As stated in previous Pack Protocols LLC blogs such as in Packaging Busts: Containment, packaging has been around almost as long as humans have. That being said, the nature of the packaging business has not evolved much since the 1960’s. Besides the addition of every firm trying to protect their business by obtaining Confidential Disclosure Agreements (CDA) or Non-Disclosure Agreements (NDA); not much else has changed compared to other industries.
Most packaging relationships end up with one party doing the majority of what was agreed upon and not being paid adequately for their services. One party tends to leverage or place themselves in the “power” position taking credit for more than what is deserved. Business relationships are not successful being individualistic. Pack Protocols will explain how the packaging world has reached this low and why these one-sided relationships occur.
As the world’s third largest industry, packaging has grown as the amount of products being produced have increased. Everyone reading this article probably knows of someone in the packaging space.
All projects have budgets. Usually two parties agree upon costing and responsibilities for the project. Everything seems to be smooth sailing until one party decides to change the scope of the project. The other party hesitates to renegotiate as a gesture of good faith. That can be a slippery slope as one change to a project can cause massive headaches due to regulations and laws, politics, cost over runs, and ultimately profit margin loss for at least one if not both of the parties.
One party will inevitably end up taking the brunt of the packaging project loss. The other party thinks this a new precedent and takes advantage of the situation causing extreme strain to the relationship.
Another less talked about reason why the packaging industry has not changed is the constant game playing occurring between parties. There are numerous instances where certain individuals are unethical. Companies will say that the other party is receiving what they specified and in reality its substandard. Also, certain individuals expect kickbacks for partnering on projects.
Most of these packaging relationship issues would not exist if both parties would have whole- hearted candor. Moreover; investment in each other as well as in new and upcoming technology could be beneficial. Even if it means their current profits may be affected in the short term, the long term gains may outweigh them.
A great resolution to packaging relationships is to have both parties be on equal footing. This means either from the investment, technical side or both. There has to be a mutual respect for each party to make progress. If there is a greater understanding of each others strengths and weaknesses, more risks can be taken on projects without focusing on the possible negative outcomes. Both parties will not be hesitant to work on future projects if there is trust, respect, and an ethical manner.
If your business would like to collaborate on future projects or converse about business, reach out to us at [email protected] or call us at 657-204-6093. We enjoy helping others with their packaging and business needs!