The packaging industry is an essential part of the global supply chain, providing materials that keep products protected, presentable, and market-ready. However, packaging suppliers working with wholesale customers often face significant challenges that can impact cash flow, operational efficiency, and customer relationships.

The global packaging market was valued at approximately USD 1.24 trillion in 2024 and is projected to reach USD 1.69 trillion by 2034, growing at a compound annual growth rate (CAGR) of 3.16% from 2025 to 2034. The industrial packaging market has experienced substantial growth, driven by rising demand from key sectors such as food and beverage, pharmaceuticals, and automotive industries. Despite this growth, packaging suppliers still face major hurdles in managing their wholesale customers effectively.

Here are the top four challenges packaging suppliers face when dealing with wholesale customers—and strategies to overcome them.

1. Late Payments & Cash Flow Issues

The Problem:

Wholesale customers often buy in bulk and request trade credit, which can lead to delayed payments. This creates cash flow problems for packaging suppliers, making it difficult to manage inventory, pay employees, and invest in growth.

The Solution:

1. Implement an automated invoicing and payment system to send reminders and track outstanding balances.
2. Offer early payment discounts or incentives for customers who pay on time.
3. Use a trade credit management platform like PencilPay to streamline approvals and ensure timely payments.

2. Manual and Inefficient Onboarding Processes

The Problem:

Onboarding new wholesale customers often involves a manual process with paperwork, emails, and back-and-forth communication, leading to delays and errors.

The Solution:

1. Digitize your onboarding process by using online credit applications and automated approvals.
2. Use an integrated platform that collects and verifies customer details, credit references, and payment terms in one place.
3. Reduce administrative burden by automating approvals and setting clear payment terms upfront.
   
   

3. Managing High Order Volumes & Inventory

The Problem:

Wholesale customers place large and frequent orders, making it challenging for packaging suppliers to maintain optimal inventory levels. Overstocking ties up capital, while understocking results in delayed deliveries and dissatisfied customers.

The Solution:

1. Implement demand forecasting tools to predict customer needs and adjust inventory accordingly.
2. Set up an automated order management system to process high volumes efficiently.
3. Communicate with customers regularly to anticipate bulk orders and plan ahead.

4. Handling Customer Credit Risk & Bad Debt

The Problem:

Extending trade credit to wholesale customers comes with the risk of non-payment or late payments, leading to bad debt and financial instability.

The Solution:

1. Conduct thorough credit checks before offering payment terms to new customers.
2. Automate trade credit applications with real-time approvals based on verified data.
3. Use auto-billing features to collect payments as soon as they are due, reducing the risk of defaults.

Conclusion

Wholesale packaging suppliers must navigate a range of challenges, from cash flow issues to inefficient onboarding and credit risk. By leveraging automation, trade credit management tools, and proactive customer engagement strategies, suppliers can streamline operations, improve cash flow, and build stronger relationships with their wholesale customers.

If you’re looking for a way to simplify your wholesale processes, PencilPay can help. Our platform automates trade credit applications, payment collection, and customer onboarding—ensuring you get paid on time while reducing administrative hassle.

Get in touch today to see how PencilPay can optimize your packaging supply business.