Supply chain issues ‘continuing for the foreseeable future'

Overall supply chain issues are not expected to end anytime soon, according to one official in the beverage closure industry.

As senior category manager of North American beverage closures for Coca-Cola Bottlers' Sales and Services Co. LLC, Penny Walter said the disruptions seen during the last 20 months are expected to continue for months ahead.

Her advice: communicate and plan.

"Supply chain challenges are going to be continuing for the foreseeable future. So establishing strong, robust continuity plans is essential," she said during the recent Plastics Caps & Closures 2021 conference organized by Plastics News. "And align with your customers [for] what that looks like."

Companies must hope for the best but be ready for a different outcome to make sure they are ready for whatever supply chain challenges still lie ahead, she said.

"We've been working through this for the last 18 months. How do we plan for the next six?" she asked during her virtual conference presentation. "Hopefully things are going to improve with COVID-19, but we need to prepare for the worst.

"From talking with industry experts and some of my trusted industry connections, I foresee this continuing into at least [the second quarter of] 2022. That's a hard message to hear. For the foreseeable future," Walter said.

A supply chain is just that: a chain. And Walter said any supply chain is only as strong as its weakest link. So making sure those links stay strong requires work. That requires communication, collaboration and an understanding of the forces that are placing stress on the system.

"It starts with behaviors and actions, acting with a sense of urgency. If a supply issue comes about, acting with a sense with urgency," Walter said. Thinking of supply chain problems in terms of dollars and cents — or what she called "a cash register" — provides the impetus to find solutions.

While indicating "all of us" have faced supply chain challenges since early 2020, Walter indicated her closures segment has been able to minimize the impact.

She reeled off a litany of major supply chain challenges companies are facing, including security and cyber protection, consumer purchasing trends, employee safety and personal protective equipment efforts, and financial pressures and cost reductions. Legislative and government mandates, sustainability, workforce and labor issues, and transportation also are factors.

Regarding changing consumer habits, Walter said e-commerce, increased customer demands, increased capacity requirements and additional demand for do-it-yourself products are all putting stress on the supply chain.

Bad weather, including the Texas freeze as well as hurricanes and wildfires, are adding to the problems and sometimes creating longer lead times.

"It's breathtaking to think about all the things we've been through," Walter said.