The 90-Day Resin Contract Renewal Playbook for Buyers

Most resin buyers lose leverage before negotiations even start. They wait for supplier renewal quotes, scramble to validate pricing with limited data, and accept terms under deadline pressure. The result: margins erode, unfavorable clauses slip through, and opportunities for cost savings vanish.

But contract renewals don't have to be reactive. With a structured 90-day approach, mid-market buyers can flip the tables: gathering intelligence, building leverage, and negotiating from a position of strength. This playbook breaks down exactly what to do at each phase to maximize your renewal outcomes.

Why 90 Days? The Strategic Advantage of Early Preparation

Industry best practices consistently recommend starting contract renewals 60-90 days before expiration. For resin buyers, this timeline isn't arbitrary. It's the minimum window needed to shift from reactive to strategic positioning. Here’s why:

Suppliers expect last-minute negotiations

Most suppliers issue renewal quotes 60-90 days out, banking on buyers having limited time to validate pricing or explore alternatives. Starting at 90 days puts you ahead of their timeline, giving you control over the pace and structure of discussions.

Market conditions change rapidly

Feedstock costs (propylene for PP, ethylene for PE) can swing weekly, dragging contract pricing with them. A 90-day window gives you time to analyze trends, identify favorable negotiation windows, and avoid signing during market peaks.

Data gathering takes time

Building a defensible negotiation position means collecting transaction data, benchmarking against market indices, documenting supplier performance, and aligning internal stakeholders. This work can't be squeezed into two weeks without sacrificing quality or creating internal bottlenecks.

So, starting at 90 days doesn't just reduce stress. It fundamentally changes your negotiating power from reactive acceptance to strategic control.

Phase 1: Day 0-30 — Gather Data & Build Your Business Case

The first 30 days are about intelligence gathering. Your goal is to enter negotiations with a complete picture of your current costs, market conditions, and supplier performance. This phase sets the foundation for everything that follows.

Audit Your Current Contract (Days 0-5)

Begin with a comprehensive review of your existing agreement. And don't just skim. Instead, analyze every provision that could impact your negotiating position:

• Pricing mechanisms: Are you on index-plus, fixed pricing, or cost-plus? How are adjustments calculated and triggered? Many contracts allow price changes when variance hits 3-7% from baseline.
• Volume commitments: What are your minimum order quantities (MOQs) and annual volume commitments? Are you meeting them, exceeding them, or falling short?
• Termination clauses: What are your notice periods? Are there auto-renewal provisions that could lock you in if missed?
• Performance obligations: What quality standards, delivery timelines, and service levels did your supplier commit to? Document where they've met or missed these targets.
• Hidden costs: Identify ancillary fees like freight, fuel surcharges, minimum order penalties, and handling charges. These can add 2-5% to your total landed cost.
• Force majeure provisions: Review allocation language and understand what happens during supply disruptions. Are you protected, or does all risk fall on you?

Benchmark Against Market Reality (Days 5-15)

This is where most buyers lack leverage: they don't know if they're overpaying. Close this intelligence gap by benchmarking your current pricing against multiple data sources.

Published indices: Compare your prices to ICIS, Chemical Data Inc. (CDI), and Platts benchmarks for your specific grades. Note the lag time—most indices publish weekly or monthly, meaning they may not reflect real-time spot movements.

Spot market pricing: Track current transactional prices through a purpose-built platform like ResinSmart. Spot prices are a leading indicator of contract pricing direction.

Verified transaction data: If you have access to platforms that aggregate real buyer transactions (again, like ResinSmart), use this to establish true fair market pricing free from supplier influence.

Feedstock cost trends: For PP, track propylene monomer (PGP) costs. For PE, monitor ethylene prices. These fundamentals drive producer margins and negotiating leverage.

Regional differentials: Account for freight, basis adjustments, and regional supply-demand dynamics. A price that's fair on the Gulf Coast may be expensive in the Midwest.

Document the gap between what you're paying and what the market indicates you should pay. A 5-10% variance is common and represents immediate savings opportunity.

Evaluate Supplier Performance (Days 15-20)

Create a scorecard evaluating your supplier across key performance indicators (KPIs):

• On-time delivery rate: Calculate the percentage of orders delivered as promised. Industry benchmarks suggest 90%+ is acceptable.
• Quality defect rate: Track defects per million units or percentage of rejected shipments.
• Lead time consistency: Measure average lead time and variance. Longer or more variable lead times impact your production planning.
• Compliance rate: How well did the supplier adhere to contracted terms regarding pricing adjustments, documentation, and invoicing accuracy?
• Responsiveness: Document instances where the supplier was accommodating during urgent needs, allocation periods, or problem resolution.
• Supply reliability: Did they maintain supply during tight markets or force majeure events? Contract customers should receive priority over spot buyers during allocations.

