The pandemic has caused a sudden surge in losses all across the globe. Sectors ranging from tourism, transportation to basic market sales have taken a major hit. But something that really has shaken production ease in most industries is the sudden disruption in glass production.
What is a supply shock?
When an unprecedented event causes a shocking scarcity in a certain sector of the industry, we term that as supply shock. There occurs a sudden drop in production rates as the demands soar high.
Other than glass, the sand shortage has also shaken the manufacturing industry due to the pandemic. Sand is, after all, the second most used resource after water.
Why is there a glass shortage in the first place?
The best answer to this question would be the pandemic. Due to an uproar in the global pandemic in recent years, glass bottle manufacturing in numerous factories and production sectors have been put to an indefinite halt, thereby slowing down the production of glass.
Even though the stringent social-distancing guidelines are being more lenient in recent days, with so much loss already at hand, it is tough for manufacturers to get back to a production spree. They are most likely to falter in meeting the demands of the industry.
An added disadvantage is the enhanced use of glass for the distribution of the COVID-19 vaccine across the world. As glass is being dedicated to meeting the needs of the pandemic-affected people, it is lacking in all the other industries.
How are industries affected by this shortage?
While this industry has already suffered economically, the glass supply shortage is an added setback. It all just adds to the already rising lumber and labour shortage caused by the pandemic. COnstruction and tourism have taken a major hit. NOw with this scarcity at hand, the construction industry is likely to suffer the most.
While new constructions are put out of the question, people around the world are rebuilding and renovating their homes, creating a surge in demand for construction supplies. However, the decrease in product supplies combined with the increase in demand has proven to be a deadly combination.
Window and glass companies have stopped manufacturing. Even if they have kept a stable production spree, they are unable to transport and deliver. This is a real issue.
This industry includes restaurants, bars and open food chains that are habituated with glass serving utensils. This sudden hit on the production has taken a big toll on the food industry for now they do not get a regular supply of glass products.
Several outlets have been warned by their suppliers of product shortage so all they can do now is wait for the production process to run freely again.
With shortage comes a price hike. The prices of glass merchandise have reached soaring heights as the demand grows incredibly.
Much of this demand is mainly from the beverage industry, which has sought glass bottles as a positive alternative to plastic.
The demand for eco-friendly and sustainable packaging is growing over the decades, it has become a trend in recent years. Sustainability in product manufacturing is not a luxury but a necessity nowadays.
But with one of the main components of eco-friendly packaging being scarce, the whole process has become a lot more complicated and stressful for manufacturers. Finding steady and suitable alternatives on such short notice is tough.
Attention towards medicinal requirements has grown over the last two years, for obvious reasons. With the new spread of COVID- 19 vaccines, companies have been devoted to producing glass containers for the same.
However, this industry has a glass requirement that goes beyond just producing vaccines. This shortage has permeated well enough to cause serious concerns in the medical community.
Car manufacturing industry
A year-round business such as car manufacturing has taken one of the biggest hits due to scarcity. The global auto industry output is likely to have taken a major hit in 2020-21 due to an unprecedented shortage in glass commodities.
How to overcome glass scarcity?
Just as you go into painstaking details before building the map of your business, you need to keep in mind unfortunate and unforeseen accidents that may disrupt your production process. Plan A is alright but Plan B is crucial.
Plan ahead and think of the packaging alternatives that may help you overcome certain resource shortages. This way, you will be able to fulfil public demand and not keep your business income at stake, just because sufficient packaging is not available.
Talk to your supplier
Packaging plays a crucial role in supply chain engagement. When there is increased demand and lowered production, you need to talk to your supplier and work your way through alternatives.
Always keep in mind that you cannot implement alternative production/ packaging systems right away. Trial and error are crucial so buy products in small quantities and keep on sampling till you find an alternative that fits your requirements like a puzzle. You will get there!
Change packaging material
In case the product that you have always used for packaging and transportation is not abundant at the moment, try shifting to newer resources that are plentily available in the industry.
Perhaps giving your product an altered shape and size may boost the usage of different materials.
Your customers should be equally aware and accepting of the current situation. They should embrace the substitute that you have provided for them.
More packaging flexibility
A good way of avoiding packaging disasters is to buy the products in bulk.
You can avoid a shortage of supplies by taking in products when they are plentily available and keeping them in proper storage.
As transportation becomes easier with pandemic laws becoming more lenient, try buying cheap wine glasses bulk in order to avoid another supply shock.
With the given factors in mind, we hope you deal with this supply shock efficiently and come out victorious in the end. There is nothing that cannot be overcome with a bit of strategy and planning.