How can the Swedish packaging industry stand strong and grow in a changing world? By being prepared, of course. From risk and vulnerability analyses to adaptation of business models and agreements. Because the outside world will continue to be turbulent.

Sweden is dependent on global trade and deliveries. This applies not least to the packaging industry, which is vulnerable due to its dependence on international suppliers and supply chains. So says Johan Sjöberg, Security and Defence Policy Advisor at the Confederation of Swedish Enterprise (Svenskt Näringsliv). He feels that the packaging industry, like many other industries, is impacted by the various geopolitical and security-related events that are happening at present.

Globalisation and trade

“We live in a globalised world in which Sweden is dependent on trade, deliveries, imports and exports globally. The packaging industry has manufacturing in many parts of the world, which makes it sensitive to crises such as the pandemic or Russia’s invasion of Ukraine. These disruptive events have a direct impact on our trade flows and industry”, Johan Sjöberg explains.

The packaging industry is spread over many parts of the world, and when sanctions or counter-sanctions are imposed, such as those against Russia, it affects production and logistics. Even though the level of trade with Russia was small and the sanctions against that country did not directly hit Sweden hard, the indirect effects, such as the energy crisis, have had a major impact, according to Johan Sjöberg. It is in this way that the industry is vulnerable.

“The industry is dependent on input goods, export opportunities and import of spare parts. Sanctions can disrupt the availability of these necessary components, so it is crucial that companies in the packaging industry are aware of the risks and have plans for how to manage disruptions in their supply chains.”

Make sure you are prepared

There is no denying that Sweden’s security situation has gotten worse, and the threats against the country could be further enhanced when companies are faced with cyber attacks, industrial espionage, intelligence operations, sabotage, disinformation, illegal technology transfer, infiltration and organised crime. Johan Sjöberg emphasises the importance of companies being prepared to deal with these disruptions in a manner that enables them to maintain their business operations and competitiveness.

“We recommend that companies make allowance for the challenges we are facing. It is important that management teams ask questions about how they will act in conditions of disruption, such as not being able to receive deliveries or export goods. Companies should therefore carry out risk and vulnerability analyses and should consider other types of risks than the traditional ones”, Johan Sjöberg says.

So what types of risks does he mean? Well, in a more traditional business continuity plan, vulnerability and risks are usually linked to operational disruptions, such as machine outages or other practical issues. However, in today’s risk and vulnerability analyses, Johan Sjöberg feels that companies should also consider serious global disruptions, with a total supply stoppage as a consequence.

“It is also important to consider scenarios in which parts of Sweden may become unusable due to infrastructure problems or electricity shortages. How will we act if staff cannot get to work due to disruptions to public transport or a lack of fuel? These are the types of questions and issues that companies should prepare for, and they should consider the possibility of adapting their operations if such events were to occur”, he explains.

“It could, for example, be a case of resetting production if the business is unable to produce packaging for some reason. Can they then manufacture something else in order to secure revenues and resume production?”

Flexibility is crucial

Johan Sjöberg feels that there are also other aspects that are worth considering. It has to do with planning for long-term relationships, especially when the agreement period is short and could be affected by external factors such as war. It is crucial to maintain flexibility and financial leeway so that you can deal with any damages or losses that may arise.

“If, for example, you have an agreement today, regardless of whether it concerns the public or private sector, and you have submitted a tender and been awarded a contract, it is important to consider how long-term it is. A two-year contract may not provide enough time to build a lasting relationship, and in some cases it may be more appropriate to use a longer agreement period”, Johan Sjöberg says.

However, he also goes on to explain that it’s not just about the length of the agreement period, as there are currently no business activities in Sweden that are insured in the event of war.

“So what do we do if a crisis arises? How do we deal with financial damages or loss of deliveries? These are extremely important questions, because without internationally competitive companies we have no robustness and no total defence in Sweden”, Johan Sjöberg says.

This and much more will be covered by Johan Sjöberg at Scanpack, where he will participate as an anniversary speaker on stage at Packaging Plaza, Scanpack’s anniversary area, on 24 October at 13:30. The theme of his seminar is the role of business in total defence and security of supply.

About Scanpack

With 400 exhibitors and almost 13,000 attendees, Scanpack brings together the Scandinavian packaging industry. Scanpack takes place from 22–25 October at the Swedish Exhibition and Congress Centre in Gothenburg. Buy your ticket »