OMNI Systems Label Blog

2 min read

2021 Supply Chain Disruptions & Raw Material Allocations – Will the Chaos Continue into 2022?

Nov 19, 2021 9:42:05 AM

Illustration of a metal chain with a paperclip as a link.

      The label industry is experiencing an unprecedented year: price increases skyrocketing to an all-time high, labor shortages continuing on a downward spiral, freight costs increasing with lengthy delivery delays, and raw material allocations resulting in demand outpacing supply, subsequently creating longer lead times. These pain-points have been the central topics tenderly discussed throughout the year. As suppliers and customers are rapidly approaching the end of 2021, the question remains: will the supply chain chaos continue into 2022?

     While there is no crystal ball to forecast when the next price increase may strike, it is a safe bet that the supply chain challenges will easily continue into the first half of 2022, potentially expanding further into Q3. While 2021 has been a challenging year, there is relief in knowing provisional solutions currently exist in the label marketplace.

     Amid the chaos, OMNI has implemented multiple premeditated remedies to ensure our customer’s remain setup for success and continue seamless operations. At the start of the labor shortages, during the rise of COVID cases, COVID incentives were offered to all of OMNI’s employees. OMNI’s skilled labor force is a key to the company’s success and heavy investments have been carried out to ensure employee’s receive high-wages (above industry standards), solid benefits, and immense training, including diversity and inclusion, resulting in strong culture and morale being sustained.

     Through strategical partnerships with our raw materials suppliers, and as one of the largest private consumers of thermal label material, OMNI’s buying power has resulted in pushback to the increases, creating lower than the industry averages increased costs. Being a debt-free company, who pays their bills on-time, allows OMNI to further develop robust relationships with our suppliers.

     Lead times have not increased and have remained the same for our top customers. Proactively, OMNI made the early decision in April 2020 to jettison smaller customers, creating open capacity and preparations for raw material shortages and allocations. Through these preemptive decisions, allocations have not yet been an encountered obstacle for OMNI and our customer base. During this time, OMNI has also purchased an additional five presses to further support growing customer needs.

     OMNI’s customers are informed and consistently kept in the loop of the evolving marketplace and are accommodated during these turbulent circumstances. Our recommendations for label consumers are:

  • Order early and order heavy
  • Check inventory on a regular basis
  • Keep safety stock in inventory

     With over three decades of experience in the label space, OMNI has a proven track record for supplying the highest quality labels at the lowest costs, even throughout the most challenging of times. If you are currently experiencing label challenges, find out today how OMNI is able to assist with remedying disruptions and attaining successful solutions.


Post a Comment


How Can We Help?