SpendEdge’s Cost Benefit Analysis Helps a Specialty Chemicals Manufacturer Identify the Key Cost Elements

Overview of the Specialty Chemicals Industry

According to a recent research report, the global chemical industry is expected to generate a revenue of over 3 trillion USD with the majority of the contribution coming in from the APAC regions. Typically, the chemical industry includes establishments manufacturing a wide range of products such as agricultural chemicals, specialty chemicals, and commodity chemicals. The increase in technological innovations and chemical proficiency are expected to fuel the growth of this industry in the coming years. Companies within this industry space are also looking forward to realigning their portfolios to improve manufacturing capabilities and generate higher revenues owing to the increase in the M&A activities.

However, the specialty chemicals industry is prone to a face a few challenges, including:

Increasing competition: Over the past few years, the specialty chemicals industry is witnessing competition from other non-traditional sectors including the energy, utilities, and mining. As a result, staying ahead of the competitors is becoming increasingly challenging as firms also face the pressure of customer-centric environment of the industry.
Stringent regulations: The frequent fluctuations in the regulatory compliance are driving firms to migrate toward a better approach to manage the cost of compliance while being cost-effective.

To overcome these challenges, firms within the specialty chemicals space are leveraging the use of cost-benefit analysis studies. Cost-benefit analysis studies help companies reduce expenditures across the supply chain and meet the rising demand of the customers. These solutions also assist firms in gaining a deeper understanding of the cost structure for sourcing and supply chain activities.

The Business Challenge and Journey

The client, a leading manufacturer of specialty chemicals with business operations spread across the globe wanted to evaluate the influence of each cost driver on the overall cost of the products and services. The client wanted to identify the gaps that had to be bridged to increase the uptake of costs. With the help of cost benefit analysis, they also wanted to increase their focus on comparing models to improve the competitive position of the business as their primary aim was to efficiently utilize resources to meet the needs of the target audiences.

To help the evaluate the potential revenues and costs, the cost benefit analysis experts at SpendEdge tailored a comprehensive research methodology. This in-depth research approach included primary and secondary research coupled with qualitative and quantitative data collection procedures. The experts also compiled information from a wide array of secondary sources including company presentations and industry forums within the specialty chemicals industry.

During the course of the cost benefit analysis engagement, the client was able to gather information based on pricing through quantitative and scenario-based cost modeling. They were also recommended to implement a lowest cost mix model to reduce operational costs and calculate the impact of each cost driver on the overall cost.

Fundamental questions answered in this cost benefit analysis study include

The Results

This cost benefit analysis engagement helped the client reduce costs and enhance their overall operational efficiency over time. This engagement also helped the client gain a complete image of the cost developments within the specialty chemicals space.

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Spend Analysis Helps a Fine Chemicals Industry Client Boost Operational Efficiency Across the Supply Chain

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

The Results

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.

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Strategic Sourcing Analysis Helps a Specialty Chemicals Client Reduce Time and Energy Spent on Transactional Activities

Overview of the Specialty Chemicals Industry

Globally, the chemical industry generates a revenue of $3 trillion with a significant chunk of the contribution coming in from the Asian countries. Typically, the global chemical industry comprises of a diverse and complicated range of products such as specialty chemicals, agricultural chemicals, commodity chemicals. The specialty chemicals sector is driven by the increasing technological innovations and chemical expertise. Additionally, with the increase in the number of M&A across the specialty chemicals space, firms are focusing on realigning their offerings to improve competencies and generate higher revenues. Organizations are also increasing their focus on developing their core strengths and acquisitions to drive growth and achieve a higher shareholder value within the specialty chemicals industry.

However, the specialty chemicals sector is prone to a few challenges, including:

Increasing competition: Today, staying ahead of the competitors becomes challenging as the threat of new entrants in the specialty chemicals space is relatively high. This sector is also witnessing competition from non-traditional sectors including the energy, mining, and utilities. To remain ahead of the competition, leading organizations are facing relentless pressures to offer product and service offerings while being cost-effective.
Stringent protocols: Over the past few years, the specialty chemicals industry is witnessing regulations right from the manufacturing, labeling, and handling from the supply to storage of the chemicals. Additionally, the recurrent fluctuations in regulatory compliance are driving firms to migrate toward better ways to manage the cost of compliance.

