ENABLING SMART PROCUREMENT

  • Published in: Sep 2017
  • Pages: 95
  • SKU: IRCMSTR14544

Global Palm Oil Category - Procurement Market Intelligence Report

USD1500 USD2500

Single User: Allows a single employee of the organization to access the subscribed reports.

SpendEdge’s procurement research report on the global palm oil market is an all-inclusive guide enabling sourcing and procurement leaders to make smart purchasing decisions. This report provides a strategic analysis of the supply markets, factors influencing purchasing decisions, procurement best practices, pricing models, supplier landscape and an analysis of the supplier capability matrix.

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

 

Palm Oil - Category Spend Analysis

 

According to analysts at SpendEdge, palm oil has become increasingly popular among food companies due to its economical nature and cost-effectiveness when compared to other vegetable oils. This can be attributed to the production process of palm oil, which involves simple steaming and pressing with relatively limited use of expensive solvents for extraction compared with other vegetable oils.  The use of palm oil as a refined oil requires only mild additional processing compared with full refining required in case of other oils, lowering the overall production costs of palm oil.

Additionally, palm oil has a higher yield per hectare than other vegetable oils and is a perennial crop that is harvested year-round, ensuring the availability of palm fruit in bulk. This high productivity makes palm oil profitable at a price below that of other oils. For instance, palm oil produces ten times higher amount of oil per hectare compared with soybean, five times higher compared with rapeseed, and two times higher than coconut

Palm Oil - Procurement Best Practices

 

Buyers should gain greater visibility over the complete palm oil supply chain right from the direct suppliers to farms and plantations to ensure that there is no deforestation involved. They should also work with suppliers, academic experts, industry peers, and NGOs to promote reliable industry standards and practices for justifiable palm oil sourcing.

For instance, P&G, an important palm oil buyer, has laid down ground rules to ensure that they maintain a minimal carbon footprint. The buyer has established traceability of palm oil and palm kernel oil to supplier mills, ensured the submission of plans by suppliers to demonstrate no deforestation in the supply chains, and invested in and worked with small farmers with the aim of improving their farming practices.

Palm Oil - Procurement Challenges

 

According to this procurement research report, a major challenge faced by buyers in the palm oil market is the inadequate supply in seasonal and potentially volatile commodity markets. Seasonal volatility caused due to sudden weather changes such as hurricanes, tsunamis, floods, or drought are recurring in nature and increases price volatility of agricultural commodities, including palm oil. Such sudden weather changes affect crops and interrupt the supply of palm fruit in adequate amounts, extending the lead time between order and fulfillment of the order made for the procurement of palm oil and palm kernel oil. Extended lead time increases price risk as the purchase made during a particular period can have a significant influence on unit costs for a buyer and risk associated with perishability and quality of commodities.

 

SpendEdge also offers customization of this report to meet your exact requirements. Please contact us at enquiry@spendedge.com

Are you an Enterprise User? Try our annual subscription services offering unlimited access to SpendEdge reports. Click here to register for trial/demo.  

Read less

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

 

Palm Oil - Category Spend Analysis

 

According to analysts at SpendEdge, palm oil has become increasingly popular among food companies due to its economical nature and cost-effectiveness when compared to other vegetable oils. This can be attributed to the production process of palm oil, which involves simple steaming and pressing with relatively limited use of expensive solvents for extraction compared with other vegetable oils.  The use of palm oil as a refined oil requires only mild additional processing compared with full refining required in case of other oils, lowering the overall production costs of palm oil.

Additionally, palm oil has a higher yield per hectare than other vegetable oils and is a perennial crop that is harvested year-round, ensuring the availability of palm fruit in bulk. This high productivity makes palm oil profitable at a price below that of other oils. For instance, palm oil produces ten times higher amount of oil per hectare compared with soybean, five times higher compared with rapeseed, and two times higher than coconut

Palm Oil - Procurement Best Practices

 

Buyers should gain greater visibility over the complete palm oil supply chain right from the direct suppliers to farms and plantations to ensure that there is no deforestation involved. They should also work with suppliers, academic experts, industry peers, and NGOs to promote reliable industry standards and practices for justifiable palm oil sourcing.

