How do I create an Index in the Index Builder?
Table of Contents
How do I create an Index in the Index Builder?
There are several ways to create an Index with your desired options:
1. Select from the library of index templates
- Specific to packaging type, material used, and other indicators.
- Benchmark portion (%) of package price corresponding to material based on external research.
2. Build an index from scratch
- Navigate directly to edit, without any pre-populated selections.
3. Quick navigation via saved library
- As indices are built, it populates a library below the template menu, which offers one-click navigation to each one of them.
- Users may delete saved indices by clicking x.
Index Name
Cost basis selection
Materials percentage should only reflect the part of the paper(board) cost to the converter (in form of sheeted paper(board) for those that are usually sold in this format).
You may ask your converter/corrugator for the breakdown between his paper material and converting cost to update the Materials and Converting percentage. Overhead/Profit/Other will calculate automatically to reach 100% in total.
Converting and Overhead/Profit/Other remain flat values throughout the contract period in the Index Builder. E.g. a contract starting at $100/1,000 pc, 15% of which covers converting costs, will maintain a $15 converting cost throughout the contract period. Fastmarkets does not have enough insight into the evolution of the converting cost to show it in detail.
The Start Date Month and Start Date Year can be based on current supplier contract start or last contractual cost adjustment.
Contract Costs can be based on original package unit cost or on last contractual cost adjustment. It can also be built to show simple percentage changes by entering 100 and Index rather than a currency