3 THINGS CUSTOMERS SHOULD CONSIDER

3 THINGS CUSTOMERS SHOULD CONSIDER WHEN THEIR SUPPLIER MOVES THEIR PRODUCTION FROM ONE PLANT TO ANOTHER

Posted on November 1, 2023

The custom film industry was shocked to learn that Grant Gamble, President of Performance Solutions at Novolex, announced that the company would be closing its Coldwater, Ohio plant permanently on or about December 2, 2023. The coex items will be moved to Yakima, Washington, while the remaining items will be transferred to the Shawano, Washington plant (the former Wisconsin Film & Bag plant), which is located approximately 2,000+ miles from Coldwater.

Here are three things customers should consider when their supplier moves their production from one plant to another:

• Raw Material Mix: The raw materials used in a product, such as resin, are chosen based on a variety of factors, including the production lines they are used on and the types of resin or raw materials that each plant has relationships and agreements with. These factors can vary greatly, even if they are from the same company. This could lead to changes in the quality of the product, as the new plant may not be able to use or want to use the same materials as the old plant, as they may not work as effectively on different production lines or may not work at all.
• Production: Most customers have never met the production managers that are responsible for ensuring the quality of their product. However, they and their team play an integral role. For example, many of the Coldwater employees have run the same product on the same line for years. They understand the intricacies of the production much like their customers would understand the intricacies of the cars or houses they own. With a whole new production line and new group of people managing customers’ orders, there is likely to be issues.
• Stocking and shipping: Given the location difference of 2,200 miles, this can change shipping rates and seriously impact stocking agreements. With the global supply situation changing, switching plants only add to the already shaky supply chain. This could lead to delays in orders being filled, as the new plant may not be able to keep up with demand.

The bottom line is that movement in production is never a good thing, especially if it’s not centered around innovation or customer savings. When it comes to plastic packaging, customers need a reliable supply chain and should be asking questions to ensure their product continues to be on time and with the highest quality to ensure their products get from point A to B without disruption.

WE’RE HERE TO HELP

We understand that plant closures can be difficult, which is why Crayex is here to help. Our mission is to protect your brand and mitigate risk by getting your product from point A to point B safely and securely. We do this by listening, anticipating your needs and providing solutions, products and services that improve your bottom-line. It’s what we do—we’re here and we’re ready to help. Give us a call at (937) 773-7000 to get in touch with us today.

Learn more about the Novolex plant closure via the following links:
Plastics News Article: “Novolex closing flexible packaging, films plant”
Mercer County Outlook Article: “Novolex To Close Its Coldwater Shields Factory”