. Automate Where It Makes Sense
You don’t need to go full-robot overnight. The smart play is to start with one high-volume packaging line, see what works, then build from there.
Target spots where you’re seeing the most waste or the highest labor costs. Even modest automation-like machines that apply consistent tape or cut with precision can lead to big material savings and better consistency.
5. Use Tech That Helps You Make Better Calls
Analytics platforms that connect your design, sourcing, and shipping data help you make smarter trade-offs. Maybe you spend a bit more on materials, but cut freight costs by 20%. These tools help you see that.
Implementation usually takes a few months, but the payoff is solid. Scenario planning-where you model different packaging setups and see the total cost impact-can turn procurement into a strategic win instead of a cost center.
What Kinds of Results Are We Talking About?
Here’s a rough guide based on what we’re seeing across the board:
| Strategy | Time to See Results | Typical Savings |
| Design Review | 2–3 months | 8–15% |
| Add/Review Suppliers | 6–9 months | 10–15% |
| Switch to Sustainable Materials | 4–12 months | 5–12% |
| Targeted Automation | 3–6 months | Up to 25% |
| Use Analytics Platforms | 4–8 months | 5–8% |
A Few Real-World Hurdles (And How to Tackle Them)
Of course, none of this is magic. Switching materials might mean retraining staff. New suppliers need onboarding. Automation systems need regular maintenance.
And yeah-material prices can still swing wildly due to market forces. That’s why flexible supplier relationships and smarter buying strategies are so key.
But the landscape is changing in your favor. Moglix’s business offers Sustainability incentives, better material science, and smarter software tools are making packaging optimization easier and more impactful than ever.
Final Thoughts: It’s All Connected
If you want to really move the needle, don’t treat packaging decisions like a series of isolated choices. Design, materials, suppliers, automation-it all works better when it works together.
The companies that win at this don’t treat cost savings like a one-time project. They build it into how they operate-ongoing reviews, continuous testing, smarter sourcing.
Treat your packaging the way you treat your product: as something worth optimizing, improving, and investing in. Because at the end of the day, smart packaging isn’t just about cutting costs-it’s about increasing margins without cutting quality.
Packaging Compliance: A Global Perspective
Packaging Compliance: A Global Perspective
Of the developing countries involved at the UN COP26 Summit in Glasgow last year, India was way ahead in the ambition of its commitments. Led by PM Modi, India is committed to increasing the generation of non-fossil fuel-based energy to 500 GW, which will account for more than 50% of our energy requirements in 2030. We also agreed to cut carbon emissions by 1 billion tonnes. Accounting for a business as usual scenario, India’s carbon emission would be tallied above 4 billion tonnes without special efforts to reduce carbon emissions. Essentially, this means we will cut emissions by about 22% percent by 2030. India will also cut its carbon intensity by 45 % in the same period, which means we will allot renewable energy to a larger cross-section of industry and commerce sectors to reduce dependence on fossil fuels.
The targets are ambitious but achievable. The reason we say achievable lies in the definition of net-zero. Simply, net-zero by 2050 means that the world, our country included, will be able to offset carbon emissions to the environment by balancing them with carbon removed from the atmosphere. There are many ways to orchestrate this balance—packaging material, used by 99.99% of manufacturers in the country, adds to the waste management requirements and often ends up in landfills. We need to reimagine the role of packaging and how a switch to sustainable packaging as per MoEFCC policy can help us reduce the environmental strain and open new business opportunities.
What do the MoEFCC Guidelines Cover?
The new policies coming into effect over the last 18 months and through 2022 can pose a challenge for manufacturers. The Plastic Waste Management Amendment Rules, 2021, announced in August by the Union Ministry of Environment, Forest and Climate Change (MoEFCC), identified that 20 identified SUPs will be phased out by next year. These are generally classified as lowest utility and highest environmental impact. In India, 18 states have already implemented a complete SUP ban, but the upcoming July milestone will extend the legislation across the country.
- Plastic packaging material regulations were increased to 75 microns from 30th September 2021 and will subsequently shift to 120 microns thickness from 31st December 2022.
- Non-woven plastic carry bags shall not be less than 60 Gram Per Square Meter (GSM) from 30th September 2021.
- The manufacture, import, stocking, distribution, sale and use of the following single-use plastic, including polystyrene and expanded polystyrene, commodities will be prohibited from 1st July 2022.
- The policy regulations cover a variety of products, including – earbuds with plastic sticks, plastic sticks for balloons, plastic flags, candy sticks, ice-cream sticks, polystyrene Thermocol, packaging films around sweet boxes, invitation cards, and cigarette packets.
