ENABLING SMART PROCUREMENT

Global Ammonia Category - Procurement Market Intelligence Report

This procurement report offers supplier market insights for strategic sourcing and procurement professionals looking to identify cost-saving opportunities.

  • Published: Nov 2017
  • Pages: 102
  • SKU: IRCMSTR14530
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Key Features of Report

 

Supply Market Insights
Procurement Best Practices
Cost Saving Opportunities
Pricing Models
Negotiation Strategies
Category Risk Analysis
Key Supplier Analysis
Supplier Capability Matrix

 

Ammonia - Category Spend Analysis

According to analysts at SpendEdge, the increasing use of ammonia as a refrigerant in the refrigeration and AC industries is one of the factors driving the growth of the global ammonia market. This can be attributed to its favorable heat transfer properties and lower cost of ammonia-based refrigeration solutions compared with alternatives such as dry ice. Also, the trend of replacing CFCs with non-CFC refrigerants due to environmental concerns regarding their effect on the ozone layer is resulting in increasing adoption of ammonia by the refrigeration and AC industries.  

Ammonia - Procurement Best Practices

One of the procurement best practices for buyers is to build in-house ammonia dilution facilities. Transportation costs are a significant cost component for suppliers, and they represent close to 15% of the total price of ammonia. The transportation of liquid ammonia requires the building of pipelines and renting storage facilities, and the costs are finally passed on to buyers as the cost of the product. As a result, buyers should build in-house dilution facilities and try to procure ammonia in its anhydrous form, as it is easier to transport compared with the liquid state. Additionally, the ammonia procured can be diluted at the in-house dilution facilities, which will help multiply the volumes procured, assisting buyers to save on transportation and logistics costs.

Ammonia - Procurement Challenges

According to this procurement research report, one of the key procurement challenges faced by buyers is the high transportation costs. Suppliers' spend on transportation is close to 15% of the total cost of the product. This includes initial investment in setting up shipping terminals, acquiring storage spaces, and laying pipelines, as production hubs of ammonia are consolidated in a few locations. The cost is partially passed on to buyers, which leads to the escalation of procurement costs for buyers. As a result, high costs on logistics and transportation are leading to higher procurement cost and complexity for buyers. To overcome these challenges and reduce distribution costs, buyers must engage with regional players and build dilution facilities and procure ammonia in its anhydrous form, as it is considerably low in weight and volume compared with the hydrous form, thereby, reducing the transportation cost.

 

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Ammonia is a colorless, gaseous compound with a pungent odor, which is made up of nitrogen and hydrogen. Ammonia is produced naturally by some plants and vegetable matter and is also produced commercially on a large scale. Ammonia is mostly used as a fertilizer, solvent, fuel additive, and an oxidizing agent. This upcoming procurement research report, which is part of SpendEdge’s chemicals category, would provide actionable insights on the pricing strategies, market drivers, procurement best practices, and the supply landscape for the global ammonia market.

Category overview of the global ammonia market

Based on market segments analysts at SpendEdge categorize ammonia into:

  • Fertilizers
  • Pharmaceuticals
  • Refrigeration
  • Chemicals

This upcoming procurement research report on ammonia would provide detailed analysis into the continuously developing supplier landscape to help improve source-to-contract cycle performance. Furthermore, it would help sourcing professionals develop enhanced category strategies, understand supplier and market challenges, boost savings, and implement sourcing best practices.

PART 1: CATEGORY AT A GLANCE

  • TAKEAWAY 01 | Market Overview
  • TAKEAWAY 02 | Demand and Supply Snapshot
  • TAKEAWAY 03 | Key Market Dynamics
  • TAKEAWAY 04 | Supply Market Highlights
  • TAKEAWAY 05 | Pricing Insights
  • TAKEAWAY 06 | Procurement Insights

PART 2:  SCOPE OF THE REPORT

  • Category Definition
  • Research Methodology

PART 3: MARKET INSIGHTS

  • Category Spend Analysis
  • Category Maturity by Regions
  • Demand-Supply Shifts
  • Regional Demand-Supply Snapshot
  • Market Developments
  • Regional Impact of Trends
  • Key Category Growth Drivers and Corresponding Regional Impacts
  • Major Category Growth Constraints and Corresponding Regional Impacts
  • Key Current Technological Innovations
  • Major Regulatory Frameworks
  • Strategic Sustainability Practices
  • Porter’s Five Forces
  • PESTLE Analysis

PART 4: SUPPLY MARKET INSIGHTS

  • Supplier Operational Capability Matrix
  • Other Prominent Suppliers by Region: Operational Capability Matrix
  • Supplier Functional Capability Matrix
  • Other Prominent Suppliers by Region: Functional Capability Matrix
  • Key Clients/Partners
  • Supplier Cost Breakup
  • Supplier Positioning Matrix

PART 5: PRICING INSIGHTS

  • Pricing Models Snapshot
  • Pricing Models – Pros and Cons
  • Indicative Pricing

PART 6: PROCUREMENT INSIGHTS

  • Major Category Requirements
  • Major Procurement Pain Points
  • Category Sourcing Evolution Matrix
  • Procurement Best Practices
  • Cost-saving Opportunities
  • Supplier Selection Criteria
  • Category Negotiation Strategies
  • SLA Terms
  • Supplier Evaluation Criteria
  • Category Risk Analysis

PART 7: TOP FIVE SUPPLIERS

  • CF Industries
  • PotashCorp
  • Yara
  • TogliattiAzot
  • Agrium

PART 8: APPENDIX

  • Glossary
  • Key Notes
  • About Us

Research Framework

SpendEdge presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key category influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.

INFORMATION SOURCES

Primary research

  • Procurement heads
  • Category managers
  • Sourcing consortium professionals
  • Industry experts and thought leaders
  • Procurement managers
  • Category heads of suppliers
  • Client account heads/managers
  • Client and industry consultants

Secondary research

  • Industry journals and reports
  • Periodicals and new articles
  • Category webinars
  • Internal categiry playbooks
  • Industry and government websites on regulations and compliance
  • Internal databases
  • Industry blogs/thought leader briefings

DATA ANALYSIS

SpendEdge INSIGHTS

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