Packaging 101 is an on-going series intended to help procurement professionals who are new to the paper industry. Each installment will give you insight to help you cut through the clutter and focus on what’s relevant to your procurement decisions.

Interpreting Supply and Demand

Fluctuating supply and demand levels in any industry can impact prices throughout the supply chain. Knowing when shifts happen and what they mean for your costs will help you negotiate, plan, and report your packaging costs with confidence. Fortunately, you can track key market indicators in the paper industry to understand and anticipate price changes.

Historical Paper Prices

Price changes of manufactured goods are the result of numerous market dynamics acting simultaneously. The paper industry is no exception. The historical price timeline of paper grades you buy, holds a story of the activities that shaped the market and influenced prices. If you know what to look for, you can better understand how your packaging costs reached their current level and, more importantly, how they could change in the future.  The key is to look at historical prices in context of ever-changing market dynamics. Here are a few things buyers can do to be prepared for potential price changes.