The AOP Buyer Power Score is a new content offering created in partnership with ProcurementIQ that rates the balance of power between buyers and sellers for a particular spend category
Today we are reviewing packing tape.
The Buyer Power Score for packing tape is 3.6 out of 5, with 1 signifying low buyer power and 5 meaning high buyer power. The more power a buyer has the greater leverage they have to get lower prices and better contract terms.
This Buyer Power Score suggests mixed conditions for buyers, with a small lean in their favor. Product specialization is not usually an issue, which lowers switching costs, and opens the door to substitutes – including imports. However, prices are rising and supply chain risk (especially with regard to imported substitutes), creating negotiating headwinds for buyers.
How to Use this Information
The price of packing tape has been driven up by the pandemic-fueled explosion of ecommerce, but it was already on an upward trend, with increases each year for the last three years. That trend is expected to continue through at least 2024, suggesting that buyers may want to lock in prices via extended-term contracts before prices increase further. There are also multiple viable alternatives to packing tape, including staples, other types of tape, and glue, and depending on the requirement, buyers may want to evaluate these in addition to alternate providers of their current packing tape specification.
We have partnered with ProcurementIQ to dig into their treasure trove of over 1,000 indirect category intelligence reports, with new insights every Friday. To dig deeper into the packing tape category, click here.