Plastic resins are a necessary building material for the creation of a variety of products. Unfortunately, obtaining resin can be a challenge, especially with all the factors that can affect resin prices and scarcity. Procurement can help make resin buying a much less painful process, especially for smaller manufacturers.
Products Made from Plastic Resins
There are different types of plastic resins, and each one is very useful in the construction of different products. For example, a polyethylene terephthalate resin is good for making bottles, including soda bottles, and also for waste containers. A higher density polyethylene resin might be used in the production of vitamin or medicine bottles or milk containers. Lower density polyethylene is used to make plastic bags, including grocery bags and garment bags.
Challenges to Buying Plastic Resins
Buying resins is not as easy as it once was, as industry changes have led to spikes in resin prices. The global supply and demand of resin can fluctuate drastically. In addition, resin cost and availability can be affected by the supply and demand changes of natural gas, oil and other raw materials.
Many resin suppliers have consolidated through buyouts and bankruptcies, offering a buyer fewer choices and giving them less leverage for purchasing. Price increase protection has been reduced or removed altogether in some cases, making it difficult for a manufacturer to pass increases in resin prices (which are becoming more frequent) onto the customer.
How Procurement Professionals Can Help
One of the great advantages of procurement professionals is that they can give a small manufacturer the buying power of a much larger one. A procurement professional is aware of industry specific approval requirements, and can help a manufacturer find the right resin for their product, improving the product, helping it meet standards and controlling waste. They can also sometimes find cheaper alternative resins with similar properties, further reducing production costs.
An experienced procurement professional will know the industry well, and can warn if a particular resin is going to be discontinued, if a supplier is going out of business, or if a manufacturer’s competitor has found a cheaper resin source. Obviously, such a professional would also be aware of international and domestic resin prices across all resin types and have favorable supplier relationships to help get the best deals.
