Our proactive approach allowed us to manufacture with confidence by minimising freight disruptions and avoiding raw material shortages.
Businesses of all sizes have felt the impacts of COVID-19; and in many ways, 2021 has shown greater hardships than the initial consequences in 2020. Australian manufacturers have seen extreme increases in consumer demand, border closures, skyrocketing costs in freight and raw materials, and not to mention scarce availability of raw materials and resin. Air and sea freight alone inflated between 5-10 times more in the short space of just 6 months. These demands coupled with COVID’s global disruptions in manufacturing, operations and supply chains have caused significant impacts for many industries.
A Roy Morgan study claims 38% of people believe the pandemic has highlighted Australia’s reliance on other countries. Even though many businesses have focused on sourcing locally, we are always going to be exposed to offshore influences; whether that’s the production of raw materials or unfinished goods. While Australian manufacturers were able to overcome short-term challenges, a general lack of preparation for future scenarios let them down. Manufacturers were taken by surprise and quickly expected to implement strategies to stay afloat. Those who did not take a proactive approach to manufacturing fell behind.
A Proactive Approach at Sancell
Our biggest challenge has been the continuous increase in demand and sudden growth of cold chain and retail products. With lockdowns forcing businesses to trade online, our protective packaging solutions were able to help businesses manage these new conditions.
Ensuring visibility of the end-to-end value chain, we took a holistic view of potential risks that would affect our production and ability to meet customer expectations. We quickly understood that a lack of supply and increasing costs could be of concern. To overcome many of these short term and some long term issues, we took a proactive approach and forward ordered months of raw materials. This approach allowed us to manufacture with confidence by minimising freight disruptions and avoiding raw material shortages. This also enables us to provide a continuous flow of products to our customers with minor risks.
Locally Sourced and Locally Produced
In line with demand for locally sourced and Australian made, we have worked on sourcing many of our materials from local suppliers. We have expanded our cold chain range to include a 100% locally made and 100% locally sourced thermal liner launching in early 2022 – stay tuned!
Opting for locally sourced and locally produced products has considerably lower impacts on the environment, including lower carbon emissions and greenhouse gases. Less time in transit releases fewer fossil fuels and less carbon into the atmosphere compared to international counterparts. Australians who seek local products will help rebuild our economy and help businesses and manufacturers get back on track sooner.
While a proactive approach has helped many businesses to stay afloat, we aren’t out of the woods just yet. COVID-19 still remains a threat and the flow-on effects continue to cause significant disruptions on global operations and supply chains. When choosing Sancell, you are choosing a forward-thinking organisation that has its customers and the environment in mind. Learn more about our story here.
