A Publication on World Pulp, Paper & Allied Industry

April-June'2001 - Vol. 5 Issue 3

Special Report
   

Globalisation of packaging suppliers


Facing increasingly powerful, concentrated and global buyers, the packaging industry, which is still largely regionally oriented, is under pressure to respond to the globalisation challenge. So far, only a few cartonboard or containerboard suppliers have concretely invested in productive assets overseas. There are, however, examples of horizontal and vertical overseas expansion and alliances among converters, to serve certain customers or end-product segments.

The main driver of globalisation for the packaging sector is to secure and expand customer base, which is pursued due to globalising customers and as purchasing patterns and relationship between buyers and sellers are changing. Globalisation is also expected to lead into   improved customer relationship management.

 
 
Global buyer market opportunity
 
Global buyer market opportunity for the packaging industry is based on the size and share of their market, including changes in their purchasing and business patterns. In some cases, global buyers account for a substantial, even over 50 %, share of all containerboard and cartonboard suppliers’ end-use markets, but there are significant variations by market segment.
 
 
Attractiveness of global partnerships
 

Attractiveness of global partnerships is one of the main conclusions of the report. The three key benefits of partnerships include securing growth and expanded market share, learning and staying abreast of new product developments and trends in supply chains, including e-commerce and savings in sales and transaction costs due to large volumes and focused client portfolios.

Selected suppliers have been and increasingly will be able to form partnerships with large, global buyers, which brings a number of benefits to both sides. The ultimate target of a successful relationship is a win-win partnership which requires long-term commitment from both sides.
 
 

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