LONDON--(BUSINESS WIRE)--According to the latest procurement intelligence report from Technavio, the global plastic resins market is expected to grow at a CAGR of over 4% over the next five years due to the availability of large shale gas reserves.
The research report titled ‘Global Plastic Resins Market: Procurement Intelligence Report 2017-2021’ provides an in-depth analysis of category spend, best procurement practices and cost saving opportunities, aimed at helping organizations achieve superior business performance. The report also provides insights on pricing, supplier positioning, and top companies, enabling sourcing professionals to improve their competitive advantage through procurement excellence.
“The global plastic resins market is driven mainly by the packaging industry. The industry relies on thin-walled plastics to reduce packaging weight and improve barrier resistance to enhance the shelf life of food products,” says lead Technavio procurement specialist Angad Singh for category spend intelligence. “Stiff competition among top players has driven innovative capacities that are serving as a differentiating factor as well as helping in enhancing of product portfolio,” added Angad.
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Cost Saving Opportunities in the Plastic Resins
The adoption of various cost optimization levers helps buyers of plastic resins realize cost savings and achieve category management and value benefits (including the reduction in procurement complexities).
Technavio procurement experts have segmented the cost saving opportunities in the plastic resins market into the following value-enhancement opportunities:
- Adoption of technology
- Supplier Competition
- Adoption of negotiation strategies
- Optimization of procurement practices
- Bundling of services
Adoption of technology saving aspects
Smart polymers are high performing polymers that can change based on environmental conditions. These polymers are also sensitive to temperature and intensity of light. These polymers are widely used in biodegradable packaging and production of hydrogels.
Bioplastics are made of starches, cellulose, and biopolymers, and are designed for easy biodegrade. Manufacturing of bioplastic resins consumes considerably low fossil fuels when compared with petroleum-based polymers.
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Optimization of procurement practices saving aspects
Buyers should engage with suppliers that offer resin assistance. This is important because the selection of the right resin is crucial for producing an effective finished product.
Buyers should use a centralized system for sourcing of plastic resins. This helps in creating standardized contracts and service request frameworks to avoid mishandling of shipments.
Bundling of services saving aspects
Buyers prefer suppliers to have a clear understanding of their specific requirements. Additionally, suppliers’ understanding of specific applications will enable them to develop and offer innovative product formulations.
Buyers should engage with suppliers that help in optimizing inventory levels to minimize storage and warehousing costs. For instance, buyers prefer to engage with suppliers that offer JIT inventory systems. This helps buyers to reduce overheads associated with maintaining large resin stocks.
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Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.
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