Nampack Battles Competition, Supply Chain Disrupti...

Nampack Battles Competition, Supply Chain Disruptions

Audrey Galawu- Assistant Editor

Nampack Zimbabwe Limited has been grappling with significant pressures in recent months, as a combination of intensified competition and unforeseen supply chain disruptions have tested the resilience of key players in the sector.

A perfect storm of heightened competition in the commercial segment and political unrest in Mozambique, where raw materials are imported via Beira Port, has strained businesses and delayed crucial deliveries, particularly during the high-demand festive season.

In the past quarter, demand for packaging across multiple business units has experienced a downturn, largely due to increased competitor activity, especially in the commercial packaging sector.

As businesses vie for market share, many are facing tighter margins and reduced sales, forcing them to reassess their strategies in order to maintain profitability.

“The commercial segment is more competitive than ever,” says one industry insider. “It’s becoming increasingly difficult to differentiate in a crowded market, and we’ve seen some players struggle to maintain their footing.”

The challenges are not only confined to the intense competition. Political instability in Mozambique, triggered by disputed election results, has disrupted the supply chain for businesses relying on raw materials coming through Beira Port.

These disruptions have caused substantial delays, particularly during the crucial end-of-year period when demand for packaging typically peaks. With many businesses counting on timely deliveries to meet festive season orders, these delays have had a ripple effect throughout the industry.

One major packaging company, which prefers to remain anonymous, confirmed that while their raw materials were eventually received, the delays caused by the political unrest severely impacted their ability to fulfil customer orders on time.

“We had a clear order book and everything was aligned for the festive season, but the political turmoil in Mozambique made it almost impossible to predict the timing of material shipments. As a result, we couldn’t meet our customer expectations, and that’s something we have to work hard to recover from,” the company spokesperson shared.

Despite these setbacks, companies are adapting and seeking ways to mitigate the impact of these disruptions.

In response to power supply issues that have also been affecting operations, businesses have begun installing backup power sources, such as generators, to ensure that production runs smoothly even in the face of external challenges.

Moreover, industry leaders are exploring new supply chain routes and alternative sourcing options in an effort to avoid future delays.

“We are constantly looking for ways to improve our supply chain resilience and reduce dependency on regions that might be prone to political instability,” said Group Managing Director, John Van Gend.

“While the current political situation in Mozambique has presented challenges, we are optimistic that by diversifying our supply sources, we can minimise the impact on future operations.”