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Increasing Supply Chain PressuresApart from external pressures, brand owners and retailers themselves are facing increasing challenges within their supply chains that can potentially be addressed through recyclable packaging. Issues like rising commodity and transportation costs, complexities of global sourcing and logistics, capacity constraints, and disruptions are forcing companies to optimize operations. Recyclable and reusable packaging allows the removal of unnecessary and wasteful materials from the supply chain without compromising on protection and performance. It results in reduced raw material consumption, lower packaging to product ratios, and improved transport utilization. Flexible and lightweight designs offer further savings potential. An efficient closed-loop supply chain where packaging is collected after use, sorted and processed for making new packaging improves material circulation. This extends the functional lifespan of packaging materials and locks away the economic value within the system. By integrating sustainability goals into core business strategy and redesigning packaging accordingly, companies can enhance supply chain resilience and prepare for future disruptions. The commercial drivers of reducing operational costs, mitigating supply risks, and gaining competitive differentiation are thus encouraging greater uptake of recyclable solutions across industries.
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