An executive once told me, "Variance is not just a challenge, but an opportunity for management." While variance might create frustration and fear of looking bad for some managers, for others, variance presents an opportunity to create value. Studying variance in your system and solving the root causes leads to enhanced systems, value generation, and a culture of adaptive strategy.
To study and solve variance, reliable data is critical.
Transparent data feeds into informed decision-making, leading to strategies that are both adaptive and innovative. By analyzing trends, customer behaviors, and competitive dynamics, organizations can fine-tune their operations, enhance product offerings, and ultimately achieve a competitive edge. It's the clarity and actionable nature of this data that empowers businesses to transform challenges into stepping stones toward progress and success.
To get a better understanding of this, let's look at some of the data found within Recycled Fiber 360. As we show the data, keep in mind that a $1/st of savings for a typical mill is worth $300,000 in EBITDA over the cycle. This is no small number that should be overlooked, and benchmarking can assist in making sure you don't leave this money on the table.
In the chart below, the share of volume for open market #11 OCC transactions in the US Southeast is displayed—one of the many segments you can analyze in the product. To control for the differences in distances in some mills to their supply, the freight was removed from this price to present a "fiber only" price. Therefore, this chart gives us an "apples-to-apples" view of mills buying fiber.
The data shows that a significant share of mills paid a premium compared to other mills who were able to buy OCC at 10-15% below the market average. Such a large variation indicates a significant opportunity for value. It calls for investigation and action by knowledgeable professionals who can leverage these insights to their advantage.
Recycled Fiber 360 stands apart from other price indexes primarily because it utilizes transaction-based data. This approach offers a more accurate and granular view of market prices, as opposed to indexes that may rely on estimates or aggregated data.
By capturing and reflecting actual transaction prices, Recycled Fiber 360 provides insights that are grounded in real-world trading conditions, such as:
This level of precision enables businesses to make more informed decisions based on genuine market dynamics, rather than survey-based data. It's this unique feature that not only ensures the reliability of the data but also enhances its value as a strategic asset for those looking to gain a competitive advantage in the marketplace.
RecycledFiber360 is the key to unlocking this potential. It places invaluable data and insights at your fingertips, empowering professionals to turn variance from a feared adversary into a trusted ally. With Recycled Fiber 360, you can embark on a journey of growth and value creation, fueled by the power of data. Turn variance into opportunity today with RecycledFiber360.
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