Client Background
The client is a leading global packaged food company with operations across Asia and Latin America. Rising costs of polymer-based packaging films were creating supply chain challenges and putting pressure on profit margins.
Client’s Challenge
The client’s procurement team struggled with limited visibility into local supplier pricing benchmarks across key markets. Price volatility created uncertainty, and they lacked forward-looking guidance to anticipate fluctuations. This lack of clarity risked budget misalignment and weaker negotiation positions with suppliers. The client sought a comprehensive study to improve pricing transparency and gain actionable insights to support procurement planning and cost control.
How Mordor Intelligence Helped
- Mapped historical pricing trends for critical packaging substrates across major procurement markets using a combination of subscription data and internal tracking tools to build a solid baseline.
- Conducted targeted interviews with regional packaging converters and procurement managers to understand capacity constraints and the drivers behind resin cost changes.
- Developed short-term pricing models showing price bands based on various demand and input cost scenarios, factoring in resin supply dynamics and freight costs to capture market volatility.
- Customized the analysis to highlight regional differences and pinpoint risk areas, aligning research outputs directly with the client’s procurement challenges and planning cycles.
Key Findings
- Clear historical price trends for packaging films revealed underlying supply chain bottlenecks impacting costs.
- Resin supply constraints and freight cost fluctuations were major drivers of price volatility across Asia and Latin America.
- Identified three specific geographies with heightened risk of local price surges due to supply lags and capacity issues.
- Short-term price bands provided a realistic framework for anticipating potential cost movements under varying market conditions.
Impact Created
- Enabled the client to incorporate actionable short-term pricing scenarios into budget updates and supplier negotiations, improving financial planning accuracy.
- Flagged high-risk regions early, allowing procurement to proactively manage supplier relationships and avoid unexpected cost spikes.
- Fostered stronger collaboration between procurement and product development teams, supporting better trade-off decisions around packaging innovation and cost management.
- Enhanced overall confidence in navigating volatile polymer pricing environments, reducing risk exposure in key sourcing markets.
Our Industry Coverage
Mordor Intelligence has delivered commodity pricing insights across over 20 industry verticals including chemicals, food ingredients, Agri-inputs, metals, pulp, packaging, electronics, construction materials, and energy-linked derivatives.
We support clients with:
- Supplier benchmarking and vendor renegotiation strategies.
- Sourcing strategy adjustments in volatile pricing environments.
- Strategic input for investment teams assessing material-exposed products.
- Early warning frameworks to manage input-linked risks in portfolios or product lines.
