The Procurement Pain Point
To understand the supplier landscape and the prevailing market prices for tank cleaning services for above ground storage tanks (AST), a world-renowned petroleum company approached SpendEdge to engage in a supplier landscape assessment and should-cost analysis for the various types of tank cleaning services. The procurement market intelligence engagement helped the petroleum company in identifying the key suppliers for tank cleaning services across the target region and gain insights on the various procurement strategies specific to the petrochemicals industry.
The primary objective of this supplier landscape assessment was to help the petroleum company to gain actionable insights into the best methods available for cleaning different types of tanks and provide an assessment of the average cost for cleaning per cubic foot of solids in the tank. Additionally, this supplier landscape assessment and should-cost analysis would also help the petroleum company to eliminate challenges in estimating the cost of cleaning above ground storage tanks, which usually resulted in ambiguous billing.
SpendEdge’s supplier landscape assessment team followed a blended approach of combining secondary research with primary interviews and also tracked the recent procurement trends and developments in the market to meet the specific requirements of procurement heads in the petrochemicals sector. Moreover, to understand the market’s short- and long-term growth in the region under focus, our procurement market intelligence experts also carried out discussions with industry experts and key stakeholders.
Procurement Insights Offered and the Outcome
To address the specific requirements of the client, SpendEdge deployed a team of supplier landscape assessment specialists, working directly under a project manager with substantial experience in conducting similar types procurement market intelligence projects. By following a blended methodology consisting of primary and secondary data collection followed by data analysis and should cost model development, our procurement experts conducted a comprehensive cost analysis and supplier landscape assessment study, which helped the petroleum company to gain insights into the supply landscape for tank cleaning services across the target region and their market prices.
In just five weeks, SpendEdge’s supplier landscape assessment team was able to help the petroleum company to understand the best methods available for cleaning different types of tanks and gain insights on the average cost for cleaning per cubic foot of solids in the tank. Additionally, the supplier landscape assessment solution offered by us also helped the client identify various key suppliers for tank cleaning in the target region and gain an understanding of their key offerings or capabilities, geographic coverage, and price range to make robust decisions.
Some of the additional insights offered by this supplier landscape assessment include
- Development of a list of components of a typical molten salt tank
- Development of a preliminary cost model
- Supply market data collection (qualitative and quantitative)
- Assessment for the weight of each cost component or driver
- Assessment of the impact of labor costs (location specific)
- Data model validation and scenario analysis to check the robustness of the developed cost model
This case study offers information on how our supplier landscape assessment helped a global petroleum refining and marketing company understand the supply landscape for tank cleaning services.
Want to know more?