There’s been a noticeable shift in how FMCG businesses evaluate supply partnerships: Cost remains important, but reliability, responsiveness, and resilience are now equally critical considerations.
This trend is especially evident in the packaging industry, where New Zealand-headquartered WML Paperboard is the only paperboard manufacturer in the Australasian region, with a track record dating back to 1939.
“For packaging specifically, having local or regional supply capability is increasingly being viewed not just as a procurement decision, but as a strategic advantage,” explains Ben Knight, sales manager, Australia, with WML Paperboard.
“The events of recent years have exposed just how fragile global supply networks can be. So, in response, many manufacturers are now prioritising suppliers that offer geographic proximity, manufacturing certainty, and stable long-term partnerships.”
WML Paperboard manufactures Formakote, a globally recognised paperboard brand first registered in 1981. The company has since invested heavily in its manufacturing and processing capabilities to build a long-term presence across Australasia and embed sustainability throughout the process.
Over more than 80 years, the company has built expertise spanning the full packaging value chain, from making high-performance paperboard through to supply chain reliability, sustainability credentials, and technical support for converters and brand owners across a wide range of sectors, including FMCG, beverage, food service, cosmetics, retail, and pharmaceuticals. Its clients include some of the world’s leading brands, with distribution across more than 40 countries spanning Asia Pacific, Europe, the Americas and Africa.
That commitment and focus are paying off in an era when, as Knight explains, businesses are realising there’s enormous value in having supply closer to market, from a partner that is stable, responsive and dependable.
“Covid changed the way businesses think about supply chains. It’s no longer just about lowest cost – it’s about certainty and resilience,” he explains.
Over recent years, many FMCG businesses across Australia and New Zealand have experienced the downside of long, internationally exposed supply chains – from freight cost volatility and port congestion through to shipping delays and transhipment disruptions.
“One of the biggest challenges with offshore sourcing can be the number of touchpoints involved,” shares Knight. “Transhipment alone introduces additional risk, delays, and uncertainty into the supply chain.
“While these issues became particularly visible during Covid, they have not disappeared. Geopolitical instability, shipping capacity pressures, and global economic disruption continue to impact offshore supply reliability today. As a result, many businesses are reassessing the balance between the lowest landed cost and overall supply chain resilience.”
Put simply, the longer and more complex the supply chain, the more vulnerable it becomes to disruption, explains Knight. “A delay at a single port, shipping route congestion, or changes in international freight schedules can quickly impact production timelines and product availability. That’s why many manufacturers are now placing greater value on supply chain simplicity and stability.
“One of the biggest advantages of regional manufacturing is speed to market,” adds Knight.
WML Paperboard sources the majority of its raw materials locally and ships finished paperboard directly to Australia, significantly reducing that exposure and providing customers with a far more streamlined and reliable supply path. From Tauranga, the nearest seaport on New Zealand’s east coast to its Whakatane mill, the company can ship to Sydney within five to seven days. From completion of production, delivery to an Australian eastern seaboard port can typically be completed within 17 to 21 days.
“This creates a shorter, more transparent supply chain with fewer variables, giving customers greater confidence in the continuity of supply and lead-time reliability. Shorter supply chains also allow customers to operate with greater agility – whether that’s responding to changing consumer demand, reducing inventory pressure, or managing production planning with more confidence,” he concludes.
“Compared with offshore supply models that can involve significantly longer lead times, multiple shipping legs, and transhipment delays, that’s a meaningful reduction in both time and complexity.”
