Supply Chain know-how
Supply chain management is at the very core of the Plastribution business model.
Historically ‘distribution’ has served the needs of small and medium size processors and security of supply has been made possible by Plastribution holding significant physical inventory available for delivery at short notice.
Typically this physical inventory creates an effective buffer between plastic converters and polymer producers and the effect of upstream supply disruptions eliminated.
Until now it has been difficult to replicate the benefits of distribution model for large processors due to both cost implications and a typical requirement to deliver product ‘in bulk’ so that it can be discharged into silos at the plastic converter’s facility. In common with polymer producers, polymer converters typically face both physical storage capacity and working capital restrictions; these factors inevitably result in less physical product in the supply chain and hence greater vulnerability.
The solutions outlined in this brochure enables large polymer processors the possibility to secure their own buffer stock without the need to tie-up working capital. The inventory can then be made available to the converter at short notice in bulk or other packing formats according to the converters preference.
Stock is rotated at an agreed minimum frequency so as to ensure pricing follows market trends and inventory remains fresh.
- Stock buffer available at short notice
- Security of supply including specialist grades
- No impact on working capital
- Opportunity to secure stock at a fixed price
- Flexibility delivery formats in case of plant problems, blocked silos etc
- Opportunity to take advantage of seasonality in terms of price and/or availability
- Possibility to strategically purchase