CHINA INDUSTRIAL CASE
STUDY -
Polyurethane and Polyethylene Foam Raw Material Cost Study in China
Client Request
-
Determine
raw material costs for international and Chinese domestic foam competitors
in China
-
Examine if some raw material price increases impacted margins and
shifted competitors' focus towards cutting raw material costs
Primary Impact Findings
- Landed raw material
pricing of top three raw materials was identified
- Volumes consumed
and suppliers used for six competitors in China was determined
- Identified several
additional raw material suppliers used by competitors that client
not previously considered using
- Identified alternative
material suppliers for PVC suspension resin, low density polyethylene,
EPDM rubber, blowing agents, and chlorinated paraffins
Primary Impact Recommendation
- Leverage major
raw material suppliers to reduce material costs
- Pursue alternative
raw material suppliers in China
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