Packaging Resin Category Procurement Intelligence Report

Business practices within Packaging Resin market are heavily influenced by changing trends across the category as well as within the broader Warehousing and Storage market. Rise in minimum labor wages across countries such as the US and China will result in increased employee expenses for Packaging Resin suppliers who will be forced to pass on a part of this increase to their buyers.

Sustainability has emerged as a pivotal theme for procurement decisions related to supply chain. Companies are expecting their suppliers to internalize globally accepted sustainability practices and demonstrate a solid history of putting in practice similar principles. It is worth noting that practices of sustainability are not limited to only environmental impact but has taken a greater meaning of practices that can reduce the overall cost of operations in the long term.

Cyber security has emerged as a top priority within logistics and supply chain ecosystems. New accountability standards are emerging for the way suppliers and buyers collaborate and protect sensitive information and assets.

As a result, category managers need to closely monitor the Packaging Resin procurement trends and identify changes required in their procurement environment for the category.

Sometimes, procurement functions are unable to timely alter their practices while responding to market conditions. Industry experts acknowledge that periodically reviewing procurement best practices and adopting learnings from across procurement categories can help procurement teams respond to market needs in a more agile way. This report combines our experience of other categories with Packaging Resin procurement insights and hand picks best practices that can work for category managers delving in this market.

For example, Buyers need to assess the level of automation provided and time required to obtain process efficiency, apart from checking if suppliers have the correct documentation for as-is processes and to-be processes to avoid any conflicts in implementation.

It is important for category managers to track and measure supplier performance against a defined set of KPIs that are agreed upon by both parties during contract negotiation, including inventory accuracy, dock-to-stock, and on-time shipment. This is critical to ensure the optimal level of service. Suppliers' performance can also be linked to a part of their fee, which can be paid depending on the level of services rendered.

Buyers should assess service providers' capability of predicting the weather, traffic, and other real-time information, which might affect shipments that are in transit or in its delivery times.

Packaging Resin procurement managers also need to proactively identify and mitigate potential risks that can arise in the supply chain or contracts for Packaging Resin procurement. Some examples include: