CMAI/IHS Index for Resin Pricing

[allplastics]

I just wanted to find out if anyone uses the CMAI/IHS Index for managing their resin pricing? If so, what do you feel are the Pro & Cons with this process?

We have typically just worked off the "announced price change letters," from the manufacturers and pass along any increases if they end up going through at the end of the month.

Thank You.
Brian

[Troyonix29]

Brain, I just reached out to Brian Olesen who is the President of Centro to see if he can provide feedback.

He uses a very sophisticated resin purchasing process due to his volume , and I think he will have insight to this issue. If you want to contact him direct, use 319-625-3200 (mention MAPP and my name.)

Troy

[briankolesen]

Pro's:
only get "true" market moves
trailing index gives visibility & planning
averaging multiple months gives you a "smoothing" effect
allows to construct index with customers so takes time lag for price increases and friction out of relationship
negotiate annually with supplier on non market changes (based upon market conditions and changes in purchase quantity)

Con's:
not necessarily real time so significant changes in market conditions are not readily taken advantage of
cost of the the subscription to CDI or IHS
ture market conditions differ from posted index (possible but not likely)

Good luck, Brian
bolesen@centroinc.com

[allplastics]

Thank You! Appreciate the feedback.

Brian