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Supply Chain Update

Dear Valued Customer:

The supply chain issues that the COVID pandemic ignited continues.  We had hoped to see improvement by now, unfortunately the problem has grown.  Proforma is having daily communications with industry experts across the country including; Suppliers, Owners, Paper Manufacturers, Paper Distributors, Print Associations, Paper Specialists, Envelope Converters and Logistics Companies.  We would like to be upfront and share with you the current state of the industry:

  1. White wove paper is becoming very scarce and the mills are currently focused on more profitable paper stocks.
  2. Envelope shortages and delays should be expected on any quantity.
  3. Most (if not all) envelope companies are not accepting any new clients.
  4. The quantity for ongoing envelope orders may have to be reduced in order to be produced.
  5. Prices have and will continue to rise.
  6. Coated paper stocks, including basic color stocks are not expected to be available.
  7. Several paper mills are switching from paper production to packaging materials, contributing to shortages for regular stocks.
  8. Any quote or purchase order you are holding for work not started has the potential to not be honored and replaced with a higher quote.
  9. Price increases are being passed on from manufacturers, to distributors to end users. In all cases these prices have been presented as a reaction to the state of the industry and are non-negotiable.
  10. Contributing to the overall disruption are driver and labor shortages, overseas strikes and lack of shipping containers.

As we continue to monitor the changes, we recommend the following to potentially improve the situation:

  • Plan Ahead: Discussions for any paper related project happening in the future should start immediately.  Any high volume project for envelopes should begin at least 2-3 months before expecting any type of delivery.
  • Manage Expectations: Print on demand for any quantities may soon be a non-option.  Do not expect the same pricing, production or delivery that you have received in the past.  Even the largest of users (think big banks) are being impacted.
  • Be Flexible: The ability to discuss and accept options for any type of specialty stock may be the difference between getting a yes or a no.   Also, you can expect volume caps for paper related orders that are necessary for supplier production requirements and turnaround times.  Splitting orders between multiple supplies to accommodate high volumes should be anticipated.
  • Stay Informed: Read the news updates and industry blogs so you can stay up to date on the rapidly changing developments. 

The team at Proforma will maintain ongoing contact with industry experts to identify solutions and/or present alternatives.  We will continue to provide updates until the supply chain returns to a stable operating process.

As PARTNERS we will navigate these temporary disruptions together!

Please feel free to contact us with any questions.  

Sincerely,

Bruce Browning
Proforma Edge
Direct: (914) 380-7510
Email: bruce.browning@proforma.com

 

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