Poor performance in any of these areas can be leverage in your renewal negotiations, either for price concessions or improved service-level agreements.

Analyze Internal Consumption Patterns (Days 20-25)

Understanding your own buying behavior is just as important as understanding the market:

• Volume trends: Are you buying more or less than forecasted? Growing volume gives you negotiating leverage; declining volume may expose you to MOQ penalties.
• Grade mix: Which resin grades represent the largest spend? Focus your negotiation efforts where dollars are concentrated.
• Seasonality: Identify demand peaks and valleys. This insight helps you negotiate flexible delivery terms or volume commitments.
• Alternative applications: Where could you substitute grades or suppliers to create competitive pressure?
• Forecast accuracy: Evaluate how well your forecasts matched actual consumption. Better forecasting strengthens your position when negotiating volume commitments.

Engage Key Stakeholders (Days 25-30)

Contract renewals shouldn't be a solo effort. Align internal stakeholders early to ensure your negotiation strategy reflects enterprise-wide priorities:

• Operations/Production: What are their pain points with current supply? Do they need shorter lead times, better quality, or different packaging?
• Finance: What budget constraints or savings targets apply? Are payment terms negotiable (ex.net 30 vs. net 60)?
• Legal/Compliance: Are there any regulatory or contractual risks that need to be addressed?
• Quality Assurance: What technical specifications or testing protocols matter most?
• Senior Leadership: What strategic priorities should guide the renewal: cost reduction, supply security, or sustainability commitments?

Document stakeholder input and prioritize negotiation objectives. This creates a unified front and prevents internal disagreements during critical negotiation moments.

Build Your BATNA (Day 30)

Your Best Alternative to a Negotiated Agreement (BATNA) is your walk-away power. Without a credible alternative, you have no leverage. Strengthen your BATNA by:

• Identifying alternative suppliers: Who else can supply your grades at competitive pricing? Get preliminary quotes.
• Evaluating spot market viability: Could you temporarily buy spot if contract negotiations fail?
• Assessing substitution options: Can you use alternative resin grades or reformulate products to reduce dependency?
• Calculating the cost of switching: What are onboarding costs, qualification timelines, and potential production disruptions?

You don't need to switch suppliers, but knowing you could can completely change the negotiation dynamic.

Phase 2: Day 30-60 — Create Leverage & Test Positioning

You've done the homework. Now it's time to convert data into leverage and position yourself for favorable terms. This phase is about creating competitive pressure, refining your strategy, and opening preliminary discussions.

Initiate Early Supplier Dialogue (Days 30-35)

Don't wait for the supplier to start the conversation. Reach out proactively to signal that you're managing this renewal strategically.

Express intent to renew—conditionally: Make it clear you value the relationship and that renewal is contingent on competitive terms.

Share volume forecasts: Provide realistic projections to help the supplier plan capacity. Growing volume is leverage; stable or declining volume requires emphasizing relationship value.

Identify pain points diplomatically: Raise any performance issues as opportunities for improvement, not ultimatums.

Request preliminary pricing: Ask for an early look at renewal terms. This buys you time to validate and strategize before the official quote.

Early engagement positions you as a sophisticated, prepared buyer—not someone who can be pressured at deadline.

Introduce Competitive Pressure (Days 35-40)

Even if you don't plan to switch suppliers, creating the perception of alternatives significantly strengthens your position.

Issue a Request for Information (RFI): Reach out to 2-3 alternative suppliers to gather preliminary pricing and terms. You're not committing, but just gathering market intelligence.

Leverage secondary quotes: Use competitive pricing as a benchmark to validate your current supplier's renewal offer.

Signal openness to change: Mention that you're "evaluating all options" or conducting a "market sounding." Suppliers take this seriously.

Remember, competition is the most powerful negotiation tool available. Even single-source buyers can create pressure by demonstrating they've explored alternatives.

Develop Your Negotiation Strategy (Days 40-45)

With data gathered and stakeholders aligned, it’s time to build your formal negotiation strategy:

• Define non-negotiables: What terms are you unwilling to compromise on (ex. price caps, allocation guarantees, payment terms)?
• Identify trade-off priorities: Where can you be flexible in exchange for wins elsewhere? For example, can you accept a slightly longer contract term for deeper discounts?
• Prepare concession points: Plan what you'll offer (ex. volume commitments, longer payment terms) in exchange for what you want (price reductions, improved SLAs).
• Anticipate supplier objections: What will they push back on? Prepare counterarguments with data.
• Determine your walk-away point: At what price or terms does renewal no longer make sense?

