What Is a Value-Added Distributor?
A value-added distributor (VAD) goes several steps further than a standard distributor. In addition to stocking and shipping films, a VAD like PennPac, provides services that help you solve problems. Ultimately, helping to improve performance, and reduce downtime. Comparatively, PennPac acts more like a partner than a supplier. Success in the flexible packaging industry is about having a partner who can respond to the unexpected. Thus, protecting your production schedule when others cannot.
In the packaging film space, a VAD like PennPac is capable of:
- Slitting and rewinding to custom widths
- Providing technical guidance on film selection for specific machines or substrates
- Recommending in-house/stateside alternatives when supply chain issues arise
- Assist with sustainability goals (e.g., downgauging, PCR content)
- Support and execute packaging line trials and troubleshooting
- Collaborate on new packaging formats or product development
- Provide warehousing at a lower cost than most 3PL options
VAD’s are especially valuable when you’re running complex equipment, switching materials, or dealing with tight performance specs.
Why It Matters
Whether you’re a converter, brand owner, or contract packager, the right VAD partner can have a significant impact on your operations. Despite the fact, most standard distributors can only operate with drop ship, import, and administrative activities.
One of the largest challenges in today’s flexible packaging industry is the unpredictability of global supply chains. International shipping complications and ever-changing lead times can bring production to a halt. However, this is where a value-added distributor like PennPac with domestic (stateside) inventory becomes an essential and value-added partner.
Here’s how using PennPac as a value-added distributor can work in your favor:
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Reduced Lead Times
By stocking 91” master web inventory locally in company owned and operated facilities, PennPac can dramatically reduce the time it takes to get material to your plant. Often, from weeks to days. This allows you to react quickly to shifts in production demand without waiting on overseas shipments.
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Safeguard Against International Disruptions
Whether it’s a port strike, container shortage, or incorrect shipment, global logistics can be fragile. Stateside inventory at PennPac facilities acts as a buffer, keeping your lines running, even you’re your overseas supply is delayed.
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Flexible Order Fulfillment
Need a partial release, emergency shipment, or rush order? PennPac open-stock inventory provides flexibility to respond quickly and efficiently, without being locked into large container-size minimums or rigid shipping schedules. Additionally, not being locked into a web width that’s larger than what you need or being forced to pay for scrap because a standard distributor has limited availability.
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Effective Forecasting & Planning
PennPac works closely with customers to understand forecasts and usage patterns. Furthermore, with such valuable data, PennPac can strategically stock inventory based on actual needs, reducing your own carrying costs and increasing availability. PennPac will create a custom stocking program and manage it so you can focus on operational efficiency.
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Risk Mitigation – Alternative Solutions
If your film is unavailable due to supply chain complications or delays, PennPac, with broad inventory and technical expertise can recommend and supply an alternative. Often, from open-stock, keeping your operation moving.
Two Key Take-Away’s:
- Need a basic and a reliable source for commodity film in pre-slit widths and standard footage? A plain distributor may be enough.
- Need technical support, customization, lead time reliability, or help navigating film complexity? A VAD partner like PennPac is the better fit.
Value-added distributors like PennPac don’t just deliver film—we deliver insight, problem-solving, and flexibility. In a market where lead times are tight and every machine hour counts, that kind of support is priceless.
Final Thoughts
In the flexible packaging film space, you’re not just buying material. In fact, you’re buying performance, uptime, and service. Understanding the difference between a plain distributor and a value-added distributor can help you make smarter sourcing decisions. Of which, improving both your short-term production needs and long-term business goals.
Contact PennPac today and learn more about our value-added services.
