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Value of a Stocking Plastic Resin Distributor during a Force Majeure Situation
Working with a Branded Prime stocking distributor can really beef up your supply chain and insulate you from the vagaries of supply and market price challenges. By working with a true stocking distributor, you'll have a peace of mind and a leg up on your competition.
What is the Value?
The real value of a stocking plastic resin distributor becomes apparent when the resin producer has a supply issue. Supply issues are not if but when will they happen. Hurricane Andrew brought Plastic and Chemical production to its knees in the Gulf Coast and today we are still seeing some production shut-in 90+ days later.
When a Producer has a major issue they are usually compelled to declare Force Majeure and allocate the limited inventory and production the same way for all by customer class.
The net effect is you may have a mission-critical need for a specified resin but there is little you can do to change your allocation. For example, a critical medical, pharmaceutical, aerospace or automotive specified grade you need will still only get a percentage of supply and sometimes that is zero. Having a second source helps but usually they are overwhelmed with orders and can only supply in a very limited way.
Delivering Peace of Mind With You in Mind
Working with a Branded Prime stocking distributor can really beef up your supply chain and insulate you from the vagaries of supply and market price challenges. By using a supply contract or stocking agreement to define your needs and requirements you can work together so the stocking distributor has a minimum quantity in their possession at all times.
The key to this is clearly defining your stock requirements the distributor will hold in their inventory for you, not just a general supply contract that allows a pass-through of the Force Majeure from the Distributor to you. Many times this added supply assurance can be accomplished at little or no additional cost to the processor by the distributor leveraging their buying commitment to getting a better overall cost structure.
Whether you have highly specified resins or maybe you want to show your customers the overall strength of supply chain you can provide, working with a true stocking distributor can bring you peace of mind and a leg up on your competition.
Contact Amco Today for All of Your Product Needs.
Amco Polymers is an agile, solutions-focused distributor with an extraordinary breadth in resin selection. For more than 60 years, Amco has provided customers with peace of mind by building genuine relationships, providing responsive 24-hour customer service, and delivering with industry-leading logistics. Our comprehensive and diverse line card coupled with our knowledgeable and experienced sales and technical teams allow us to provide customers with solutions optimized around cost and performance.
This solution-focused approach has accelerated Amco's growth into major markets such as automotive, packaging, industrial, healthcare, electrical/electronics, and consumer durables. For more information please visit Amco’s contact page.