The Comprehensive Guide to Your Overseas Packaging Supply Chain

With constant fluctuations in the economy, the demand for a cheaper global packaging market grows stronger each day. But saving money doesn’t mean you have to sacrifice quality and sustainability.

Lately, the international supply chain has been under scrutiny. From risks posed by China’s zero-Covid policy to catastrophic weather events, the economy is facing shortages and delays never seen before, and these are just some of the challenges of global sourcing.

When it comes to your overseas packaging strategy, what are the benefits and what are the risks of engaging in a global supply chain? According to Bain & Company, most companies have supply chains that under perform, typically leaving 5-10 percentage points in potential gross margin gains—and often more—unrealized.

After months of research and tapping into our international packaging experience, we wrote a comprehensive white paper on how to optimize your offshore packaging strategy.

What We’ll Cover

While there are many other categories that may also benefit from sourcing from worldwide sourcing specifically from the Asian market, we have identified three categories that are perfect for capitalizing on the technology, material availability, and skilled labor found especially in mainland China:  

• Consumer electronics packaging and packaging for specialty goods produced in Asia 
• Premium product packaging 
• Low-quantity special orders 

Consumer Electronics & Specialty Goods Produced in Asia

An obvious choice, if your goods are already produced in Asia, it only makes sense to source your packaging solutions in that market as well. Your contract overseas packaging manufacturer most likely bundles the cost of global packaging into the total project cost to give you the most competitive cost-per-unit quote.  

However, your CM could bid out your packaging to other subcontractors, thus increasing your risks with misunderstandings and quality issues while decreasing your chances to customize your project based on your needs. 

Premium Product Packaging

With the continuing evolution of e-commerce and the growth of direct-to-consumer products, companies and brands are quickly realizing the power of global packaging (and the need for reliable e-commerce packaging solutions). It doesn’t end when the customer clicks “Complete Order”; instead, it extends all the way to the customer’s home where they get their first interaction with the product. This focus on the unboxing experience highlights that the right packaging will not only elevate the whole customer experience, but also ensures that your product reaches the customer safely.

Low-quantity Special Orders

As brand ambassadors and micro-influencer marketing continue to rise in popularity, custom low-quantity special orders are becoming increasingly prevalent, making services like influencer packaging more essential than ever. However, you may quickly run into challenges related to staffing across small volume, high-complexity projects. McKinsey advises that “an agile supply chain workforce is comfortable working with and alongside advanced technologies, and personnel may need a wider range of skills so they can move between tasks as business needs change.” 

Avoiding Expensive Surprises

The “total landed cost” is the total bill of globally sourced material costs plus the cost of shipping and insurance, duties, and taxes. It is an important consideration when determining where to source products because it can affect profit margins significantly. To avoid unexpected fees, a reputable packaging logistics provider can advise you on your total cost for freight, inclusive of all tariffs and taxes that will be incurred to receive your product.

Ready to discover how the right relationship with a global packaging manufacturer can be a competitive advantage for 2023 and beyond? We also include a checklist assessment to help you gauge the resilience and readiness of your offshore supply chain network. Get your free copy at the link below.