Over the years, the growth of the specialty chemicals industry has been influenced by the increasing urbanization in emerging countries. This, in turn, has increased the consumption of specialty chemicals in the construction industry, where it is used as sealants and adhesives, asphalt additives, protective coatings, and concrete admixtures. However, according to the industry best practices specialists at SpendEdge, the fluctuating changes in prices of raw materials is contributing to the sluggish growth of the specialty chemicals industry.
Subsequently, to enhance their foothold in this market space, players in the specialty chemicals industry across the globe have started opting for industry best practices studies to understand the cost structure across the supply chain and formulate superior negotiation strategies with the suppliers.
The Procurement Pain Point and Insights Offered
A prominent player in the specialty chemicals industry wanted to identify the pricing elements across the supply chain to formulate better negotiation strategies with the suppliers. The client also wanted to evaluate the impact of each cost element on the overall cost. Additionally, they also wanted to gain a deeper understanding of the negotiation levers implemented by suppliers to ensure low-cost raw material sourcing and procurement strategies. Furthermore, the client also wanted suggestions on devising the lowest cost mix strategy to reduce maverick spend.
To cater to the precise category requirements of the client, SpendEdge’s industry best practices specialists carried out a blended research methodology, which included primary and secondary research coupled with qualitative and quantitative data collection methodologies.
During the course of this industry best practices engagement, the specialty chemicals industry client was provided with the benchmarks of peer group companies and their key suppliers to enhance their competitive position. Additionally, the client was also able to optimize and streamline their techniques to improve their procurement activities across the supply chain.
Fundamental questions answered in this industry best practices study include
This industry best practices engagement helped the specialty chemicals client formulate a superior negotiation strategy with their suppliers and cut down overall costs. Additionally, the client implemented best-in-class sourcing and procurement strategies across the supply chain.