- The regulations do not apply to shall not apply to commodities made of compostable plastic.
Improving Packaging Safety Guidelines:
We are also witnessing stricter regulations regarding packaging material safety, especially for food products. The use of specific material for perishable or shelf food products does not allow recycled plastic or newspaper packaging. Policymakers have also mandated that it is the responsibility of the printers and producers of food packaging to ensure there is zero transfer of printing ink to the food product and that the packaging material does not have any reaction or potential for contamination in the storage and transport supply chain. Regulations like these necessitate a rethink on manufacturers to ensure they do not fall afoul of the laws. With a growing consumer awareness surrounding organic food and environmental footprint, brands must ensure that this transformation happens immediately.
For example, the government has banned using a solvent commonly found in printer ink called Toluene. Also called methylbenzene, a hazardous, clear, colorless liquid that turns into vapor when exposed to air at room temperature. Toluene has been linked to several acute and chronic health concerns, including eye and throat issues, breathing difficulties, and increased risk of developing allergies and asthma.
The Complex Reality of Global Packaging Compliance:
While India is taking progressive steps towards transforming the packaging industry into a sustainable, conscious, and safer ecosystem, developed markets like the USA and the European Union already have stricter standards and benchmarks.
The reason this complexity is essential to understand is simple. It is time for an Indian packaging manufacturer to look beyond India as a market. However, navigating the compliance terrain based on geographies can be complex. A digital, end-to-end, global packaging and supply chain solutions provider represents the ideal go-to consultant for help in navigating the complex layers of global packaging compliance.
Globally, brand owners have to also adhere to Extended Producer Responsibility (EPR) reporting legislation across the world. EPR makes brands responsible for declaring the packaging material on shelves and highlighting the end of the lifecycle process for the same material after consumption. The crux of the idea is to ensure that manufacturers are thinking beyond just the product’s sale to the consumer.
A quick tour around the globe of some of the largest producer economies helps us formulate the depth of the compliance complexity that a packaging manufacturer might encounter:
European Union
- They aim to effectively phase out single-use plastics in a bid to reduce marine contamination and pollution.
- Encouraged use of reusable containers through deposit return schemes (DRS). These schemes have gained much traction in countries like Sweden and Norway.
USA
- A total ban on the use, production and import of paper-based food packaging that contains PFAS. California has been exceptionally transparent about the findings linking PFAS to cancer, vaccine disruption and other severe environmental and bodily consequences.
- Misleading advertising on packaging will also be prohibited. There is a law to prevent the term ‘recyclable’ from being used on product packaging without verification to avoid misleading consumers who believe they are making ethical purchases.
Australia
- 100% of all packaging material should be reusable, recyclable or compostable by 2025.
- 70% of plastic-specific packaging should be recyclable or compostable by 2025.
- 50% of packaging components to be made from recycled material by 2025.
- Single-use plastic packaging will be obsolete by 2025
China
- China will ban all non-degradable plastic bags by 2025 in a 100% ban across all provinces.
- By the end of 2022, all major hotels and guesthouses should have stopped offering disposable plastic products, and by the end of 2025, smaller operations will be expected to have ceased as well.
The variance of compliance laws and their implications on customers of packaging material manufacturers in India is equally significant. One way for brand owners to avoid the risk of non-compliance is to go by the strictest design requirements for packaging that is sold worldwide. However, this may not always work. The more niche the need, the more challenging it becomes to maintain feasibility and efficiency to apply it to all packaging.
Suppliers also need to pay close attention to all the different requirements when deciding whether “worldwide” environmental labeling is a feasible and effective option for their specific case. Depending upon the types of products sold, the packaging materials used and the types of packaging components most frequently placed on the market, they can decide whether to create region-specific labeling and environmental claims or a worldwide labeling system.
Fuelling Global Packaging Ambitions
About five years ago, the Ministry of Commerce and Industry set up an independent committee to oversee and keep track of global compliance laws. The main reason to bring independent experts from organizations like the Indian Institute of Packaging, Export Development Authorities, industry associations and research institutes was to overcome the enormous rejection ratio of packaging material leaving Indian shores.
In 2018, the Indian packaging industry was the fifth largest globally. With the advent of the pandemic and the rapid shift to digital purchasing of standard requirements like grocery, the demand for packaging is bound to sky-rocket further. Yet, the Indian packaging industry only comprises about 4% of the world and is way behind markets like Brazil, China and the USA.
Clarity on global compliance laws, access to innovative packaging production technology, and material and capital to scale production are the prime growth areas Indian packaging manufacturers classify as the top priority. As global demand for sustainable packaging delivered at scale peaks in the next decade, Indian manufacturers can look at a two-fold growth from domestic and foreign markets.