Effective negotiation is about preparation, not improvisation. Map out multiple scenarios so you can adapt in real-time.

Assemble Your Negotiation Brief (Days 45-50)

Create a comprehensive negotiation brief that serves as your playbook:

• Executive summary: One-page overview of objectives, current costs, and target outcomes.
• Market analysis: Charts and data showing current pricing trends, feedstock movements, and supply-demand dynamics.
• Supplier scorecard: Visual representation of performance metrics.
• Cost benchmarking: Side-by-side comparison of your current pricing vs. market benchmarks.
• Competitive alternatives: Summary of alternative supplier quotes and terms.
• Negotiation targets: Specific asks (e.g., "Reduce base price by 7%," "Implement rolling 30-day forecasts," "Add allocation protection clause").
• Concessions you'll offer: What you're willing to trade.

This brief becomes your reference during negotiations and helps keep discussions data-driven rather than emotional.

Schedule Formal Negotiation Meetings (Days 50-55)

Timing matters. Schedule your primary negotiation sessions during this window to leave room for follow-up discussions before the contract expires:

• Initial meeting (Days 50-55): Present your data, articulate your position, and request the supplier's formal renewal proposal.
• Follow-up meeting (Days 65-70): Respond to the supplier's proposal, negotiate specific terms, and work toward alignment.
• Final meeting (Days 75-80): Close remaining gaps, finalize terms, and prepare for contract execution.

Don’t forget to build in buffer time. That way, if you hit an impasse, you have room to escalate, explore alternatives, or get internal approvals.

Communicate Internally (Days 55-60)

Keep stakeholders informed as you enter active negotiations:

• Share the negotiation brief to ensure leadership understands your strategy and targets.
• Set expectations about realistic outcomes (you may not achieve every objective).
• Prepare for escalations by identifying who has the authority to make final decisions if concessions are needed.

Maintaining internal alignment prevents last-minute disagreements that could weaken your negotiating position.

Phase 3: Day 60-90 — Negotiate, Finalize & Execute

The final 30 days are about execution. You've built leverage, gathered data, and positioned yourself strategically. Now it's time to close the deal on terms that protect your margins and strengthen your supply chain.

Conduct Primary Negotiation (Days 60-70)

Enter negotiations with confidence, knowing you've done the work. Follow these tactical principles:

Lead with data, not emotion: Reference your benchmarking, performance scorecards, and market analysis. Objective data is harder to refute than subjective claims.

Frame it as win-win: Emphasize mutual benefit. For example: "A competitive price ensures we can grow our business, which means more volume for you."

Use anchoring: State your target price or terms first to set the negotiation range.

Deploy strategic concessions: When you give something up, always get something in return. Never make unilateral concessions.

Introduce time pressure (strategically): Reference your deadline, but don't let the supplier use it against you. If they stall, remind them that you're evaluating alternatives.

Ask open-ended questions: "What would it take to get to our target price?" forces the supplier to problem-solve with you.

Watch for red flags: Be alert to vague language, hidden fees, unfavorable allocation clauses, or auto-renewal provisions buried in fine print.

Negotiation is iterative. Expect multiple rounds before reaching alignment.

Address Contract Terms Beyond Price (Days 70-75)

Price matters, but other contract terms can make or break the value of your agreement as well:

• Pricing adjustment mechanisms: Ensure transparency in how and when prices change. Lock in index methodology (ICIS, CDI) and adjustment triggers.
• Volume commitments vs. flexibility: Negotiate realistic MOQs and annual commitments. Include provisions for volume variances (e.g., +/- 15%).
• Allocation protection: Secure priority access during supply disruptions or tight markets. Contract customers should receive preference over spot buyers.
• Force majeure clauses: Ensure these are balanced. Both parties should have relief during unforeseeable events, but not as a blanket excuse for non-performance.
• Payment terms: Negotiate favorable terms (ex. net 60 instead of net 30) if cash flow is a priority. Some suppliers offer early payment discounts.
• Termination rights and notice periods: Understand your exit options. Avoid contracts that lock you in without reasonable termination clauses.
• Quality standards and testing: Define acceptable quality metrics and procedures for handling defects or non-conformance.
• Delivery and lead times: Lock in commitments on order fulfillment timelines and penalties for late delivery.

Don't rush this phase. Every clause you negotiate now prevents disputes later.