These factors are compelling firms within the specialty chemicals space to leverage the use of strategic sourcing analysis. Strategic sourcing analysis help firms to speed up the procurement process and ensure the specialty chemicals industry achieve substantial profits. These solutions also assist companies in generating optimal sourcing and procurement measurement tools to drive savings across the supply chain.

Furthermore, the strategic sourcing analysis solutions provided by SpendEdge help clients streamline the procurement process, thereby, ensuring best in class service quality and pricing.

The Business Challenge and Journey

The client, a leading specialty chemicals manufacturer, wanted to identify the right vendors and reduce procurement spends. The client also wanted to balance the increase their focus between strategic aspect and the transactional aspect of procurement with an aim to achieve long-term monetary benefits. Additionally, they were also on a constant lookout for innovative approaches to incentivize their channel partners.

To help the client reduce time and energy spent on transactional activities, the strategic sourcing experts at SpendEdge tailored an integrated research approach. The integrated approach included primary research methodology coupled with qualitative and quantitative data collection procedures. The experts also gathered information from a wide array of secondary sources such as paid, company presentations, industry forums, and industry database within the specialty chemicals space.

With the help of the strategic sourcing analysis engagement, the specialty chemicals client was able to implement new sourcing strategies and devise best practices across business units, thereby, helping them capture early payment discounts and realize higher savings. This engagement also helped them identify and achieve procure to pay (P2P) improvements that would eventually drive financial and product availability benefits.

Key questions answered in this strategic sourcing analysis engagement

The Results

During the course of this strategic sourcing engagement, the specialty chemicals industry client gained actionable insights into the long-term price validity coupled with the clauses to absorb currency fluctuations. This helped them reduce time and energy spent on transactional activities. Additionally, the client was provided with recommendations on a broad range of sourcing categories including supply chain categories, direct material, indirect material, and marketing and sales.

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Supply Chain Analysis Helps a Pulp and Paper Chemicals Industry Giant Optimize their Supply Chain

Overview of the Pulp and Paper Chemicals Industry

The global pulp and paper chemicals industry is expected to proliferate in the coming years owing to the rising demand for specialty papers in packaging as well as printing applications. Recycling in the paper industry increases the demand for different specialty chemicals; thereby, driving the pulp and paper chemicals market. Also, favorable industrial production activities in developing countries strengthen the prospects of the pulp and paper chemical industry. Moreover, the increasing literacy rate especially in emerging economies, such as India, and rising demand for papers with high print performance and quality are expected to drive the pulp and paper chemicals industry.

Let’s look at some of the fundamental factors that will influence the growth prospects of pulp and paper chemicals industry in the coming years.

New raw materials: Plants and grasses should be genetically altered and strategically sourced to reduce pulping costs, unwanted waste products, and maturation times; to enhance desirable fiber properties and yield, and to convert annual growth cycles to perennial. Also, one must keep track of the supply chain risk involved in the sourcing of these new raw materials.
New machinery and processes: In this competitive environment, there is a rare time-window to design manufacturing equipment from the ground up and to incorporate modern technological advances. For instance, the development of high-power, solid-state electronics has made the generation of intense ultrasonic and microwave fields practical and economical. These technologies could help in redesigning pulping and papermaking processes.

These factors are forcing companies operating in the pulp and paper chemicals industry to leverage the use of supply chain analysis to implement an end-to-end follow-up process to resolve any discrepancy across the supply chain. The supply chain analysis solutions also help firms operating in the pulp and paper chemicals space to devise cost-effective and best-in-class product and service offerings to the customers and increase overall profitability.

The Business Challenge and Journey

Our client, a leading player in the pulp and paper chemicals industry was facing serious issues of equipment and capacity shortages. Moreover, a significant increase in plant capacity and volume growth, coupled with a lack in equipment and vessel capacity, meant the client needed a robust, flexible, and a reliable supply chain to maintain their service levels. Therefore, to cope with these growth and capacity issues, the pulp and paper chemicals client worked closely with SpendEdge.

To help the client overcome their supply chain issues, the supply chain analysis experts at SpendEdge, tailored a comprehensive research methodology. The research approach comprised of primary and secondary research coupled with qualitative and quantitative data collection procedures.

During the course of this engagement, the pulp and paper chemicals client was able to analyze their existing domestic distribution network. Additionally, the client gained actionable insights into the scope and deliverables, before choosing an export transloading solution. This also helped them their distribution network less dependent on equipment and vessels.

