A pallet of finished goods can be perfectly manufactured, accurately forecast, and efficiently transported, yet still fail at the final hurdle because of packaging.

From damaged products and delayed shipments to regulatory breaches and rising costs, packaging has become one of the most underestimated vulnerabilities in the global supply chain.

What was once treated as a tactical afterthought is now a strategic pressure point, exposed by volatility, sustainability demands, and growing customer expectations.

For B2B organisations, packaging sits at the intersection of procurement, logistics, compliance, and brand reputation. When it underperforms, the entire supply chain feels the strain.

Why packaging exposes supply chain risk

Packaging is uniquely exposed because it touches every stage of the supply chain. Raw materials must be sourced, packaging components manufactured, formats designed, items assembled, goods transported, stored, and finally delivered to customers.

A weakness at any point can cascade quickly.

Global supply chains have amplified this risk. Many businesses rely on a small number of packaging suppliers concentrated in specific regions. Disruption caused by geopolitical tension, energy price spikes, or raw material shortages can halt packaging availability overnight.

Unlike some components, packaging is difficult to substitute at speed due to tooling, regulatory approvals, and compatibility with existing machinery.

Transport and storage compound the issue. Poorly designed packaging leads to damaged goods, higher return rates, and wasted inventory. Oversized or inefficient packaging increases shipping costs and reduces pallet density, undermining logistics efficiency at a time when freight capacity remains under pressure.

In high-volume sectors such as food, pharmaceuticals, and e-commerce, these inefficiencies quickly scale into significant financial losses.

Regulation adds another layer of vulnerability. Packaging compliance requirements vary by market and are tightening worldwide, particularly around waste, recyclability, and labelling.

A supply chain that moves across borders must adapt packaging specifications without interrupting flow. Failure to do so risks fines, shipment rejections, or forced product withdrawals, all of which disrupt continuity.

The sustainability paradox in packaging supply chains

Sustainable packaging has moved from a brand differentiator to a baseline expectation. Customers, investors, and regulators now scrutinise packaging materials as closely as product performance. Yet sustainability initiatives can unintentionally increase supply chain fragility if they are not carefully planned.

Recyclable, compostable, or lightweight materials often behave differently from traditional packaging. They may have shorter shelf lives, lower tolerance to moisture or temperature changes, or reduced protective strength.

Without adjustments to handling, warehousing, and transport, damage rates can rise. This creates a paradox where well-intended sustainability goals undermine supply chain resilience.

Material availability is another challenge. Demand for sustainable packaging materials has surged faster than supply in many markets. Businesses that commit to ambitious packaging sustainability targets without securing long-term sourcing agreements risk shortages and price volatility.

In some cases, companies are forced to switch materials multiple times, introducing inconsistency and operational complexity.

There is also a knowledge gap. Packaging decisions are often decentralised, made in isolation from logistics and procurement teams. Sustainable packaging solutions that look viable on paper may prove impractical in real-world supply chain conditions.

The result is a cycle of trial, error, and disruption that erodes confidence and performance.

A resilient packaging strategy balances environmental responsibility with functional reliability. This requires testing, cross-functional collaboration, and a clear understanding of how packaging performs across the entire supply chain, not just at the point of disposal.

Strengthening packaging to protect the wider supply chain

Treating packaging as a strategic asset rather than a cost line is the first step towards reducing supply chain risk. Businesses that do this well integrate packaging design, sourcing, and logistics planning from the outset.

Diversifying packaging suppliers is a practical starting point. Dual or multi-sourcing reduces dependency on single regions or materials and improves negotiating power. While this can increase short-term complexity, it significantly improves long-term resilience.

Standardisation also plays a critical role. Rationalising packaging formats across product ranges simplifies procurement, speeds up changeovers, and allows faster substitution when disruption occurs. Standardisation does not mean sacrificing brand identity; it means designing flexible systems that can adapt without breaking.

Data and visibility are increasingly important. Tracking packaging performance metrics such as damage rates, cube utilisation, and return volumes helps identify weak points before they escalate.

When packaging data is connected to wider supply chain analytics, decision-makers gain a clearer view of trade-offs between cost, sustainability, and reliability.

Collaboration with packaging suppliers is another differentiator. Suppliers often have early insight into material shortages, regulatory changes, and emerging technologies. Businesses that engage them as partners rather than transactional vendors are better positioned to anticipate risk and innovate under pressure.

Finally, packaging resilience depends on governance. Clear ownership, defined standards, and regular review cycles ensure packaging keeps pace with changing supply chain realities. In volatile markets, static packaging strategies age quickly.

Packaging may be small in physical scale compared to factories or fleets, but its impact is disproportionate. As supply chains become more complex and expectations rise, packaging has emerged as a weak spot that can no longer be ignored.

Organisations that strengthen it will not only reduce disruption but gain a competitive edge built on reliability, efficiency, and trust.