Identifying Savings Through The Strategic Sourcing of Commodity Chemicals
Strategic Sourcing for Commodity Chemicals can be a daunting task, but Source One can help
The sourcing of direct materials such as chemicals can be incredibly time consuming and cumbersome for internal procurement and sourcing groups.
Besides being highly complex and specification driven, strategic sourcing for chemicals provides several other unique challenges including; geographically-driven pricing, high base ingredient quality standards, an evolving global marketplace, product and supplier consistency, and risks of supply loss and disruption.
Add in the burden of managing your other daily responsibilities and developing sustainable chemical supplier relationships, and at the end of the day there simply isn’t that much time left to properly source your chemical spend.
Source One is here to help. Utilizing our strategic sourcing consulting services for commodity chemicals, Source One can leverage your internal resources and supplement them with our time, our market intelligence and our own resources to ensure you are getting the best price from the best supplier at the highest quality in the right lead-time.
Strategic Sourcing Services for Commodity Chemicals: Evaluating Supplier Services and Pricing
We help you identify the best chemical suppliers and improve the relationship and price with your existing chemical suppliers. Whether it is speaking with your incumbent suppliers or qualifying chemical supplier alternates in the market, Source One’s chemical sourcing team concentrates on your individual needs and a core set of factors in order to evaluate potential suppliers/distributors and their offerings. These factors include:
- Individual chemical and non-chemical product and service diversity and portfolio
- Ability to meet the unique qualitative and quantitative requirements of your organization and your chemical specifications
- Location of supplier’s chemical or base ingredient distribution centers and product lead times to each of your facilities
- Ability to provide just-in-time delivery – on a 24/7 schedule – to keep your production line moving with minimal carry and holding costs
- Competiveness in price and index tracking methodology
- Payment terms and ancillary fees such as delivery, fuel, energy, and tote maintenance/replacement surcharges
- Ability to hold and manage chemcial product inventory – consignment, VMI, and tank telemetry services
- Chemical Supplier or chemcial distributor specialized value-added benefits
Procurement departments face the daily challenges of ensuring timely delivery of chemicals while keeping track and mitigating fluctuating pricing. Source One’s strategic sourcing team qualifies and establishes a base of dependable and best-in-class suppliers, giving you the tools to increase your department’s efficiency and the much needed breathing room to deal with the inevitable last minute orders.
Strategic Sourcing Services for Commodity Chemicals: The Source One Approach
Our strategic sourcing team has more than two decades’ experience successfully sourcing a variety of products across hundreds of categories for our clients in the manufacturing, agricultural, food, and personal care industries. This has included many chemical-related categories, such as:
- Bulk Petrochemicals & Intermediates
- Inorganic Industrial Chemicals
- Organic Industrial Chemicals
- Fragrances & Flavors
- Specialty Chemicals and Enzymes
Our chemical sourcing experts develop an individual strategy for each client and carries out a thorough market assessment to generate as detailed a profile possible of each target supplier, gather pricing quotations, and capturing the current state of the market. We streamline the product comparison process by gathering and managing specification sheets, COAs, MSDAs, and other necessary certifications.
Our strategic sourcing group then leverages our internal database of price points gathered from decades of sourcing events, along with current market intelligence during the negotiation and contracting phase of the initiative, to realize savings through cost reductions and program concessions. Substantial chemical savings can be achieved with the implementation of tiered and performance based rebate programs, which our sourcing teams can negotiate for you with the supplier. Our chemical strategic sourcing team is also experienced in negotiating additional value adds such as extended payment terms, inventory management, and comprehensive training programs, which are never overlooked in the course of our strategic sourcing initiatives for our clients.
We work with you to implement new pricing with incumbent chemical suppliers to achieve immediate savings without having to go to market, and our strategic sourcing team assists in managing alternate supplier facility evaluation visits and new product testing for sustainable relationship development and long term savings.
Chemical markets are constantly moving, and keeping track and understanding how to leverage your spend volume in an ever-changing environment can be difficult and time consuming. Using our database of market intelligence and subject matter expertise, Source One’s strategic sourcing team can quickly identify and implement the cost savings opportunities that make the most sense for your organization.
Contact us today to learn more about how we can help your company get the best chemicals at the best price.