Digitalizing the Packaging Supply Chain
For packaging manufacturers to take advantage of the latent demand in the market, a few upgrades are definitely required:
- Compliance laws and the constant monitoring of global trends to capitalize on future demand
- Better vendor management is the need of the hour as packaging manufacturers will have to look wider for more material options.
- Balance of volumes and pricing to take advantage of the optimum SKU RoI
- Design innovation to compete at the global level while staying price-conscious.
- Strict process and quality control implementation to ensure seamless delivery and a superior customer experience
These are core tenets of the Moglix approach to helping more than 700 customers and 16000 suppliers manage demand and supply worldwide. As one of the world’s largest packaging supply chain platforms, our endeavor to digitize end-to-end procurement is what manufacturers need to capitalize on the massive influx of demand for better packaging solutions soon.
Good Things Come In Sustainable Packaging
Good Things Come In Sustainable Packaging
In 2019, India produced 660 lakh tons of plastic waste. Nearly 43% of this, roughly 280 lakh tons, is packaging waste. Most of this is single-use plastic. Let that number sink in.
There has been a seismic shift in customer behavior, demand for goods, and a multitude of supply chain disruptions in the past two years. The COVID19 pandemic has changed the way we consider purchase decisions and accelerated a shift to digital buying for the large swathe of middle-class India. The Indian Institute of Packaging (IIP) estimates that the packaging consumption in India has increased by more than 200% – from 4.3 kg per person per annum to 8.6 kg pppa.
Paper is a more sustainable option than single-use plastic. Industry figures indicate that more than 49% of all paper produced in India is used for packaging. Given the global demand for craft paper in markets like China and the US leading procurement demand, India and other emerging economies are feeling the pricing pinch.
India’s COP26 Commitments and Compliance Framework for Sustainable Packaging
The Glasgow Climate Pact has clearly demarcated two important considerations. Net-zero emissions are the obvious first. However, the path to get there will be customized to ground realities. India finds itself at a critical reboot stage with regards to the transition map for governments, large enterprises, and MSMEs to hit the ground running with digital transformation.
The Cost of Climate Change Report spells out a dire implication of climate change. It is estimated that 3-10% of our GDP will be compromised by 2100 while increasing average poverty rates by 3%. If we are to achieve a target of becoming a $5 trillion economy by 2030, we will have to achieve a real GDP growth rate of 12.5% and create 90 million jobs in the non-farm sectors. Integral to the roadmap for achieving this vision is the substitution of existing high carbon content packaging materials, suppliers, and processes with more sustainable packaging materials, suppliers with such manufacturing capability, and demand aggregation in the end-to-end packaging supply chain.
The Plastic Waste Management Amendment Rules, 2021, announced in August by the Union Ministry of Environment, Forest and Climate Change (MoEFCC), identified that 20 identified SUPs will be phased out by next year. These are generally classified as lowest utility and highest environmental impact. In India, 18 states have already implemented a complete SUP ban, but the upcoming July milestone will extend the legislation across the country. The shift to more sustainable packaging material will be swift, and manufacturers need to display vision and plan to ensure they are not plagued by supply chain disruptions in the transition process.
The Search for Sustainable Packaging Material Substitutes Begins:
The government’s push for the compulsory use of plastics of a minimum of 75-micron thickness from December 2021 and a minimum of 120-micron plastics from July 2022 will generate demand for sustainable packaging and drive investments in these new products categories. The packaging product categories that are likely to increase demand are seaweed, organic fabrics, corn starch, wood, paperboard, recycled cardboard, and paper.
It is time for the Indian packaging ecosystem to move away from a siloed approach. Technology adoption is the need of the hour, not only for building better packaging material but also for the digital transformation of the packaging supply chain. Technology adoption in packaging materials can facilitate capacity expansion, bring economies of scale, and reduce unit costs. On the other hand, collaborative data sharing among the stakeholders in the supply chain can get greater visibility into demand and supply mapping across locations in India, pricing, and agile distribution.
The demand for single substrate packaging alternatives is set to soar. The cost and environmental benefits would be tremendous if we could bring that down to a single layer of substrate packaging. Consider an example of an FMCG manufacturer who currently uses three layered packaging materials: BOPT, LDPE, and a metal pack. Here are some examples of alternative materials that could play a significant role in the packaging industry in the next few years:
Bio-based Plastics – Bio-based plastics typically use food crops such as corn and sugarcane, both available in surplus in the country.
