Risk management beyond its classical borders
and why supply chain inflation is the buzzword of the trade
Franz Christmann, CEO of the POLIFILM TRADING subgroup, in an interview about
- Trade in times of crisis
- Availability of goods as a synonym for supply chains
- The impact on the future procurement structure
In times of pandemics, the war in Ukraine and the Taiwan discussion, the importance of classical risk management takes on a whole new dimension for many. In view of the fact that POLIFILM Trading is very close to the trade, what concerns you in particular?
In my opinion, the description that a number of banks are using of supply chain inflation fits the situation that we have been facing for some time.
Would you elaborate a bit on that for us?
The price structure is determined by the factors of energy costs, available personnel and, above all, free container space. This applies to raw materials as well as finished goods, such as those sold by POLIFILM TRADING. Prices have risen to record levels. However, for months now it has not only been a matter of price in the trading business; the availability of goods has been just as much, if not more, an issue. In a very short time, it has become, almost synonymous, of the supply chain.
This sounds like a significant upheaval.
It certainly highlights that the importance of supply chains was underestimated for a long time.
Building up safety stocks is a luxury that one must be able to afford.
Franz ChristmannCEO POLIFILM TRADING
How did POLIFILM TRADING respond to this scarcity and, above all, unpredictability?
We are fortunate that, through the group structure of POLIFILM, we have access to productions worldwide and, consequently, backups in the form of contingency locations for our customers, even though this is associated with considerable effort. At the same time, we are increasing safety stocks for our customers. However, it must be openly stated that this is a luxury that one must be able to afford. The strong group support is definitely an advantage here.
How did you perceive the mood among your customers?
There was increased uncertainty regarding both the range of assortments and price discussions. In parts, there is still a clear question: „What is the right price?“
Woran machen Sie letzteres aus?
Es kommt zu wiederholten Diskussionen. In vereinzelten Fällen sehen wir auch erstmals Ausschreibungen.
Collaboration based on partnership has always been crucial for us.
Franz ChristmannCEO POLIFILM TRADING
How do you address this customer uncertainty?
Collaboration based on partnership has always been crucial for us. The long-term trust building process pays off, as the past months have shown. Transparency and effective communication on all sides have consistently allowed us to find the right solution together. The entire team has done an excellent job, and our partners are very satisfied.
It only makes sense if we do not offset the saved CO2 through regranulate with emissions during transport.
Franz ChristmannCEO POLIFILM TRADING
What lessons do you take from the past few months for the coming years?
Even before the pandemic, we were working on shortening supply chains. This will definitely continue. This includes, above all, sourcing from Asian production to European production. Alongside shortening the distances, the planned expansion of our portfolio with products containing a higher proportion of recycled materials also plays a crucial role. The quality of regranulates that we require is currently not available in sufficient quantities on the Asian market.
In line with our holistic sustainability approach, which we are promoting as a group, it only makes sense if we do not offset the saved CO2 through regranulate with emissions during transport.
If you had to summarize the key themes on your agenda in three words, what would they be?
Transportation routes, energy, and recyclates.
