)--SpendEdge has been monitoring the global plastic bags and pouches industry and the industry is poised to experience spend growth of over USD 3 billion between 2019-2024 at a CAGR of more than 3% during the forecast period. to get instant access to over 1000 market-ready procurement intelligence reports without any additional costs or commitment.Factors that will drive procurement expenses in the plastic bags and pouches industry
Insights into category management strategies that will help buyers optimize their procurement spend
- Volatile crude oil prices will result in an increase in the prices of raw materials such as polyethylene. This will propel the production costs incurred by suppliers which will be ultimately compensated by buyers in the form of an excess procurement spend.
- To cater to buyer’s demand for customized plastic bags and pouch designs, suppliers are investing in advanced printing and manufacturing equipment. Consequently, these investments will result in production cost overheads and increase the prices of plastic bags.
Optimizing procurement spend does not stop at getting the product from suppliers at reduced rates. Most of the buyers in the plastic bags and pouches industry fail to realize that an impactful supplier relationship management is crucial to create avenues to save costs in the long run and also to facilitate effective category management in an industry that is characterized by price dynamism.Engage with global suppliers who have a regional presence
It is advised that buyers engage with global suppliers who have a regional presence as this offers buyers the avenues to save on their transportation and inventory costs. Suppliers with regional operations located in proximity to buyers' sites will have lesser expenses related to logistics and inventory holding. This can help buyers save on the overall procurement spend.Collaborate with suppliers with high capacity utilization rates
Engagement with suppliers who exhibit high capacity utilization rates will provide assurance to buyers regarding suppliers' ability to fulfill requirements on time. Buyers can evaluate suppliers' daily average production to gauge their ability to fulfill demand requirements. Suppliers' production efficiency can vary based on machinery utilized for different packaging styles and shapes and the availability of raw materials.Buy 1 report and get the second for 50% off. Buy 2 reports and get the third for free. shares your passion for driving sourcing and procurement excellence. We are the preferred procurement market intelligence partner for 120+ Fortune 500 firms and other leading companies across numerous industries. Our strength lies in delivering robust, real-time procurement market intelligence reports and solutions. To know more,