Over the years, the global chemical industry has experienced strong M&A activities as companies are pursuing growth, realigning their portfolios, and increasing their focus on core competencies. Additionally, the growth of this industry can be attributed to the increasing urbanization in developing nation, which is driving infrastructure and public housing projects. However, according to the supplier risk management experts at SpendEdge, the fluctuating prices of raw materials and selecting the right supplier in this industry are some of the factors responsible for the sluggish growth of this market.
Consequently, to gain a stronger foothold in this market space, chemical industry companies across the globe have started opting for supplier risk management studies to pre-screen suppliers by category and develop better negotiation strategies.
The Procurement Pain Point and Insights Offered
A leading chemical industry firm wanted to trim down the list and build a due diligence plan. They also wanted recommendations on a risk-based approach to manage this issue. The chemical industry client also wanted to gain regular updates on the performance of the key suppliers and keep themselves informed about the latest developments in the supply market.
The supplier risk management experts at SpendEdge conducted a comprehensive research methodology, which included primary and secondary research and qualitative and quantitative data collection methods to cater to the specific business requirements of the client. During the course of this supplier risk management study, the client was able to determine the level of due diligence to conduct on the higher-risk suppliers based on dollar spend and location. The client also gained insights into the performances of the key suppliers and the latest developments in the supply market. They also gained recommendations on a strategic risk-based approach to trim down the extensive list of suppliers and select the right suppliers by category.
Key questions answered in this supplier risk management study include
The supplier risk management solution helped the chemical industry client pre-screen suppliers by category and develop better negotiation strategies across the supply chain. Also, the due diligence map helped them build a smaller list of suppliers in particular categories.