Polylactic acid (PLA) – Transparent solid polymer that is similar to PETE polymer but has a significantly lower maximum continuous use temperature
Poly hydroxyalkanoate (PHA) – is a much more eco-friendly polymer that can handle high temperatures and decompose in soil and waterways. Both alternatives are made from fermented corn sugar, and they can decompose up to 90% within 90 days if disposed of properly.
Paper-based packaging – Corrugated box and other forms of paper-based packaging are biodegradable if it does end up in landfill, can be easily recycled by end-users, and the raw material is carefully managed (basically planting more trees)
Edible packaging – Natural polymers in food packaging, like Algae, seaweeds, polysaccharides, proteins, lipids, or composites.
Bridging the Packaging Supply Chain Digital Divide
Plastics account for nearly a third of carbon emissions in core manufacturing verticals like metals, mining, and construction materials. Next in the pecking order of importance are energy, agriculture, allied activities, logistics, and HVAC, which represent the highest contributors. FMCG, consumer appliances, e-commerce, hospitality, and F&B also add their fair share of environmental footprint.
The answer to standardization of data sharing on carbon emissions compared to alternatives across a cross-section of manufacturers, MSME suppliers, logistics, and warehouse partners is undoubtedly a digital platform that can account for industry and process variations.
Unfortunately, digital integration in India’s supply chain is at less than 5%, obscuring visibility into carbon emissions at each stage of the supply chain. Due to the lack of this visibility, brands and manufacturers find it challenging to identify partners for on-demand sustainable transition who have the manufacturing capacity to scale with them.
Simply put, the easiest path to sustainability is through measurement. By analyzing data on carbon emissions and viable alternatives, all stakeholders can make responsible choices to bring transformative change quickly, at optimum costs, and without friction in the current packaging value chain.
How Can Brands Play a More Prominent Role?
Product packaging plays a prominent role in the purchase decision of the consumer. Primary packaging makes all the difference to the customer’s first impression and the brand recall later. Take the case of the food and beverage industry – chocolates, soft drinks, processed foods, packaged whole grains, and cereals, for instance, are packaged using laminates. The pandemic has changed consumer perception around packaging as well.
Brands need to put technology at the center of their transformation, create robust governance models to govern operations, and collaborate with a broader ecosystem to make a significant impact footprint. The surge in deliveries, wastage of packaging, and a growing consciousness of the digital consumer will force brands to consider sustainable packaging options carefully. Most studies indicate that consumers also evaluate brand packaging on their green footprint and low-touch point processes (the lesser, the better).
Here are the most important reasons why brands should strongly consider transforming their packaging usage:
- Be the ‘right’ brand – Consumers prefer brands with more sustainable packaging than their competitors.
- Talent retention – By doing the ‘right thing,’ brands build the perception of being a responsible producer, which affects employees’ morale and loyalty.
- Reduction of carbon footprint and costs – extends to the financial and social responsibility aspect advantages, which are measurable.
- Investment opportunities – the world is veering towards investing responsibly, and larger AUMs focus on brands adhering to ESG norms.
While this builds a strong brand image, the path to packaging material and supply chain transformation is complicated and needs an end-to-end advisor who can envision upstream and downstream requirements, mitigate risks and provide solutions platforms that enable seamless migration. At Moglix, we work with more than 700 manufacturers, 16000 suppliers, 40 logistics partners, and 30 warehouses into a single ecosystem for 6000 packaging SKUs spread across 45 categories to create an unmatched collaboration ecosystem for all stakeholders.
What will Drive Sustainability in Packaging?
Like us, all stakeholders in the packaging supply chain ecosystem are acutely aware of the implications of a collective failure to adopt more sustainable best practices. By reducing the compliance costs with the amendments to the Plastic Waste Management Rules, 2021, we enable large enterprises to hit the ground running with agility.
Industry leaders should aspire to create a brand of impact by revamping and reimagining product packaging and supply chain processes with technology at the core. A seamless transition, however, requires much planning. The brand perception, economic and environmental costs are too significant for companies to take lightly.
The pandemic, coupled with the COP26 commitments for a greener future and government legislation to eliminate single-use plastic, should be viewed as a golden opportunity to hit the reset button. By placing digital technology solutions, material innovation, and process optimization at the core for a better tomorrow, the government, corporations, and the supplier ecosystem can usher in a new age of conscious commerce. That is why it is time to say that good thing come in sustainable packages.
Moglix Sustainable Packaging Supply Chain Solutions
We are Moglix; India’s largest packaging solutions provider. From reducing costs, enhancing branding, and meeting sustainability goals, we enable enterprises to reimagine their packaging supply chain by integrating economic and technical efficiencies in one metric: sustainability. To learn how you can leverage Moglix sustainable packaging solutions, please reach out to us at info@moglixbusiness.com
