Five Lessons Learned (CONT’D FROM PAGE 5)
Box Shipments ( U.S. Corrugated Product Shipments) Industry Shipments In Billions of Square Feet Month September 2021
The pandemic saw many large retailers buying their own equipment to avoid delays and issues caused by con- tainer and chassis shortages. The demand for additional warehousing space to hold buffer stock and delayed sea- sonal merchandise also increased dramatically. Looking ahead, expect logistical planning to include managing equipment (containers, trailers, etc.) as well as warehousing space, and for shippers to select partners who will invest in equipment and space to meet demand. 4. Increasing inventory levels: While the industry knew the “just-in-time” model was getting too lean and too tight to be sustainable, the realization of its fragility was brought to light in a loud and unmistakable way during the pan- demic. This has resulted in what we now consider the “just-in-case” model, whereby shippers build extra inven- tory into their planning so they have goods on hand when they need them. Increasing inventory levels ensures you have contingency goods available to meet unexpected demand or unexpected delays in your supply chain. The last couple years have shown it is too risky to keep in- ventory levels low . You can no longer assume cargo can quickly be delivered from a distribution center hundreds of miles away. To meet customers’ needs, it is necessary to invest in solutions that allow you to have inventory on hand where and when you need it. CONTINUED ON PAGE 8
Year
Actual
Percent Change Avg Week Percent Change
2021 2020
34.261 34.901
-1.8
8.157 8.310
-1.8
Industry Total
Year-to Date
September 2021
Year
Actual
Percent Change Avg Week Percent Change
2021 2020
312.632 300.767
3.9
8.227 7.873
4.5
Industry Total
Containerboard Consumption (Thousands of Tons)
Year
Month
Percent Change Year-to-Date Percent Change
2021 2020
2.7786 2.8459
-2.4
25.4959 24.5672
3.8
Container Board Inventory - Corrugator Plants (Thousands of Tons)
Corrugator Plants Only
Date
Percent Change Weeks of Supply
Percent Change
Sept.
2.312
3.8
3.5 3.4
2.9
Aug
2.2272
Shipping Days
Year
Month
Year-to-Date
2021 2020
21 21
190 191
SOURCE: Fibre Box Association
www.boardconvertingnews.com
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December 13, 2021
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