For instance, P&G, an important palm oil buyer, has laid down ground rules to ensure that they maintain a minimal carbon footprint. The buyer has established traceability of palm oil and palm kernel oil to supplier mills, ensured the submission of plans by suppliers to demonstrate no deforestation in the supply chains, and invested in and worked with small farmers with the aim of improving their farming practices.

Palm Oil - Procurement Challenges

 

According to this procurement research report, a major challenge faced by buyers in the palm oil market is the inadequate supply in seasonal and potentially volatile commodity markets. Seasonal volatility caused due to sudden weather changes such as hurricanes, tsunamis, floods, or drought are recurring in nature and increases price volatility of agricultural commodities, including palm oil. Such sudden weather changes affect crops and interrupt the supply of palm fruit in adequate amounts, extending the lead time between order and fulfillment of the order made for the procurement of palm oil and palm kernel oil. Extended lead time increases price risk as the purchase made during a particular period can have a significant influence on unit costs for a buyer and risk associated with perishability and quality of commodities.

 

SpendEdge also offers customization of this report to meet your exact requirements. Please contact us at enquiry@spendedge.com

Are you an Enterprise User? Try our annual subscription services offering unlimited access to SpendEdge reports. Click here to register for trial/demo.  

PART 1: SUMMARY

  • Research Objectives and Methodology
  • Category Definition

PART 2: CATEGORY AT A GLANCE

  • Market Overview
  • Category Maturity by Regions
  • Preferred Procurement Models and Major Service Providers
  • Cost-saving Opportunities
  • Major Category Requirements
  • Major Procurement Pain Points

PART 3: MARKET INSIGHTS

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

PART 4: SUPPLY MARKET INSIGHTS

  • Supplier Operational Capability Matrix
  • Regional Supplier Operational Capability Matrix
  • Supplier Functional Capability Matrix
  • Regional Supplier Functional Capability Matrix
  • Key Clients
  • Supplier Cost Breakup
  • Supplier Positioning Matrix
  • Supplier Selection Criteria

PART 5: PRICING INSIGHTS

  • Pricing Models Snapshot
  • Pricing Model Pros and Cons
  • Indicative Pricing
  • Category Negotiation Strategies

PART 6: CATEGORY ESSENTIALS

  • SLA Terms
  • Supplier Evaluation Criteria
  • Category Risk Analysis
  • Category Sourcing Evolution Matrix

PART 7: TOP FIVE SUPPLIERS

  • Wilmar
  • Sime Darby
  • Golden Agri-Resources
  • Indofood Sukses Makmur
  • Kuala Lumpur Kepong

 PART 8: APPENDIX

  • Glossary
  • Key Notes
  • About Us
Read less

PART 1: SUMMARY

  • Research Objectives and Methodology
  • Category Definition

PART 2: CATEGORY AT A GLANCE

  • Market Overview
  • Category Maturity by Regions
  • Preferred Procurement Models and Major Service Providers
  • Cost-saving Opportunities
  • Major Category Requirements
  • Major Procurement Pain Points

PART 3: MARKET INSIGHTS

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

PART 4: SUPPLY MARKET INSIGHTS

  • Supplier Operational Capability Matrix
  • Regional Supplier Operational Capability Matrix
  • Supplier Functional Capability Matrix
  • Regional Supplier Functional Capability Matrix
  • Key Clients
  • Supplier Cost Breakup
  • Supplier Positioning Matrix
  • Supplier Selection Criteria

PART 5: PRICING INSIGHTS

  • Pricing Models Snapshot
  • Pricing Model Pros and Cons
  • Indicative Pricing
  • Category Negotiation Strategies

PART 6: CATEGORY ESSENTIALS

  • SLA Terms
  • Supplier Evaluation Criteria
  • Category Risk Analysis
  • Category Sourcing Evolution Matrix

PART 7: TOP FIVE SUPPLIERS

  • Wilmar
  • Sime Darby
  • Golden Agri-Resources
  • Indofood Sukses Makmur
  • Kuala Lumpur Kepong

 PART 8: APPENDIX

  • Glossary
  • Key Notes
  • About Us

Stay connected with us