Key questions answered in this supply chain analysis engagement

The Results

The supply chain solution helped the pulp and paper chemicals client develop a robust, flexible, reliable supply chain to maintain their service levels. Furthermore, the client saved USD 0.6 million in logistics costs and eliminated 4.4 days each year from its supply chain.

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Supply Chain Analysis Helps a Leading Oil and Gas Company Enhance its Operations and Increase Reliability

Business Challenge

An international player in the oil and gas industry space with global production and distribution operations across the globe was facing predicaments with their supply chain network that threatened to disrupt their ambitious growth plans. Additionally, the company was active in multiple product lines, including basic chemicals, polymers, intermediates, fertilizers, metals, and specialties. As a result of this diversity, the oil and gas industry player had an extremely intricate, global production and distribution network with numerous storage locations and modes of transportation for delivering its products to customers.

Engagement Overview

During the course of this supply chain analysis engagement, the oil and gas industry client was able to evaluate their company’s supply chain management capabilities compare with leading practices. Additionally, the client was able to design a strategic blueprint for future supply in six critical areas including operations, planning, sales and customer service, organization structure, performance management, and supply chain network.

Our Findings

The supply chain analysis engagement helped the petrochemical industry client identify numerous improvement opportunities at the functional levels. Additionally, with the help of SpendEdge’s strategy blueprint, the client improved service levels, streamlined operations, and planning processes, enhanced operations, and increased reliability across business units.

Oil and Gas Industry Overview

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Cost Benefit Analysis for An Acrylic Paint Manufacturer

Category Overview

Over the past few years, the growth of the chemical industry has declined due to the large inventory sizing by manufacturers and deteriorating industrial production, especially in the acrylic paint manufacturing space. As a result, leading firms operating in the acrylic paint manufacturing space are forced to provide more dynamic and robust products while being cost-effective. Cost benefit analysis helps players in the acrylic paint manufacturing space to reduce expenditures and meet the rising demand of the customers.

With years offering experience in offering a wide array of cost benefit analysis solutions, SpendEdge helps acrylic paint manufacturers to gain a comprehensive understanding of the cost structure of their supply chain activities. These solutions also help client formulate superior negotiation strategies with suppliers to achieve a competitive edge over the peers operating in the acrylic paint manufacturing space.

The Procurement Pain Point and Insights Offered

A global acrylic paint manufacturer was facing predicaments in recognizing the sourcing and procurement pricing elements and its influence on the overall cost across the supply chain. Also, the client was facing difficulties in ensuring low-cost raw material sourcing. As a result, they wanted to devise a low-cost mix model to cut down on their maverick spends.

SpendEdge’s cost benefit analysis experts personalized a comprehensive research methodology, which involved primary and secondary research methodologies coupled with qualitative and quantitative data collection techniques to cater to the client’s business issue.

This cost benefit analysis engagement helped the acrylic paint manufacturing client to measure the impact of each cost driver on the overall spends and predicted the cost movements across the supply chain. Additionally, the robust, low-cost mix model recommended by SpendEdge enabled the client to cut down on their maverick spends.

Questions answered in this cost benefit analysis study include

Business Outcome

The acrylic paint manufacturing client was able to gain more profound insights into the cost structure of the procurement processes across the supply chain. Additionally, the client was provided with strategic recommendations on devising superior negotiation strategies with the suppliers in this industry space.

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Supply Chain Analysis Helps a Specialty Chemicals Supplier Increase Profitability Across Office Locations

Category Overview

Over the past few years, there has been an increase in the consumption of specialty chemicals owing to the increasing urbanization in emerging countries. According to the analysts at SpendEdge, the construction industry in one of the major contributors to the specialty chemicals industry as these chemicals are used as asphalt additives, sealants and adhesives, protective coatings, and concrete admixtures. However, the high cost involved in procuring these specialty chemicals is one of the factors restricting the growth of this industry. As a result, players operating in the specialty chemicals industry space have started leveraging the use of supply chain analysis to increase their profitability across the supply chain.

Moreover, SpendEdge’s supply chain analysis solutions help specialty chemicals industry clients keep track of the supply chain activities in real-time, thereby creating a robust sourcing and procurement process.

The Procurement Pain Point and Insights Offered

A global client in the specialty chemicals industry space was facing predicaments in assessing their supply chain capabilities and compare it to that of competitors in the industry. The client also wanted to identify their major areas of spend across office locations to reduce the overall costs.

To cater to the specific business requirements of the client, SpendEdge’s supply chain analysis specialists tailored a blended research methodology, which included primary and secondary research coupled with qualitative and quantitative data collection procedures.

