The growth of the chemical industry across the globe is largely determined by developments in China, which accounts for more than a third of the global production. Additionally, it has also been noted that this industry has experienced strong M&A activities over the years as companies pursued growth opportunities, focused on core competencies, and rearranged their product portfolios. However, this cyclical industry is feeling the pinch of reduced demand across agriculture and energy markets. Furthermore, concerns over China’s future growth also poses a serious issue for the key stakeholders in this market space. Consequently, to gain more information on how to deal with such challenges, many chemical companies have started opting for procurement market intelligence studies to gain a deeper understanding of the key risks, latest trends and developments, and procurement best practices.
The Procurement Pain Point and Insights Offered
A chemical firm wanted to measure the organization’s overall effectiveness and identify opportunities for improvement. They also wanted to assess their overall procurement competence and define a new operating model. Furthermore, they also wanted to gain insights on a better strategy to enter into a contract negotiation with the current suppliers.
The procurement market intelligence analysts at SpendEdge carried out an in-depth industry analysis and followed a blended research methodology to cater to the specific category requirements of the client. During the course this study, the client was offered the baseline data required for the procurement transformation through our benchmarking analysis. Additionally, the client was also offered a structured framework for sourcing the chemicals and developing long-term strategies with the suppliers. Furthermore, the client was also given insights on the effective strategies to enter into a contract negotiation with the current suppliers.
Key questions answered in this competitive pricing study include
This procurement market intelligence study helped the client double their value creation and significantly increase customer satisfaction levels. Additionally, the client was also given insights on suppliers pricing, cost structure, and price model analysis. SpendEdge’s procurement market intelligence study also helped the client revamp the processes and improve their overall procurement capability by changing the way they worked.