Packaging Challenges

Your Suppliers Have the Advantage – Plastic & Paper

Resin and Paperboard Markets are Non-Transparent

  • Raw material comprises 50% – 80% of total costs
  • Market indices do not reflect true market transactional pricing
  • No resource available to determine supplier’s cost of raw material

Suppliers Manage Non-Transparency for Advantage
High Volatility in Plastics
Complex Manufacturing Platforms

  • Difficult to identify true cost of conversion (non-transparent)
  • Large number of converting processes

Difficulty in Identifying True Supplier Margins
Paper Producer Market in Transition
Non-Transparency of Technical & Market Costs Require RFP as Key Category Approach

  • Does not provide market/supplier transparency
  • Does not produce assured reasonable supplier margins