This supply chain analysis engagement helped the specialty chemicals client identify their major areas of spend across office locations, consequently helping them gain a competitive edge over peers in the industry and significantly reducing their overall costs across the supply chain. Additionally, the client assessed their supply chain capabilities and compared it to that of their competitors to serve their customers better.

Fundamental questions answered in this supply chain analysis engagement include

Business Outcome

The supply chain analysis engagement helped the specialty chemicals client reduce overall costs and increase profitability across the supply chain. This helped them gain a competitive edge over peers operating in the industry.

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Procurement Intelligence Study Assists a Chemical Industry Client Evaluate Suppliers’ Pricing Strategies

Category Overview

In today’s competitive business scenario, establishments are accelerating at a rapid pace with no limitations. Notably, the global chemical industry is susceptible to price changes, due to the rising need to reduce costs among the target audiences. Hence, to effectively keep track of the expenses, leading procurement organizations in the chemical industry have started leveraging procurement intelligence studies. Additionally, firms operating in the chemical industry space are planning to break stereotypes of not being confined to a region and are heavily investing in expansion strategies to showcase their product offerings.

Moreover, the procurement intelligence solutions offered by SpendEdge, help clients gain a deeper understanding of the key risks, latest developments and trends, and recommendations on devising procurement best practices across the supply chain.

The Procurement Challenge and Insights Offered

A global chemical industry client was facing predicaments in understanding the supply market dynamics, current market position, and potential growth drivers. Additionally, the client wanted to understand the supplier landscape in terms of the dominant players, their supply chain capabilities and facilities, and the supplier diversity programs adopted. They also wanted recommendations on ways to enter into a superior contract negotiation with the current suppliers.

To address the business issue and meet the specific requirement of the client, the procurement intelligence analysts at SpendEdge carried out a blended approach comprising of primary and secondary research.

With the help of this procurement intelligence study, the chemical industry client was able to identify the supplier’s cost and pricing structure and develop a compelling price model analysis to evaluate competitors’ strategies. Additionally, through a comprehensive SWOT analysis, the client developed a list of suppliers in terms of their business profile, financial structure, and revenue.

Fundamental questions answered in this procurement intelligence study include

Business Outcome

This procurement intelligence engagement helped the chemical industry client to identify the potential supplier risks and reduce the overall procurement costs. Additionally, the client gained suggestions to serve customers seamlessly.

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Specialty Chemicals Supplier Leverages Industry Best Practices Study to Formulate Superior Negotiation Strategies

Category Overview

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

Business Outcome

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.

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Supplier Risk Assessment for a Chemical Industry Client Helps Pre-screen Suppliers by Category

Category Overview

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

Business Outcome

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.

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12 Next →

Overview of the Specialty Chemicals Industry

The Business Challenge and Journey

Fundamental questions answered in this cost benefit analysis study include

The Results

To know more about our cost benefit analysis solutions

Overview of the Fine Chemicals Industry

The Business Challenge and Journey

Key questions answered in this spend analysis engagement

The Results

To know more about our spend analysis solutions

Overview of the Specialty Chemicals Industry

The Business Challenge and Journey

Key questions answered in this strategic sourcing analysis engagement

The Results

To know more about our strategic sourcing analysis solutions

Overview of the Pulp and Paper Chemicals Industry

The Business Challenge and Journey

Key questions answered in this supply chain analysis engagement

The Results

To know more about our supply chain analysis solutions

Business Challenge

Engagement Overview

Our Findings

Oil and Gas Industry Overview

Category Overview

The Procurement Pain Point and Insights Offered

Questions answered in this cost benefit analysis study include

Business Outcome

To know more about our cost benefit analysis solutions for acrylic paint manufacturers

Category Overview

The Procurement Pain Point and Insights Offered

Fundamental questions answered in this supply chain analysis engagement include

Business Outcome

To know more about our supply chain analysis solutions

Category Overview

The Procurement Challenge and Insights Offered

Fundamental questions answered in this procurement intelligence study include

Business Outcome

Want to know more about our procurement intelligence solutions for chemical industry?

Category Overview

The Procurement Pain Point and Insights Offered

Fundamental questions answered in this industry best practices study include

Business Outcome

Want to know more about our industry best practices solutions?

Category Overview

The Procurement Pain Point and Insights Offered

Key questions answered in this supplier risk management study include

Business Outcome

Want to know more about our supplier risk management solutions?

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