
Written by Jan De Roeck
Marketing Director, Esko
Have you ever paused to consider how many parts your smartphone is made of—and where they all come from? That sleek device in your pocket is more than a marvel of engineering; it’s a symbol of our deep reliance on global supply chains.
From cobalt mined in the Democratic Republic of Congo to lithium extracted in Chile, Argentina, or Australia, and rare earth metals sourced from China, the raw materials alone span continents. The processors inside—designed in the U.S.—are fabricated in Taiwan or South Korea. Displays and camera modules come from Japan, South Korea, or China. And the final assembly? Most likely in China, in vast factories operated by companies like Foxconn or Pegatron.
Once assembled, your smartphone embarks on a global journey—packed, palletized, and shipped via container vessels, air freight, and trucks to reach retailers and consumers across Europe, North America, Africa, and beyond. It’s a logistical ballet that depends on precision, timing, and a delicate balance of global cooperation.

But what happens when that balance is disrupted?
Fragile Threads in a Global Web
Over the past decade, we’ve witnessed just how vulnerable our just-in-time global supply chains really are. The 2010 eruption of Eyjafjallajökull in Iceland grounded flights across Europe. In 2021, a single container ship blocked the Suez Canal for six days, halting nearly 12% of global trade. The Texas Deep Freeze disrupted the supply of oil-based derivatives critical to the flexible packaging industry. And, of course, the COVID-19 pandemic brought entire economies to a standstill.
More recently, the war in Ukraine has further exposed the fragility of global supply networks. Industries dependent on metals and energy from the region have scrambled to find alternative sources—often at significantly higher costs and complexity.
These events are not isolated. They are signals. And they are growing louder.
Measuring the Pressure
So how do we quantify the strain on global supply chains? The Global Supply Chain Pressure Index (GSCPI), developed by the Federal Reserve Bank of New York, offers a comprehensive view. It integrates data from seven major economies—China, the euro area, Japan, South Korea, Taiwan, the UK, and the US—and tracks deviations from historical norms.
A GSCPI value above zero indicates elevated pressure; below zero suggests easing. It’s a powerful tool for understanding how supply constraints impact economic outcomes. And right now, it tells us what many in the packaging industry already feel: the pressure is real, and it’s not going away.

The Ripple Effect on Packaging
The packaging and label industries are not immune. Quite the opposite—they are on the front lines. Paperboard and oil-based flexible packaging substrates are often sourced from distant regions. When a supplier suddenly becomes unavailable, converters must pivot quickly, finding new sources without compromising quality or compliance.
At the same time, packaging buyers are demanding shorter production runs and faster lead times. They need flexibility, and they expect their suppliers to deliver it—despite the turbulence upstream.
The result? A perfect storm of pressure on lead times, pricing, and operational agility. Business leaders are being forced to make tough decisions—about inventory, sourcing strategies, and investment in technology.

From Incremental to Transformational
In this environment, incremental change is no longer enough. We need transformational change—driven by automation, powered by cloud computing, and guided by artificial intelligence.
Digital transformation is no longer a buzzword; it’s a business imperative. It’s about building resilience into every layer of the value chain. It’s about gaining real-time visibility into operations, enabling faster decision-making, and creating agility to respond to whatever comes next.
At Esko, we believe the packaging industry must embrace this transformation—not just to survive, but to thrive. That means rethinking workflows, investing in digital tools, and fostering a culture of continuous innovation.
Are We Ready for the Next Disruption?
Let’s be honest: the next disruption is not a matter of if, but when.
The question is—how prepared are we?
Now is the time to reassess where we are on our digital transformation journey. To identify the gaps. To lay out a roadmap toward digital maturity. And to ensure that when the next shockwave hits, we’re not scrambling—we’re responding with confidence.
The smartphone in your hand is a testament to what global collaboration can achieve. But it’s also a reminder of how interconnected—and vulnerable—we’ve become.
Let’s take that lesson to heart. Let’s build supply chains—and packaging operations—that are not just efficient, but resilient.