Overview of the Fine Chemicals Industry
Over the past decade, the chemical industry is experiencing promising growth with a number of M&A activities. Companies operating in the chemical industry are expected to realign their portfolios and focus more on core competencies. The fine chemicals industry is usually classified into a specific group of chemicals that are characterized by their volume and price. Renowned companies in the fine chemicals space are increasing their focus on developing their strengths to drive growth and generate higher shareholder value. Additionally, the competitive pressure to scale across potential market segments and the latest innovations in the chemical industry space is expected to further fuel the growth of the fine chemicals market across the globe.
However, several factors are expected to hinder the growth of the industry in the coming years. Some of these factors include:
- Increasing scrutiny of recalls and quality audits: Organizations across this industry should look to ensure unique production techniques, materials, and packaging to cater to the company’s requirements. Additionally, recalls and quality audits have become a significant concern for fine chemicals firms as the industries need to comply with the regulatory compliance and government-mandated requirements to maintain quality standards.
- Increasing competition: With the rise in number of automotive and construction manufacturing sectors, the fine chemical space is expected to witness robust price pressures to meet the customer demands and stay ahead in the marketplace.
Such factors are compelling companies operating in the fine chemicals space to leverage the use of spend analysis solutions. Spend analysis solutions help firms meet the specific requirements of their customers seamlessly in a cost-effective manner. These solutions also assist companies in measuring and improving business decisions which would subsequently help them decrease maverick spends.
The spend analysis solutions offered by SpendEdge aids companies to gather, identify, cleanse, assemble, categorize and evaluate their spend data with a goal of reducing procurement costs and improving process efficiencies across their business processes.
The Business Challenge and Journey
The client, a leading firm in the fine chemicals space with their network spread across the globe wanted to identify robust sourcing opportunities and reduce unaccounted spending. The client also wanted to boost the transparency and visibility of their business spends and implement a more efficient processing platform to enhance their spend capabilities.
To facilitate enterprise-wide spend visibility while optimizing categorization capabilities, the spend analysis experts at SpendEdge, tailored a comprehensive research methodology. The in-depth research approach comprised of primary and secondary research coupled with qualitative and quantitative data collection procedures.
Through the course of the spend analysis engagement, the fine chemicals client gained better visibility into spending across the board, improved their overall procurement process, gained insights into significant cost savings opportunities and devised a robust negotiation tool for further sourcing strategies. This helped them reduce costs and improve their overall ROI.
Key questions answered in this spend analysis engagement
With the help of the spend analysis solution offered by SpendEdge, the fine chemicals client reduced their overall spend as they achieved procurement efficiency and reduce procurement lead-time. The client also gained the ability to generate accurate and actionable intelligence to drive faster and better-informed decisions.