How FIBC Can Impact Your Supply Chain Management Costs?
Keeping your supply chain as cost effective as possible is the key to reducing your operational costs. However, did you know the cost of FIBC bags that you use for transporting and storing dry, flowable materials can have an effect on your supply chain management costs?
Here are some factors that FIBC bulk bags also known as bulk bags or jumbo bags can have on the cost of your supply chain.
Cost of FIBC Bags
FIBC bulk bags are made using 100% virgin polypropylene (PP) which is a petroleum-based plastic polymer. Hence, the cost of these bags is directly linked to oil prices. FIBC manufacturers are constantly monitoring the oil markets, particularly the Middle East, and if there are problems in these oil-producing nations, production shortage or major pipeline problems, the manufacturers will immediately increase the prices. Therefore, it makes sense to purchase and keep a stock of FIBC bags when you get a good price.
Most FIBC manufacturers are located in developing nations, such as India and Vietnam. These bags are handmade and hence, there is a higher chance of quality issues and manufacturing errors. Furthermore, the cost of starting a manufacturing unit in these nations is much lower than developed nations. So, the other risk is FIBC manufacturers with no knowledge and experience entering into the fray. This is the reason you need an experienced FIBC bulk bag manufacturer and supplier who can assure you of quality and timely deliveries.
When communicating your specifications and needs to the manufacturer, there can be problems. The different time zones, varied measurement units and language barrier can result in expensive design errors that can affect your entire supply chain, thereby proving to be very expensive error.
Risk of Bait and Switch
FIBC bag industry is extremely competitive and it has been observed that unscrupulous FIBC manufacturers often offer clients competitive pricing and superior quality samples to get the order. However, when you actually receive the order, you realize that design, quality or manufacturing is faulty and of low quality. Some of the issues that can arise are using a lower weight fabric and reducing the amount of additive for UV protection. You will not know of the problem until you start using the FIBC bags.
Poor Supplier Logistics
As FIBC bulk bags are manufactured overseas, logistics can be a nightmare. With delayed shipment, you could end up when no bags and this has an adverse effect on your deliveries. Making sure you have adequate inventory is a necessity so that your supply chain is smooth and unaffected even if the FIBC manufacturer’s delivery schedule goes awry.
These are some of the factors related to FIBC bags that can have a profound effect on your supply chain management. Keep these in mind and deal just with reliable and trustworthy FIBC manufacturers such as Rishi FIBC Pvt. Ltd to keep your supply chain management costs within budget.