Resin Sourcing Strategies for a Declining Market

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With oil prices declining at the fastest rate since 2008, buying organizations have a unique opportunity to claim savings from suppliers of resins and plastic components. Crude oil has slipped from $110 per barrel to under $50. While all organizations know the cost of resin and its downstream components should decline, the challenge is to understand the amount of savings the organization should achieve. This report provides a review of the following tools: 

  • Resin Production Cost Model - Chemical mass balanced models to itemize the cost of feedstock and conversion to the price paid for common resins.
  • Plastic Components Cost Modeling - Activity based costing models of common plastic forming processes to determine savings targets
  • Zero Input Modeling - Contract price escalators often break down at extreme changes in underlying costs - the Zero Input Model provides visibility into escalator accuracy.
  • Market Intelligence - Financials published by resin producers highlight the actual cost and price changes in the market for most industrial resins.

Please click here for a complimentary copy of our report.