Strategic Process for Packaging Category Management

1
Create Technical Transparency

  • Gather & catalog critical data elements
  • Gain technical understanding of mfg processes, and raw material
  • Expose true mfg costs by SKU
  • Organize technical data ito meaningful strategic buckets
2
Create Supplier Cost / Margin Transparency

  • Identify what supplier is or should be paying for raw material
  • Apply engineered activity based cost modeling
  • Develop in-depth supplier economics assessment. (True margin across individual SKUs, ROI and value of loss of business)
3
Build a Fact Based Negotiation Foundation

  • Supplier, market and sub-category specific negotiation strategies
  • Leverage transparency for targeted supplier discussions
  • Fact based negotiations supported by technical analysis
  • Focus on fair supplier value and return on investment
4
Risk Management / Mitigation

  • Assistance in establishing customer risk profile
  • Quantify and categorize the resin/plastic buy and identify hedging solutions
  • Implement structured approach
  • Provide real time monitoring of plastics supply chain and significantly dampen volatility without long term cost increase