Plastic Ware Category Procurement Intelligence Report

The market for Domestic Goods and its sub-segments such as Plastic Ware are at an interesting intersection. Buyers are moving towards longer contract durations with suppliers of Plastic Ware to benefit from value-based discounts, integrated products and services, lower renewal cost and lesser expenses on contracting activities.

The global industry has seen a gradual increase in labor cost due to several factors, such as shortage of a trained workforce, increase in minimum wages, regulations around employee benefits and declining appeal for what have been traditionally called unskilled jobs. As the employee expenses increase, suppliers are compelled to pass some of this increase to their buyers by charging higher prices.

Several factors in the value chain of Plastic Ware, such as labor cost, logistics, and energy costs are driving up the procurement costs. Additionally, engagement of suppliers who are still operating with outdated assets, technologies and processes is also increasing the cost for buyers.

Trends like these and many others discussed in this report are necessitating a relook at the way Plastic Ware is procured and the procurement cost saving opportunities that exist.

As market conditions become more dynamic and procurement practices get more sophisticated, category managers need to be cognizant of the best practices that work for their Plastic Ware category procurement. The report offers a succinct analysis of Plastic Ware procurement best practices.

For example, Buyers need to evaluate the in-depth expertise of suppliers in the Plastic Ware industry. This can be assessed by considering factors such as the years of experience, number of resources that have multi-year experience of working in the same industry and at least 3 to 5 credentials for the supplier.

While competitive bidding as a cost optimization tool is extremely potent but should be carefully deployed only when there is no significant differentiation among Plastic Ware suppliers.

Buyers can consider engaging suppliers that use advanced technologies such as automation, robotics, and lean manufacturing in their manufacturing process. The use of such technologies enables suppliers to control their OPEX and reduce TAT, which will help buyers avail volume-based discounts on category purchases.

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