The Importance of Dual Specification in the Modern Plastics Supply Chain
In today’s complex and unpredictable global supply chain, securing the availability of critical materials is more important than ever. Dual specification is an increasingly popular strategy for mitigating supply chain risks and ensuring production continuity. Especially given the uncertainty related to global trade policy and evolving tariffs on imports and exports. But what exactly is dual specification, and why is it so essential to plastics manufacturers?
What is Dual Specification?
Dual specification refers to the practice of qualifying two or more resins or suppliers to provide material for the same end product. This ensures that a manufacturer can continue to operate and meet critical production needs even if a material is unavailable. By qualifying multiple resins, the manufacturer has an alternative option that meets the same technical and regulatory standards, preventing business disruption. Managing supply chain risk is immensely important in the plastics industry. Going through the dual specification process means you are not reliant on resin availability to do business.
Why is Dual Specification Important?
The last five years have highlighted the vulnerability of global supply chains, with significant disruptions arising from a range of factors. COVID-19, geopolitical tensions and extreme weather events are just some examples that have impacted plastics manufacturers. Mitigating supply chain risk is critical to maintaining uninterrupted production and fulfilling customer demand. We have seen so many world-disrupting events in recent years that manufacturers are motivated to check all the boxes that can reduce risk. Dual specification is one of those boxes.
The unpredictability of global logistics and the supply of raw materials has increased interest in dual specification. Logistics issues such as labor strikes and port congestion can delay shipment of raw materials while extreme weather events like hurricanes or ice storms can halt production of materials manufactured in affected areas. Having multiple qualified resins can safeguard manufacturers against these disruptions by ensuring access to an alternate supplier or material source.
A notable example of the importance of dual specification came during the COVID-19 pandemic. Healthcare OEMs were rushing to meet the high demand for testing devices but had only qualified one material for the job. As a result, the healthcare OEMs and other manufacturers using the same material faced supply shortages.
Had the healthcare OEMs or other manufacturers qualified an alternative product during the design phase, they could have mitigated the supply chain risks and continued production without interruption.
What are the Benefits of Dual Specification?
There are two main benefits of qualifying alternative resins.
- Supply Chain Security: Supply chain security is the primary benefit of dual specification. The availability of raw materials like resins can be influenced by a range of unpredictable factors, including natural disasters, strikes and geopolitical instability. Having multiple suppliers or products specified ensures that production can continue even when one material becomes unavailable.
- Flexible Sourcing and Cost: Dual specification allows for greater flexibility when it comes to sourcing materials. Manufacturers can compare prices between different suppliers and choose the most cost-effective option at any given time. This benefits manufacturers by allowing procurement teams to select the lowest-cost material based on market conditions. Additionally, being able to bid with multiple suppliers and measure products against one another helps manufacturers negotiate better terms.
When Should Dual Specification Take Place?
Manufacturers can begin the dual specification process at any time in a product’s lifecycle, although the ideal time is during the development stage. This allows manufacturers the flexibility to design for multiple material options and choose the most appropriate products for their application.
Qualifying an alternative resin can take between 18 and 36 months, which is why it’s best to have a backup resin in place before you need it.
What to Consider When Qualifying an Alternative Resin
It is important to consider several factors when choosing alternative resins or suppliers.
- Production Location: To safeguard against production delays, consider where the resin is coming from. For example, if a hurricane shuts down the Gulf of Mexico where many resins are produced, it can be beneficial to have a secondary supplier in Canada that can provide resin until the original facility is back online. If new tariffs make importing resin less cost-effective, a domestic alternative can keep costs stable. Choosing alternative resins from different regions or even countries can be beneficial to avoid tariffs and delays related to international supply routes.
- Supplier Variation: Qualifying resins from different suppliers helps mitigate risks related to business closure, products being discontinued, decreased production capacity and the geographic location of the supplier.
- Regulatory Compliance: Regulatory considerations must be met in both a primary and any secondary qualified resins.
The Strategic Advantage of Dual Specification
In an increasingly volatile global supply chain environment, dual specification is more than just a backup plan — it’s a strategic move to ensure continuity, flexibility and resilience. By qualifying multiple suppliers or materials upfront, manufacturers can mitigate risks associated with disruptions in logistics, production and material shortages. By proactively embracing dual specification, manufacturers can build a more robust supply chain.