Finalize and Validate Terms (Days 75-80)

Before signing, conduct a thorough validation to ensure no surprises:

Compare final terms to your objectives: Did you achieve your primary goals? Where did you compromise, and was it worth it?

Legal review: Have your legal team review the contract for compliance, ambiguity, and risk.

Financial modeling: Run scenarios to ensure the new pricing and terms align with your budget and margin targets.

Stakeholder sign-off: Obtain approvals from operations, finance, and leadership.

Clarify any ambiguities: If language is vague (ex. "reasonable time," "satisfactory condition"), request specific definitions.

Validation is your last line of defense against costly mistakes.

Execute and Document (Days 80-85)

With terms finalized, move quickly to execute:

• Formal contract signing: Ensure all parties sign and date the agreement. Use digital signing tools to expedite.
• Update internal systems: Upload the new contract to your contract management platform, update pricing in your ERP, and notify relevant teams.
• Communicate changes internally: Brief stakeholders on new terms, pricing, and any operational changes.
• Establish performance tracking: Set up dashboards or processes to monitor supplier compliance with the new contract.

Post-Renewal Best Practices (Days 85-90+)

The work doesn't end at signature. Protect the value you negotiated by implementing post-renewal disciplines:

Continuously monitor supplier performance: Track delivery, quality, and pricing compliance against contracted terms.

Conduct quarterly business reviews: Meet with your supplier to review performance, address issues, and discuss forecasts.

Track market conditions: Continue benchmarking pricing and monitoring feedstock trends. If market prices drop significantly, renegotiate or invoke contractual adjustment clauses.

Document lessons learned: What worked well in this renewal? What would you do differently next time? Build institutional knowledge.

Set reminders for next renewal: Mark your calendar for 90 days before the next expiration to avoid scrambling again.

Common Renewal Mistakes to Avoid

Unfortunately, even with a structured process like the one we’ve laid out, buyers can still stumble. That’s why we’ve also gathered this list of potential pitfalls to stay aware of:

Waiting too long to start: Starting with less than 60 days leaves you reactive and weakens your leverage. Suppliers know you're under pressure and adjust their terms accordingly.

Neglecting data gathering: Negotiating without benchmarking and performance data is like flying blind. You have no basis to challenge supplier pricing or push for better terms.

Ignoring stakeholder input: Renewals without cross-functional alignment lead to suboptimal outcomes and internal friction. Operations may need different terms than finance prioritizes.

Accepting the first offer: Suppliers expect negotiation. Their initial proposal rarely represents their best terms, and accepting too quickly leaves money on the table.

Focusing only on price: Overlooking terms like allocation protection, volume flexibility, and force majeure can cost you more than a price increase when markets tighten.

Failing to create competition: Without alternatives, you have no leverage. Always explore other options, even if you don't intend to switch.

Missing notice periods: Auto-renewal clauses can lock you in if you miss the termination notice deadline. Review these dates at Day 0 of your 90-day process.

Not reading the fine print: Hidden fees, vague language, and unfavorable clauses often hide in boilerplate sections. Every clause matters during a dispute.

ResinSmart Supports Every Phase of Resin Contract Renewal

Obviously, executing this 90-day playbook requires real-time data, market intelligence, and expert guidance. ResinSmart's platform is purpose-built to support resin buyers through each phase of the renewal process.

Days 0-30 (Data Gathering):

• Access unbiased pricing benchmarks informed by 3B+ lbs of real buyer transactions, not supplier-influenced indices.
• Track feedstock trends, supply-demand dynamics, and market indicators through an interactive analytics hub.
• Validate whether you're overpaying with ResinSmart's "fair price" and "best price" benchmarks.

Days 30-60 (Building Leverage):

• Use quarterly pricing forecasts grounded in transaction data to anticipate market movements and time your negotiations.
• Leverage weekly market updates with 30/60/90-day buying recommendations to inform your strategy.
• Tap into expert advisory from resin-buying professionals with an average of 30 years of industry experience.

Days 60-90 (Negotiation & Execution):

• Arm yourself with ready-to-use visuals and reports for supplier negotiations.
• Gain confidence knowing your positions are backed by verified, real-world pricing data.
• Set up renewal alerts and performance tracking to prepare for the next cycle.

ResinSmart levels the playing field, giving mid-market buyers the same intelligence and leverage that enterprise teams enjoy.

Ready to level the playing field for your next resin contract renewal? ResinSmart gives you the benchmarks, forecasts, and expert insights to negotiate with confidence. Schedule a demo today and see how leading buyers use real transaction data to cut costs and strengthen supplier negotiations.