The rising costs of raw materials combined with ever increasing global shipping costs and delays has caused huge pressure on the label material supply chain, and we have received an unprecedented 3 price hikes of between 3-11% this year. Whilst initially, we tried to absorb these costs this is now beyond a viable discussion.
We have increased our stock levels across the whole range so our customers should not have experienced any noticeable delays so far, however, the situation is not forecast to improve in 2022 and there is even some suggestion that it may still get worse before we see any significant improvement.
What can you do to help mitigate label supply chain issues and price increases?
- Give as much notice as you can for material orders. Stock that once arrived in 4 days is sometimes now taking up to 4 weeks.
- Do you have an annual label use forecast? If so, share as much info as you can so we can increase our order quantities as much as possible.
- Increase your order run size, if possible? Perhaps order 3 months of stock rather than 1 month. This will help you benefit from higher price breaks too. We will also consider holding stock for you if space concerns are an issue.
- Could you consider an alternative finish? We have a wide range of materials available. Speak to you account manager to discuss potential alternative materials. Some products have a premium and a standard option which might be worth consideration. We will always be happy provide free samples for testing
If you have any questions or would like advice on sourcing your label material then talk to the team at HD Labels. We can help you organise your label material supply to ensure you always have availability and that you purchase at the best possible price you can.Talk to the team